Accolade Announces Results for Fiscal First Quarter 2025

June 27, 2024

SEATTLE, June 27, 2024 (GLOBE NEWSWIRE) -- Accolade, Inc. (NASDAQ: ACCD) today announced financial results for the fiscal first quarter ended May 31, 2024.

“Accolade's physician-led advocacy approach to solving the Physician Gap is increasing accessibility to healthcare and improving outcomes for the millions of lives we service. We will continue to push our leadership in Healthcare AI and a proven engagement model that is driving sustainable and profitable growth. Our focus remains on delivering a superior member experience and executing against our long term objectives to make an impact of all of our members' lives,” said Rajeev Singh, Accolade Chairman of the Board of Directors and Chief Executive Officer.

Financial Highlights for Fiscal First Quarter ended May 31, 2024

 Three months ended May 31, % Change(2)
  2024   2023  
 (in millions, except percentages)  
GAAP Financial Data:     
Revenue$110.5  $93.2  18%
Net loss$(27.6) $(38.4) 28%
Non-GAAP Financial Data(1):     
Adjusted EBITDA$(3.3) $(12.6) 73%
Adjusted Gross Profit$52.8  $40.6  30%
Adjusted Gross Margin 47.8%  43.5%  

(1) A reconciliation of GAAP to non-GAAP results has been provided in this press release in the accompanying Financial Tables. An explanation of these measures is also included below under the heading "Non-GAAP Financial Measures."

(2) Percentages are calculated from accompanying Financial Tables and may differ from percentage change of numbers in Financial Highlights table due to rounding.

Steve Barnes, Accolade Chief Financial Officer, commented, “Accolade continues to execute against our primary objective of delivering profitable growth and positive Adjusted EBITDA this year. We are de-risking our full year revenue forecast and focusing our investments on margin expansion and revenue opportunities that support our profitability objectives.”

Financial Outlook

Accolade provides forward-looking guidance on revenue and Adjusted EBITDA, a non-GAAP financial measure.

For the fiscal second quarter ending August 31, 2024, we expect:

  • Revenue between $104 million and $106 million
  • Adjusted EBITDA loss between $8 million and $10 million

For the fiscal year ending February 28, 2025, we expect:

  • Revenue between $460 million and $475 million
  • Adjusted EBITDA between $15 million and $20 million

Accolade has not reconciled guidance for Adjusted EBITDA to net loss, the most directly comparable GAAP measure, and has not provided forward-looking guidance for net loss, because there are items that may impact net loss, including stock-based compensation, that are not within the company’s control or cannot be reasonably predicted.

Quarterly Conference Call Details

The company will host a conference call today, June 27, 2024 at 4:30 p.m. E.T. to discuss its financial results.
To Listen via Telephone: Pre-registration is required by the conference call operator. Please pre-register by clicking here ( Upon registering, you will be emailed a dial-in number, direct passcode and unique PIN.

To Listen via Internet: The conference call can be accessed via a live audio webcast that will be available online at

Replay: A replay of the call will be available via webcast for on-demand listening shortly after the completion of the call, at

Forward-Looking Statements

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, as amended. These forward-looking statements include statements regarding our future growth and our financial outlook. Forward-looking statements are subject to risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “maintain,” “might,” “likely,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will,” “would,” or similar expressions and the negatives of those terms.

Important risks and uncertainties that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the risks described under the heading “Risk Factors” in Accolade’s most recently filed Annual Report on Form 10-K and subsequent filings, which should be read in conjunction with any forward-looking statements. All forward-looking statements in this press release are based on information available to Accolade as of the date hereof, and it does not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made, except as required by law.

About Accolade, Inc.

Accolade (Nasdaq: ACCD) is a Personalized Healthcare company that provides millions of people and their families with exceptional healthcare experiences so they can live their healthiest lives. Accolade’s employer, health plan, and consumer solutions combine virtual primary care and mental health, expert medical opinion, and best-in-class care navigation. These offerings are built on a platform that is engineered to care through predictive engagement of population health needs, proactive care that improves outcomes and cost savings, and by addressing barriers to access and continuity of care. Accolade consistently receives consumer satisfaction ratings of over 90%. For more information, visit Follow us on LinkedIn, Twitter, Instagram and Facebook.

Investor Contact:

Todd Friedman, Investor Relations,

Media Contact:

Public Relations,

Source: Accolade

Financial Tables

Accolade, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (unaudited)
(In thousands, except share and per share data)

 May 31, 2024 February 29, 2024
Current assets:   
Cash and cash equivalents$188,709  $185,718 
Marketable securities 41,931   51,315 
Accounts receivable, net 20,278   21,800 
Unbilled revenue 7,433   5,902 
Current portion of deferred contract acquisition costs 4,252   4,369 
Prepaid and other current assets 12,656   15,808 
Total current assets 275,259   284,912 
Property and equipment, net 19,652   19,140 
Operating lease right-of-use assets 27,114   28,340 
Goodwill 278,191   278,191 
Intangible assets, net 156,524   165,407 
Deferred contract acquisition costs 8,534   9,608 
Other assets 2,095   2,553 
Total assets$767,369  $788,151 
Liabilities and stockholders’ equity   
Current liabilities:   
Accounts payable$8,139  $13,749 
Accrued expenses and other current liabilities 11,065   10,736 
Accrued compensation 22,037   23,392 
Due to customers 11,264   18,552 
Current portion of deferred revenue 38,745   34,770 
Current portion of operating lease liabilities 7,192   6,651 
Total current liabilities 98,442   107,850 
Loans payable, net of unamortized issuance costs 208,790   208,482 
Operating lease liabilities 24,613   26,077 
Other noncurrent liabilities 157   156 
Deferred revenue 102   121 
Total liabilities 332,104   342,686 
Commitments and Contingencies   
Stockholders’ equity   
Common stock par value $0.0001; 500,000,000 shares authorized; 78,841,570 and 78,070,781 shares issued and outstanding at May 31, 2024 and February 29, 2024, respectively 8   8 
Additional paid-in capital 1,516,982   1,499,603 
Accumulated other comprehensive loss (34)  (47)
Accumulated deficit (1,081,691)  (1,054,099)
Total stockholders’ equity 435,265   445,465 
Total liabilities and stockholders’ equity$767,369  $788,151 

Accolade, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations (unaudited)
(In thousands, except share and per share data)

 Three months ended May 31,
  2024   2023 
Revenue$110,466  $93,226 
Cost of revenue, excluding depreciation and amortization 58,611   54,203 
Operating expenses:   
Product and technology 26,309   25,899 
Sales and marketing 28,194   25,033 
General and administrative 16,008   16,080 
Depreciation and amortization 10,392   11,640 
Total operating expenses 80,903   78,652 
Loss from operations (29,048)  (39,629)
Interest income (expense), net 1,697   921 
Other income (expense) 94   390 
Loss before income taxes (27,257)  (38,318)
Income tax benefit (expense) (335)  (91)
Net loss$(27,592) $(38,409)
Net loss per share, basic and diluted$(0.35) $(0.52)
Weighted-average common shares outstanding, basic and diluted 78,119,493   73,179,994 
Other comprehensive income:   
Unrealized income on marketable securities, net$13  $ 
Comprehensive loss$(27,579) $(38,409)

The following table summarizes the amount of stock-based compensation included in the condensed consolidated statements of operations:

 Three months ended May 31,
  2024  2023
Cost of revenue, excluding depreciation and amortization$898 $911
Product and technology 7,572  6,966
Sales and marketing 3,240  3,826
General and administrative 3,600  2,575
Total stock-based compensation$15,310 $14,278

Accolade, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows (unaudited)
(In thousands)

 Three months ended May 31,
  2024   2023 
Cash flows from operating activities:   
Net loss$(27,592) $(38,409)
Adjustments to reconcile net loss to net cash used in   
Operating activities:   
Depreciation and amortization expense 10,392   11,640 
Amortization of deferred contract acquisition costs 1,416   1,116 
Noncash interest expense 308   440 
Accretion of discounts/premiums on marketable securities, net (603)   
Stock-based compensation expense 15,310   14,278 
Changes in operating assets and liabilities, net of effect of acquisitions:   
  Accounts receivable and unbilled revenue (9)  396 
  Accounts payable and accrued expenses (5,351)  (1,690)
  Deferred contract acquisition costs (226)  (891)
  Deferred revenue and due to customers (3,333)  8,052 
  Accrued compensation (1,354)  (11,718)
  Other liabilities 303   (1,131)
  Other assets 3,619   (1,370)
    Net cash used in operating activities (7,120)  (19,287)
Cash flows from investing activities:   
Maturities of marketable securities 10,000    
Capitalized software development costs (1,242)  (2,500)
Purchases of property and equipment (713)  (877)
    Net cash provided (used) in investing activities 8,045   (3,377)
Cash flows from financing activities:   
Proceeds from stock option exercises 122   2,459 
Proceeds from employee stock purchase plan 1,944   1,992 
    Net cash provided by financing activities 2,066   4,451 
    Net increase (decrease) in cash and cash equivalents 2,991   (18,213)
Cash and cash equivalents, beginning of period 185,718   321,083 
Cash and cash equivalents, end of period$188,709  $302,870 
Supplemental cash flow information:   
Interest paid$578  $769 
Fixed assets and capitalized software included in accounts payable$97  $506 
Other receivable related to stock option exercises$  $84 
Income taxes paid$830  $53 

Non-GAAP Financial Measures

In addition to our financial results determined in accordance with GAAP, we use the following non-GAAP financial measures to help us evaluate trends, establish budgets, measure the effectiveness and efficiency of our operations, and determine employee incentives. We believe that non-GAAP financial information, when taken collectively, may be helpful to investors because it provides consistency and comparability with past financial performance. However, non-GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. In addition, other companies, including companies in our industry, may calculate similarly-titled non-GAAP measures differently or may use other measures to evaluate their performance. A reconciliation is provided below for each non-GAAP financial measure to the most directly comparable financial measure stated in accordance with GAAP. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures, and not to rely on any single financial measure to evaluate our business. In evaluating these non-GAAP financial measures, you should be aware that in the future we expect to incur expenses similar to the adjustments in this presentation. Our presentation of non-GAAP financial measures should not be construed as an inference that our future results will be unaffected by these expenses or any unusual or nonrecurring items.

Adjusted Gross Profit and Adjusted Gross Margin

Adjusted Gross Profit is a non-GAAP financial measure that we define as revenue less cost of revenue, excluding depreciation and amortization, and excluding stock-based compensation and severance costs. We define Adjusted Gross Margin as our Adjusted Gross Profit divided by our revenue. We believe Adjusted Gross Profit and Adjusted Gross Margin are useful to investors, as they eliminate the impact of certain noncash expenses and allow a direct comparison of these measures between periods without the impact of noncash expenses and certain other nonrecurring operating expenses.

Adjusted EBITDA

Adjusted EBITDA is a non-GAAP financial measure that we define as net income (loss) adjusted to exclude interest expense (income), net, income tax expense (benefit), depreciation and amortization, stock-based compensation, acquisition and integration-related costs, goodwill impairment, change in fair value of contingent consideration, severance costs, and other expense (income). Severance costs include severance payments related to the realignment of our resources. Other expense (income) includes debt extinguishment gain or loss and foreign exchange gain or loss. We believe Adjusted EBITDA provides investors with useful information on period-to-period performance as evaluated by management and comparison with our past financial performance. We believe Adjusted EBITDA is useful in evaluating our operating performance compared to that of other companies in our industry, as this measure generally eliminates the effects of certain items that may vary from company to company for reasons unrelated to overall operating performance.

Adjusted Gross Profit, Adjusted Gross Margin and Adjusted EBITDA have certain limitations, including that they exclude the impact of certain non-cash charges, such as depreciation and amortization, whereas underlying assets may need to be replaced and result in cash capital expenditures, and stock-based compensation expense, which is a recurring charge.

The following table presents, for the periods indicated, a reconciliation of our revenue to Adjusted Gross Profit:

 Three months ended May 31,
  2024   2023 
 (in thousands, except percentages)
Revenue$110,466  $93,226 
Cost of revenue, excluding depreciation and amortization (58,611)  (54,203)
Amortization of acquired intangible assets, cost of revenue (7,013)  (7,015)
Depreciation of property and equipment, cost of revenue (1,074)  (946)
GAAP gross profit$43,768  $31,062 
GAAP gross margin 39.6%  33.3%
GAAP gross profit$43,768  $31,062 
Amortization of acquired intangible assets, cost of revenue 7,013   7,015 
Depreciation of property and equipment, cost of revenue 1,074   946 
Stock‑based compensation, cost of revenue 898   911 
Severance costs, cost of revenue    634 
Adjusted Gross Profit$52,753  $40,568 
Adjusted Gross Margin 47.8%  43.5%

The following table presents, for the periods indicated, a reconciliation of our Adjusted EBITDA to our net loss:

 Three months ended May 31,
  2024   2023 
 (in thousands)
Net loss$(27,592) $(38,409)
Adjusted for:   
Interest income, net (1,697)  (921)
Income tax expense 335   91 
Depreciation and amortization 10,392   11,640 
Stock‑based compensation 15,310   14,278 
Acquisition and integration‑related costs(1)    27 
Severance costs(2)    1,102 
Other income (94)  (390)
Adjusted EBITDA$(3,346) $(12,582)

(1) For the three months ended May 31, 2023, acquisition and integration-related costs represent expenses associated with litigation inherited through the PlushCare acquisition.
(2) Severance costs represent expenses associated with workforce realignment actions taken by management.