Accolade(US:ACCD)2021-10-08 03:07Financial 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]