Accolade’s Fiscal Second Quarter Results: Revenue Surges by 10%
Accolade, Inc. (NASDAQ: ACCD) reported its financial results for the fiscal second quarter ending August 31, 2024, showcasing a robust performance that positions the company for a promising fiscal year. The company achieved a revenue of $106.4 million, marking a 10% increase compared to the same period last year, when revenue was $96.9 million.
This growth underscores Accolade’s ability to enhance its top-line performance amidst evolving market conditions. The net loss for the quarter stood at $23.9 million, a significant improvement from the $32.8 million net loss recorded in the previous year, reflecting a 27% reduction.
This reduction in net loss highlights Accolade’s effective cost management strategies and its focus on achieving profitability.In terms of non-GAAP financial metrics, Accolade reported an Adjusted EBITDA loss of $2.8 million, a substantial improvement from the $8.8 million loss recorded in the same quarter last year.
This 68% improvement in Adjusted EBITDA demonstrates the company’s ongoing efforts to streamline operations and enhance efficiency. Furthermore, Accolade’s Adjusted Gross Profit increased by 17% to $50.3 million, with an Adjusted Gross Margin of 47.3%, up from 44.2% in the prior year.
Accolade Reports Better than Expected Second Quarter Results
Accolade’s performance in the fiscal second quarter of 2025 exceeded market expectations, particularly in terms of revenue. The company reported a revenue of $106.4 million, surpassing the expected $105.0 million.
This outperformance is indicative of Accolade’s strong market presence and its ability to capitalize on opportunities within the healthcare sector. The company’s strategic initiatives, including its focus on personalized healthcare solutions, have played a pivotal role in driving this revenue growth. On the earnings front, Accolade reported a net loss per share of $0.30, which is a significant improvement over the expected loss of $0.44 per share.
This better-than-expected performance can be attributed to Accolade’s effective cost management and operational efficiency. The company’s efforts to optimize its cost structure have resulted in a reduced net loss, thereby exceeding analysts’ expectations.
Accolade Expects Revenue Between $104 to $107 Million
Accolade has provided forward-looking guidance that reflects its confidence in sustaining its growth trajectory. For the fiscal third quarter ending November 30, 2024, the company anticipates revenue to be in the range of $104 million to $107 million.
The company also projects an Adjusted EBITDA loss between $3 million and $5 million, indicating its ongoing focus on achieving operational efficiency and profitability. For the full fiscal year ending February 28, 2025, Accolade expects revenue to be between $460 million and $475 million. This guidance reflects the company’s robust growth prospects and its ability to capitalize on opportunities within the healthcare sector.
Additionally, Accolade anticipates Adjusted EBITDA to range between $15 million and $20 million, signaling its commitment to achieving profitability and enhancing shareholder value. The company’s strategic focus on personalized healthcare solutions and its ability to deliver exceptional healthcare experiences are expected to drive this growth. Accolade’s leadership remains optimistic about the company’s future prospects.
Disclaimer: The author does not hold or have a position in any securities discussed in the article.
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