But you see there’s a huge slice of the pie left where we think artificial intelligence, Generative AI, and the companies and technologies that are littering the landscape to deliver value there are going to be really interesting to Accolade.
Operator: Thank you. One moment for our next question. And our next question comes from the line of Jenny Shen from BTIG. Your line is open.
Jenny Shen: Hi, this is Jenny Shen on for David Larsen. Thanks for taking my question and congrats on the good quarter. I just want to ask about the TRICARE contract, whether you have any updates there on a start date, how large the contract will be, and whether any of that is baked into your fiscal ‘25 guidance or the five-year outlook? Thanks.
Rajeev Singh: Hi, thanks for the question. As it relates to our government business, writ large, think about it in a couple of components today. Our Autism Care business continues to perform well, continues to deliver extraordinary value for the members that we’re serving, as well as for the health plan/TRICARE organization. As it relates to the TRICARE contract or T5, it has not resolved that particular pilot organization — that particular appeal has not resolved at this point and we’re reluctant to give you any guidance as to when it will resolve given that it’s outside of our control. What we can tell you is no material assumptions are baked into our out year guide or the guide that leads you to fiscal year ’29, $1 billion in revenues.
What you should expect in the out year is that we’ve baked in rational assumptions knowing that we cannot control when the government appeal will finalize. And therefore, we’ve built a business based on what we have good visibility to for the year ahead.
Operator: Thank you. One moment for our next question. And our last question for today will come from line of Jack Wallace from Guggenheim Partners. Your line is open.
Jack Wallace: Hey, thanks, team. Thanks for taking my questions. A lot of them have been answered. I’ve got two. First, housekeeping items, very pro forma growth rate, comfortable sharing. Basically, performance ex the loss of large customers you had the last couple of quarters and I got a follow-up.
Rajeev Singh: I’m sorry, we lost your question about halfway through. Would you mind repeating it?
Jack Wallace: No problem. Is there a pro forma growth rate you’re comfortable sharing, so growth ex the loss of the large customer last year?
Rajeev Singh: You mean for fiscal ‘24 or fiscal ‘25, Jack?
Jack Wallace: For this completed quarter. I think last quarter was 19% off of the 10.5% growth rate.
Rajeev Singh: Yes.
Jack Wallace: I’m just trying to get a sense for the drag.
Rajeev Singh: Sorry, I misunderstood your point. Yeah, it was about a 17% growth rate in the quarter on a pro-form basis for Q3.
Jack Wallace: Thank you. And then I just wanted to ask the visibility question in a slightly different way. Is there a mix shift in the level or the bookings through what’s called nine or 10 months so far this year, that would be different than the visibility or the mix from last year? And I ask that because you made a couple of comments around some of the utilization-based opportunities as potentially providing upside. I was curious if there was a shift between the utilization-based and the non-utilization based bookings at this point going into the year.
Steve Barnes: I think about it as the mix of the bookings is pretty similar year-over-year, which aligns roughly to the breakdown of the percentage of revenues in the business advocacy, expert medical opinion, virtual primary care. I think an important point though, to draw back to Rajeev’s comments is that when we value a booking on a utilization-based item, we’re going to be fairly conservative going in and then you’ll see sometimes upside to that ARR or ACV number in terms of revenues realized as we — that customer matures with us, we’ve engaged with that population and we drive utilization with that customer, which will get you to utilization-based revenue. So that’s some of the dynamic in there that’s driving that and we’ve seen that we’ve now got a couple of years under our belt, obviously, with selling bundled offerings and seeing that be fairly consistent with customers that have bundles.
Jack Wallace: Got it. Thank you so much. Appreciate it.
Steve Barnes: Thank you.
Operator: Thank you. This concludes the question-and-answer session. I would now like to turn it back to management for closing remarks.
Rajeev Singh: Thank you, everyone, for being with us today, and we look forward to catching up with you down the road.
Operator: Thank you for your participation in today’s conference. This does conclude the program. You may now disconnect. Everyone have a great day.
