Accolade(US:ACCD)2021-01-08 03:56Financial Data and Key Metrics Changes - Revenue for Q3 2021 was $38.4 million, representing a 30% year-over-year growth, exceeding guidance by $1.4 million [18] - Adjusted EBITDA loss was $11.4 million, an improvement from $13.8 million in the prior year [20] - Adjusted gross margin was 41.8%, roughly flat compared to 41.1% in the prior year [18] Business Line Data and Key Metrics Changes - Strong momentum was observed across all market segments and product offerings, with record additions of new customers and members [8] - The company reported a 2x ROI for a customer in their first year, indicating effective service delivery [8] Market Data and Key Metrics Changes - The company has seen significant engagement and satisfaction levels among members, particularly in response to COVID-19 services [14] - The partnership with LabCorp Pixel for COVID testing at home has been launched, indicating a proactive approach to market needs [9] Company Strategy and Development Direction - The company aims to position itself as a leader in integrated and collaborative healthcare, focusing on total population health [12] - Investments are being made in evidence-based clinical programs to enhance customer outcomes and reduce costs [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's competitive position, stating that the healthcare system's challenges have created a significant demand for their services [10] - The company is optimistic about future growth, with guidance for Q4 2021 revenue expected to be between $51 million and $54 million [22] Other Important Information - The company raised top-line guidance for the fiscal year by $3 million, reflecting strong performance and customer engagement [10] - Cash and cash equivalents at the end of Q3 totaled $418.9 million, with no debt outstanding [20] Q&A Session Summary Question: Inquiry about fourth quarter guidance and performance-based fees - Management confirmed that performance-based fees are typically recognized in the fourth quarter, aligning with healthcare spend finalization [26] Question: Visibility on achieving performance-based fees compared to annual contract value - Management acknowledged the unusual year due to the pandemic but maintained a conservative outlook on guidance [29] Question: Discussion on new customer launches and their impact on guidance - Management highlighted strong growth in new bookings and customer launches, contributing to the raised guidance [31] Question: Thoughts on revenue growth shaping up for next year - Management expressed bullishness on long-term growth targets, tempered by current economic conditions [35] Question: Update on the partnership with Ginger - Management reported strong demand and positive early indications from the partnership aimed at integrating physical and mental health [42] Question: Impact of price transparency rules on care navigation - Management views the new transparency rules as an opportunity to enhance their value proposition by providing more granular data [66] Question: Discussion on competitive landscape and increased competition - Management noted that while competition exists, the fundamental approach of building trusted relationships remains a differentiator [62] Question: Impact of airlines bringing back furloughed employees on guidance - Management maintained conservatism in guidance due to uncertainty around the timing and number of returning employees [68]