On January 10, Accolade Inc. (ACCD) reported its financial results for the third quarter of fiscal 2022. Consequently, the stock became bullish in the after-hours on the strong financial outcome.
During regular trading, ACCD lost 8.51% at its closing price of $19.14 with 1.74 million shares exchanging. Following the earnings report, the stock reached $21.30 in the after-hours with a gain of 11.29%.
The personalized healthcare and benefits solutions provider, Accolade Inc. was founded in 2007. Currently, its 66.66 million outstanding shares trade at a market capitalization of $1.39 billion.
ACCD’s Q3 Results
According to the Q3 FY2022 results, the company’s revenue increased a huge 117% year over year to $83.5 million. This compares to $38.4 million in the year-ago quarter.
Moreover, ACCD generated a net income of $22.5 million in the third quarter of fiscal 2022. In comparison, the net loss in the year-ago quarter was $16.6 million.
Furthermore, the non-GAAP adjusted gross profit in the third quarter of fiscal 2022, was $39.2 million, against $16.1 million in the year-ago period. This shows an increase of 144% year over year.
Subsequently, the non-GAAP adjusted gross margin was 47.0% and 41.8% in the third quarter of fiscal 2022 and 2021, respectively.
Future Outlook
Along with the Q3 results, the company also provided its future guidance for the upcoming quarter and full-year fiscal 2022.
Hence, ACCD expects revenue in the range of $90 million and $93 million for the Q4 FY2022, which will end on February 28, 2022. Further, the estimated adjusted EBITDA is expected to be between $(4)-$(8) million.
For the full fiscal year 2022, the expected revenue range is $306 million and $309 million. ACCD expects adjusted EBITDA in the range of $(48) million and $(52) million for fiscal 2022. This represents (16% to 17%) of revenue.
In addition, the company also expects its revenue to grow by 25% year over year in the fiscal year 2023. Added to this, the adjusted EBITDA for fiscal 2023 is expected to decrease to (11% – 12%) of revenue.
ACCD’s Recent Developments
As announced on November 29, the company participated and presented at the Piper Sandler 33rd Annual Virtual Healthcare Conference. Previously, the company had also participated in the Credit Suisse 30th Annual Healthcare Conference. This conference took place on Thursday, November 11, 2021. The company’s participation in the Credit Suisse conference included a presentation and a fireside chat.
