SEATTLE - Accolade, Inc. (NASDAQ: ACCD) reported its fiscal first quarter results, surpassing analyst expectations for adjusted earnings per share (EPS) and revenue. Despite the first-quarter beat, Accolade's stock plummeted by 18.9% due to the company's weaker-than-expected guidance for the upcoming quarter and fiscal year.
The healthcare company posted an adjusted EPS of -$0.35, which was $0.13 better than the analyst estimate of -$0.48. Revenue for the quarter reached $110.5 million, also exceeding the consensus estimate of $105.19 million, marking an 18% increase from the $93.2 million reported in the same period last year.
For the fiscal second quarter ending August 31, 2024, Accolade expects revenue to be between $104 million and $106 million, below the analyst consensus of $113 million. The company also anticipates an adjusted EBITDA loss between $8 million and $10 million. Looking further ahead, Accolade forecasts fiscal year 2025 revenue to be in the range of $460 million to $475 million, which falls short of the consensus estimate of $490 million.
Rajeev Singh, Accolade's Chairman of the Board of Directors and Chief Executive Officer, emphasized the company's commitment to improving healthcare accessibility and outcomes through their physician-led advocacy and Healthcare AI. Singh expressed confidence in the company's engagement model and its potential for sustainable and profitable growth. Steve Barnes, Chief Financial Officer, highlighted the company's focus on delivering profitable growth and a positive adjusted EBITDA for the year, while also de-risking the full-year revenue forecast and concentrating investments on margin expansion and revenue opportunities.
The company's net loss for the quarter showed improvement, with a 28% decrease to -$27.6 million from -$38.4 million in the prior year. Adjusted gross profit rose by 30% to $52.8 million, and the adjusted gross margin expanded from 43.5% to 47.8%.
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