Accolade Inc. Outshines Estimates in Q3 Earnings, Projects 20% Sales Growth for FY25

$ACCD(ACCD)

Accolade Inc. (NASDAQ: ACCD), a leading healthcare technology and services company, reported its financial results for the fiscal third quarter (Nov) ended November 30, 2023, surpassing both top and bottom-line estimates.

The company announced a loss of $0.28 per share for Q3, which was $0.17 better than the estimated loss of $0.45 per share. Revenues also exceeded expectations, rising 9.3% year-over-year to $99.37 million, compared to the estimated $96.16 million.

Despite the positive Q3 results, Accolade issued downside guidance for Q4 (Feb), projecting revenues of $121.5-125.5 million, slightly lower than the estimated $126.36 million.

Looking ahead to the fiscal year ending February 28, 2025 (FY25), Accolade expects revenue growth of approximately 20%, implying $493.2-498.0 million based on the company's FY24 expectation of $411-451 million. This revenue projection is higher than the estimated $493.3 million, indicating a positive outlook for the company's growth trajectory.

CEO Rajeev Singh stated, As we head into the new year, Accolade continues to define the future of how healthcare should be experienced in this country. Our unique combination of people and technology is creating a new model for improving health outcomes and helping our more than 10 million members live healthier lives.

CFO Steve Barnes added, Accolade exceeded both top and bottom line guidance this quarter as we continue to execute consistently across the business. On the strength of our new bookings and the utilization trends we are experiencing, we are raising our guidance for fiscal year 2024 and affirming our expectation for approximately 20% revenue growth and Adjusted EBITDA between 2% - 4% in fiscal year 2025.

Investors may find Accolade's upward revision of its fiscal year 2024 guidance encouraging, as well as its expectations for positive Adjusted EBITDA in the fourth quarter and next fiscal year. The company's focus on improving health outcomes and providing a better healthcare experience for its more than 10 million members is expected to contribute to its future growth.

Accolade's Q3 earnings report reflects the company's ongoing efforts to deliver positive results and improve its financial performance. The company's ability to outperform expectations and maintain a strong outlook for the future is a testament to its ability to execute its business strategy effectively.

In conclusion, Accolade Inc.'s Q3 earnings report highlights the company's impressive financial performance, strong growth projections, and commitment to providing a better healthcare experience for its members. Investors should closely monitor Accolade's progress as it continues to execute its growth strategy and achieve its revenue and Adjusted EBITDA targets.