Accolade, Inc. (NASDAQ:ACCD) Q2 2024 Earnings Call Transcript

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Operator: Thank you. One moment for our next question. Our next question will come from the line of John Penny from Canaccord Genuity. Your line is open.

John Penny: Hi. John Penny on for Richard Close. Congrats on the quarter. I guess going back to virtual primary care, is that 20%, 21%, that you’re calling for in guidance, is that like consistent across commercial and consumer? Is like commercial kind of coming off a smaller base, is going to be bigger? Or any color around that would be great. Thanks.

Rajeev Singh: Sure. So, first of all, the 20%, 21% growth rate, so that’s for the entire business. The way to think about that is that we’ve got the three different offerings that are driving growth in the business. The advocacy business itself is — will be in the neighborhood of 20%. Virtual primary care business growing faster than 20%. And the enterprise primary care business will be growing quite a bit faster than that, but it’s off of a small base, because we’re in our first year there. So when you take that together with the consumer business, you put those together, it’s growing faster than that, call it mid-20%s and then expert medical opinion offering growing in the neighborhood of 20%. So all of that together gets you to that about 20% to 21% growth for this year, with the virtual primary care business growing a bit faster than that.

Operator: Thank you. One moment for our next question. And our next question will come from the line of Ryan MacDonald from Needham and Company. Your line is open.

Ryan MacDonald: Hi. Thanks for taking my questions. Congrats on a nice quarter. Maybe just to touch on the T-5 contract, you mentioned that you’re still awaiting decision on the Health Net appeal here, but given that the Congressional Research Service had provided an updated timeline now, does that give you any increased confidence on that we’re sort of nearing a conclusion where you’re actually going to get a final decision on the appeal and that we can start moving forward with this process? Thanks.

Rajeev Singh: Ryan, there’s one thing certain, we know this can’t last forever. We expect — we expect to see a conclusion to the appeals process in what I would expect to be a reasonable time frame, call it over the course of the next three to six months. As the government has proven over the course of the last few year, it’s difficult to bank on those timelines, even though there is expressions of a desire to get to the end of the appeals process, but we’d agree, we’d expect over the course of the next six months or so that we’re going to get to some sort of conclusion. And that at that point, we’re going to be in a place where we’re well positioned to grow our business within the government.

Operator: Thank you. And I’m not showing any further questions in the queue. With that, I’ll turn the call back over to Rajeev Singh for any closing remarks.

Rajeev Singh: I appreciate everyone being here. Thanks for the time and we look forward to talking with you next quarter.

Operator: And this concludes today’s conference call. Thank you for participating. You may now disconnect. Everyone, have a great day.

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