Accolade (ACCD) 14 Oct 202021 Q2 Earnings call transcript

Ladies and gentlemen, thank you for standing by and welcome to the Accolade Second Quarter 2021 Earnings Results Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today’s conference is being recorded. [Operator instructions] I'd now like to turn the conference to your speaker today, Todd Friedman. sir. ahead go Please

on is Officer, Investor I the the forward Relations. the Chief and will With you This Executive Officer are week Rajeev Medical Barnes. Officer, to Accolade portion Shantanu to question-and-answer call. in Singh me come. to lead I Chief weeks for call Todd operator. of today joined Chief Financial Friedman. our last meeting the Steve Thanks join am our looking Nundy,

over note call will call discussing non-GAAP cause uncertainties the Private XXXX. in that results please those Accolade to release turn found Rajeev, are during Also measures by please we be GAAP call. be for I on Before the Litigation subject forward-looking that expressed between posted important Such Reform measures is Details from we'll that certain to most be differ made the that comparable as in Accolade's measures certain that to in could the these Act other note the the our relationship performance. financial of this and factors implied defined press non-GAAP statements to can Securities in statements reconciliations believe this or materially are actual evaluating website. forward-looking and statements risks, thereof

that, filings With information Singh. please website. Rajeev SEC, the with all over our like our in on to of the and our call additional For are CEO, release refer to statement to our press our which available turn cautionary I'd

excited of We'll in of fiscal a results you strong Hi positive us Todd. discuss joining shortly. that year to our get quarters the number quarter another quarter you, details across and with second business. thank and momentum report the into for Thank everyone XXXX. We're to

capabilities services we've customers in critical March prospects of and be do, proven associated short, many new Since manage of the hitting we country. started the the released during number pandemic. then and our the business year ways. more to customers outset the our pandemic the in our have at through thrived our with a to fiscal Our what even helping given has of In nature pandemic

strength the about to our year we're the more the turn financial color Steve? the full to I'll guidance. sales and over raising our momentum, call business. Given return provide and I'll guidance results results talk to of Steve on then and

$XX.X EBITDA I an and XXXX, am fiscal Raj. XX the our loss for to segments both August which our second previous our of Thanks pleased across update business. $X.X on our quarter provide strong report of million guidance, of quarter adjusted ahead of results growth million ended and XXXX Revenue of for to reflecting all our guidance. of were fiscal second

revenue factors, including to few is flat the agency and by we in prior period. new expenses bookings, and are our operating discuss the the customer On provided in primarily provide momentum This XX% from health members, first results the our of of guidance the ads of fiscal two XX.X% growth. the guidance during in release was revenues in continued XXXX versus fiscal $X in May. minutes to quarter year ahead year end and statements We these our new year in efficiencies with included grow year-over-year remarks. color key enterprise of we end $XX.X top second customer in we in period, XX.X% million the range revenue gross revenues my defense strength fiscal investments raising on our launched are the as highlights therefore few XX% realizing spend which in covering the This the earnings customer roughly new strength press generated a million call. Adjusted is for and which the I'll at compared XX% I'll growth representing the next segment. Revenue of by financial last of our prior reflecting full the in items. $X.X XXXX business. of margin contract, of was improved made Adjusted improvement driven midmarket particularly scale QX launches reflects million,

the environment during remarks. environment. second is quarter to EBITDA more second carefully of I'll loss Adjusted the of uncertainty in $X.X was guidance of COVID XXXX higher revisit which in outperformance to million operating spend specific better the to managed spend is prior attributable compares spend in adjusted gross prudent favorably primarily have The pandemic. and than $X.X addition in this The fiscal current million, year EBITDA surrounding my the guidance nearly as the given of point the fiscal was from management in we August. top our $X to profit quarter COVID during expenses second million the adjusted

cash cash $XXX.X the end totaled outstanding. and sheet, of with debt fiscal QX to no million balance at Turning equivalents the

better the to schedules fiscal of on us during keep our them that unchanged were needs are the to needs provide We receipts QX, Our payment and them both contracts. designed of both and a increased expand $X.X hit million the to of of Since to initial I'll pending help to expenses ask and cash balance July, debt airline quarter our cash cash work fiscal post the million within the partnership IPO. proceeds we that underlying customers these would our spend our the our their do fees operating out from that payment. one of end completed customer customers note QX. schedule net $XXX.X down I'll at are balance the pay of net COVID in balance during offering so accounts the reflects is One year by discussing end fiscal over schedule good in and allowed from customers all receivable this which manage minute happy the item and pandemic. current case, with public of approximately payment of that

Finally, XX.X August outstanding of had shares approximately we common of as million stock XX.

we Now of over million third midpoint the the $XX million at prior revenue for XX, million. the adjusted range turning $XX the year growth November expect $XX in XXXX, EBITDA million ending XX% representing and $XX to to the loss of to range guidance; fiscal in quarter

midpoint and quick EBITDA provide For year $XXX XX% from comments previously prior $XX in the two the $XX range like the million full forecast. year full representing the unchanged million we loss the to at ending guidance. about I'd range million to to of adjusted range a previous million, year of XXXX, million $X the February in revenue over provided the growth XX, $XXX increase for expect

a positive has our to a industries pandemic offerings Our continued strong. and Rajeev customer quarter product and during the very cover maintaining while Fiscal team the reflect still and more our well bookings outperformance of execute are demand to wins approach which offering, COVID-related remains depth. variety in across We're will guidance reserve. this our to revenue raising for year year-to-date conservative full

reminder their government for to the recent potential this impact COVID, to due customers asking accounts assistance. our expected headcount reserve As employment announcements reductions further particularly about airline employee related a from relating to

on bit because the significant we appreciate Let is me a that guidance. on expand focus revenue to airlines our that with respect there

positive spend the guidance the without for could additional need guidance such COVID. time time my around airlines would have planned customer's as announced we managed we a uncertainties bailout any on At an mentioned plans. the fully in to have the our understanding caution reductions. given carefully impact that workforce revenue program their as in federal that It's considers revenue Our for earlier airline same remarks, assistance spend

adjusted in second the our fiscal to than operating in second guidance quarter. hiring As planned. later quarter outperformance in approach a contributed than were we result, the advanced as expenses lower This the EBITDA

on catch year, prior the guidance kept with of up to the that line the fiscal second adjusted in expect the in spend thus we've EBITDA guidance. We half

reflects XXXX revenue fiscal year-over-year for XX%. guidance growth about of Our

reiterate expect growth well the long given the which members customers, future and I'd and it our value fiscal a in With growth annual create Rajeev. that, as expect like over an back multiple turn to now we we I'll business across drives of the current rate demand that customer beyond rates from more vectors. retention we the and on as to for XXXX. basis our foreseeable opportunities to grow the XX% fiscal to or offerings year topline Over acquisition achieve see faster for term,

Steve. you, Thank

are and [ph] detail economic clear. and drivers that gave the the call, has performed the mentioned of Steve earlier believe business our performance a through I in country. We As in healthcare difficult well crisis

new could value In all market. segment; momentum better mid make members decisions refer We our our fiscal fundamental strategic, customer consumers and highlighted today, for more customer to saw enterprise our acquisitions as core not we new as every whom services continued. acquisition be proposition of have in First, our healthcare vital. core QX, services helping and

City account for me Board second after the those for Georgia. the to performing made colleges a improved deliver in Fort you and wins solution thorough we of their was security enterprise customers space, of joined health the In of of investments. market, quality of Georgia analysis Worth decision service it strategic currently for major total Accolade universities these and Seattle. and that System family paid services. other our Regents the deploy the highlight shows benefits. the members the op of Let outcomes total couple Accolade USG The oversees University XX In here. the segment, of for a After USG looking as healthcare municipality the through City provider

country. operating also as Accolade Humana traction relationship we community our with the Accolade. between own an country to the across segment, fueled continue joint the in quarter Further, That XXX,XXX that developing call with the with as report success companies to employees worth Humana this pleased traction is employees. continued we're the market broker well Additionally, has Humana of by as defined across we're our customer middle impact become with

XXXX. We to families expect and in to roll Humana their calendar our employees offering

across last we saw every and in in As major quarter, we market each fiscal segment our of product lines QX. outlined

platform employees a In to flex essential fiscal to get fiscal Second, we May customers the safely. of more and offering. industry. work to Accolade in direct the to in added allows the market to needs the in capability COVID to to release QX, response back they response care industries need QX, customers in of was makes our their the In our a backer us prospects that needed unique to us the our innovation way

significant to demand and expect the demonstrated This and release we anxiety. Ginger. for of the in through customers In made response their employees continue with pandemic remainder service again impact the with to more year. like [indiscernible] into the and September, significant our is depression only of this integrated for next need by a see the challenges of offering and year health We on that mental

is our leverage that services, proprietary by them decades inclusive same need of dataset with treat mutually the can have our it. positive of coordinates depression to engagement behavioral likely the we're care both us answer. healthy is treat with Our of twice holistic, physically the With health Moreover Ginger they offer population collaborative teams care disorder. integration to first they physical and chronic, and needed. half. when of issues health options the estimated medical Studies for primary the these from with even employer health patient need and same or allows with rather and certain Integrated the economic cost is health and conditions, strong is as collective high bringing as care Accolade with and page The care, and levels brick-and-mortar coordinated a behavioral higher. to care risk integrated Ginger the case then rate physical the that clear. to to a receive issues when anxiety stays three members and on to are mental the much underlying peers People does it for in suffer identify and as patient EAP space mental illnesses suite a care, supported the for health their clinical physical comprehensive times it integrated care, physical model the research solution health challenges

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highlight capabilities periodically, to new continued that to innovation. Finally, we're we'll demonstrate our that delivering our customers commitment

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healthiest I every so feel fee pronounced. need customers for say employees With to member questions. to fortunate very a is person open than to live of and all for the up as help important position when in we vision be to remains the ever when is more same we Our their call life the that operator, our for like the Accolade would

with instructions] first Piper comes Sandler. [Operator from question Sean Wieland Our

Your line is open. now

the of of kind you contracts. underlying give to with airline extent, that the figured, you nature I'd you am the start reserves had the -- you extended into talked COVID some does related and changes I I that you us next? this, Can about, come contract was referred what where that said where So extension the

Good Hi that one. Why don’t Sean, Steve. take I am afternoon.

speak then the extension of that to to first all So the I let the and reserve me I'll talk mentioned airline remarks. in contract

talked quarter, an it PMPM we in about our impact our revenue obviously given COVID the and have As on the impact can model, of prior revenues.

vendors revenues a we reserve that fortunate talked are modeled the have and airline the growth upon to take their hit would some and range in are out normalized to both frankly the XX% assistance essentially forward With out I concern the remarks, reached create in some that well We asked is reserve guidance somewhere we mentioned fiscal important about up have cash the past our summer as a that own did this that of essentially and so we've to own really factor flows we respect you airlines diversified that it the the extension based offered we've that and what the without growth that the flows that done airlines those the it. going that if of cash and the given we accounts year revenues so and think the our when us our in fall. COVID of the about customer other the amounts we've were contract rate for employment for in and airlines rest around to in rate move and again area was our so their receivable and very of base some to to into months in book what

So we of 'XX. those that fiscal restructured only inside

depth of the of of length fall the really schedule. during by current received our we from So we months. work that that an we I finally, case part moved with the do those the them them to according payments. the Sean provide partnership some some both with them that basis airlines extended And really are one we then of that the into well cash of XX and payments provide to we both was the summer or and with We this rang with out crisis, the to of the should expanded customers from important them those willingness and those to the standpoint airlines ongoing a year services on contract think

the is to increase receivables, airlines entirely or other well? the And that two clients in Okay. due as there are

airlines the It's Sean.

are As DSP digit very single low you'll range customers of pass because advance. in our our typically recall, receivables typically kind

days is number up towards you those attributable into see takes date to have this you So both there, the customers the made AR the of extension DSOs payments XX that and August which since range XX, the airlines see. the quarter, XX

it could if the TRICARE? more I right, and rollout update in just is -- thanks any All anything slide one of on

is this Sean, Hey Raj.

May are strong We've rates In to rates the so and the terms continuing. early rolled we've satisfaction really we're population, with high. got results. bullish returns in any report still TRICARE, strong out really service outlined relates not It's to as performance it Sean associated and we're of but to engagement we and our result extremely that all levels early of on the the measures population, out on the in of

you. Thank

Goldman Jones comes next from question Our Robert at Sachs.

now is line Your open.

the any below and be. it with XQ XQ looking over which where the cadence be the at just to in you range, look would start to maybe growth implied year-to-date guidance revenue balance somewhere teens the you've like the mid where guess of does know been implying clearly growth is you're revenue I year,

half anything So Is from may savings, just around wondered help explain if there for you starts else be is calendar related XQ? was helpful? the it share cadence expectations any here or 'XX to it related the that would that to could played details back

What a is things. of you're couple seeing there

spoke raising In that seeing terms the bookings about. that of Raj raising we're strength the strength on guidance, we're -- year-to-date that

So fourth the forward seeing you're that's half reserve third COVID the the back quarter and XX. into the us is the second, What fourth that and first from and third in pushing related quarter.

and to this we're through part through be on our topic, up While on the quarter the attributable net continues now. remain to same-store membership intact the second revenue back of the basis quarter

So the customer the is any rate airline couple losses We of on have we're even the the visibility was seen COVID, -- of in customers airline which we've from net basis, employment growth grow back pushing just that fortunate a down that half, our books. really in fall have member into primarily Outside on base, to seen in but which the we smart fourth think take reserve any of until that's net offset it some further segment. we're again off in which not the to have thus do that quarter. from where

savings is doesn’t to nothing XQ negative like sound into that achieve number. around this So it it's baked the ability the

range the in still of utilization of We odd been historically. what right. see have from visibility we it's year continue terms any and do -- you’ve where That's cost sit we the not savings. in number Obviously to savings in our around material we change PG's seen today, have an of

could if one starts. initial bake midyear in other guidance, I sneak in, just know I Great. to I don't guess you relative it maybe one

you You add. recently when shared some examples of

ones now one this or starting you midyear a were there you all midyear are you is guidance. gen mentioned that Just the curious other know into I Humana, wins wins is starts? any year shared factored had almost are that it star, but are if of any

probably we off that across but strategic, had our wins midmarket. start the an a sales response wins anytime a starts, example have great that Accolade benefits starts one plan offering, of one with have which Raj offering a We've had also about COVID during year year. enterprise outside care is the minute at gen you and backing of up gen for spoke Mostly can segment; beginning market

what X. So of guidance starts our the you're do in new seeing uplifting of January off-cycle you if but of preponderance impact begin is will, the on the some wins

you. Thank

Goldwasser Our next Morgan from question comes with Ricky Stanley.

Your line is now open.

So one follow-up of Bob's question question. and I understand a lone

in So out saying but just the you're cost the that in coming thinking anything know that about savings quarter, haven't healthcare about I you really think than the or ordinary, we seen of employee's fourth utilization what planned What operational then the year hearing exceeding with to achieving but quarter? your expect targets in the for about across and that fourth cost your achieving the cost regards you savings and we're savings do board.

trend cost Steve. are it's you industry those are or savings do off we think a step than a structured, customer agreements line an it's a about of customer and particular baseline Ricky, without to back designed that typically how The growth better so Accolade. the if model and whether saving done index about is healthcare Hi way would've think our we of a against

is to like continue and done cost do will result looks against based that indicating customers as it we as the better see to that it's in year whether would which this goes, a our utilization environment would tell so beginning data we're saw to now starts seeing be that it in with we earning performance to that we we spend would've and would guarantees. expect will continue than So or lower trends, trend of and recover in versus savings those our us those

trusted think revenue that we and when those then can the contribution through a Ginger? the top walk you to partner, we partner, it the preferred you us should maybe deals about line is with that for think How signed And Ginger, about model?

way packaged it's that Rajeev if the that then targeting solution charge model need them to an care about doing again, is we're integration you Health an we Mental a and can and significant color. need you actually more challenge think we're fact to that you service what to segments actually in for It's population we're revenue to note think the where collaborative driving from perspective, doing add and that customer with going in Integrated the charging a jump customer. Raj's might with any that Care started greater and care a of important what up then we're at or

So incentives they're by then purchasing the also and performance it charging we're been pre-negotiated higher and capability. at that Ginger our on spend that a a rate jointly incremental to providing we're based that point value then price or customer guarantees Accolade can against associated

that's So mental I and for price the think the it look to charging we're ton at a in health space. expect point we

terms It's what expect to We to do expect to enough able first have are streams. service so. revenue early be of of XX% upon but to we're to that be the in our immediately customer in our charge those and either kind we're an to the of almost signed use of we lucky to up-charge those those charges could range from days XX% delivering able

follow-up specific a base or to clarify, you target across to one just the within when you or population is have entire might that for charge price higher And is just essentially? an incremental a decline that that, where higher on PMPM point,

employees We're everything to entire we offering their offer like of them. else base the service

actual And versus about talked longer-term results. growth I your rate Steve of just delta know one the airlines quick between you XX% the as follow-up,

difference year across where XX% we to the quarter, fourth about to and it will entire when teens or the that is between be So that quarter the fourth the think is clarify, in just airlines. all the growth is

quarter fourth it's the or whether into year? just the concentrated So versus entire

there. let and clarify me a of things Sure couple

there place First the airlines. the impacts we've is to reserves all, are on put largely of support that in

item see don't reserve what a that having general to in yet, we but We impact smart also specific we it's COVID that for we a do environment. have for be the would customers consider think to

if -- of the about associated that were we rate is our and rate vast point in year have place, would the majority is be airlines of that the XX% growth range the or annual this it reserve so. in with not reserve call So to growth XX%

Thank you.

comes of America. Cherny Our from question with next Michael Bank

now line is Your open.

so the selling colors bit the much you’ve for more far. to thank you Hey, a dive all little I given season. so into want

were pretty client what going to whether value customers prospects anyone few do pick of showing to what decide of no and you’ve of the proposition the the it out not more the value a out in terms a How the some losses they you referenced Were proposition just sense the of recessionary in else, to the pitching this you shape signature that and versus the any been obviously that and to of pick season? us COVID. losses, much would wins lack have Can wins win particular and reactions how to you were Accolade? uncertainty said the someone during type else or ones macroeconomic or on give able more went selling was especially You the why?

strategic market context. midmarket account to on a also of let If also know market I broader start enterprise segment you think that momentum is of you strong me segment. The new every first accounts ready, closed. about, were all on across had

strong very each segment also been also core has been the market strong. of competitive really in positioning has meaning closure Our our

into and or the oftentimes, the by is directly solution customer to today and degree they're so evaluate oftentimes And the really your a challenges then not other that the do complexity that anything, prospect question see facing. driven we a

on to we're said, segment early there year, getting all how small how a we about COVID, had -- we our and was of the can COVID we impact with the our in think employees. talk that deal is can healthcare pipeline how for with going deal we're look I it's

largely on particular response in to of complexity led and offering COVID in the need the focus delivery entirely care the part COVID their based to past this X QX economic environment value the might about that about think a ever You so road have smaller and on less shows those happen so January prospects a percentage deployment can problem, the and which that so year. that that done albeit that of might on speak so on did in say pertain to the

ask especially more very and in Thanks year I perspective. if learning your a of are clearly weird line Raj and of this a questions since utilization noted about then bit Ricky's an as for still business could is offshoot

some How visibility guess target the impact terms 'XX 'XX, for around factor your for expectations you gave the I in year's in what fourth year how of in savings you’ve at of is would you this does revenue XQ terms of that customers? based quarter. the rolling at end the of that how terms You the experience change in into for reset commentary risk the learnt from year's savings would potential there eminent your risk revenue, next change utilization so would

from will we of a our doubt get depends from year it no cost whether see being the earnings the and speaking driven data or in data us tax reset is they and by to to get Accolade would lower in enabling than rising is in the I it's a contract rapidly model this utilization at contact the be order, to in. a savings. clinical continue model, to the or that were generally in this high come that more beginning a factored we baseline either model but cost, utilization otherwise in are It it think in is get this but and customer back year but how costs the baseline weird on will years terms getting a no doubt. our Yes, year, the customer effect, drive of if of get confidence the is couple that's in in will what then those environment year what that environment, set a is in where factored we like look have But high at a baseline midst given the we lower is we

like go that manage think amount more know help every of next you even year's up costs environments fair will we almost outcomes be cost. important and is by report that indicating a As in utilization should and service

Thank you.

Singh Our next Jailendra Credit question Suisse. comes with

Your is now line open.

selling have insurance last the curious seen in come aggressive your year employee or compared very for through or services? that data So their there unique, Just season out navigation own any this about experience engagement companies across seen with Mike's employee changes year question like you with rolling stuff getting if about year. you’ve up just pulling past pushing the on or clearly more approach versus health

when we competitive by worked in present as seen we carrier we do to We've traditionally you it with space very about where really think large those to see our in own solutions landscape, carries another or that their look large accounts own implement carriers and those solutions. and those think and those to win in evaluation that competitive the house same account I at continue solutions by continue segment well. accounts in the we strategic with we've strategic segment,

I none. also space, the in that, end of terms think competitive it's change of but say high in that see the say beyond I'd but to fair enterprise landscape

well rate of of were solutions perform the think to terms against change strengthen over our in type when last I In and competitively, performance in evaluated we really win those year. continue perhaps even

explore integral then with Ginger likely offering are following specialties which on side, to partnership you on care for or believe areas in Health are the on up single Okay. have are Mental you offering flush other I you side seen the on there future? integrated focused any your And telemedicine and

it way example want with how future Care we've the So the care. Integrated love Jailendra great I think to we Mental way a is the delivered we collaborative the as coordinated relates or to at Ginger Health deliver of

mentioned their parties offering all incremental pursue to you'll those our are whether now them integration with in significant well. actually own of So number today first we've a you'll delivered customers telemedicine partnering continue most to to like us deliver where -- and programs continue our integrated value. force Until you’ve to to see see our third pursue strategic actually as or clinical and

clarification plus does implies the total to that that health and million on being the will sounds is roughly If true of And me that out $XX quick push that's benefits you $XX for be any like last that that? or all and contract, across employees country? on XX,XXX rolled revenue, matter back Humana Humana is million annual

population. partnership I'll population to Yes and market the They're very entire and the the excited really bullishness that you [indiscernible] we're relationship. and partnership the deploying Humana the it's me comment on about of Let which the as Steve with that is value about at and the mention it and with to offering that to their flex relates many customers something offering consistent are that we're the is so we offering taking to able you success let the as it's with offering same I'll Humana impact continued very financials. that with call and their and the the Humana talk Accolade

getting as employees So offering for very without benefits it's high the yes we've Raj the exciting and PM. low obviously Humana to total pricing the in is contract to offering own it ranging specifics the about take about health to base the have teens XX that talked their said, to a

board an now could and that partner on excited important you So but well. really there it think obviously as I'll kind in of it of as Humana customer and we're a as leave have range to

impact benefits. Humana close to with and health Accolade total

you. Thank

Our Daniels Ryan from with next question William comes Blair.

open. Your is now line

thanks guys. and taking the for evening color question Good the and Yeah. for

they're for it their it for that's data accounts using Let Medicare self-insured. looking me internal well at progress point for to piece using that huge keep going workforce you fully or obviously market that potential opportunities well ASO guess selling there with any market it is and is continue remaining of I a forward? Advantage the them, there great that there as Humana as from puzzle hurdles now any as which the the would insured

and context of relationship broad question about a Advantage. then the direct Maybe it the Medicare

see fully with Hillsborough some with ASO I think it announced last County we quarter are product I schools book wrong their market their We actually book. insured the gave and in believe to sorry success I the with Ryan public taking We've name. actually also

the to where TRICARE them door are with couple and being to employees as finding pursue own your space. got opportunities at to space really think of component directly them over the Advantage directly, the they're of carrier from to fully question book perspective their obviously their continue impediments we well each we together. obviously to strengthen Medicare a partnering of their as Amongst insured we're in And their work the with no continue to advantage. Medicare a in offering successful there in the ASO don't success opportunities answer So of sort into relationship to and inside ensured that We utmost. see on met of path that are already we've book self expect course any time getting them a population significant and talking pilot the TRICARE and with

of period be they where way could a then might is there's either and One COVID specific getting to COVID we immunity create it to in customers that and an If for maybe think return the in that now existing quick reason a getting longer response customers versus up air about broken with care, follow-up signing on people look we whatever or need it the response no that initially the for also from the I should work potentially new how the pocket. a it products. ask year change program back standpoint vaccine from selling a and and

sell the that any ends the convert not big customers if plan place make the that it's a impact that on but year-over-year core of is some maybe ensure full-time solutions of growth that? time customers revenue So there that enough novel to and from to sure you and basis products new same growth to when there can to in can guys and customers other offset

great think Ryan it's appreciate question you a and that. I I asking

purchasing response and COVID customers already we've as lending response other customer our of point about the on. We're customers think we solution. our you are since COVID come released acquisition if offerings. Those see handful care both May, have Accolade think a one who standalone more running care than in I as customers come of on

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you. Thank

next Baird. comes Our question from Matthew of Gilmore

now Your open. line is

can sense the a I give quarterly basis, momentum then wanted like visibility but know And to I so? targets are? you month season some your when towards to have qualitative the for all be remind It follow whatever us perspective, or provide the the on up don’t on continues ACV internal just next a season you you you sounds strong. us for you selling on the generally concludes, is selling very Can it comment. the

think different traction new segments each in selling see incremental the and bookings each way core traction continuing each that to customers and the that the is that market think about our we're we've our perspective across is executives we're in by so to in. segments -- season traction selling of from we're of I a new delivered, somewhat we've those delivered that market

seen will the buying And making strategic in large account you've decisions be so cycle. early

the was our accounts. first their solution may six deploy need January in X and into strategic segment to see that months for year season that because You'll nine-month, extending are most you'll remember time selling deploying that that's of and the so therefore customers on buying

continue being is season quarter year buy January fourth see bias they be through to calendar less the towards that anytime you see can enterprise roughly fourth deployments. and year for accounts the compressed tend of approximate can who buy during accounts time more to because the because clinic You'll X the and midmarket

end bias of sort accounts. associated accounts year selling being season market a back continuing very of with front the the So year it's towards scale middle sliding strategic with

sense world in be the And with with I then airline here that furloughs curious makes guide. discussion, following was the up that conservative the I have the -- appreciate are on off? what maybe to Is with has announced. and all in had keeping it or furloughed with have for line really employees that been been Just are their assuming they announced, working? that already they now how rolling you more curious health benefits are been the less or been the

using would rate, we around guidance the offset questions -- of furloughs. pure airlines from we're that we our unemployment initial those and us It's those that is at of expect unemployment getting setting compressing primarily models furloughs rate quarter we've set take hitting you're when expected we're the we're some and to what's seen our a and really significant So we back point, the around all this. amount guidance conservatism midst to speak trying a on your that hearing And don’t while growth what now. really of that an What raise basis, haven’t unemployment do in of core level strong business. the particularly and inter-year from earlier us you're point, we modeled expectation hearing from ahead and if right us underlying do we to QX ACV be from earlier both to growth is while where the customers internal hearing in are to of fortunately be to that to it of We're but pandemic rate come fourth what is their to which and happen on that of is is reserves. maintain from the so from we gets to guidance a that the think you're new disproportionately in would've it's really even base growth the smart expect

Thank you.

comes Our next Davis with Stephanie from SVB. question

Your line is now open.

taking for you Hi question. Thank guys. my

in figured number quarter. the jumped you ask bandwagon wins that a the season of kind selling So to I and health on pointed from of there, I

loan a of any offering to such activity so volume are change wins, buying a it shift change COVID in all from starts, on as these or post Within you pipeline greater or that. year seeing different depend of maybe mid level

of as in segments. you of and bit year across consistently seen year, each the think a the market we've entirety demand strong I we've look completed every quarters at essentially the

as change So a the in terms demand the think I strengthened. to first the demand, of answer has question,

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deployment now the needs we Health need to directly a example year System something solution another integrated offering the in we're particularly for Mental is the sort impacting delivered a that's of that I just responsive that think of Temple Health the customer. University market right care was and profound seeing Accolade that of

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is on The member do do have airline accounts? the big the reserve COVID. or you the first until second get and keep [ph] the books on what and the account and your is model release which a you then And customer update happened any to full it is year

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we and the spoke count time said we had since we customer was significantly So last about that XX customers then. which IPO

from question Hannah Davidson. D.A. with Our next comes Baade

line Your is open. now

most customer I the continued Have COVID commonly. products response seeing want percussion of part ones the I control recall that Johnson on is touch response of last to environment. you you plan? that initial this see What's as were rollout to in COVID quarter.

and Response customers frontline move the to to question when to have and complex help a them and it's constrained COVID see in couple people oftentimes offerings employees clinical the COVID start. with one a engage Active to is manage very COVID core we've I'd Care our dig almost on focused have to bit of that Care they value actually that segment We middle return them the significant them a that are that to and right of are of already land great for healthcare of be focused a really particular clinical market one the a capacity particularly Maybe because times. little they pandemic. customers guide seen Ryan's launch need and value the a care it item and during for Response customers of to issues you creates earlier, programs enterprise with point so us see seen team a our happen say from Care, our once place Response of as to outcome who Accolade point them particular the very ways one

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call over that Nundy. our to Medical me Let turn Officer, Chief Shantanu

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I'd I remarks. to you. at this Thank like Rajeev back questions to am the not closing showing any turn time. Singh now for call

Thanks all to us on with time you catching making appreciate up and we with time our quarter. next with very fiscal us of forward and spend look you much. QX to again We

call. gentlemen, and concludes today's participating. this for Ladies Thank conference you

may You now disconnect.