Accolade, Inc.

Hello, thank you for standing by, and welcome to the Accolade Third Quarter 2022 Earnings Results Conference 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'll need to press star 1 on your telephone. Please be advised that today's conference is being recorded. If you require any further assistance, please press star 0. 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 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 for the question and answer portion of the call. Before turning the call over to Rajiv, please note that we'll 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 reconciliation thereof can be found in the press release that's posted on our website. There are also slides that accompany this conference call that are available on the webcast. The slides will be available for download following the call. 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 accolades 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 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.

Hello, everyone, and Happy New Year. I hope you're all able to enjoy time with family and friends during the holiday season. As we enter the fourth quarter of fiscal 2022, we continue to make outstanding progress towards building a great and enduring healthcare company. In fiscal Q3, we outperformed our guidance across the board and are again raising our forecast for the year. Steve, our CFO, will cover the specifics later in the call, including more detail on how to look at accolades now that we've diversified our offering portfolio, expanded our go-to-market engine, and become a more strategic enabler of our customers' people objectives when it comes to providing health and wellness benefits that drive employee satisfaction, engagement, and retention. But I couldn't resist a little teaser to first hit some key points. At our core, we're dedicated to consistently delivering on our commitments quarter after quarter. Today, we're providing you with preliminary guidance for fiscal 2023, reaffirming our commitment to our long-term growth rates and our path to profitability. Our progress due to the hard work of our colleagues is nothing short of remarkable. I'll outline that progress for you briefly now before turning the call over to Steve. As we entered the current fiscal year, Accolade was an advocacy company serving about 100 customers, representing 2 million members with a $24 billion addressable market. We have more than 600 customers representing more than 10 million members. And our market opportunity has grown 10X to more than 200 billion. With our integrated offerings and expanded partner services built on top of the market's leading healthcare engagement engine, we own the personalized healthcare category. From a business perspective, this has resulted in far more diversified foundation. At the time of our IPO, our single largest customer represented 25% of our total revenues, and our top four customers made up 60% of our revenues. Today, no single customer represents more than 10% of revenues. Most importantly, thanks to our broad portfolio of advocacy, expert medical opinion, primary care, and mental health services, we are far more strategic and valuable to the customers and members that we serve. That's demonstrated in our performance. So far this year, more than 20 new enterprise customers bought Accolade Advocacy and Accolade Expert MD together. More than 20 existing advocacy customers have purchased Accolade Expert MD. And less than three months after we launched Accolade Care and Accolade One, our first tranche of customers have already gone live on the solution. Additionally, our momentum in new customer growth continues, with leading organizations like Halliburton, Choctaw Nation of Oklahoma, and Choice Hotels joining our customer base. These data points reflect both the strength of our strategic relationship with our customers and their belief in the vision of personalized healthcare that we set forth to the market. Already, the combination of our services is driving higher utilization rates for expert medical opinion when delivered in tandem with advocacy. We expect the same patterns to hold with our virtual primary care and mental health services, providing further proof points that services layered on top of our engagement platform will drive outsized engagement and performance. Just as our offering suite, pricing model, and customer base are diversified and differentiated, so too is our go-to-market strategy. We have a long track record of reaching new customers via a direct sales channel that has been remarkably efficient and effective. More recently, we've added health plan partners like Optum, Aetna, Blue Cross Blue Shield of Michigan, Blue Shield of California, and Humana as referral and reseller partners. Additionally, new partnerships with leading companies like PlanSource represent our commitment to meeting customers where and how they choose to buy. On that foundation, we are well positioned for the future. As I mentioned earlier, looking at fiscal 2023 from a financial perspective, We're committed to delivering against our long-standing goal of 25% top-line growth into the foreseeable future, and we will improve our adjusted EBITDA loss in the year ahead, both on a dollar and percentage of revenue basis. And as Steve will describe in more detail, we're projecting adjusted EBITDA break-even in fiscal 2025 at approximately $600 million of revenue. At Accolade, we believe that you can build a lasting healthcare company a growth engine, and a disciplined business at the same time. That is how we're running our company. Earlier this month, we shared our set of beliefs about how healthcare is supposed to work for people in this country. Stealing the words of Simon Sinek, it's important for companies to have a just cause that brings its employees, customers, partners, and shareholders together. Our just cause is that we believe healthcare is a human right. and that everyone, regardless of their socioeconomic status, should have access to the care that they need. We believe in treating the whole person by building long-term trusted relationships, not just the symptom or the transaction. We believe that mental health and physical health are completely intertwined to support the whole person. And we know that it's time for our industry to start getting paid for outcomes, not just for providing services. You can find our credo in the We Believe section on our website. We run our business with a perfect commitment to those beliefs every day. If the past two years have taught us anything, it's that we can only predict so much about the future, whether it's COVID or government and policy changes or the labor market. Our customers expect us to remain true to our mission and our beliefs, and that's how we operate at Accolade. Before I turn the call over to Steve, one last point. Healthcare today represents 20% of our country's GDP. It is massive. and it needs to do better at serving people. No single company will solve the problem, but collectively we can and we must strive to improve. We're committed to partnering with others who share our beliefs, with those who embody this deep-rooted sense of purpose for the people we serve. Through empathy, experience, and most critically, engagement and trust, we can light up those partner services on the basis of our open platform and the most advanced technology stack in the industry. In the last year alone, we added SORD, Virta, Carrot Fertility, Vivante Health, and Employer Direct Healthcare to the industry's most comprehensive partner ecosystem. Our progress in each of these areas, new offerings, more innovation, more partners, and doubling down on the importance of advocacy at the heart of connecting the healthcare ecosystem is why we continue to grow and thrive and why all of us at Accolade are so excited about the future. With that, let me turn the call over to Steve Barnes, our Chief Financial Officer. Steve? Thanks, Raj.