Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended May 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-39348 ACCOLADE, INC. (Exact name of registrant as specified in its charter) Delaware (State or Other Jurisdiction of Incor ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended February 28, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-39348 ACCOLADE, INC. (Exact name of registrant as specified in its charter) Delaware (State or Other Jurisdiction of Incorporation or Organizat ...

Accolade, Inc. (NASDAQ:ACCD) Q4 2022 Earnings Conference Call April 28, 2022 4:30 PM ET Company Participants Todd Friedman - SVP, IR Rajeev Singh - CEO Steve Barnes - CFO Shantanu Nundy - Chief Medical Officer Conference Call Participants Michael Cherny - Bank of America Ryan Daniels - William Blair Jonathan Young - Credit Suisse Glen Santangelo - Jefferies Jeff Garro - Piper Sandler Ricky Goldwasser - Morgan Stanley Cindy Matson - Goldman Sachs Ryan MacDonald - Needham Sandy Draper - Guggenheim Stephanie D ...

Financial Data and Key Metrics Changes - The company generated $83.5 million in revenue for Q3 2022, representing a 117% year-over-year growth on a GAAP basis, significantly beating the top end of guidance [25] - Adjusted gross margin for Q3 was 47%, up from 41.8% in the prior year period, reflecting positive revenue performance and investments in staffing [28] - Adjusted EBITDA loss for Q3 was $11.9 million, compared to a loss of $11.4 million in the same quarter last year, ahead of guidance due to performance guarantee revenue timing and lower spending [29] Business Line Data and Key Metrics Changes - On a pro forma basis, revenue growth was 44% year-over-year, with Accolade Advocacy growing by 45%, Accolade Expert MD by 28%, and direct-to-consumer virtual primary care (PlushCare) by 53% [27] - The company added over 20 new enterprise customers for Accolade Advocacy and Accolade Expert MD, indicating strong demand for integrated services [13] Market Data and Key Metrics Changes - The addressable market has expanded from $24 billion to over $200 billion, with the customer base growing from 100 to more than 600, representing over 10 million members [10] - The company has diversified its customer base, with no single customer now representing more than 10% of total revenues, compared to 25% at the time of the IPO [11] Company Strategy and Development Direction - The company is committed to delivering 25% topline growth and aims for adjusted EBITDA breakeven by fiscal 2025 at approximately $600 million in revenue [18] - The strategy includes expanding partnerships with health plans and enhancing the integrated offerings to drive customer engagement and satisfaction [17][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory, emphasizing the importance of integrated healthcare solutions and the company's commitment to treating healthcare as a human right [19][22] - The management acknowledged the challenges posed by the current healthcare environment but remains focused on long-term growth and profitability [21] Other Important Information - The company expects Q4 revenue to be in the range of $90 million to $93 million, representing a year-over-year growth rate of 138% [32] - For fiscal 2023, revenue is projected to grow approximately 25% to about $385 million, with adjusted EBITDA loss expected to improve to about 11% to 12% of revenues [37] Q&A Session Summary Question: Insights on the growth profile and executive hires - Management highlighted the positive growth in the middle market and the addition of key executives to enhance customer satisfaction and service delivery [58][60] Question: Clarification on EBITDA expectations - Management confirmed that the EBITDA loss for fiscal 2022 is expected to be around $50 million, with improvements anticipated in fiscal 2023 [64][65] Question: Impact of customer relationship decisions on growth - Management explained the decision to walk away from a low-margin customer relationship, emphasizing a focus on core business areas that align with strategic goals [70][72] Question: Trends in performance guarantees and customer interest - Management noted increased customer interest in performance guarantees, which are tied to the value provided through integrated offerings [90][91] Question: Future of in-person care and collaboration with virtual services - Management discussed the importance of collaboration between virtual and in-person care, highlighting partnerships with laboratories and pharmacies to enhance service delivery [97][100]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended November 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-39348 ACCOLADE, INC. (Exact name of registrant as specified in its charter) Delaware (State or Other Jurisdiction of ...

Financial Data and Key Metrics Changes - The company generated $73.3 million in revenue for Q2 2022, representing approximately 100% year-over-year growth on a GAAP basis, exceeding guidance by $2.3 million [22] - Adjusted EBITDA for Q2 2022 was a loss of $19.4 million, compared to a loss of $8.7 million in the prior year [25] - Fiscal Q2 adjusted gross margin was 40.9%, down from 43.3% in the prior year, reflecting investments in staffing [24] Business Line Data and Key Metrics Changes - The company added new customers across all market segments, including notable brands like Tory Burch and Artisan Partners [7] - Accolade Care, a new primary care and mental health solution, signed its first customers shortly after its announcement [8] - The company expanded its addressable market by 10x to over $200 billion since its IPO [8] Market Data and Key Metrics Changes - The demand environment for the company's solutions remains strong, with new customer additions and upgrades across various segments [7] - The company noted a significant milestone with PlushCare achieving over 100,000 subscribers on its direct-to-consumer platform [24] Company Strategy and Development Direction - The company is focused on reinventing the healthcare market through new solutions like Accolade Care and Accolade One, which aim to deliver personalized healthcare [9][10] - The strategy emphasizes a shift from fee-for-service to value-based care, aiming to improve patient experience and health outcomes while lowering costs [11][12] - The company is building a virtual forward personalized healthcare platform, integrating various capabilities to enhance care delivery [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth and market opportunities, despite challenges posed by the labor market and the Delta variant [27] - The company plans to continue investing in its offerings while maintaining financial discipline [27] - Management highlighted positive feedback from customers regarding the personalized healthcare category and the potential for significant relationship growth [27] Other Important Information - The company announced the acquisition of HealthReveal, which aims to enhance care delivery by ensuring physicians have access to the latest evidence-based guidelines [19] - The rebranding of Accolade Expert MD and Accolade Advocacy reflects the evolution of the company's offerings to include more integrated capabilities [18] Q&A Session Summary Question: Understanding the economics for Accolade One and customer feedback - Management clarified that Accolade One will have a fees-at-risk model, allowing for upside potential based on performance, with initial pilot customers already engaged [36][38] Question: EBITDA guidance update and incremental costs - Management indicated that the unchanged EBITDA guidance reflects additional investments in marketing and product development, rather than material impacts from labor costs [40][41] Question: Overview of selling season activity levels - Management reported strong customer signings across all segments, with significant interest in new offerings following the EVOLVE event [44][46] Question: Competitive environment in virtual primary care - Management acknowledged competition from established telemedicine providers but emphasized the unique integrated capabilities of Accolade Care that differentiate it in the market [72][73]

Financial Data and Key Metrics Changes - Revenue for Q1 2022 was $59.5 million, representing a 66% year-over-year increase [23][9] - Adjusted EBITDA loss was $12.8 million, compared to a loss of $9.4 million in the prior year [25][23] - Adjusted gross margin improved to 40.2% from 38.3% year-over-year [25][23] Business Line Data and Key Metrics Changes - The integration of 2nd.MD and PlushCare is underway, with early cross-sell successes noted [10][6] - Member NPS scores for expert medical opinion remain historically high above 90 [11] - Significant customer wins included McKesson and a Fortune 50 insurance company [12][10] Market Data and Key Metrics Changes - The company is seeing increased interest in mental and behavioral health solutions, particularly through partnerships with Ginger and PlushCare [14][15] - The selling season is positive, with notable renewals and new business across all customer segments [11][12] Company Strategy and Development Direction - The company aims to create a fully integrated healthcare experience that prioritizes consumer needs [8][22] - The strategy includes expanding primary care offerings and enhancing the integration of advocacy and expert medical opinion services [15][8] - The focus is on delivering value-based care and improving clinical outcomes through a rich set of tools [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the integration of acquisitions and the potential for enhanced customer value [6][7] - The current healthcare environment presents opportunities for growth, particularly in addressing employee engagement and healthcare needs post-COVID [60][61] - The company anticipates continued strong growth from 2nd.MD and PlushCare, with guidance for fiscal year revenue between $300 million to $305 million [28][27] Other Important Information - Cash, cash equivalents, and marketable securities totaled $425.5 million at the end of Q1 [26] - The company expects adjusted EBITDA loss for fiscal 2022 to be in the range of $49 million to $54 million [28][27] Q&A Session Summary Question: Observations about the selling cycle and customer interest post-acquisitions - Management noted that customers are looking for integrated solutions to navigate complex healthcare systems, and feedback has been positive regarding the value proposition of the acquisitions [33][34] Question: Insights on cross-sell success and customer traits - Cross-sell success was observed among existing customers evaluating 2nd.MD prior to the acquisition, indicating strong understanding of the value of second opinions [40][41] Question: Impact of performance guarantees and revenue recognition - The $1 million pull forward in revenue was expected to occur later in the fiscal year but was recognized in Q1 due to strong performance [46][45] Question: Investments for integration and their impact on financials - Significant investments are being made in integration, technology, and sales and marketing, which will impact gross margins and adjusted EBITDA [53][52] Question: Competitive landscape and customer evaluation processes - Customers are increasingly seeking comprehensive solutions to avoid vendor fatigue, with a focus on value-driven outcomes [64][63]