Accolade, Inc.

Ladies and gentlemen, thank you for standing by and welcome to the Accolade, Inc. Fiscal Third Quarter Earnings Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 on your touchtone telephone. Please be advised that today's conference may be recorded. If you require any further assistance, please press star 0. I would now like to hand the conference over to your host, SVP of Investor Relations, Todd Friedman. Sir, please go ahead.

Thanks, Operator, and welcome, everyone, to our fiscal third quarter earnings call. With me on the call today are our Chief Executive Officer, Rajiv Singh, and our Chief Financial Officer, Steve Barnes. Shantanu Nandy, our Chief Medical Officer, will join us for the question and answer portion of the call. Before turning the call over to Rajiv, please note that we will be discussing certain non-GAAP financial measures that we believe are important in evaluating Accolade's performance. Details in the relationship between these non-GAAP measures to the most comparable GAAP measures and reconciliations thereof can be found in the press release that is posted on our website. Also, please note that certain statements made during this call will be forward-looking statements, as defined by the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks, uncertainties, and other factors that could cause the actual results for Accolade to differ materially from those expressed or implied in this call. For additional information, please refer to our cautionary statement in our press release and our findings of the SEC, all of which are available on our website. With that, I'd like to turn the call over to our CEO, Rajiv Singh.

Thanks, Todd. Hello, everyone. All of us at Accolade would like to wish you a Happy New Year. And thank you for joining us to discuss the results of our third quarter for fiscal year 2021. It's a busy time of year for us with the pandemic and vaccines at the front of our members' minds and a set of new customer go-lives in early stages given the beginning of the new calendar year. And we're excited to report on our progress. Put succinctly, we enter 2021 in a stronger competitive position than any time in Accolade's history. And the key metrics bear it out. Revenue of $38.4 million and adjusted EBITDA loss of $11.4 million were both ahead of our guidance. We raised additional capital via our follow-on offering in October to further strengthen our balance sheet. The third quarter represents the end of the traditional healthcare selling season, and we saw record ads in terms of new customers and members. We saw continued momentum across all market segments and product offerings, further demonstrating that mainstream customers the consulting and broker community, carriers, and other partners are embracing our leadership position in this important category. In fact, less than two years ago, at the end of fiscal 2019, Accolade had 20 customers. About 18 months later, at the time of our follow-on offering in October, we had nearly five times that number, and our momentum has continued into this quarter. Our customers are seeing tangible results and sharing their results with their peers. One customer I'll call out today is Ocean State Job Lots who reported at two times ROI in their first year with 90 plus percent high cost family engagement and 97 percent customer satisfaction. Customers are also speaking about our new solutions. We hope you take a minute to go to our website where you can watch the replay of the Johnson Controls webinar where they discuss their results with Accolade COVID Response Care. For example, they saved more than 17,000 workdays by avoiding unnecessary quarantine. On that topic, we're seeing strong traction with Accolade COVID Response Care, where we have continued to sign new customers and have launched a partnership with LabCorp Pixel to deliver COVID tests to the home. In a similar vein, initial results from our first mental health integrated care customer are showing positive trends. It is early to share the data or make assumptions, but we're very pleased with those early returns and remain enthusiastic about the impact our partnership with Ginger can have on our customers and their employees' mental well-being. On the strength of all these factors, we're raising top-line guidance for the 2021 fiscal year by $3 million, which Steve will discuss in more detail later in the call. More qualitatively, we see broad macro trends that are shaping the healthcare industry and impacting all companies across the healthcare spectrum. We don't need to explain to you how or why healthcare has become so broken in the United States. If you're on this call, you already know because you've chosen to get to know us better and understand how we're trying to change the system. The COVID pandemic has been tragic in many ways, and it has exposed some of the worst characteristics of the industry. Healthcare is still too costly. It is still too complex, and in too many places, it is far too hard for the average person to access quality care or get the information they need to make the right decisions. Underlying all that chaos, however, we have seen how good our healthcare system can be. Frontline workers, nurses, doctors, lab technicians, custodians, researchers, together they have all been working tirelessly to find a vaccine to heal the sick and to comfort the grieving. In our darkest moments, we've seen just how powerful the system can be when our industry comes together to solve a problem. And at Accolade, we believe that is the future of healthcare, and it underscores everything we do. We believe that the future of healthcare must be integrated and collaborative and reimagined with the consumer or the member at the center of everything. We're investing in evidence-based clinical programs to help our customers and their members choose the right care and realize the best outcomes. We understand that the best way to bend the cost curve is to embrace those principles and to focus on total population health. Because focusing on only the highest cost patients this year, like most of our industry does, doesn't help you identify and prevent the challenges of next year. And we believe that consumers have never had a greater need for high-touch, empathetic benefit navigation and advocacy services. and clinical programs to help them negotiate this increasingly complex marketplace. The pandemic has elevated and accelerated the discussion about the need to fix the healthcare system and accolade a squarely position at the confluence of these macro trends. The distribution of the COVID-19 vaccine in the United States is a great example of this need. Our incredibly high engagement rates and member satisfaction levels mean we are the go-to source for information in times like these. And we have an opportunity to turn tactical interactions into strategic moments. Take the example of a member calling in to find out if vaccines are fully covered by their employer. At Accolade, we turn those moments, and yes, most employers are covering the vaccination, into opportunities to answer some of the more strategic questions that members are facing. Is it safe? Do I have to get it? What are the potential side effects? All the while increasing the possibilities to get that member to the right outcome. The need for our services clearly could not be more significant than it is right now. It is with that backdrop that I would like to begin to address a question that many of you have asked from the time of our IPO. We were very proud to include the data from an independent study with Aon referenced in our IPO prospectus, that demonstrated tangible cost savings to Accolade's customers. I'm excited to share for the first time that Aon not only updated their research, but they expanded the study. They examined a broader list of customers to include those with 1,000 to 30,000 employees. The results reaffirmed what we saw in the original study. Accolade delivers tangible, measurable improvements to companies of all sizes, bending the healthcare cost curve in a material way. The rigor of the Aon study creates a strong degree of confidence that these results represent conclusions that are relevant to a broad range of employers in the market. Now, for the sake of my marketing team, I have to say that the full report will not be published for a few weeks now. Aon wraps up their work shortly. But I highly encourage you to go to our website and sign up to receive the study when it's released. We're proud of the customer's results. The 1,200-plus employees at Accolade go to work every day with a purpose and passion that to serve our customers' employees and their families and their businesses. Our model, integrated clinical programs, superior member engagement, measurable value to customers and partners, ability to rapidly iterate on solutions to meet specific needs, ultimately delivers better outcomes and lower healthcare costs. The AON study quantifies those benefits and validates the Accolade vision. Here are a few of the highlights. All customers in this study saw lower healthcare cost trends relative to their control group in their first year of engaging with Accolade and see continued lower trend in the second year. Accolade lowers employer costs in many clinical categories, from mental health to diabetes and hypertension to asthma. Accolade reduces employer healthcare costs across the member population, including age groups, demographics, geography, and condition levels. That is a very high-level preview of what you will see in the full report, but I encourage you to read the full report for one simple reason. If you can understand how Aon came to their conclusions and you understand the way they validated our value proposition, then you will understand why employers choose Accolade. It is why I said at the start of the call that we are better positioned today competitively than at any other time in our history. With that, I'd like to turn the call over to Steve to cover financials and other operating highlights.