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Thursday, June 27, 2024

==Accolade (ACCD) reported earnings on Thur 27 June 24 (a/h)


Accolade beats by $0.13, beats on revs; guides Q2 revs below consensus; guides FY25 revs below consensus
  • Reports Q1 (May) loss of ($0.35) per share, $0.13 better than the FactSet Consensus of ($0.48); revenues rose 18.6% year/year to $110.5 mln vs the $105.22 mln FactSet Consensus.
  • Co issues downside guidance for Q2 (Aug), sees Q2 revs of $104-106 mln vs. $113.16 mln FactSet Consensus.
  • Co issues downside guidance for FY25 (Feb), sees FY25 revs of $460-475 mln (down from $480-500 mln) vs. $490.15 mln FactSet Consensus.
Accolade plummets to all-time lows today after slashing its FY25 (Feb) revenue guidance amid elevated uncertainty
  • ACCD is a healthcare services company aiming to reduce employer healthcare costs through its team of health assistants and clinicians to help employees navigate their healthcare benefits.
  • While lowering swelling healthcare costs is compelling, ACCD has not been able to convert a seemingly ripe opportunity into substantial top-line growth.
  • At the same time, since going public in 2021, ACCD has yet to deliver a profitable quarter, with net losses widening sequentially in Q1 (May).
  • As a result of persistently underwhelming quarterly numbers, ACCD's reduced revenue guidance today tested investors' final nerve, resulting in a considerable sell-off.
  • Management remarked that its downbeat outlook was to "de-risk" its previous revenue forecast while preserving its profitability goals. ACCD is now focused first on growing EBITDA before driving incremental revenue upside as its business matures.
  • Following such a lengthy downward trend, investors are expressing an unwillingness to wait out ACCD's turnaround venture.

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