Accolade, Inc.

Ladies and gentlemen, thank you for standing by. Welcome to Accolade's second quarter 2025 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 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw the question, please press star 11 again. We ask you limit yourself to one question only. Please be advised that today's conference is being recorded. I would like now to turn the conference over to Todd Friedman, Senior Vice President of Investor Relations. Please go ahead.

Thanks, Michelle. Welcome, everyone, to our fiscal second quarter earnings call. With me on the call today are our Chief Executive Officer, Rajiv Singh, and our Chief Financial Officer, Steve Barnes. Before turning 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 is posted on our website. Also, please note that certain statements made during the call will be forelinking 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 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. One more note before I hand the call over to the team. After talking to a number of you about the time and logistics, we've decided to move the analyst date to the spring in a more accessible location. More details will come closer to the event. And with that, I'd like to turn the call over to Rajiv.

Thank you, Todd, and thank you everyone for joining us today on our fiscal 2025 second quarter earnings call. We're speaking to you today from our office in Prague. We appreciate you joining us before the market opens and we'll be brief in our remarks so we can get to Q&A in short order. Before I get into the quarter review, I'd like to give you first our perspective on the opportunity we see ahead of Accolade. I'll use a recent customer presentation to illustrate our view. Last month, DeVry University, an Accolade customer, participated in a Q&A with one of our analysts to talk about their experience with Accolade. Since going live with us four years ago, they've expanded the health and benefits services they offer their employees to include a number of partner offerings, seen incredible results in terms of employee satisfaction and engagement, and created excitement across the entire executive team at DeVry for their approach. The whole while keeping medical trend to roughly 2% in a world where healthcare costs are growing six to 10% every year. DeVry chose Accolade many years ago because they recognize that a robust technology stack leveraging AI was the best way to augment human care teams and scale with the growth they anticipated for their business. That in and of itself is the future of healthcare. Physician-led advocacy that closes the physician gap and helps people live their healthiest lives while driving lower health care costs. That is the company we're building. Disruption in health care in the United States at scale is no small feat. It requires an understanding that building a great business in a market with massive, powerful incumbents is not an up and to the right exercise. It requires perseverance and a firm commitment to a differentiated vision. future of healthcare is clearly aligning with accolades view of the world a collaborative ecosystem sharing longitudinal data to improve the total healthcare experience lower total costs and help people live their healthiest lives every day we see that vision deliver tangible results with our customers like DeVry it's that success with customers and the continued interest of new customers and partners that steal our commitment to building our business with that I Let's talk about the quarter. We had a solid second quarter with revenue above our guided range and adjusted EBITDA well ahead of our forecast. We also generated a little bit more than $3 million of cash this quarter. Steve will provide more color on the financials, but we're affirming our guidance for the year on the strength of these results and the activity within our business. Now turning to the selling season and an update on our commentary from last quarter. As we've said consistently, the selling season is a year-round process, but there is still a concentration of activity in the summer and fall as employers aim to roll out new plans and services for January 1. The pipeline remains strong, and we've seen a number of exciting new wins. The most exciting might have been this past month, we won a significant new deal for 2ndMD that was a notable competitive takeaway in the expert medical opinion space. A number of larger deals are still in flight, which is consistent with what we've seen in past years, including some deals not tied to a January 1, 2025 go lot. In those situations, the customers are not as pressed to make a decision for a November-December open enrollment window. There continues to be good activity across all segments, strategic, enterprise, health plans, and government. Our diversification across those segments is, in fact, a strength and differentiator of our business. The pipeline, our win rates, and the pace of discussions gives us confidence in our short and long-term financial targets. Turning briefly to our comments from last quarter, as you can see from our reaffirmation of guidance, the actions we took to keep Accolade on a solid path to profitability are having the intended effect. We've made some changes in our office location strategy, as noted. as well as adjusted our marketing spend to focus on the most efficient opportunities in terms of return on investment or spend. Some of those changes are already visible in the quarter's results, while others will continue to have an impact as the year goes on, particularly where it applies to integrating our tech staff or managing headcount by function or location. Importantly, we're taking steps to constantly improve the member experience and achieve the performance guarantees we set with our customers. We expect you'll continue to see the results as we march towards positive adjusted EBITDA and cash flow this year. If you model the guidance we provided last quarter for revenue growth and adjusted EBITDA expansion, you'll see a business doubling adjusted EBITDA in each of the next two years. So as I turn the call over to Steve, I've never been more bullish about the strength of the market we compete in, the scale and the leverage of our model, and the team we have aligned to execute against our vision. We are going to stay focused on building a great and enduring business. Steve, over to you, sir.