Accolade, Inc. (NASDAQ:ACCD) Q1 2024 Earnings Call Transcript

Steve Barnes: I’ll start, then you will jump in. So first of all, Stan thank you for the question as the growth coming today that you’re seeing in revenue is largely driven by the consumer business. But importantly, we just launched several customers at more than half million members on the enterprise side of the platform. So that was on January 1 where most of those launched, so it’s early days, but we’re seeing strong utilization in line with our expectations here in that first quarter. So most of the near-term growth has been on the consumer side, but our expectations are that will also – we’ll see significant contributions from the enterprise side. With respect to customer acquisition costs, I would say without getting specific about the dollar amount, we’ve seen it to be consistently attractive in the same range that we’ve seen over the past period of time, call past 12 months and so there’s been a lot of opportunities to capitalize on that.

Operator: And thank you. And one moment for our next question. And our next question comes from David Larsen from BTIG. Your line is now open.

David Larsen: Hi, congrats on the good quarter. You clearly have a very robust solution that’s very comprehensive and impacts trend and improve the quality of care. One of the things that we’ve heard though is that when a customer decides to implement or potentially decides to implement Accolade, it can be a heavy lift, but you got to switch call centers from the carrier, sometimes they have to switch TPAs and because of that, sometimes they may delay or not choose to implement Accolade, just what are your thoughts around that? Do you ever get pushed back from that or not? Thanks. Appreciate it.

Rajeev Singh: Thanks for the question David. There’s the way to think about it. If you were to look at the growth of the category, look at the growth of our customer base, our company has 54 customers on July 3, 2021 – 2020 when we went public. Last time we talked about our customer count, here we are in 2023 and we have more than 800 customers. When we think about bookings growth from fiscal 2022, fiscal 2023, our bookings grew by 30%, we’re looking at a strong year ahead and we had a very strong Q1, as it relates to bookings. So when we look at customer adoption of a brand new category, we talk about healthcare services. I don’t know that there’s a category in the enterprise segment where we’re going directly to employers and health plans that’s growing more aggressively at this scale at this size.

When you think about our revenue forecast for the year, we just took top-line our guidance from $410 million to $414 million from a range perspective, each of those representing strength of the business, the strength of the business is always a fundamentally driven by growth as it relates to new customer acquisition. So hopefully that answers your question Dave.

Operator: And thank you. And one moment for our next question. And our next question comes from Robert Simmons from D.A. Davidson. Your line is now open.

Robert Simmons: Hi, thanks for taking the question. I was wondering if you could put a finer point on your commentary around new sales or new bookings this quarter being strong, like how much did they actually grow and what are your expectations for the year?