Accolade (ACCD) 1 Jul 222023 Q1 Earnings call transcript

Good day! And thank you for standing by. Welcome to the Accolade, First Quarter 2023 Earnings Results Conference Call. At this time all participants are in a listen-only mode. After the speaker’s presentation there will be a question-and-answer session. [Operator Instructions]. to Friedman, conference Investor Senior like speaker to Relations. now Todd today, Vice would hand over the your I President of Please go ahead.

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

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

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

being Thanks Todd, here. for all you and thank

thus Today, just Accolade’s provides year a the our few insight months year we’ll what far about with opportunities. perspective provide ahead. of and on first share The and market you useful we’ve seen fiscal the new

quarter call. range, came in to in commercial our it for to turning for the with Steve just We to leave section the of off in both cover in guidance and more new System seen business our the became a financial We our strength early his what We advocacy first selling news our employer more the in season, University that performance been year: a our kick fiscal the detail West and closed customer revenue Among has I’ll high large we’ve we signed – space, the me adjusted-EBITDA. end above Coast of quarter. QX, deals, the of Let that that good further in and fiscal historical precedent. university new here’s the closed vertical. demonstrates

transactions. do channel selling distribution well direct health and to continue in partnerships our both medical expert Additionally, very plan opinion our stand-alone

using cross-sell million XX% upsell of Virtual today of Expert adding Accolade our and since XX our nearly members Regarding one and Solution, our last Offerings tremendous year. Care Opinion offerings, are more reflecting Medical than progress

a competitors warehouse wins market. financial an number firm We a in company. and insurance medical companies services the include of in expert Those opinion Fortune also replaced XXX retailer,

of oftentimes With commercial these in Service wins, our strong. using how very of importantly, Investors more remains the XXX in segment about XX% pipeline Accolade commercial behavior strong Two terms an of in more today: ever QX we’re in just potential the First, customers. We participating buying very market than new a for is recession today. new than business the for have before. or had observations downturn is the the bookings. Fortune questions impacting us Most RFPs

proven delivering consistently plays on and well our rising to track Second; of the record cost environment savings the over of our a more solutions cost healthcare. than customers this of ever multiyear in focused course are contract. This

partnerships United Since of BlueCross then, plan BCBS partners we’ve ago health valued Three market. and BlueShield our Aetna, acquisitions, attention years HealthCare plan and a announced specifically strong first to the our via Massachusetts. Accolade with like Humana, turn health Michigan added partnership let’s Now, still Optum, partner.

we recently advocacy California, advocacy our partnerships relationship and Priority to of primary care virtual In addition signed Humana with Michigan. Shield an of like Blue Health and

care our will leveraging be to care relates primary virtual-first our virtual health Priority virtual it offering relationship, mental plan to and design. As primary power their

additions. in Via across to we technology new the industries, a our Expert representing advocacy, brand of good, point, to health MD expect all and we attractiveness our sectors ahead. customers name the Plan these was relationships channel this highlighting MD in care and Expert forward. months We opinion mental the expect to Accolade have Plan moving factors space primary in Performance added Health more and partners At number primary market, the energy the in the F-QX continue of offerings Health especially and expert across announce Accolade and and and Health virtual in partners profiles. medical retail, customer grow to care employer we add ones

Our to expert rates. be differentiated is win strong medical and opinion seeing continues service

the Select fiscal Now, looking the final extend the pilot. news back as a look that business. take to at a Navigator agreed TRICARE and just for let’s First, TRICARE at that DHA Health whole. our elements step Agency I the business is of the third mentioned. two and government now In QX With Navigator Defense in program year are the There business business: hand, to Select

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it Defense continue position opportunity in the for we this well entity things ourselves As to the size with future. But the all Agency, with time. of will take Health an

Oxygen business care our our work on DHA demonstration. TRICARE The the part is second of

possibilities Net, As you can opportunities now strong see and assisting expand time. specialized to families. in continue aggregate over this with imagine, have overall nurses military to our to We spectrum children on grow our the those our business. needs Health government families partnership with And we population unique are see

competitive discussion a and you dynamics a cover. Before landscape, market we give me recap let turn quick what we of to on

care mental collectively health; a risk primary have execution, product medical This government, clients with while personalized plans. expert diversified minimizes upside. we strong We and and and at distribution market-leading health health suite. offerings have the strategy distribution opinion advocacy, through maximizing through channels and direct-to-commercial And care virtual

let’s Now competitive discuss market landscape and dynamics.

their their care health rate state vendors business. delivering competitive one very are such and at to our prices. that they performance customers the of of Our ultimately wary comprehensiveness personalized in those detailed our of comes and important comprehensive a employees Those less our health the every with ratios commit approach write have who competitive RFPs concerned and buying It’s strong, in to win relationships. the given differentiation the our that same our All who it’s that personalized the service in to context will our of service with rate value cut remains delivering said, often employers reputations transactions on pricing for approach care and our at of hire as consultants comprehensive and quality, that building requirements to to discipline levels. include are industry, widely, suite will dynamics engage from approach Those customers historical to staffing population remains a guarantees. service, note data-driven

do, the moving differentiation drive deals on that and of Best success pay for continue World our pipeline. value That the and customers our closed we their will XX% our growth to in what current to in continue rate based the business We’re that and willingness show to forward.

to our of since will more call. our synergies other elements in to last committed business call XX% some acquisitions progress last that operating section consistent of to building that towards profitability his reap while the year, talk long-term from three margin driving We’re the of end, things. that growth effectively XX%. across target among we the Steve took and making To actions about

Business important care a Finally, health BXB the of Accolade. business innovation our I’d the capabilities Accolade number is is QX stack direct-to-consumer underlying mental that In the in primary a and continued point a our the powerful virtual for like DXC for out strategic space. of to Accolade tech reasons engine on well. Care spend business and perform first, It’s and and fiscal also to course our to growth to business. power moment business

other we from acquisition costs. customer of questions DXC for often space, our In our we regarding environment is with hear players several attribute others continue virtual the to differentiated short, factors. grow the performance in attractive the space which Given care We well business. the in performance this in business, to

players focused focused important much care needs see our primary other First, urgent health who particularly care because service that COVID that discovered is provider, urgent-care visits, Other urgent service primary care oftentimes embrace we our enjoy converse. approach. companies’ are office offering. and and the restrictions due This a care to only for mental so they versus people don’t

strong long-term retention members Beyond relationships other players. with care our to rates to compared primary DXC that, our lead

our to is clinicians full-time One of to care a their and of relationship. single a the that majority employees. finally, practice model with our physicians a that With over blends and doctor of to care delivering our build service I’ll with us in our the long-lasting unique moving Steve. health Thus time, regular quarters mental And majority that, can visits updates are to consumers. We’ll business core choose better and are more scalable things about consumers way primary health our required collaborative call behavioral on its for to the ahead person drive continue while our the our effective a strategy forward. DXC whole is provide turn care as our

quarter lower our more the beat, everyone! XX.X% mentioned the Raj! first growth million, the in basis some the a higher as fiscal gross results margin representing quarter to Raj fiscal prior we This Fiscal to does PG of the in the was providing in before quarter. of from first EBITDA is year as of The quarter, in which which offering timing prior ‘XX year-over-year first the such in that to revenue results of changes as fiscal QX Good in in acquisition First, last XX% hiring than areas year to quarter quarter PlushCare prior adjusted GAAP mix. was primarily planned color fiscal due the in one as a first We generated the million expected completed first margin that of Adjusted and afternoon, fiscal ahead on XXXX on and reflects year guidance, our the revenue loss in period. $XX.X a well the million is include Thanks June costs. not that for personnel benefited adjusted margin ago $XX.X revenue EBITDA, XX.X% $XX.X compares some earlier. spending loss period, year I’ll addition positive gross a XXXX. compared over recap

quarter. a also just of we You GAAP under that charge will $XXX impairment first note goodwill during million recorded noncash the

to standard quarter. goodwill is it aware, certainly evaluate balances are you As every

the of to market both is the cap below to value, One quarters total the The acquired key parent market decline of and over stock company underlying market led metrics analyze assets. recent our goodwill acquisitions balances. the review Netpac academic work value for exercise Xnd.MD the comparison the of in current to and we made with valuation being an paid our to auditors to PlushCare.

turning in and at line with provisions of that to number equivalents $XXX shares at Now, million quarter, XX.X of for and of revenue related distribution had XX.X earn-out we first XX, the million receivable acquisitions. reflecting of days Xnd.MD of fiscal to totaled prior and cash Cash million quarters to the sheet. in XX as balance were shares shares and majority outstanding end about up accounts outstanding. June, the the the common XXXX, Currently, approximately the vast DSOs stock the the PlushCare May bumped

Now about turning how guidance towards think financial breakeven. progression model and to to our forward

and approximately $XXX forecast We’re updating today now in XXXX, growth million $XXX to XX% the at midpoint. will be representing range our guidance of fiscal the revenue of year for million,

and range which in loss quarter, million our guidance and second Raj are the between $X.X the fiscal million primary of with EBITDA to a the the associated revenue from moment. guarantee and the providing will to for I With one-time one-time noted million, $XX adjusted guidance. in describe earlier. $XX respect of million, mentioned again, We the QX with timing as sequential associated benefited the $XX.X million loss expected Also which are million of costs to more maintaining guidance detail realignment QX $XX some today and is performance QX $XX of earlier, adjusted mentioned actions costs revenues, driver revenue approximately change that from the we range excluding $XX of million EBITDA excludes earlier, in in

X,XXX our Now about headcount and of from employees earlier. a few people. grew cost completed mentioned nearly comments we Last to X,XXX the the realignment Xnd.MD, and year HealthReveal PlushCare acquisitions

positive As deliver our we XX% that strategic have with efficiency, of to guidance, make we context maximum of we’re operating to ultimate quarter. This structure years. foundation objective aligns review the economic of that goal two achieve and of and our growth evaluated refocused the second base environment financial business resulted in on a within cost X% flow to of complete, a several at our objectives. in reduction sure business employee the of our the our we revised review about the the parts With our cash revenue ensuring we and business in of undertook

our intentional our frontline Importantly, on impact we care teams. to are actions not

for We exceptional scores NPS member and the of are MD. XX advocacy and of with proud for than XX experience, greater PlushCare Expert

line, is since are fiscal aligns growing With focused cash our years our and positive progressively XXXX, expanding commitment has top today. business reiterating frontline teams We XXXX existing to profitability we been That the improving care which XXXX stronger unwavering that, year. we each on calendar objective went to adjusted public been new now. flow and expect about support of while on only our two and from EBITDA We’ve customers. with our continue in in

due bonds convertible four Our not for approximately years. are

an of achieve strong capital back $XXX markets, to more we on going million the us a have position we financial without in against continue short, in the than to liquidity plans passionately diversification So hand, believe cash to cash our at placing execute In to for objectives. adequate built to and revenue our call questions. like and depth that, our have growth strength, which we of that breadth With offerings, ultimately we’d and positive the platform, and flow. base significant engine of customer will sustainability, our the drive streams to open

[Operator Instructions].

the comes from Blair. Our of William Ryan first Daniels question line from

Your line is open.

to question. I year Yeah I solutions. strong and regarding guys, that’s the guess opinion the the to for congrats ask one on start second want the

an times in seeing it sounds progress are and with several your some new particular the like prepared area during that mentioned pipeline wins. and comments that’s You market, end discussing the and displacements you

more you’re then can So, bit particular? that little regards seeing business detail a to you both adds Thanks. new about net performance, and strong go displacements in into in in why such

question. appreciate Thanks, Ryan. the I

first, think correct. I you’re absolutely

opinion differentiated capabilities back our with and out beginning of loved channels about delivered into our when about customers, of consultations networks itself competitors really to respective starts opinion really physician, year, value We’re now a each to the deliver, their with that great and we can their offering with what pushing really That acquired advocacy deliver March was exciting people offering. be that’s excited previously Xnd.MD an personalized the in who was and lines medical What play company about expert of to who to find that later part that business product local a to to which just last we as we the that medical three video the service Accolade down business delivering are offering ended more other we the the might a differentiated. the finding have written it highly consult opposed service differentiation expert of is where selling deliver or distribution direct our Plan reps across road. health both, that customers, were our motion, offerings that

we’re where seeing that’s it. So

is think human building the win the particularly are I across relationships built idea, services. with services deliver each around is finding In what of Ryan are think our improving. its our we’re long-term that, fundamentally of human service future, personalized and data-driven, and rates embracing customers touch, this finding A our all heartening a does cycles, because we’re terms it’s I of replacement of we what the for commonality

you. Thank

the come Glen Jefferies. next will question line Our of from Santangelo from

Your is open. line

do more, the and this than visibility sales an and XX certainly of the sit even hasn’t record cycle. a this gotten little I Thanks later, Rajeev, taking more maybe back last Hey! seeing was look wanted quarter. you changed with elongation customers at seems have to we’re what follow we of environment pull question. a bit mean message very seeing changed question. last and were quarter bookings when seeing for you the think my message just fiscal balance have you’re the RFPs it at because up you before in the much peer know year, the how you you just sort just how ever now of is and much seems Like it quarter we point deteriorated I have to the here recently? has the starting And recession, days of given now better high-level here things

you Glenn, appreciate thank for you the I here. question, being

If talked amend last about little characterization. bit quarter, we back what maybe go to a the you I’ll of

last uncertain believe least and market the I talked a what prudent at think economic ahead may to an at I the quarter down. for we it about was that environment, was that look account slow idea

that now last quarter I the seen white to we and their we seen we quarter the going what of talked characterized through before Are RFPs the close? saw those we more we they really than fact pipeline? that’s think to year was, continue see that year last quarter. eyes, way during last contracts the had to to the progress that about are needed things So we’ve and going

You those quarter this this year deals and closed that business I think going progress know out quarter we what actually to to closed This what are it It continue last we close. ‘hey! saying than we’re time.’ is, actually more turns appears

things And changed. so have I dramatically wouldn’t that say

customers. seem what health that We we’re care mentioned script, quarter and as pursue medical course the I customers cycles learn the the are in think be every about environment of think, understand looking in the to to the economic well. that is costs continuing advocacy, those managing in performance all going the and that quarter interested beginning as care single we news that forward our instead say, interested terms is would positive in in plays I more Just and We as and over evaluations. of expert out how that second of count of to very we we’re buying quarter, opinion to to that how impact first

you. Thank

Genuity. question Richard from next from Canaccord come Close of the will Our line

Your line is open.

lower thanks of deal if you Yes, the end range. was revenue you took previously? wondering bit signed about the TRICARE the primarily, could Congratulations! you thus Steve, the talk out I the of a and for discount little questions! you Was that applied raising that

the Hi Signing Richard! bringing it the of We the certainly range to wasn’t only million, had $X Thanks question. the the aspects for TRICARE that. up provided some of contract but there. contributed in by bottom the

also of comfort around saying that good We’re some bookings gives lines us is is Raj what seeing new along there. the positive momentum

in and beat, to the saw hold which also the performance member counts quarter revenue on positive beat We revenue to continuing this contributed up, PGAS.

us that the giving more some to the speaking his it’s was Raj balance raising at environment midpoint, same there So, just and while the maintaining given about economic confidence comments. visibility in time

you. Thank

Our Michael of line Cherny America. from the of Bank next come question from will

line open. is Your

Good afternoon! I wanted to well little competitive as on dive in I think dynamics. bit a the

that component key of offering loss the down of rates, talked cut this in something just provider, quarter, talked low-cost close But and was more, guess improved else being last offset dynamic but something for of the that’s about broader the versus well a state I your that which particular. business, theme not the as the between you the another You Comcast obviously about encouraging, market. is

asked and also that is that’s of As can for value, you you’re quarter, only how not but price? elevated this cut activity on about squeeze to you we seeing the tied being where much pitch think RFP

question, Mike. the for Thanks

over think last win about the not business most you one has were excited is the improving. rate course, if over consistent things that of the our XX months very I to the look if we’re been

they first to Now market particularly foremost looking been you rate a that are that that the ahead, asking embracing pricing we so downturn is filled they comprehensiveness Mike, And they very or healthcare a a costs, the we and RFP. for by that the market, RFPs a my bit RFPs, to to in prescribe clinical in a in now, are the and are seeing to prepared about that seeing are I reflection RFPs a see recession the win as it want proposition that’s that customers those are specific that’s the respond reduced has market. remarks we that potential be in their expecting delivers today, vendors of customers about to and and right – mentioned like delivered Accolade asking the needs been to think outcomes look we’re in then what is for we’re the consistent market with responding value that very we’re looking

I the other that market yes, think lower-cost choose so may of And solutions. there are segments

the we’re is seek think Mike, available wounded and are bullish services, shorter other in cost on lower answer we to what and that that seeing to points Mike, have the good I touch we’re price with lighter prospects are the they solutions our past. there with do customers delivered rates story the we consistent for really news a very if long so you that win

Thank you.

will the question come Motz next Cindy of from Goldman Sachs. line Our from

is Your line open.

see the you But us good. could it if question Expert going for if based as on million we it sounds was breakout give is us the also the revenue couple sounds and the just to segment Any information Thanks taking throughout and I information – that your the that Thanks. give improving this from million on on PlushCare, like it core like some $X.X you And like or my hoping quarters? that between going of of year? Is like guess to is for continue expect any maybe better. then information. quarter, you Steve, quarter. – Expert comments, to Thanks! well like in non-recurring I segment could just the one-time more congratulations it’s should a yes, sounds and $XX would, just

first. don’t start question with I the Why Good second Cindy! afternoon,

the hit time associated cost, On will quarter, see second the next million. in be $X.X with the in the that will to one-time of you neighborhood that and the charge

one competitors our strong get whether not to very our importantly needs, an be and a is there. see seeing primary opinion much strategic to partners and to the is thesis the first healthy larger with of the base their the And a seeing breakdown of we wins, than we’re Primary Virtual member advocacy bundled which that rates as we’re certainly part, relationship is consumer strongly about spoke to see here. Expert is that Opinion deals direct-to-consumer to in business. that being Number business, the Raj to Medical third The growth business very Medical terms with both member the and growth rate. know, of we’re Opinion medical model can we’re Expert earlier. stand-alone of advocacy couple remaining relationship, starting starting we care with around very the it virtual continues on medical with only new business it the growing two-thirds a sell, ecosystem mid-XXs continuing when The mentioned that opinion, the On Care see leverage associated turn to points knockouts utilization is you business the flywheel earlier, split about between the volume PlushCare Opinion. the seeing also Medical encouraging, a expert believe of in business year-over-year, perform Expert the a one, expert as Raj and bit acquisitions, sales or

some information of some at positive tomorrow. sequential pro that Opinion we around in this growth on slowdown row The we’re so forma couple so a the way will quarter Cindy, filed Expert a positive ago, after news saw of quarters second there. And XX-Q be information by Medical

Thank you.

Jonathan line Credit from Our Suisse. Yong next the from question of

line open. is Your

Hi! Thanks question. for taking my

So are be do actually and And this wins enhanced cheaper achieving – not still that current the competitors wins, later? new you on there just smaller, like or are in I and sooner give just guess expected. possibility and helping coming given the they funding anymore? confidence are it they profitability these sounds may have winning out than they rather pulling of now environment outlook in are Thanks. the back better than does

those both for please got you’ve if Thanks to add. I’ll to hit try the Steve anything and of question jump Jonathan. in

terms the hasn’t I competitive changed Jonathan. think it landscape, dramatically in of

service we’ve that do delivers personalized enunciating to that what think that’s value. our and human-based population executed win health proposition, well done, engages I populations, customers buy value comprehensive strong a data a proposition solution of that enunciating we are of of traditionally driven job approach. we’ve really that our great value broad and When at comprehensive a rates using

So the of traditional of rates. the nature competitive there’s nor dramatic change no our in landscape, win

I think Steve his as in it script. said well – relates to really profitability, just it we’re I think

out We’re capacity really forward. comfortable path laid with moving we’ve our achieve guidance the our and to that

Thank you.

from next Hettenbach question Our will come the line Craig of from Morgan Stanley.

You may begin.

to the Do you you the low maintained other on I know, which and kind any sticking revenue profitability year? end EBITDA. of the of the the EBITDA to And that. as aware or elements the in to of relates just this speaking be some that up cost terms kind taken view of path of on to back a the of that, it just then you’ve perhaps just on that cuts, confidence conservatives with back you question had Yes, as guidance of of

for Craig Thanks the Sure. question.

rate, business XX%, all growth synergies, think cost aligning had describe priorities would previously the aligning been this having the the – costs the which as post about bit that’s very a business cuts, done on against So we of the of so acquisitions, against how three XX% more first much putting cost I cuts. around finding the

guidance end has we is, have we’re We next two couple confidence cash quarters then EBITDA good that but in in and of loss to to so it this here midpoint breakeven the year keeping EBITDA by that season, bringing the over this flow the quarter, with in just where trajectory $X.X and the of see of from how as first a go had positive far years. positive do adjusted As things first quarter. then the or XX% about million positive selling EBITDA with here up obviously and continued to want at

Thank you.

line question of will Sandler. from from Our Jeff Piper next Garro come

is line Your open.

helping Hi! on mid-market? just how the I’ll the the those segments? for strategic questions. in Good of relationships customer season. consultant and distribution afternoon different curious, you referenced, that taking team plan and enterprise selling I’m is And ask are thanks segments one differing both the across side more your the how different activity across

Thanks Jeff! I question. the appreciate

over in quarter. think segments, segments flows course transaction the I of first the saw of terms of each in we those

we the So the point and beyond. accounts, traction all continue into one, to way that market continue that’s see you know from to we traction QX through across middle ranging strategic and – expect

One things has company of reaching excited longer the business driver is we’re the the of business. that about its most diversified value the potential capabilities is no our of only in as idea direct-to-employer customers, the

we so diversification our across also the what And just mentioned, while across – exciting, distribution channels market exciting. is diversification is I those segments

plan mentioned health first our So Michigan to remarks, care also in half, with first partners services and we relationship saw my design and primary our a our the their Jeff, prepared saw we businesses. representing and Priority quarter the offer And EMO mental I our traction it virtual with to first power for in options. Health it then in advocacy quarter in good health that line both,

So those both strategy developments to business. grow us, and diversify us distribution help our the

Thank you.

from Our comes Larsen the line next David of from question BTIG.

open. is Your line

And work flow assuming doing of and hear the of really that going Thank will them to are to the we for revenue actually a impact what that enough total is and TRICARE when to that’s little the they when like, good would Comcast the into Can you’re return getting. But ‘XX? P&L? about about that and talk start be you expansion more drag fiscal contract they that bit offset potential Hi! an contribution would your like you. it contract,

Thanks for the question, Dave.

We’re out, things be think pilots it proud the excited really serve part a that the to value. you in of Health on and pilot value you business, members the government third Defense satisfaction. the to and a DHA particular appreciate and $XXX,XXX healthcare pilots multiple as reductions, or year them this manifest a around chronic have serving to determine more prove pilot in able up, year for clinical particularly cost the think Remember, service improved That pilot, on conditions. spent business it’s the and this designed about who this about if of. member particular so to because test TRICARE, we’re new like I outcomes Agency is bringing can than in of we’re When innovations, drive

again of And pilot, post virtue a in happy year across up of can option three pilots that that signing third we’re year the both great happens so how select into government what standard that the is We’ll proving service with to There’s the the the do may for newsletter their you as regions part the share execute way government. this turn And government then to those we medicine that value. military innovations which by a deliver of in is when well. that so government the we’re believe right this goes article carriers that we well? the by a pilot of to speaks now call, bid TX be running bid,

about opportunity, vendors We of excited signed bidding three into we the because TX. that have are who themselves as these are four pilot particularly with embed agreements teaming TX, capabilities

our and distribution is unique the nature become for breadth the type – given our our of the delivery this service engine to So of opportunity profound pretty others of partnerships. innovation and

TRICARE the So the and this one time. that size that Dave, presents, P&L? it of is how great of manifest entities opportunity of with takes one and will in dealing realities the that is the I government of parts the think DHA of huge

TX scheduled is awarded year. so be And to bid this the

the I and the be know bid will the likelihood bid a then really to who business of appeals well, and awarded for government there’s the you of think to those appeals process.

of so the X, X, then deploying XXXX, and year. schedule the Is for me, to begin XXXX, innovations deploy and midpoint January And excuse January to TX at for current to then those innovations me. – the deploy excuse is on XXXX, these

is when could here is expect that’s we market to what’s the these new significant. revenues, target manifest addressable some you think in so of to And start important but

role Our is material is diversified. our leadership and strategy distribution

you. Thank

from Our next line the come Needham. of will question MacDonald Ryan from

is line Your open.

what you that at And outlook type you what customers? base just then you the continues like know Would your pick labs evolve to have quarter. to Thanks. and the to and you’re up. seeing your questions to call the last congrats to market exposure making on assumptions taking for about continue Steve! guidance nice labor Obviously are within I talk since extent there? a for customer and the as Thanks of know environment. want Hi employment even my what Rajeev the employment in earnings forward

diversified of on is for remind have comprises Ryan. to everyone Thanks question One call fortunate we’re amount. none industries, corporate across of the to highly a a Sure! on set many customers the thing side which material the

will we is any some in contributed individual one frankly se particular kind assuming first the is and the we’re that as assumed into to guidance. environment don’t that we rest revenue that beat. What would that, quarter head here exposure have We’ve within year growth we for upside and growth saw a the So moderate us our material. of member difficult that create not modeled so book positive per in that will the is to the continue which of industry

so positive in. that members, seeing recessionary so, given the there we’re cautious environment we’re but activity we’re to far respect with And

Thank you.

SVB Our comes next will from Securities. from line Stephanie of question Davis

You begin. may

and guys! Congrats Hey for thanks the taking my quarter question. on

the to as maybe preference new the I’d expand – I’d budgets a anything seeing has and some curious seen Accolade change I’d we’ve in of that be as be different a love the positive Is given sales turn. as bit your be benefits gears, follow-up evolved the Just driving to prepared take pitch as three Is curious to if of offering to budgets tone enterprise there traction? before tighten? remarks, how win any as grow than a strategy you’re a towards that, effectively? And in

the for thanks here. Stephanie, being and Thanks question for

return and really in well. traditionally value Accolade think done – healthcare associated has landed investment with on reduction cost proposition the has I

improving this proposition couple that our suite answer value to Candidly I more reduction, but take our one care, health reduction expanded that of speaking, we’ve began in important. improving employers expanded CFOs I employee that about last where asked most are more think also hard cost years like really the and departments environment yes. about outcomes on clinical engagement we cost that in to just line. leaning was in think an bottom over to where a and The heavier the very and HR value, being is an not clearly clinical environment about look at personalized as into talk we

we’re muscle into the well sales our years, over we’ve fairly a that think I so And leaning developed developed in that’s and force.

to who terms offering what customers, in In relationship core quite call middle-market what our see but lower in I and that an happening We mix, interesting. capacity continue to customers interest. service oftentimes we see seeking actually seeking to think offering terms of grow we it’s their disrupt improved call the with in actually continuing We do outs. the carve cost, don’t are of carrier growth have

flagship while carrier. And situation, offering well. then finally, solution it’s And more cost the is disruption really so traditional in about about the the trending and of actually that with associated less

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were my just what on about. question. continuing Thanks just Hi! talking taking for you Maybe

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Berenberg. line Our from next from of the question come Weerasuriya Dev will

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in Hey! I guys course here. there’s just Thanks the of some of to I mentioned that the to the move know and should year over EBITDA here. for cadence cost-cutting cadence? wanted how EBITDA looks circle we taking didn’t measures. you be my about more question! like the going some and much back But guidance leverage it HX to think

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from the Draper will Sandy from of line come Guggenheim. question Our next

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Thanks very much.

gross I just So answered, I wanted base heard really to clarify, or just that it that. mix versus I just to think but PlushCare the you clarify say my mix margin been or impacted is business in performance Was Expert margins. the due Thanks. or performance was purely that actually question prepared just product the on remarks guarantees? contributed anything guarantees to or there that, MD the has

raised you as well as both PG glad to contribution I’m Actually, that mix. was there because Sandy. from the Thanks offering Sure. clarify, the the performance,

than margins given year gross timing not year higher business, this the at the was of operated broader PlushCare the number which acquisition. the contributed one, For last and in

both So out were those contributors that performance. to really

I’m closing any showing not you. remarks. back call And Thank the management turn questions any I’d to queue. to in for the over like further

our QX Thank here, again look forward everyone updating call. everyone to and being in you for we

today’s this And conference concludes call. participating. for Thank you

You may day! have now great a disconnect. Everyone,