Accolade Announces Results for Fiscal Second Quarter 2025
Accolade (NASDAQ: ACCD) announced financial results for fiscal Q2 2025 ended August 31, 2024. Revenue increased 10% to $106.4 million, while net loss improved 27% to $23.9 million. Non-GAAP Adjusted EBITDA loss narrowed 68% to $2.8 million, and Adjusted Gross Margin expanded to 47.3%.
CEO Rajeev Singh stated that Accolade is positioned to deliver its first full year of Adjusted EBITDA profitability and positive cash flow. The company focuses on solving the Physician Gap through a physician-led advocacy approach. CFO Steve Barnes highlighted Accolade's execution in delivering profitable growth, with the net cash position improving by over $20 million compared to convertible debt in the past year.
Accolade (NASDAQ: ACCD) ha annunciato i risultati finanziari per il secondo trimestre fiscale 2025, terminato il 31 agosto 2024. I ricavi sono aumentati del 10% a 106,4 milioni di dollari, mentre la perdita netta è migliorata del 27% a 23,9 milioni di dollari. La perdita dell'EBITDA rettificato non GAAP si è ridotta del 68% a 2,8 milioni di dollari e il Margine Lordo Rettificato è aumentato al 47,3%.
Il CEO Rajeev Singh ha dichiarato che Accolade è posizionata per raggiungere il suo primo anno intero di redditività dell'EBITDA rettificato e flusso di cassa positivo. L'azienda si concentra sulla risoluzione del Gap dei Medici attraverso un approccio di advocacy guidato dai medici. Il CFO Steve Barnes ha evidenziato l'esecuzione di Accolade nel fornire una crescita redditizia, con la posizione di liquidità netta che è migliorata di oltre 20 milioni di dollari rispetto al debito convertibile dell'anno passato.
Accolade (NASDAQ: ACCD) anunció los resultados financieros para el segundo trimestre fiscal de 2025, que finalizó el 31 de agosto de 2024. Los ingresos aumentaron un 10% a 106,4 millones de dólares, mientras que la pérdida neta mejoró un 27% a 23,9 millones de dólares. La pérdida de EBITDA ajustado no GAAP se redujo en un 68% a 2,8 millones de dólares, y el Margen Bruto Ajustado se expandió al 47,3%.
El CEO Rajeev Singh declaró que Accolade está posicionada para lograr su primer año completo de rentabilidad de EBITDA ajustado y flujo de caja positivo. La empresa se enfoca en resolver la Brecha del Médico a través de un enfoque de defensa liderado por médicos. El CFO Steve Barnes destacó la ejecución de Accolade al proporcionar un crecimiento rentable, con una mejora en la posición de efectivo neto de más de 20 millones de dólares en comparación con la deuda convertible del año pasado.
Accolade (NASDAQ: ACCD)는 2024년 8월 31일 종료된 2025 회계 연도 2분기 재무 결과를 발표했습니다. 수익은 10% 증가하여 1억 640만 달러에 달했습니다, 반면 순손실은 27% 개선되어 2390만 달러에 달했습니다. 비GAAP 조정 EBITDA 손실은 68% 축소되어 280만 달러였으며, 조정 총 마진은 47.3%로 확대되었습니다.
CEO Rajeev Singh은 Accolade가 조정 EBITDA의 첫 해의 수익성 및 긍정적 현금 흐름을 달성할 준비가 되어 있다고 밝혔습니다. 회사는 의사 주도의 옹호 접근 방식을 통해 의사 격차를 해결하는 데 집중하고 있습니다. CFO Steve Barnes는 Accolade가 수익성 있는 성장을 제공하는 데 있어 실행을 강조하며, 순현금 위치가 지난 해의 전환사채에 비해 2000만 달러 이상 개선되었다고 덧붙였습니다.
Accolade (NASDAQ: ACCD) a annoncé ses résultats financiers pour le deuxième trimestre de l'exercice 2025, qui s'est terminé le 31 août 2024. Les revenus ont augmenté de 10 % pour atteindre 106,4 millions de dollars, tandis que la perte nette s'est améliorée de 27 % pour s'établir à 23,9 millions de dollars. La perte de l'EBITDA ajusté selon les normes non-GAAP s'est réduite de 68 % pour atteindre 2,8 millions de dollars, et la marge brute ajustée a été élargie à 47,3 %.
Le PDG Rajeev Singh a déclaré qu'Accolade est en position de réaliser sa première année complète de rentabilité d'EBITDA ajusté et de flux de trésorerie positif. L'entreprise se concentre sur la résolution du gouffre entre médecins grâce à une approche de plaidoyer dirigée par des médecins. Le directeur financier Steve Barnes a souligné l'exécution d'Accolade pour fournir une croissance rentable, avec une amélioration de la position de trésorerie nette de plus de 20 millions de dollars par rapport à la dette convertible de l'année précédente.
Accolade (NASDAQ: ACCD) hat die finanziellen Ergebnisse für das zweite Finanzquartal 2025 bekannt gegeben, das am 31. August 2024 endete. Der Umsatz stieg um 10% auf 106,4 Millionen Dollar, während der Nettoverlust um 27% auf 23,9 Millionen Dollar verbessert wurde. Der Verlust von EBITDA, das nicht nach GAAP angepasst ist, verringerte sich um 68% auf 2,8 Millionen Dollar, und die angepasste Bruttomarge erweiterte sich auf 47,3%.
CEO Rajeev Singh erklärte, dass Accolade in der Lage ist, im ersten vollen Jahr eine EBITDA-Rentabilität und einen positiven Cashflow zu erzielen. Das Unternehmen konzentriert sich darauf, die ärztliche Lücke mit einem ärztgeleiteten Advocacy-Ansatz zu schließen. CFO Steve Barnes hob die Durchführung von Accolade hervor, zur Erzielung profitablen Wachstums, wobei die Nettocash-Position im Vergleich zu wandelbaren Schulden im vergangenen Jahr um über 20 Millionen Dollar verbessert wurde.
- Revenue increased 10% year-over-year to $106.4 million
- Net loss improved 27% to $23.9 million
- Adjusted EBITDA loss narrowed 68% to $2.8 million
- Adjusted Gross Margin expanded to 47.3% from 44.2%
- Net cash position improved by over $20 million compared to convertible debt
- Company still reported a net loss of $23.9 million
- Adjusted EBITDA remains negative at $2.8 million
Insights
Accolade's Q2 FY2025 results show progress towards profitability, with revenue growth of
Key positives include:
- Adjusted Gross Margin expansion to
47.3% from44.2% - Improved cash position relative to convertible debt by over
$20 million in the past year - Management's confidence in achieving full-year Adjusted EBITDA profitability and positive cash flow
However, investors should note that the company is still operating at a loss. The path to GAAP profitability remains a key focus area. The company's ability to continue revenue growth while managing costs will be important for long-term success.
Accolade's focus on addressing the "Physician Gap" through physician-led advocacy is a strategic approach to differentiate in the competitive healthcare technology market. This aligns with industry trends towards more personalized, integrated care models.
The company's ability to grow revenue in a challenging healthcare environment suggests strong market demand for their services. However, the healthcare sector is rapidly evolving, with increasing competition from both established players and new entrants.
Key considerations for investors:
- Scalability of Accolade's business model in a complex healthcare ecosystem
- Potential impact of healthcare policy changes on the company's growth trajectory
- Long-term sustainability of the physician-led advocacy approach
While Accolade shows promising financial improvements, its success will depend on continued execution and adaptation to the changing healthcare landscape.
SEATTLE, Oct. 08, 2024 (GLOBE NEWSWIRE) -- Accolade, Inc. (NASDAQ: ACCD) today announced financial results for the fiscal second quarter ended August 31, 2024.
“As we enter the second half of fiscal year 2025, we are well positioned to deliver our first full year of Adjusted EBITDA profitability and positive cash flow. Accolade is proving the scalability and profitability of a business model and strategy that is fundamentally designed to improve the lives of millions of people and their families. Our focus remains on solving the Physician Gap through a physician-led advocacy approach that engages the entire healthcare ecosystem and enables a better healthcare experience for our members,” said Rajeev Singh, Accolade Chairman of the Board of Directors and Chief Executive Officer.
Financial Highlights for Fiscal Second Quarter ended August 31, 2024
| Three months ended August 31, | % Change(2) | |||||||||
| 2024 | 2023 | |||||||||
| (in millions, except percentages) | ||||||||||
| GAAP Financial Data: | ||||||||||
| Revenue | $ | 106.4 | $ | 96.9 | 10 | % | ||||
| Net loss | $ | (23.9 | ) | $ | (32.8 | ) | 27 | % | ||
| Non-GAAP Financial Data(1): | ||||||||||
| Adjusted EBITDA | $ | (2.8 | ) | $ | (8.8 | ) | 68 | % | ||
| Adjusted Gross Profit | $ | 50.3 | $ | 42.8 | 17 | % | ||||
| Adjusted Gross Margin | 47.3 | % | 44.2 | % | ||||||
| (1) | A reconciliation of GAAP to non-GAAP results has been provided in this press release in the accompanying Financial Tables. An explanation of these measures is also included below under the heading "Non-GAAP Financial Measures." |
| (2) | Percentages are calculated from accompanying Financial Tables and may differ from percentage change of numbers in Financial Highlights table due to rounding. |
Steve Barnes, Accolade Chief Financial Officer, commented, “Accolade continues to execute against our primary objective of delivering profitable growth and positive Adjusted EBITDA this year. Our first half results demonstrate our proven ability to grow top line revenue and manage our cost structure to achieve our profit goals. In the past year, our net cash position, compared to our convertible debt, has improved by more than
Financial Outlook
Accolade provides forward-looking guidance on revenue and Adjusted EBITDA, a non-GAAP financial measure.
For the fiscal third quarter ending November 30, 2024, we expect:
- Revenue between
$104 million and$107 million - Adjusted EBITDA loss between
$3 million and$5 million
For the fiscal year ending February 28, 2025, we expect:
- Revenue between
$460 million and$475 million - Adjusted EBITDA between
$15 million and$20 million
Accolade has not reconciled guidance for Adjusted EBITDA to net loss, the most directly comparable GAAP measure, and has not provided forward-looking guidance for net loss, because there are items that may impact net loss, including stock-based compensation, that are not within the company’s control or cannot be reasonably predicted.
Quarterly Conference Call Details
The company will host a conference call today, October 8, 2024 at 8:00 a.m. E.T. to discuss its financial results.
To Listen via Telephone: Pre-registration is required by the conference call operator. Please pre-register by clicking here (https://register.vevent.com/register/BI0b6b999c6e7b47fdb26d7e8a774df09f). Upon registering, you will be emailed a dial-in number, direct passcode and unique PIN.
To Listen via Internet: The conference call can be accessed via a live audio webcast that will be available online at http://ir.accolade.com.
Replay: A replay of the call will be available via webcast for on-demand listening shortly after the completion of the call, at http://ir.accolade.com.
Forward-Looking Statements
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, as amended. These forward-looking statements include statements regarding our future growth and our financial outlook. Forward-looking statements are subject to risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “maintain,” “might,” “likely,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will,” “would,” or similar expressions and the negatives of those terms.
Important risks and uncertainties that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the risks described under the heading “Risk Factors” in Accolade’s most recently filed Annual Report on Form 10-K and subsequent filings, which should be read in conjunction with any forward-looking statements. All forward-looking statements in this press release are based on information available to Accolade as of the date hereof, and it does not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made, except as required by law.
About Accolade, Inc.
Accolade (Nasdaq: ACCD) is a Personalized Healthcare company that provides millions of people and their families with exceptional healthcare experiences so they can live their healthiest lives. Accolade’s employer, health plan, and consumer solutions combine virtual primary care and mental health, expert medical opinion, and best-in-class care navigation. These offerings are built on a platform that is engineered to care through predictive engagement of population health needs, proactive care that improves outcomes and cost savings, and by addressing barriers to access and continuity of care. Accolade consistently receives consumer satisfaction ratings of over
Investor Contact:
Todd Friedman, Investor Relations, IR@accolade.com
Media Contact:
Public Relations, Media@accolade.com
Source: Accolade
Financial Tables
| Accolade, Inc. and Subsidiaries | |||||||
| Condensed Consolidated Balance Sheets (unaudited) | |||||||
| (In thousands, except share and per share data) | |||||||
| August 31, 2024 | February 29, 2024 | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 173,315 | $ | 185,718 | |||
| Marketable securities | 61,035 | 51,315 | |||||
| Accounts receivable, net | 21,224 | 21,800 | |||||
| Unbilled revenue | 3,994 | 5,902 | |||||
| Current portion of deferred contract acquisition costs | 4,299 | 4,369 | |||||
| Prepaid and other current assets | 10,869 | 15,808 | |||||
| Total current assets | 274,736 | 284,912 | |||||
| Property and equipment, net | 18,927 | 19,140 | |||||
| Operating lease right-of-use assets | 25,647 | 28,340 | |||||
| Goodwill | 278,191 | 278,191 | |||||
| Intangible assets, net | 147,642 | 165,407 | |||||
| Deferred contract acquisition costs | 8,733 | 9,608 | |||||
| Other assets | 2,196 | 2,553 | |||||
| Total assets | $ | 756,072 | $ | 788,151 | |||
| Liabilities and stockholders’ equity | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 9,027 | $ | 13,749 | |||
| Accrued expenses and other current liabilities | 11,434 | 10,736 | |||||
| Accrued compensation | 26,924 | 23,392 | |||||
| Due to customers | 5,857 | 18,552 | |||||
| Current portion of deferred revenue | 40,710 | 34,770 | |||||
| Current portion of operating lease liabilities | 7,068 | 6,651 | |||||
| Total current liabilities | 101,020 | 107,850 | |||||
| Loans payable, net of unamortized issuance costs | 209,098 | 208,482 | |||||
| Operating lease liabilities | 22,642 | 26,077 | |||||
| Other noncurrent liabilities | 153 | 156 | |||||
| Deferred revenue | 85 | 121 | |||||
| Total liabilities | 332,998 | 342,686 | |||||
| Commitments and Contingencies | |||||||
| Stockholders’ equity | |||||||
| Common stock par value | 8 | 8 | |||||
| Additional paid-in capital | 1,528,665 | 1,499,603 | |||||
| Accumulated other comprehensive income (loss) | 26 | (47 | ) | ||||
| Accumulated deficit | (1,105,625 | ) | (1,054,099 | ) | |||
| Total stockholders’ equity | 423,074 | 445,465 | |||||
| Total liabilities and stockholders’ equity | $ | 756,072 | $ | 788,151 | |||
| Accolade, Inc. and Subsidiaries | |||||||||||||||
| Condensed Consolidated Statements of Operations (unaudited) | |||||||||||||||
| (In thousands, except share and per share data) | |||||||||||||||
| Three months ended August 31, | Six months ended August 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenue | $ | 106,360 | $ | 96,864 | $ | 216,826 | $ | 190,090 | |||||||
| Cost of revenue, excluding depreciation and amortization | 56,922 | 55,317 | 115,533 | 109,520 | |||||||||||
| Operating expenses: | |||||||||||||||
| Product and technology | 22,477 | 25,602 | 48,786 | 51,501 | |||||||||||
| Sales and marketing | 24,932 | 24,076 | 53,126 | 49,109 | |||||||||||
| General and administrative | 16,536 | 16,259 | 32,544 | 32,339 | |||||||||||
| Depreciation and amortization | 10,637 | 10,818 | 21,029 | 22,458 | |||||||||||
| Total operating expenses | 74,582 | 76,755 | 155,485 | 155,407 | |||||||||||
| Loss from operations | (25,144 | ) | (35,208 | ) | (54,192 | ) | (74,837 | ) | |||||||
| Interest income, net | 1,687 | 1,714 | 3,384 | 2,635 | |||||||||||
| Other income (expense) | (103 | ) | 753 | (9 | ) | 1,143 | |||||||||
| Loss before income taxes | (23,560 | ) | (32,741 | ) | (50,817 | ) | (71,059 | ) | |||||||
| Income tax expense | (374 | ) | (84 | ) | (709 | ) | (175 | ) | |||||||
| Net loss | $ | (23,934 | ) | $ | (32,825 | ) | $ | (51,526 | ) | $ | (71,234 | ) | |||
| Net loss per share, basic and diluted | $ | (0.30 | ) | $ | (0.43 | ) | $ | (0.65 | ) | $ | (0.96 | ) | |||
| Weighted-average common shares outstanding, basic and diluted | 80,072,045 | 75,487,717 | 79,102,868 | 74,334,111 | |||||||||||
| Other comprehensive income: | |||||||||||||||
| Unrealized income on marketable securities, net | $ | 60 | $ | — | $ | 73 | $ | — | |||||||
| Comprehensive loss | $ | (23,874 | ) | $ | (32,825 | ) | $ | (51,453 | ) | $ | (71,234 | ) | |||
The following table summarizes the amount of stock-based compensation included in the condensed consolidated statements of operations:
| Three months ended August 31, | Six months ended August 31, | ||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||
| Cost of revenue, excluding depreciation and amortization | $ | 866 | $ | 1,202 | $ | 1,764 | $ | 2,113 | |||
| Product and technology | 4,000 | 7,643 | 11,572 | 14,609 | |||||||
| Sales and marketing | 3,282 | 3,876 | 6,522 | 7,702 | |||||||
| General and administrative | 3,527 | 3,005 | 7,127 | 5,580 | |||||||
| Total stock-based compensation | $ | 11,675 | $ | 15,726 | $ | 26,985 | $ | 30,004 | |||
| Accolade, Inc. and Subsidiaries | |||||||
| Condensed Consolidated Statements of Cash Flows (unaudited) | |||||||
| (In thousands) | |||||||
| Six months ended August 31, | |||||||
| 2024 | 2023 | ||||||
| Cash flows from operating activities: | |||||||
| Net loss | $ | (51,526 | ) | $ | (71,234 | ) | |
| Adjustments to reconcile net loss to net cash used in | |||||||
| Operating activities: | |||||||
| Depreciation and amortization expense | 21,029 | 22,458 | |||||
| Amortization of deferred contract acquisition costs | 2,682 | 2,368 | |||||
| Noncash interest expense | 616 | 839 | |||||
| Accretion of discounts/premiums on marketable securities, net | (1,148 | ) | — | ||||
| Stock-based compensation expense | 26,985 | 30,004 | |||||
| Changes in operating assets and liabilities: | |||||||
| Accounts receivable and unbilled revenue | 2,483 | 1,381 | |||||
| Accounts payable and accrued expenses | (4,075 | ) | (1,565 | ) | |||
| Deferred contract acquisition costs | (1,737 | ) | (2,082 | ) | |||
| Deferred revenue and due to customers | (6,791 | ) | 6,707 | ||||
| Accrued compensation | 3,532 | (14,020 | ) | ||||
| Other liabilities | (328 | ) | (1,000 | ) | |||
| Other assets | 5,302 | (1,181 | ) | ||||
| Net cash used in operating activities | (2,976 | ) | (27,325 | ) | |||
| Cash flows from investing activities: | |||||||
| Purchases of marketable securities | (36,000 | ) | — | ||||
| Maturities of marketable securities | 27,500 | — | |||||
| Capitalized software development costs | (1,933 | ) | (4,698 | ) | |||
| Purchases of property and equipment | (1,071 | ) | (1,965 | ) | |||
| Net cash used in investing activities | (11,504 | ) | (6,663 | ) | |||
| Cash flows from financing activities: | |||||||
| Proceeds from stock option exercises | 133 | 3,100 | |||||
| Proceeds from employee stock purchase plan | 1,944 | 1,992 | |||||
| Net cash provided by financing activities | 2,077 | 5,092 | |||||
| Net decrease in cash and cash equivalents | (12,403 | ) | (28,896 | ) | |||
| Cash and cash equivalents, beginning of period | 185,718 | 321,083 | |||||
| Cash and cash equivalents, end of period | $ | 173,315 | $ | 292,187 | |||
| Supplemental cash flow information: | |||||||
| Interest paid | $ | 645 | $ | 820 | |||
| Fixed assets and capitalized software included in accounts payable | $ | 73 | $ | 99 | |||
| Other receivable related to stock option exercises | $ | — | $ | 4 | |||
| Income taxes paid | $ | 1,454 | $ | 303 | |||
Non-GAAP Financial Measures
In addition to our financial results determined in accordance with GAAP, we use the following non-GAAP financial measures to help us evaluate trends, establish budgets, measure the effectiveness and efficiency of our operations, and determine employee incentives. We believe that non-GAAP financial information, when taken collectively, may be helpful to investors because it provides consistency and comparability with past financial performance. However, non-GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. In addition, other companies, including companies in our industry, may calculate similarly-titled non-GAAP measures differently or may use other measures to evaluate their performance. A reconciliation is provided below for each non-GAAP financial measure to the most directly comparable financial measure stated in accordance with GAAP. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures, and not to rely on any single financial measure to evaluate our business. In evaluating these non-GAAP financial measures, you should be aware that in the future we expect to incur expenses similar to the adjustments in this presentation. Our presentation of non-GAAP financial measures should not be construed as an inference that our future results will be unaffected by these expenses or any unusual or nonrecurring items.
Adjusted Gross Profit and Adjusted Gross Margin
Adjusted Gross Profit is a non-GAAP financial measure that we define as revenue less cost of revenue, excluding depreciation and amortization, and excluding stock-based compensation and severance costs. We define Adjusted Gross Margin as our Adjusted Gross Profit divided by our revenue. We believe Adjusted Gross Profit and Adjusted Gross Margin are useful to investors, as they eliminate the impact of certain noncash expenses and allow a direct comparison of these measures between periods without the impact of noncash expenses and certain other nonrecurring operating expenses.
Adjusted EBITDA
Adjusted EBITDA is a non-GAAP financial measure that we define as net income (loss) adjusted to exclude interest expense (income), net, income tax expense (benefit), depreciation and amortization, stock-based compensation, acquisition and integration-related costs, goodwill impairment, change in fair value of contingent consideration, severance costs, and other expense (income). Severance costs include severance payments related to the realignment of our resources. Other expense (income) includes debt extinguishment gain or loss and foreign exchange gain or loss. We believe Adjusted EBITDA provides investors with useful information on period-to-period performance as evaluated by management and comparison with our past financial performance. We believe Adjusted EBITDA is useful in evaluating our operating performance compared to that of other companies in our industry, as this measure generally eliminates the effects of certain items that may vary from company to company for reasons unrelated to overall operating performance.
Adjusted Gross Profit, Adjusted Gross Margin and Adjusted EBITDA have certain limitations, including that they exclude the impact of certain non-cash charges, such as depreciation and amortization, whereas underlying assets may need to be replaced and result in cash capital expenditures, and stock-based compensation expense, which is a recurring charge.
The following table presents, for the periods indicated, a reconciliation of our revenue to Adjusted Gross Profit:
| Three months ended August 31, | Six months ended August 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| (in thousands,except percentages) | (in thousands,except percentages) | ||||||||||||||
| Revenue | $ | 106,360 | $ | 96,864 | $ | 216,826 | $ | 190,090 | |||||||
| Cost of revenue, excluding depreciation and amortization | (56,922 | ) | (55,317 | ) | (115,533 | ) | (109,520 | ) | |||||||
| Amortization of acquired intangible assets, cost of revenue | (7,014 | ) | (7,000 | ) | (14,027 | ) | (14,015 | ) | |||||||
| Depreciation of property and equipment, cost of revenue | (1,178 | ) | (1,160 | ) | (2,252 | ) | (2,106 | ) | |||||||
| GAAP gross profit | $ | 41,246 | $ | 33,387 | $ | 85,014 | $ | 64,449 | |||||||
| GAAP gross margin | 38.8 | % | 34.5 | % | 39.2 | % | 33.9 | % | |||||||
| GAAP gross profit | $ | 41,246 | $ | 33,387 | $ | 85,014 | $ | 64,449 | |||||||
| Amortization of acquired intangible assets, cost of revenue | 7,014 | 7,000 | 14,027 | 14,015 | |||||||||||
| Depreciation of property and equipment, cost of revenue | 1,178 | 1,160 | 2,252 | 2,106 | |||||||||||
| Stock‑based compensation, cost of revenue | 866 | 1,202 | 1,764 | 2,113 | |||||||||||
| Severance costs, cost of revenue | — | 92 | — | 726 | |||||||||||
| Adjusted Gross Profit | $ | 50,304 | $ | 42,841 | $ | 103,057 | $ | 83,409 | |||||||
| Adjusted Gross Margin | 47.3 | % | 44.2 | % | 47.5 | % | 43.9 | % | |||||||
The following table presents, for the periods indicated, a reconciliation of our Adjusted EBITDA to our net loss:
| Three months ended August 31, | Six months ended August 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| (in thousands) | (in thousands) | ||||||||||||||
| Net loss | $ | (23,934 | ) | $ | (32,825 | ) | $ | (51,526 | ) | $ | (71,234 | ) | |||
| Adjusted for: | |||||||||||||||
| Interest income, net | (1,687 | ) | (1,714 | ) | (3,384 | ) | (2,635 | ) | |||||||
| Income tax expense | 374 | 84 | 709 | 175 | |||||||||||
| Depreciation and amortization | 10,637 | 10,818 | 21,029 | 22,458 | |||||||||||
| Stock‑based compensation | 11,675 | 15,726 | 26,985 | 30,004 | |||||||||||
| Acquisition and integration‑related costs(1) | — | (48 | ) | — | (21 | ) | |||||||||
| Severance costs(2) | — | (52 | ) | — | 1,050 | ||||||||||
| Other expense (income) | 103 | (753 | ) | 9 | (1,143 | ) | |||||||||
| Adjusted EBITDA | $ | (2,832 | ) | $ | (8,764 | ) | $ | (6,178 | ) | $ | (21,346 | ) | |||
| (1) | For the three and six months ended August31, 2023, acquisition and integration-related costs represent expenses associated with litigation inherited through the PlushCare acquisition. |
| (2) | Severance costs represent expenses associated with workforce realignment actions taken by management. |
FAQ
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