Accolade(ACCD) - 2025 Q3 - Quarterly Report

Revenue Performance - For the three months ended November 30, 2024, total revenue was $105.1 million, representing a 6$99.4 million for the same period in 2023[136]. - For the nine months ended November 30, 2024, total revenue was $321.9 million, reflecting an 11$289.5 million for the same period in 2023[136]. - Revenue for the three months ended November 30, 2024, increased by $5.7 million, or 6$105.1 million compared to $99.4 million for the same period in 2023[171]. - Revenue from usage-based fees rose by$5.2 million, or 18%, to $33.7 million for the three months ended November 30, 2024, compared to$28.6 million for the same period in 2023[171]. - Revenue for the nine months ended November 30, 2024, increased by $32.4 million, or 11$321.9 million compared to $289.5 million for the same period in 2023[172]. - Revenue from usage-based fees for the nine months ended November 30, 2024, increased by$19.8 million, or 24%, to $100.9 million compared to$81.1 million for the same period in 2023[172]. - Revenue from access fees for the nine months ended November 30, 2024, increased by $12.6 million, or 6$221.0 million compared to $208.3 million for the same period in 2023[172]. Financial Losses and Expenses - The company reported a net loss of$121.3 million for the three months ended November 30, 2024, compared to a net loss of $21.1 million for the same period in 2023[136]. - Total operating expenses for the three months ended November 30, 2024, were$168.8 million, compared to $76.6 million for the same period in 2023[168]. - Goodwill impairment for the three months ended November 30, 2024, was$96.5 million, significantly impacting the loss from operations[168]. - Total operating expenses increased by $92.2 million, or 120$168.8 million for the three months ended November 30, 2024, compared to $76.6 million for the same period in 2023[175]. - Adjusted EBITDA for the three months ended November 30, 2024, was$(3.8) million, compared to $(4.6) million for the same period in 2023[190]. Customer Base and Market Position - As of February 29, 2024, the company had over 1,200 commercial customers comprising more than 14 million members[134]. - The company has over 150,000 consumers subscribed to virtual primary care services through its PlushCare solution as of February 29, 2024[135]. - The company plans to continue investing in growing its customer base and expanding relationships with existing customers to increase margins over time[148]. Operational Efficiency and Technology - The company has experienced operational efficiencies from enhancements to its technology platform, which are expected to continue as the customer base grows[146]. - Significant investments in technology are anticipated to enhance operational efficiencies and improve health outcomes for members and customers[159]. Cash Flow and Liquidity - Cash and cash equivalents totaled$185.9 million, with marketable securities of $39.6 million, resulting in total liquidity of$225.5 million as of November 30, 2024[196]. - The company repurchased $76.5 million of its convertible notes for$66.2 million in cash during November 2023, reducing the outstanding principal to $211.0 million[197]. - Net cash used in operating activities decreased by$9.4 million to $12.7 million for the nine months ended November 30, 2024, compared to$22.1 million in 2023[200]. - Net cash provided by investing activities increased by $20.1 million to$9.7 million during the nine months ended November 30, 2024, from $(10.4) million in 2023[201]. - The company had a revolving credit facility with a capacity of$61.7 million as of November 30, 2024, which was extended until July 19, 2025[198]. - The company expects its cash, cash equivalents, and marketable securities, along with customer revenues, to be sufficient to fund operations for at least the next 12 months[196]. Market Conditions - Macroeconomic factors such as inflation and unemployment may impact the company's operational and financial performance, particularly regarding customer contract renewals and membership numbers[153].