Accolade Inc (ACCD) Reports Strong Q2 2024 Earnings, Exceeds Top and Bottom Line Guidance
Accolade Inc (NASDAQ:ACCD) released its earnings report for the fiscal second quarter ended August 31, 2023, on October 4, 2023. The company reported a strong quarter with significant improvements in revenue, net loss, and Adjusted EBITDA. Accolade's unique combination of advocacy and care solutions continues to attract a growing customer base, which now totals more than 1,000 customers.
Financial Highlights
Accolade reported an 11% increase in revenue to $96.9 million for the quarter, up from $87.6 million in the same period last year. The company's net loss narrowed by 29% to $32.8 million, compared to a net loss of $46.5 million in the second quarter of fiscal 2023. This improvement reflects the company's ongoing efforts to enhance operational efficiency and control costs.
Adjusted EBITDA, a non-GAAP measure that excludes certain items to provide a clearer picture of the company's underlying profitability, improved by 36% to a loss of $8.8 million. This compares favorably to a loss of $13.7 million in the same period last year. Adjusted Gross Profit also increased by 9% to $42.8 million, up from $39.2 million in the second quarter of fiscal 2023.
Accolade continues to execute against our long term financial goals, exceeding both our top and bottom line guidance in the second fiscal quarter. We expect our cost reduction measures from earlier this year will be fully realized in the second half of the year, providing visibility and confidence in our path to achieving profitability. - Steve Barnes, Accolade Chief Financial Officer
Balance Sheet and Cash Flow
As of August 31, 2023, Accolade had cash and cash equivalents of $292.2 million. The company's total assets stood at $854.3 million, while total liabilities were $416.7 million. Total stockholders' equity was $437.6 million.
For the six months ended August 31, 2023, net cash used in operating activities was $27.3 million, while net cash used in investing activities was $6.7 million. The company generated $5.1 million in cash from financing activities during the same period.
Outlook
Accolade did not provide forward-looking guidance for net loss due to the unpredictability of certain items that may impact net loss, including stock-based compensation. However, the company's strong performance in the second quarter and its growing customer base provide a positive outlook for the remainder of the fiscal year.
Accolade Inc (NASDAQ:ACCD) is a Personalized Healthcare company that provides millions of people and their families with exceptional healthcare experiences. The company's unique combination of advocacy and care solutions is changing the way employers deliver healthcare to their employees and their families.
This article first appeared on GuruFocus.
