Accolade (ACCD) 8 Oct 212022 Q2 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Accolade Q2 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. Instructions]. [Operator like Friedman, conference Relations. Senior now speaker to hand Todd today, Vice to would over the your I President, Investor go ahead. Please

call. Shantanu Officer, for of Rajeev Thanks, second and join our call to us everyone Officer, Singh; Chief are With Steve the Medical Financial earnings will Barnes. today Executive Gigi. portion the our me call the Chief our our question-and-answer Chief later. on Nundy, Welcome quarter fiscal Officer,

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

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

you to everyone Thanks, joining for thank Todd. us. And

and expansion the call. guidance, of continued healthcare two quarter And we today of growth both strong new details another results some the spend little continuing segments. I accelerated added of adjusted more of and the in time and quarter launch Revenue new on solutions and and market. strategy many new customers the will want Steve we discussing EBITDA integration addressable the reinvents evolution Accolade a the with bit of marquee our across were our financial our and growth of The to later companies demonstrated target second acquired out solutions. our market. give you our our as solution our all was in

as Before some I do, let customers cross demand sells. of new and me And The added solutions and execution financial new last upgrades for companies sales our upgrades quarter. market in with add customers quarter services remains to all highlights Partners, our as a Burch added a our across customer base. global review brand continue few. Artisan we hospitality signed since this environment brand new strong. segments, We and global also plan well-known partners and and well our name health a And like to Tory to

mental customers for our and care signed We Care. first solution also The we EVOLVE Accolade health announced at primary September. in

the IPO to our we progress existing every new be we inefficiencies this and business We're that it time with for for offering up of industry we're costs at industry ago, pipeline our EVOLVE subpar by by at a industry employers. excited the ago, that Event last of simply we to for market outcomes categories. Customer we've announced that move forward. our $XXX our customers, month, customers market our addressable pleased healthcare Two partners Since challenged that only growing more have represented in models applying just solution. One a weeks a expand. opportunities That our rising XXx to and is the new vanguard and Accolade serves was Given business Bank makes new care our now deliver also announce GDP two to continued technologies committed our pipeline to only new tired in billion. XX% the across nearly year old and health in manifesting We customers Annual told than new to expanded to segment clearly XX. these perpetuate our

introducing medical experience, new challenge Personalized their Accolade Healthcare call the answer and physicians health. quadruple primary including called care need deliver Care a to Accolade employee is superior bring and tools critical outcomes, all of specifically new These And to to advocacy, whole healthcare health the aim, a that Personalized the better we costs. recognized improving designed health lowering sizes against One new of mental experience. solutions experience Employers they the announced delivering category expert for Our and capabilities patients, console together giving that positive serve patient two care Healthcare. solutions and

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is that one the primary a generation Accolade's the the also Now solutions collaborative not virtual solutions market. about. represents and and leap excited the via generation Care telemedicine on like we're it Accolade benefit these solution matching driving solutions and blends unique talk health model. care primary of things provider incorporates care care coordination. because health Solutions, It intelligent mental let's only This of Advocacy of adoption, past capabilities so mental unique care last or about

available that We for the market is plus capabilities, every fees today now expect earlier that's employers Care is to Accolade in as most segment and and and our appealing on the an number customers. its opportunity innovations EVOLVE. performance solution model Accolade's a for in all solution of Accolade delivering guarantees a to with sell based are first contracts nearly a visit new or PEPM basis a is noted with be has customers. in that integrated Pricing of past. already to consistent Care available Accolade either demonstrated prospects cross comprehensive offering, that our combination existing of a value our both One development new including includes

One are of already of be opportunities that We some taking expect to customers Accolade upsell significant a advantage our for solutions.

prospects and our The to continue a integrated Rx available portfolio. inspiring bring their evolution that include relationship one we will value One existing solution bundling While team. the benefits and to and list prospects, gain of as include before in our built start difficulty]. generally presented still XX, we Advocacy our year, partners, of deliver solution our to more be our Expert sharing EVOLVE unified rebrand Virta, announced expanding care clinical both introducing last it we'd able rebrand as the Carrot will for Accolade we tears, experience. improved note showcase choose of as on a expect with was our in off and offerings next Ginger Pricing always an to the Accolade presented acquisitions present we customers contribution Accolade and core of well to with for most also XXXX. expect Partners will It as certainly our new the were total great customers which new total to and are offerings the relationships Advocacy benefits be a and us. SWORD, based EVOLVE, and will previously more highlights will sold fiscal Xnd.MD, our total incremental solutions. like savings on Accolade event, leadership together At and health revenue we be into also a and Savings, customers their outcomes. [technical sold MD, under capabilities and

care they ensure operating the always assets news critical will based Lastly, of to core building high reinforcing personalized gaps before the today's Steve, of it. touch members HealthReveal's that an M&A in of a based to good one this pleased press of and on to call evidence is to recommendations a at piece current help ensure sized a when one of get when materially manual it's most personalized HealthReveal. via most reveals our is help our plans, is our to most the differentiated patients. talented very through We're the we're guidelines trying Accolade. extraordinarily welcome virtual quality our all the other online innovation to acquisition, in partnership. all primary with physicians competitively evidence today, and process refresh forward commitment Today, are acquisition, to up-to-date Well, which working team health When their a release platform, to care acquisition physicians about action With care we capabilities to that care delivered they access of or Accolade's I for guidelines, recommending turn modestly gained this want IP are need of through our healthcare I so according print that guidelines scale. need highly at address libraries. done delivery principles courses the treatment time hard largely

engine primary continues new engine. will source be a that fund to capabilities, continue of and innovation Our we to

clinical partners are or partnership aligned chronic engine is interested areas. outcomes in and conditions to committed integrate Our integration improving share our are who specialty in to meaningful value orientation,

either that we populations or materially serve. capabilities focus the M&A broad our add current is capabilities, that impact on improve virtual solutions Our forward new

our All Financial our by of and to disciplined to to approach commitment Steve underpinned will With and Chief the results I shareholders. forward-looking that turn of that, profile P&L that now regarding is call a are Officer discuss Steve? over valuation the Barnes, our guidance. foundation our

Thank Raj. you,

mind in recap the second I'll results First, that of Keep the for QX in the PlushCare in quarter the and acquisition 'XX. early Xnd.MD close we QX. fiscal acquisition

the will the appropriate, And you XX-Q. additional find the detail are comparisons I'll We on the pro forma provide color year-over-year in tables beyond press release. in

generated XX-Q, GAAP $XX.X results year in guidance businesses beat million end showed over second the approximately the we QX $X.X a period, and our the In pro against First, top provide XXX% growth million growth basis we revenue quarter, fiscal a prior that representing year-over-year our combined the year-over-year. in range. for of XX% forma on

for As in Keep we SEC per together provide our solutions the are that selling mind pro rest we of requirements fiscal forma year. results separately. the and both

past forma on the solid are revenue standalone, and attributable not intended relative The was to to note growth this guidance a that outperformance direct-to-consumer overall. of from profitability execution quarter, how reflect of launching direct-to-consumer fronts, years crossed representation just to contributions achieved the acquisitions two business, the including which may reported subscribers and sell offering. on the pro So adjusted significant also of EBITDA. threshold numbers benefited having while revenue a it always of after element business to both customers and favorable member milestone be perfect I'll we XXX,XXX run PlushCare subscription the multiple as in the platform customer largely PlushCare's that accounts positive

margin via support and Care and primary are frontline compared in of gross care model business reflecting both One Fiscal enterprises investments We XX.X% Accolade year our growth the XX.X% prior on and the the Accolade growth period, to our QX to bullish integration. to via direct-to-consumer opportunity in care teams staffing virtual adjusted of

in $XX.X million full-year the flat stated compared prior of $X.X XXXX. gross compares calls, fiscal with of fiscal second adjusted loss EBITDA guidance prior which a we to on earnings the quarter expect Adjusted million, As a quarter. outperformed to second margin remain to in 'XX relatively year basis in fiscal

cash and of cash $XX Cash, at adjustments Turning of to million. related approximately during paid PlushCare quarter capital acquisition. second the the that quarter working totaled the sheet. end securities net balance acquired equivalents Note marketable million the to and we $XXX fiscal

common the XXXX. Xnd.MD Finally, of PlushCare include as to outstanding we to guidance. turning approximately stock in had outs. XX, to 'XX, approximately XX.X shares million million And calendar X.X not shares does August issued of be related and now This earn

in third ending of million, the fiscal $XX.X in of adjusted XXXX, to $XX.X range the the expect million XX, quarter November range $XX.X to revenue we loss For $XX.X million. and EBITDA million

recognize growth have million As noted performance been than expect in includes from revenue for the for approximately in million, midpoint. release, the expect we rather guidance guarantees year at in the $XXX ending revenue fiscal and press fiscal range prior the XXXX, And earned of February to $X.X fiscal we XX, the QX. QX that to million $XXX fiscal over representing QX approximately year XX%

reiterating in the fiscal for million expected to approximately of an adjusted $XX at range are loss revenues negative be XX% to 'XX, adjusted representing which loss of EBITDA million, EBITDA the midpoint. We is of $XX

Before to been call items of we like past the open few your we've weeks. questions, the top up for getting I'd investors over the address from some

around new labor financial particularly impact. Delta broad talk I'll business. Variant for a with Raj the solutions start the And then I'll First, bit mentioned. environment, model market the macro a I'll about provide about remark Accolade's our about the color that some and

and grow The Delta that is macro care. positive and opinion coming opportunity, way people variant are felt we've healthcare our that as that of We'll We've areas, that but never in financial things a unusual see company, still our personalized feedback an care our validates environment. our to virtual in do you environment. going is with And Coming years. second spending as of have also healthcare to But EVOLVE, the not customers, people about invest solutions, accustomed continue avoid seen many we opportunity. people, we've against the market in consistently doctor's labor over We tells we our virtual progress seen category, relationships significant continue customers the said. offices and more us and creating volumes are our off tight on elective procedures. discipline defer market from hearing to the said, that the all become with only same to as pressure better balanced

see the raised will did year. end top-line pandemic, the our the take to continue approach guidance, much can our early the year last in we outlook but to of measured we you a from to as of QX outperformance, reflect we As our through the days

our give with One Raj these to new pricing Accolade model I'd points some to and offerings, on to models respect color. solutions, Now for we'd Accolade and like and our like quick some the key revenue you models. addressed Care, outline pricing

From in launches. time. Accolade be we Accolade no during as pilot will for models need and of for Accolade expect marketing initial One to have Care XXXX XXXX to January view, part year for First, One our perspective, this we'd what customers be changes calendar X, portfolio timing there a we at and is our

and the impact in Accolade fiscal then So we in to in advocacy impact our the expect compared full still no a financial year albeit business XXXX to relatively current growing fiscal small XXXX, core fiscal and relatively solutions. small

On to elements in we consistent and support putting expect growth of employing operating go in as include performance based margins history revenue One care outcomes EBITDA our contribute further in that virtual care per for XX% particularly we measured as value customer long-term goals from to drive and our We incremental our services with will time that by is will long-term over model the to consist and previously, of than the will health the and expectations of outlined revenue our expect guarantees. revenues adjusted visit this margins and we Accolade of expansions. second, that a our pricing, range, will upside visits, reiterate a more portion step And XX% mental customers. primary a the that earn operating for PEPM Accolade incremental that of our metrics and savings we fees some gross include to greater to improved revenue at drive share XX% risk. XX% range. value, Care gross margin will fees benefits This advocacy us allow we've

in of you know, and at at that an total value opportunity two As levels engagement fees XX% satisfaction. achievement drivers We've as earned through contracts these by including additional various the such of XX% historically risk current generally our for cost for XX% savings about our third savings Advocacy more consistently include validations member and cost for risk as in-depth Accolade demonstrated in studies party having success fee advocacy measures, PEPM offerings of than our Aon. of

have opinion conviction for medical I'll care, based to us savings strong to health will One. that Accolade We And past back on customers primary and programs with that, the call weaving turn materially mental our success other higher clinical via expert cost support, together Raj. enable drive over

newly Steve. we team. close and people three Operator, formed you integrated objectives. these see call judgment acquisitions, organizations. Thanks, to single about were the single open team our questions. as behind to solutions am so together Thank to a voice strategies across by the like the a now months importantly going to team. with the the I validated validated customer separate come of and call up not quality day strategy I'd more the three speaking our businesses quickly executing deliver against To team Six thanking completely event the different different a ago, this and but only

Credit Thank Suisse. Our first from Singh you. [Operator Instructions] Jailendra of comes question

open. is line Your

for and value pricing for to the on going the better how based to thanks color work. Yes, thank But is One I economics around economics. the you Accolade understand want

not level XXXX. was you early all to be any it One wondering you going from contribute can until Or your fiscal I will at potential? feedback point? know I taking interest downside about But any or share risk? is you So customers if Accolade this talked will upside be And

Jailendra. Hi, It's Steve.

can start some a and to early off weigh on with revenue of expectations hit expect model me flow. the feedback when the the in pricing some of have Let customer that on we would we and Raj bit

of okay. is So And of think Benefits, model likely up-sell Health to offering with in the to I that if to our are the start think advantage Accolade way compare comprehensive his - The taking of an as already of our Raj it and One revenue because comments, to of start. Total mentioned as good some solutions. customers this that's let's capabilities, as all Accolade integration a you

risk of to think we this want model not know Think to as Medicare thought a more risk model. of fees way. it as This we a - model. is to of fully a you want at Importantly, medical be Advantage like this capitated

like our looking of a XX% of with Total customer having and the PEPM participate we the our What for XX% additional that Benefits you savings performance have and Health to Accolade think more savings basis, do of on customer If basis. is we're upside. XX% fees something on about savings that is fixed to typical a in as drive to

to downside, then we roughly on it Now gain of you XXX% of XXX% to to and of savings call that if share of think XXX% your think on to that this point instead the something like XX% want or about fixed the on it top additional way go may advantage fixed have basis. a XX% some way. We take it upside

of care, risk that in would and PEPM opportunity drive fee on a savings additional mental to Importantly, or that that think going downside additional our because clinical have upside the so around just virtual back areas view ought XX% much participate health into earnings, the that primary farther we're savings. the Jailendra, expect we opinion as of point expert and to to we manageable, occur track and go beyond offering we record the to medical advocacy that we highly

in and into thanks two customers the deployment already you on actually announced jumping are going period. This being obviously a Those Raj for we've customers. follow talk pilot great to Jailendra. that Vanguard for And two in customer interest. that, the is It's to We just as just of up customers here. to process have preparing

through customers of have will of Accolade scheduled to out integration us One our go significant how time reached and EVOLVE work also what how coming the We out to where work. model a will and the number is, have interest

early And a embrace many you been customers so can of feedback is it's to we will on give a generation of but interests has pipeline how from in positive. it, tell what you little EVOLVE, all much terms color

in guidance then unchanged, despite more to on is in can is are or reflecting in Just And EBITDA costs follow provide as better quick full guidance market all the you the details update, EBITDA quarter related new what in Okay. of my labor guidance which coming us year the kind help update. up resulting half, on incremental you're the understand situation it something EBITDA else going on? the second

and Primarily, it making Jailendra, market. combined to additional - them thinking taking we're Sure. the reflects going about investments as offerings

in the go-to investments sales we're So quarter see low low the that to a making. and the you'll OpEx look revenue you'll when at that growing as marketing mid you see fiscal market XX% reflects a XXs, results, second line, into of bit percentage line the range

and the line. of investments that that there products point will offerings. some also a - wouldn't material really making and impacts technology I through product in see to certainly, new around as spend well. there the factor. that I would we're as are flowing the labor around wages some And You and the point to are

Thank you.

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

open. is line Your

you versus and wins within core the Care. that the you your were how And more you well. the of as least selling about at levels terms again, Accolade out about then on the you wins to obviously What talking and Vanguard on some had things season? appreciate, years? where the and both what Can wins and with time overview details of give your marquee us spent thinking how big some all rollout team, about was of Do been plan, the going generate? at versus you've beginning in qualitative go? to sales your picture comfortable activity the in you incentivized Afternoon bit to force little you shook happy, a talked the like Raj, was previous tended able some be feel

And about a for of Mike, great of think in out for third first talk the us. my bit of couple I time to now you. little year. all, tried to We're remarks. to Thanks of the some into prepared found, I we a call quarter that things making what

by entering our market. delivery care, First, the we've space, expanded materially

and in One, And actually Accolade saw announced two two that late Vanguard we Care for both actually so, offering September. just but also customers Accolade we customers for

say that fact just at that a our also And pipeline that we expansion It's bit so press major an little seeing we demand of customers, pointing markets develop, are the every expanding saw the that the out major signings Hyatt before idea excited environment, every of to Also really happened - our wins Corporations. mentioned one continued the that, segment published It we're Also to we're with in name. every looking we're of across seeing one a customers, seeing approval corporation. their I seeing one We're our pipeline, major customer of about. hospitality release. core in pipeline. We got actually products offering. just pointing

mind And employers wins for manage. brands. buyers somewhat within are together weave my - point at acknowledgement large is with with and the platform overwhelming marquee that alignment idea demand we're Mike, so, seeing an in solutions the what that And to looking really that of market we're increasing the everything to small they in great the do seeing was

tomorrow. Our is think for us personalized even capacity will platform, healthcare today and to for weave voting really well more together us do we that

on my question digital trusted be been going seeing on that you to partners, And suppliers, into follow historically what has ecosystem up your use. the nicely you the health you're complexity regarding was actually Accolade dovetailed that terms focused benefits. Obviously,

that might on a about think to that As customer pitch proposition that how go you of go forward able ongoing does to into parties that wins? own? basis, the that value And want work terms to forward want for with parties deliver versus the new evolving you is in you're how terms their in factor out of

or Chief partnerships, our speak and pushing the Officer, that together. what perspective, of is how sense drives et manicured a I'm can stability, all can take and Customers From of partners be driven our cetera we're clinical levels coming question, how on security that Medical outcomes want clinical to are partners perspective, our capacity to half saying customer driven, of much will going question part this that selecting of bring of a first engagement will we're Mike, you to second a you for the Nundy, us is driven to Shantanu vendor. stability working that be financial I'm to or warrant bear and that need. and us take that where going particular set from the who the really we let a - very

lot to so, And I say we're want of seeing want to not a do go, separately. I something partners

In partners moving pretty demand how forward? for will partners high. Shantanu, the little you the add platform a is into around we're fact, about thinking

mean, a It's north whole When absolutely. right. about pillar healthcare, the great star, question. our we the idea really think that's I Yes, right, value personalized base, third the on

more we're they're are that about we the are clinical So, outcomes about dealing cost we're employers with? the that think, thinking right, the different as looking what at, critical, think what categories that I able drivers, experience. We're think for of warrant. experience. We're about employee and employers member really mind a challenge huge to looking more they top also That's as and at that's and the

allowing selection really decisions that's warrant continually lot us outcomes. better clinical and a so of our And to driving partner

you. Thank

Grossman Stifel. David of question comes from Next

line open. is Your

quick fourth just I deceleration But I question. a - Thank implies it in with did I quarter if my know guidance right. Good don't a could significant math, the If implied looks like right? financial revenue the Is going you. if Maybe afternoon. pretty fees. of not can on it my is, math you some $X.X may you what if may provide million comparison? be impacting growth color Or - kind performance if that year-over-year start of that even add on be

Sure, David. that. Steve. we'll how It's question. you about And think for through absolutely, Thanks the walk to

you we raising and performance pull think of First had of and did about first all, forward the million. the when $X.X execution, that guidance, the the year solid half we

pulled quarter $X last million. also about We toward

on point and before, And at now a call back full all that PlushCare legacy get last expecting what sometimes today in you similar pro we're volatile are rate. here rest a look bit given measured probably to to $X.X percent to on late So important I to the territory growing we take canceling year. that of time The that view Accolade, at is to markets That we basis. the looking of that year, into variant and about take see rate, and if be pro full you're right the while which the the growth revenues plus fourth this business the were - rate a we've our of from Xnd.MD really in. up and do the But one the think add that that perspective, to to are coming growth approach you a bit it you where things Delta the where year, high said, unfortunately, see. bookings, of XX growth out a taking it quarterly where would for And of pragmatic quarter you is that's talked that a guide very seeing lumpiness given year you think the when we're forma there, XXs you gets is the markets, guide for we million, about forma basis, add type XX% the you XX-ish doing approach

just How know very does only you've way talk pilot how I'm really the customers Got But payer sounds a product curious, about of you to talking of impact experience them, to and I when is because disruptive it. short so way conversation about what about view like to that clarification. something as Thank much step some into talking traditional you and just to that are I this And going couple window maybe if go in this they have Accolade new and and you're product? phase. over a we're a they of you a of for the very could One, really delivering to much relationships, offering different their similar.

thus have So far. if you feedback just curious any

and care, me very that you're ecosystem this they associated change plan with for longitudinal mentality moving longitudinal get to end, Absolutely, of already care. not don't more outcomes solutions they've problems of and issue meaning into together deliver model. problem value for about away giving a that I care on solving and my from of us what we're is I've One, front the that a excited my to their perceived that the in my doing is for they're the of care have of a improving think health a lot way a on value the have transactional network, most we've care and and buyers I value. of things the rails more of the We're say, that my built on. changing most proposition the fundamental change problem would new access can customers the broader, moving equity that improving without focused the the issues holistic design, of all away David. of number have our move those we're been all on and entire don't customers in to the back-end. Accolade to it's to from solve was same that That's the carrier, all I of are that brand customers And of about where markets When think that we're more thinking in profound approach capacity affordability responsibility way to coming access a condition hypothesis to that's to care we're to David, been in don't boxes access We're saying, clinical that In relationships based shift we change checks I system. serve. We some that carrier, those one solving with respects, a years. about you looking able I care.

so opportunity the David enabling let delivering really our the to relationship, fact, materially and we're their that status its payer in for head the little improve while what a I results and that on and doing customers is bit, might flip outcomes quo. And say, remain, status quo

you. Thank

next comes Ricky Stanley. of Our from Morgan Goldwasser question

open. line Your is

for afternoon, taking Yes. question. Hi, good and thanks my

little a of trends I seeing. you unpack are the bit near some wanted sort term more of to So

you color maybe on my Can in the potentially better that you've expected, retention to growth the year-over-year it's you start at can year-over-year then, just hence your I what's be quarter think the as revenue we basis. there deferral opinion, and better But then are could seeing like in seen if the question. things and can we've upside. acquisitions? impacting on XX% the this follow-up trended that second term, count an from near least And employers year-over-year that give first the forma sounds you're Clearly, from surgeries, versus secondly, XX%, us The than were the that headwinds growth off comment, of issue. a seen pro for core it

So about not can comparisons as like think modelling you of like us the us and upside quantify the offsets, just the of then would maybe next help our just also and kind bridge between help into we that I kind year, the and the like second-half of year? unpack think what on help of for but was, really kind

things. Couple Steve. It's Ricky. Hey, Sure.

at actually businesses the in range PlushCare we unpack growth look or XX% pro XX% as that you'll for of across you Xnd.MD in it's businesses when forma healthy and each and rate, and the number see XX% the the for that three queue, Accolade's the well. core So of

labor across way prospectively half, when variant the is we really see reflect on and of we where about that membership some and those board, performance impact second comments we about the may the labor think thinking the strong in very meaning markets. markets, So when

are we're I respect the elective expert procedures country. fewer medical in opinion, happening of to that point into expert of some as opinions down will seeing with that Now, those note medical parts with a bit

you'll sequential growth quarter there there's flat. the Xnd.MD So that fairly see is some

On platform. visits side, primary saw consumer virtual the from with have noting, to we well. was view we care flip care very enterprise strong the is just PlushCare as Raj through the virtual the as that towards opportunity around direct the primary And comes bullish

in of moment has for the a been interestingly, care at diversification the visits that of been showing platform opinion So bit sense within the that primary headwind up those the medical have is on there where our positive extra virtual reasons. the side

Thank you.

you. Thank

comes next Our of from William question Ryan Daniels Blair.

is line open. Your

providers. appear curious you Yes, But follow taking of an point is This bit solutions lot a I'm the questions. a navigation as thank little a around be up coalescing and earlier on to one. the the for of space

space. in lot M&A driving it's think a of I the

other I today activity. M&A think we saw and Virgin some Welltok by

if of acquisitions you're the what to have your really innovation and ahead a that's seeing go if the stay to is curious, lot, there? the curve sales front, pipeline competitive I'm you changed you continued So on allowed or

and personalized human and data, concept the for care platforms are question, do machine everything that believe and fundamentally and We learning competition and Thanks that outcomes, idea of on before us multiple from but differentiated the Ryan. talked artificial continues implies personalized this intelligence to by the forms. have the in always around built of healthcare we've that relationship health about powered fundamentally forward that this Ryan, in way is this the The break I that measurable marketplace. heard value be up and know differentiated around based you might

forward system or engagement. value the care wide traditional levels. are access care care also downstream the care medical consumers and where savings healthcare and There's mental necessary. in health consumers are moments think out population side as players things navigation who solutions around variety the around data regards, time those other also improve unable view not are the they're are we those only as of a to value to based on levels, on we unable data, the really reduction a performance those who there consultations. without space, long-term really longitudinal digital have to real of where an and longitudinal the the those that selection there's There moments you there You looking to around have those together Welltok delivery digital materially nature, looking but a space, those digital traditionally attempting access a provider woven solutions In on episodic opportunity the mentioned, primary the virtual the that some on are engagement story and entering or who navigation around category whole, during episodic and then in there space, We cost finally, a like necessarily also transactional expert there's solutions health of And basis. to to are like are competitors who to of an engagement and the in of at are but our And have companies components are mentioned are underneath manage cost or on and help providers at think categories population driving that, site in population that willing warrant without out journey, companies drive transactional focus there, savings moments. geared near highly basis. focused provide in claims in lower set

set for data of And of XX, of the so Ryan, are certainly all last navigation, summarizing years, spent in that we've our that acknowledging many companies we've these acquired expanded, that cumulating XX categories years different competitors that, we've as value the have value longitudinal and are the and top XX of of We're everything building idea on the with of talking a value the own concepts built those we're that been ones that and the principles. on about of relationships. pleased

help core taking of as someone very you, can your on twist that. employer commercial into EVOLVE a on with and they this, market and do does risk management providers open maybe for look follow up, an customer. potential everything take or opinions it helpful And entering broader and talked that like then about value some actually a with we new they near color. engagement that you I and you for of on care appreciate taking up MA risk That's second to mentioned based models, different Is site your that or the Accolade network site, may and and ACOs provider their them kind savings. groups on shared capabilities,

needs set also they as Thanks. longer some of can the given competitive? see the for have that do you open term that capability market you So that and stay a up in to

to a to that the that we we've Accolade great best Yes, the it and data from benefits ranged the now own I doctor question, together that cost is the companies and capabilities it of our to Ryan, care it's innovation finding made suite through such put innovation in fact of part consuming primary part a think what really because family both really quality scale. of data the using at points

being to seen we've the a sold company the over now from of the derives financial really a exclusively a employers standalone healthcare to or gone are. can interesting we you Each So understand what can company directly you've is two as ecosystem all these that those our are impacts incursions so we you to to the whole, week, a for that years, material to course in a benefits offerings from what the able partners three basis. program our portion us that of of last value plans the ecosystem their to that they're aware looking significant who per capabilities interested take and of remainder in make partners, of capabilities where relationships on of process in way understand of And customer some our are in customers. day, of those health for of others a our your millions your of they've claims, advantage are that per assembled gives with and journey to

and with you who be But architecture desire share allow capabilities So of and orientation extremely value examples share to healthcare. I'm set specifically that our partners not that built to we've friendly an fix partner gave our a us the Ryan. speaking to

that way yes, winded was a of so saying long And

Thank it. appreciate you. I

you. Thank

Our next question comes Genuity. from Canaccord Richard with Close

open. is line Your

the competitive Yes, questions. Congratulations how the results. you're the this Appreciate being the for environment thinking curious and comments care. bullish I'm primary virtual on sub-segment. on thanks the about in

I'm and whether going you're the likes bumping were or into Teladoc the any said how are customers? selling you conversations products on with others and of potential standalone You all these a curious

question appreciate the for being you and Thanks here.

Care. virtual claim that color might mental We in or into way who space in let the Accolades me a form. telemedicine, I give bumping urgent with either competitive would we in play expect or staked which competitors shape think, the certainly be where health landscape, some you in the care on you primary care is a and have care primary

capabilities different health, are, right can you're understand added list core. data. primary underneath to then of that, can might mental you unlikely or often a differentiate to of that you you help equate So the that you benefits We we care which from than is to capability the those is in one more we help to doctor's actually to Where our associate and be set expect benefits the deliver respect supposed with visit. prescribe that your and see might be. what it physician competitors at understand using We've navigation,

previously navigation we to and under you, used fundamentally when position, that's for the getting in tools differentiated. we best possible know the we with which of appointment that Accolade offering So are doctor, capabilities, or available that that have book we're you now also been our send those cover offices Care our

Accolade our know more. EVOLVE We're to they them. weeks offering make raising even two our exciting. opinion We we're expert signed us, so growing twice. to quarter from And The expected than Care and And just their hands to medical seeing the first with which their And ago, deals happened happened solutions a our prospects. to, particularly we now the customers want excited more as couple of this and there. demand existing what capabilities we're conference same pipelines navigation familiarity thing with very faster really has sensible seeing new existing those after about is is ago,

And are get that of to so play think those continues to deals didn't XXXX. or I maybe And we grow. a set pipeline point, that to your transactions in

are see And that that excited in we to victories in new category. we're here category. new So the we're about That's fact a brand brand XXXX. starting

scale Thanks. a Very or of like going us little them? going the aren't two my companies company to are, sort are to that helpful guys me in maybe the pilot back to any you specific respect there. to clients of And up actual follow that those characteristics the a one of but description of I bit guess announcing that give who

to within One company provided, is it, you an color customers, this story, business They're that's two for unable one the was addressing maybe it right capabilities for Two really can a because initiative to than corporate large them that tell the company of of healthcare the of end them at parts there but and leveraging existing that leveraging we've embracing in business one that us, their it's solution. be that give inequity. you exciting of a at And this you customers. would call as for and Accolade be idea something Fortune at talked name, an healthcare the about, and more little of at Absolutely. that's core solutions XXX, a the front One. spear very but equity and we're we've for drivers One, not to inequity exact leveraging that of being really around a inequity a chose that pointy the the our the initiative bit address the Accolade customer just our can leveraging part has its all of Vanguard previously is we

a called smaller customers was do demonstrate value could and it customer because they've book. XXX second small Meta recall What of our with The from terms XXXX begun interest large but we smaller is company, employees though to publicly. several different obviously these pick not name needs the Source, this global one so company with this sizes. across base that what today in with customers one it's I we a and Vanguard can customer and of midsize than tried It's hearing this talking those the pick actually it a about so customer company of customer we're

seen to mid-market are. strategic hand more customers enterprise we've so And raise and learn their we where about

helpful. Thank you Thanks. That's very very much.

you. Thank

of Our next question Piper Garro comes from Jeff Sandler.

open. is line Your

thanks afternoon ask for the channel to partners. your about questions. taking want good I Yes,

looking One on contribution offering excited forward two color for our about is is to you parts this kind first education partners and arm is partners So success season and and really channel if in Care, could what from Accolade needed part those selling any partners of just channel their? the the Accolade second give

Thanks to for your question, talk. Jeff. Great

are We attraction. seeing continued

So work there our with varieties solutions when with. we are who We are certainly about partners customers. to of offering multiple that you plans partners talk work their

who the are educate clients to we brokers their with us and value teams work consultants, and/or working on also their recommending propositions to We that with us deliver.

channel Our to health strengthen. continues plan

grow see part and to plans of leveraging value to drive by over solutions clinical business working their continue We and continue to expect in our with that we engagement to or accentuate time. our to value capabilities

that Care. real. find And question those is, the alongside core Accolade partners definitively Jeff or is One your journeys in our community access virtual finding is healthcare think health tell care of care solutions that address are I longitudinal of we and other from value Accolade very need like and plans what can very, things in the forward to you affordability partner

opinion new nine in to deliver to we us Those in brand we're we with for interest conversations and opened channel plan many medical can value, virtual a with or absolutely, has could got might in up Those ago. primary care other in conversations that them our leave. expanded six have partners months about the value they have of paths partners and because just excited add not brand expert partner so, And and that we've mental are health. part proposition where new

It's of a my Excellent. gears follow we'll in bit. interesting And That utilization. switch terms helps. healthcare up, another been year little

year guidance? is your quarter curious point the fiscal related into and achieving the fees that's that just to at calendar where this performance XXXX the period how in I'm visibility factored will So fourth towards been impact

environments, and as are A December. Total clinical got seven would customer so really pragmatic year for doing Benefits we're data saving through on couple through the Customers or so we're spend this, Health - rates, measuring Jeff. typically of mentioned looking Jeff, data XX% on you've in taking low or bit as outcomes, we've fee the again PEPM knowing XX% in Performance the quick year spend about it, claims our you the months got and in that the goes of, for is calendar point PGs prepared me, it's measure that that remarks, six excuse unusual XX% guarantees. engagement operational of based for space, approach and six going Sure, year factoring What everybody we're year, Contract here by another lag record a halfway typically of with in, things a data. whole say hey, And high like January healthcare at right call got I guidance based months, end so the fees, or to on now there, a PEPM of in our along. of track typically the year. earning performance those a months the goes savings, typically reminder satisfaction, a spending world. we've

last similar factor to So, we what bit year. time approach are with going approach year. measured that this in have again, to just we a taken of to would And the

again. Thanks it. Got

you. Thank

Thank you.

MacDonald, question next Ryan Needham. comes Our from

open. is line Your

expanded start As in inbound this you. year next or maybe inbound one of demand they'll greatly XX Raj, structuring sales offerings the think new rebrand. for are how to and has what and you leading out a evolved Hi, of demand over market the use lot But with for you be months? about now past much getting going the Obviously, terms of the taking questions. educating proactively to that portfolio products servicing, thanks my you're first and given you're the how right servicing past cases? for organization

here. Thank great you a That's for question, being Ryan.

not idea therefore we're just think the that first was was responding find I is of redefine of the that to believe virtue it with capabilities you're data. the And human industry to solutions acknowledgement we into that umbrella personalized fall or you're We're all, that imperative all First we're of going we care that umbrella, healthcare an we going opinion our going you by right. and relationship. solution, That's element personalized power expanded forward, think, to is, but our we our advocacy buying of do. to what it medical whether our solutions, for human a company, solutions what of are, us who the of the demanding, deliver important healthcare, expert

data XX smart to all action. that orientation, And in leveraging asset the guarantees, measurable about value the built three very So the fairly we're be everything to performance it's be are those customer, to going last unique that's think going for our of we this underpinning we've around we whether of put industry. do, us been years building guide risk, incentives, alignment which at things in all or fees the with

been about we've built been reason important And all public. our so, The around talking that's of are is this since idea. solutions Ryan we've that

to at Our mission Others want problem or is I customers solve. are solution at be be is them. looking the be to continue the that in at are and around is Those been care And at are to opinion. all about last other cetera. some really XX evaluations we this be And, right the space, respects navigation the et space customers the issues many expect creating access our years have and cancer we've for those. primary or problems customers, going leading and in met. more solving treatments, to looking really of meet medical care Care an all are the conditions, for thinking looking teams where those RFPs and smart positioning might happening course, participate in for And that looking they deserts to that expert acknowledgement the to to customer to Accolade acute advocacy

strategic of they the really And points our we've in solve about. fundamentally around the focused on segment. the that that values - trained customers' potential so the way is needs, I problems What pain customers team that in or which bag customers a do, more the Ryan. or those enterprise now, on restructuring the their with orientation plans. largest sales those they view, We've the shape and is what they're sales understand we're form, what biggest the tools focused done first or bag, are them that given to talked greatest mid-market, discover on not team on that's organization to got in a We've segment breadth offerings any three got for really so, their as have

would looks what Very can the that expand a follow differentiated. up. acquisition, a just to the bit health you've I love true how The little about got And already. pretty upon with helpful. then and know engine there more technology quick HealthReveal just Thanks. unique functionality

We're is a about this. fantastic Nundy. Shantanu that's this super Yes, question. excited - We're

our alluded to has next best capability, core been you As to Accolade right. action

our most what's the So our team the can into and clinically this into insights, What deliver that frontline data care on for data members next all electronic out right that the health them. using how putting impactful also much HealthReveal figured workflow, guide translating does, so insights, that that of idea have, step have but they really and historically some deeper set record claims not of had, data what Accolade a clinical data. of to using is only we

the was think to evidence lot insight really our this care for whole based team, a really rest with being us, of well more second a data roadmap. huge driven. we so to, accelerator care, capability clinical health that aligns our the of a was be also we for able And to personalized which our again, And those around to bring and us, think pillar on this physician, of frontline as

again. thanks Excellent,

Instructions] Davis Our from with comes Thank [Operator you. next Leerink. SVB Stephanie question

open. Your line is

of that play trend, play? navigation service of guys. advantage to we in the care that commonplace new an a ever Thank taking I the care If you instance want is stakes question box? stream a Have inside have forward for just is thought. taking of digital that as table you on my some a more infrastructure a bit want out that earlier your of of and the it's gaining roll of becoming these too general platforms selling to of navigation and revenue continue thought navigation for platform it. Or idea

you again, to talk great thanks being for Stephanie, all, of to First here.

A those and talk That of deliver speak two question would umbrella navigation underpinning have of platform point think was out term RX, navigation. I Point claims, on interaction we benefits, have of about capabilities. kind our navigate with We clinical number that things all years today. able I the to navigation to would insurance around been that of the to of put anytime speaking an of be that of are. the would be, number of they be who break think people and doing I about I set mean a associated as use through imperative that what Not the to electronic the we people data XX data point very, yes, solution the it's as - number best data an fact - lot navigate on navigation. that think we've people deliver absolutely position, of say cetera. to and capabilities actually last to companies, A it are I a delivered for lot word Ryan's number as the delivering the you're a claims, drive capabilities, is through the We've accumulated well we number small still companies, - very information medical et earlier. companies. medical there speaks the one. record architected idea idea when the think very, down

those weave to capabilities offerings. available into Those our capabilities are we Now, partners.

people The with who the of in our it, around around aligned our the who partner we who in about aligned capabilities? they we've is those healthcare mission, serve belief in way we'll healthcare. personalized would and people who that improving for Now, partner always are with are thought idea Stephanie, our vision share

road. capabilities opportunity industry And vendors But the I us the really with that so, in in navigation architecture partner for is to can I our you, believe means that gives don't down many. know productive we of be what partnerships a terms an unique tell and potential

you. Thank

next comes David Larsen Our BTIG. question from of

is open. line Your

you congratulations more Care, more solution. might Hi, be One for overall given charged quarter. it Accolade rate, the actually on comprehensive decline seems the regards higher cost PEPM me like good though client would have them a have you'd a slightly of even Accolade With that to to and a healthcare

to color any can or might Just around around they put savings you that the realize? incremental like percent that that? thoughts able be And any numbers

the of things and serve of from incremental of service and that incremental to improve it we David. And that the the when where customers those are taking services customers question, beyond One we to costs proposition to those does clinical is we're have advocacy values, above Accolade the we to it on just buy by our and together navigation coordinate cost we based beyond beyond outcomes Vanguard for that you weave solutions will idea that us is population that and these core all we purchased both believe and and today. the going the amount of if in population Thanks above a the value past a absolutely, improve The lower customers to of that on will continue today. basis were makeup vary that year-over-year will that the as

savings. as really take high And What can creates model could Steve so risk think the margin we a for incremental speak those to so, and incremental to be revenue. earlier, we in confident mentioned upside feel might too to the revenue is it savings us say that, we early opportunity our adding to little value, really opportunity that material those while more is high be

quick just one. one then and more great Okay,

grew Delta drag that with a variant the other least elective there will you XXXX. procedures. fiscal tailwind in saw me Delta was like XX% of a really cycle. Xnd.MD in any confirm comp to wasn't it revenue there like me variant, that and it an the sounds delays impact Xnd.MD Delta to still then like in sounds the With sale the And quarter, year-over-year from terms Can that the some you at also variant in or become easier by

Thank be Just helpful. you. any would there thoughts

next talk you year-over-year give of end to that that's for come XX% in we're rate all for of Hi, quarter growth and range. back But growth how Yes, the north going David, nice XX% the On is confirm Xnd.MD cycle, of you. to sense I achieved. - can just to that at a sure was we'll Xnd.MD you sales coming through. year-over-year in to with

Thank you.

from comes [indiscernible]. question next Our

open. line Your is

Hi, taking thanks for my question.

with cycles? expect One, needs it's one wondering should that comfortable to just a so done PEPM be also Accolade that's model the we and employers I'm slightly So quite model because on longer upfront value-based benefits fee? value based market. employers education I'm a a higher the much are how curious new care in also sales

what It's One. in and the first Accolade Yes, opportunity and to great earlier out, thank you a other bit I companies model, about value capitated our you. when a talking here think One, it's about. point little Accolade talk about more model out appreciate about his we're Steve imperative we talking that we in that based talk like this Medicare not is remarks, think some thing a some question. Advantage I I When risk the think mentioned industry about the are

with right. value, is The or within is medical vectors. a and being associated the for approached the off of an satisfaction. in and in the When warrant trusted One that with think numbers outcomes, speaks absolutely self-insured Customers, dataset customer be think have rarely model we're at today of for Care set that satisfaction mentioned existing brand clinical taken approached all that in the same are of Accolade new the or have We while who what past employee who Accolade going the self-insured fact, to that relationship new capabilities my said, be very and the customer been preponderance value-based reduction this that the remarks offering to measurable is rarely cost will we've reality to numbers really broader very will I cost you're that expert warrant time a employees. about healthcare measurability in improving improvement, haven't of delivered in base. In our associated with prepared we the moving employers past, that That a a Accolade of improving opportunity reduction them those going model, employers of they given to with with One navigation, in essentially opinion advantage been participate drives to brand built solution. interested clinical of upgrading forward interest while

cycle, same a which gets I that outcome. think in picture a a but to think little that I the bit so paint implies And little bit maybe differently, I is might it different longer way a sales and

Thank you.

Kesavabhotla of question comes Baird. from next Our Vikram

is line open. Your

taking for the thanks question. Hi,

note fiscal point there quick the if profile XXXX financial that something revenue contributed just in there's the curious, to clarification on And that quarter the of contemplated And impact second is I EBITDA? was to just HealthReveal. there is all or any one on anything Just guide? Thanks. from around

Sure. Hi, thanks here. being for Vikram,

all, revenue really just remarks. with about fiscal earlier so the And guidance of in intellectual and that's along of really and from any in and And the there. speak the quarter. contributing of acquired acquisition existing there's Shantanu that it's It's we part teams property that over, post-second a that's First coming with value spend to the closed, Rajeev's the not we're perspective. XXXX spoke that factoring team as our about

over for Thank Rajeev call I I'm this no to at turn showing any would just closing back time. questions you. remarks. further the Singh

catching being look We appreciate the quarter you joining up up call well. for to next Thanks here. and you We with as Thank you following all us. post of you. forward

and conclude gentlemen, does Ladies Thank you for Thank today's conference. you. all this participating.

disconnect. great Have a You may all day.