Accolade(US:ACCD)2021-07-09 03:39Financial 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]