Accolade, Inc.

Good day and thank you for standing by. Welcome to the Accolade first quarter 2022 earnings results conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one on your telephone. Please be advised that today's conference is being recorded. If you require any further assistance, please press star zero. I would now like to hand the conference over to your speaker today, Todd Friedman, please go ahead.

Thanks, Operator. Welcome, everyone, to our fiscal first quarter earnings call. With me on the call today are our Chief Executive Officer, Rajiv Singh, and our Chief Financial Officer, Steve Barnes. Shantanu Nundi, our Chief Medical Officer, will join for the question and answer portion of the call later. Before I turn the call over to Rajiv, please note that we will be discussing certain non-GAAP financial measures that we believe are important when evaluating Accolades performance. Details on the relationship between these non-GAAP measures to the most comparable GAAP measures and the reconciliations thereof can be found in the press release that's 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 to practically differ materially from those expressed or implied on this call. For additional information, please refer to our cautionary statement in our press release and our filings with 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, and thank you all for joining us.

It's an exciting time to be here at Accolade. We're one month past the close of the PlushCare acquisition and are well underway with the work of integrating Accolade, PlushCare, and 2ndMD into a single business. Combine that with the excellent financial results to start the new fiscal year and the return of our first wave of employees to our offices, which we're very excited about, as well as a sense of normalcy returning to the communities in which we live, and there is a strong feeling of optimism at Accolade today. My reasons for optimism are grounded in the simple belief that we can deliver differentiated value for our customers. When I joined Accolade nearly six years ago, it was clear to me that the foundation of advocacy and navigation was would be the cornerstone of a richer set of services that could one day bring value-based care to the employer healthcare market. Advocacy provides the foundational platform of broad engagement, longitudinal relationships, and a rich data set that makes every incremental service that you add to it better. That evidence originally came in the form of partner relationships via our trusted supplier programs. and would eventually validate a bold acquisition strategy geared towards assembling the industry's richest set of tools for engagement, cost reduction, and improving clinical outcomes. Most importantly, our customers have been energized by these new capabilities and their potential for value. We're deep into these customer conversations and hard at work outlining for each how our enhanced solutions will do even more for their specific populations. Additionally, our integration and innovation are working feverishly to launch a fully integrated offering, one seamlessly combining advocacy, primary care, and expert medical opinion. Our mission is to create a healthcare experience that finally puts the consumer's needs first. And we cannot wait to show you how our vision for the future translates to an integrated offering. For today, I'll spend time talking about our early progress, initial successes, and high-level plans to change the industry. First, a quick review of the quarter. Revenue and adjusted EBITDA were both ahead of our guidance. Revenue of 59.5 million was 66% greater than last year, and adjusted EBITDA loss of 12.8 million reflects some of the investments we told you we plan to make in integration and the launch of a new enterprise primary care business. Steve will provide more color, including some high-level comparisons to account for the impact of our second MD acquisition. From a business standpoint, I want to touch on a few key highlights from the quarter. including the integration of SecondMD and PlushCare, a positive start to the early selling season, and the growing importance of behavioral health. I'll start with SecondMD. In just three months since we closed the acquisition, we have signed our first cross-sell customers with organizations like the City of Fort Worth and a Fortune 50 insurance company, adding expert medical opinion to their existing advocacy services. These early cross-sell wins, more rapid than even we expected, along with 2ndMD's continued new business success, validate our hypothesis for the transaction very clearly. Additionally, as we announced when the transaction closed, expert medical opinion is now a core component of our total care offering. The value proposition and, more importantly, the measurable impact on employee well-being and health outcomes have immediately been apparent to our customers. Not only have we seen cross-selling success, but our first joint customer went live on July 1st. We're optimistic about the pipeline of expert medical opinion deals for the remainder of the year as well. Most importantly, member MPS scores for expert medical opinion remain at historically high levels above 90. It's July, so we're in the prime summer months for the traditional healthcare selling season. For those of you who are new to our company, large employers tend to make big decisions related to their healthcare and benefits plans in the summer in anticipation of fall open enrollment and a January 1 launch. As we've told you before, with our addition of new capabilities and expansion of our target customers to include businesses of all sizes, we are selling throughout the year. However, it's still an important time in the industry, and we've had a very positive set of success with both renewals and new business. We signed deals in the first quarter in each of our customer segments, middle market, enterprise, and strategic. In addition to some of the notable deals I mentioned for 2ndMD, We also signed McKesson, a Fortune 50 pharmaceutical company for total health and benefits, our premier offering. We also saw key expansions in the populations we're serving with Humana, as well as notable customer wins via our new health plan partners who had established relationships with 2ndMD prior to the acquisition. One in particular was a Fortune 100 financial services firm who is served by two national health plans. I note the multi-carrier dimension Because while it is one customer selecting second MD, our ability to meet the needs of their full employee base relies on the strength of our relationships with multiple carriers. One other note that I would call your attention to. One year ago, when we went public, we outlined the multiple flavors of advocacy offers we bring to market with the belief that customers who choose our lighter touch offerings might begin to upgrade to more wholesome solutions down the road. In fiscal Q1, we saw our first upgrades from total benefits and total care to total health and benefits. One of those was the Pepsi-Cola National Brand Beverages Group, which is the second largest franchise bottler and distributor for PepsiCo covering the mid-Atlantic. Finally, we're continuing to see an increase in interest in mental and behavioral health. This past quarter, we signed more customers to our mental health integrated care solution with Ginger. Incrementally, we're incredibly excited about the embedded mental health capabilities in our new PlushCare primary care solutions. As COVID has exposed the incredible mental health crisis in the country, we believe our ability to provide a multifaceted behavioral health solution to customers, integrated with the most critical touchpoint, primary care, is going to be very meaningful to our customers and their employees and their families. And that's a good segue to transition to PlushCare. First, while it has been less than 30 days since the acquisition is closed, we've already had the current plush care solution as well as our expanded primary care strategy in front of a number of significant customers. Our field teams have all been trained on plush care and all our new solutions, and we're actively executing on a cross-sell upsell strategy that is looking very positive. When we announced the plush care acquisition, we talked about a parallel strategy of continuing to focus on the existing direct consumer business while building out an expanded accolade primary care strategy that leverages the core strengths of our navigation, advocacy, and expert medical opinion offerings. The core PlusCare business has continued to perform very well. In fact, while traditional urgent telemedicine providers talked about a post-COVID return to lower growth levels, PlusCare has continued to grow subscriptions and business. We'll share more about that when we report our first combined quarter in October. On the broader enterprise primary care model, That work continues, and we plan to roll out that strategy in the near future. One thing we haven't talked about previously is our plan to offer a fully featured solution for primary care on a standalone basis to customers in the quarters ahead. For many customers, especially those in the middle market, the existing PlushCare platform is a powerful primary care offering that our customers can begin using immediately. It's a testament to the combined execution of both the PlushCare and Accolade teams that we're able to move this quickly. Next, I'd like to share a member story from a plush care physician that I think is a good allegory for our broader primary care strategy. This story centers on a member who lives in a rural area far from a medical office, a problem for many of our customers' employees, by the way. Suffering from stable hypertension, she had reached out to plush care for help refilling one of her three blood pressure medications. The member was complaining of fatigue, but she didn't want to go to the hospital because of COVID. A typical transaction-focused telemedicine provider might have simply refilled the medications. The PlusCare primary care physician built a relationship and convinced the patient to have a home blood testing kit sent to her. The testing kit revealed something serious and the requirement for more tests. Her glucose, liver, and kidney levels were very elevated, and her A1C was twice the normal level. The member thought her hypertension medication was out of balance, But in reality, she has undiagnosed advanced type 2 diabetes with chronic kidney disease, dyslipidemia, and fatty liver. At this point, you can see the incredible difference in the plush care approach compared to traditional urgent telemedicine. The plush care physician discussed a number of potential therapies, including medications and lifestyle changes. The plush care nursing staff guided the patient on glucometer use and self-monitoring for type 2 diabetes. The plush care op staff engaged with the patient, the pharmacy, and the physician to ensure that the correct supplies were ordered and delivered to the patient. The patient refused insulin, so constant monitoring, follow-up, and testing was necessary. After one month, the patient had adopted new behaviors recommended to her by her plush care team, including installing a treadmill in her home and changing her diet. Her blood sugar levels dropped by half. Three months later, her A1C levels had dropped by half and her kidney and liver levels were back to normal levels. Her blood pressure had also dropped, so the physician was able to discontinue two of her three medications. At the next follow-up, her levels had dropped even further to the point that she was no longer even considered pre-diabetic and her blood pressure was in a normal range. This was a terrific example of a patient who had a clinical success despite having limited insurance coverage in a rural area with no close access to specialty care. And arguably, she was successful because of the virtual care approach since access to a brick and mortar facility was a barrier. Those barriers exist across the country. They could be related to location or socioeconomic factors or race. We have the opportunity to break those barriers and change the way care is delivered. When the PlusCare primary care doctor that delivered this care told this story, She talked about the difference that would have been made if the member had been engaged with Accolade before she knew she had this issue. This member, with her hypertension and multiple medications, would already be on Accolade's radar through our ongoing monitor of claims and likely actively engaged with a health assistant and nurse. When the member reached the plush care physician, the doctor would instantly have all of the patient's medical history, list of medications, critical insurance information, and all the other benefits that the member's employer might be providing. an integrated medical expert opinion specialist might've been engaged sooner. And when it comes to the necessary supplies and follow-ups for this treatment and beyond to a comprehensive ongoing relationship, the physician and plus care care team would now have the extended capabilities that come with the Accolade frontline care team. As we look to what's next, this real life example clearly outlines our opportunity to fully integrated data-driven approach to improving the well-being and overall health of our members is the goal, and we now have a rich set of assets to achieve it. With that, I'd like to turn the call over to Steve to cover financials. Thanks, Raj.