HealthCare Solutions Co. Gains 8 Million New Members in 2021

January 14, 2022

Source: Streetwise Reports   01/11/2022

Accolade Inc. shares rose 27% after the company reported Q3/22 financial results that included a 117% increase in YoY revenue. The firm highlighted that in calendar year 2021, its membership increased four-fold from 2 million to 10 million.

accolade

After U.S. markets closed for trading yesterday, Accolade Inc. (ACCD:NASDAQ), which provides personalized, technology-enabled solutions to help individuals understand and navigate the healthcare system and their plan benefits, announced financial results for the third quarter of 2022 ended November 30, 2021.

The company reported that revenue in Q3/22 increased by 117% to $83.5 million, compared to $38.4 million in Q3/21. The firm indicated that net income during the same period increased by 236% to $22.5 million, versus a net loss of $16.6 million in the prior year’s corresponding quarter.

Accolade’s CEO Rajeev Singh commented, “It is remarkable for me to look back at the last twelve months and consider Accolade’s transformation from a navigation and advocacy company to a personalized healthcare company. In January 2021, we were serving about 100 customers and 2 million members. Today, with the integration of primary care, mental health and expert medical opinion from our acquisitions of PlushCare and 2nd.MD, we now serve more than 600 customers and 10 million members, having added more than 200 customers since combining our companies.”

“With the January 1 launch of our first customers on Accolade Care and Accolade One, we have completed the transition from a company that focused solely on providing navigation, guidance, and recommendations to our members, to a dramatically more impactful company that has all the capabilities to deliver an end-to-end care journey that can transform the healthcare experience,” Singh added.


Free Reports:

Top 5 Companies Added to Our Stock Watch List this Quarter - Here are the Stock Symbols that stood out so far in the fourth quarter of 2021.





Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.





The company’s CFO Steve Barnes remarked, “The strong outperformance was largely driven by earlier than expected achievement of approximately $7 million of performance-based revenue, including $2.5 million that was previously included in our third quarter guidance. This revenue recognition is a direct result of Accolade’s continued success in delivering measurement-based outcomes for our customers.”

The company offered some forward guidance on a non-GAAP basis and indicated that for Q4/22 it expects revenue will be in the range of $90-93 million. During the same period, the firm stated that it estimates adjusted EBITDA will be between $(4) million and $(8) million.

The company noted that it is updating it FY/22 forecasts and raising its revenue estimates from prior estimates of $303-307 million to $306-$309 million. The firm also raised its FY/22 estimates for adjusted EBITDA to between $(48) million and $(52) million.

In addition, Accolade provided its estimates for FY/23 calling for a 25% growth in annual revenue compared to FY22. The company stated that it expects adjusted EBITDA will be approximately 11-12% of revenue.

CFO Barnes commented further stating, “As we enter the fourth quarter with a more integrated suite of offerings and expanded go to market motion, we are beginning to see the positive impact of combining Accolade, 2nd.MD and PlushCare.”

Barnes added that the firm remains focused on improving bottom line performance and is striving towards reaching breakeven levels in adjusted EBITDA in FY/25.

Accolade works to provide millions of people with personalized, data-driven navigational tools to improve and utilize their healthcare plans. Using best-in-class care navigation, the company helps members optimize their care choices through a combination of virtual primary care, mental health support and expert medical opinion services. The firm seeks boost consumer satisfaction by improving health outcomes and lowering medical costs.

Accolade began the day with a market cap of around $1.3 billion with approximately 66.66 million shares outstanding and a short interest of about 6.6%. ACCD shares opened 15% higher today at $22.03 (+$2.89, +15.10%) over yesterday’s $19.14 closing price. The stock has traded today between $21.63 and $24.90 per share and is currently trading at $24.22 (+$5.08, +26.54%).

Disclosure:
1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.

2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.

3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.

4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

6) This article does not constitute medical advice. Officers, employees and contributors to Streetwise Reports are not licensed medical professionals. Readers should always contact their healthcare professionals for medical advice.