Accolade, Inc. (NASDAQ: ACCD) today announced financial results for
the fiscal fourth quarter and full year ended February 29, 2024.
"Accolade has built a rare healthcare services business at scale
with consistently strong growth rates. Whether serving consumers,
employers, health plans, or government entities, the core of our
value proposition is making healthcare easier to access, navigate,
and consume for our members. We provide a unique blend of
healthcare services and next generation technology that will
further differentiate us in FY 2025 as we approach $500 million in
revenues and forecast full year positive Adjusted EBITDA,” said
Rajeev Singh, Accolade Chair of the Board and Chief Executive
Officer.
Financial Highlights for Fiscal Fourth Quarter and
Fiscal Year ended February 29, 2024
|
Three months ended February 28(29), |
|
% Change(3) |
|
Twelve months ended February 28(29), |
|
% Change(3) |
|
|
2024 |
|
|
|
2023 |
|
|
|
|
2024 |
|
|
|
2023 |
|
|
|
(in millions, except percentages) |
|
|
|
(in millions, except percentages) |
|
|
GAAP Financial
Data: |
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
124.8 |
|
|
$ |
99.0 |
|
|
26 |
% |
|
$ |
414.3 |
|
|
$ |
363.1 |
|
|
14 |
% |
Net loss(1) |
$ |
(7.5 |
) |
|
$ |
(30.4 |
) |
|
75 |
% |
|
$ |
(99.8 |
) |
|
$ |
(459.7 |
) |
|
78 |
% |
GAAP gross profit |
$ |
58.1 |
|
|
$ |
40.0 |
|
|
45 |
% |
|
$ |
158.8 |
|
|
$ |
132.5 |
|
|
20 |
% |
GAAP gross margin |
|
46.5 |
% |
|
|
40.4 |
% |
|
|
|
|
38.3 |
% |
|
|
36.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Financial
Data(2): |
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
$ |
18.5 |
|
|
$ |
2.8 |
|
|
553 |
% |
|
$ |
(7.5 |
) |
|
$ |
(36.5 |
) |
|
79 |
% |
Adjusted Gross Profit |
$ |
67.7 |
|
|
$ |
50.0 |
|
|
35 |
% |
|
$ |
197.1 |
|
|
$ |
170.1 |
|
|
16 |
% |
Adjusted Gross Margin |
|
54.2 |
% |
|
|
50.5 |
% |
|
|
|
|
47.6 |
% |
|
|
46.8 |
% |
|
|
(1) |
A non-cash
goodwill impairment charge of $299.7 million was recorded during
the year ended February 28, 2023. |
(2) |
A reconciliation of GAAP to non-GAAP results has been provided
in this press release in the accompanying Financial Tables. An
explanation of these measures is also included below under the
heading "Non-GAAP Financial Measures." |
(3) |
Percentages are calculated from accompanying Financial Tables
and may differ from percentage change of numbers in Financial
Highlights table due to rounding. |
Steve Barnes, Accolade Chief Financial Officer, commented,
“Accolade's Personalized Healthcare platform, multi-channel sales
motion, and diversified customer base are the foundation of our
revenue growth and margin expansion. This year, we plan to deliver
full year profitability on an Adjusted EBITDA basis, marking a
significant step toward achieving our long-term target of 15-20%
Adjusted EBITDA margins.”
Financial Outlook
Accolade provides forward-looking guidance on revenue and
Adjusted EBITDA, a non-GAAP financial measure.
For the fiscal first quarter ending May 31, 2024, we expect:
- Revenue between $103 million and $106
million
- Adjusted EBITDA between $(9) million
and $(12) million
For the fiscal year ending February 28, 2025, we expect:
- Revenue between $480 million and $500
million
- Adjusted EBITDA between 3% and 4% of
revenue
Accolade has not reconciled guidance for Adjusted EBITDA to net
loss, the most directly comparable GAAP measure, and has not
provided forward-looking guidance for net loss, because there are
items that may impact net loss, including stock-based compensation,
that are not within the company’s control or cannot be reasonably
predicted.
Quarterly Conference Call Details
The company will host a conference call today, April 25,
2024 at 4:30 p.m. E.T. to discuss its financial results. To Listen
via Telephone: Pre-registration is required by the conference call
operator. Please pre-register by clicking here
(https://register.vevent.com/register/BI5dc020b8e7534a2ab2036759667cf1a2).
Upon registering, you will be emailed a dial-in number, direct
passcode and unique PIN.
To Listen via Internet: The conference call can be accessed via
a live audio webcast that will be available online at
http://ir.accolade.com.
Replay: A replay of the call will be available via webcast for
on-demand listening shortly after the completion of the call, at
http://ir.accolade.com.
Forward-Looking Statements
This release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended,
and the Private Securities Litigation Reform Act of 1995, as
amended. These forward-looking statements include statements
regarding our future growth and our financial outlook.
Forward-looking statements are subject to risks and uncertainties
and are based on potentially inaccurate assumptions that could
cause actual results to differ materially from those expected or
implied by the forward-looking statements. Actual results may
differ materially from the results predicted, and reported results
should not be considered as an indication of future performance. In
some cases, you can identify forward-looking statements because
they contain words such as “anticipate,” “believe,” “continue,”
“could,” “estimate,” “expect,” “intend,” “may,” “maintain,”
“might,” “likely,” “plan,” “potential,” “predict,” “project,”
“seek,” “should,” “target,” “will,” “would,” or similar expressions
and the negatives of those terms.
Important risks and uncertainties that could cause our actual
results and financial condition to differ materially from those
indicated in the forward-looking statements include, among others,
the risks described under the heading “Risk Factors” in Accolade’s
most recently filed Annual Report on Form 10-K and subsequent
filings, which should be read in conjunction with any
forward-looking statements. All forward-looking statements in this
press release are based on information available to Accolade as of
the date hereof, and it does not assume any obligation to update
the forward-looking statements provided to reflect events that
occur or circumstances that exist after the date on which they were
made, except as required by law.
About Accolade, Inc.
Accolade (Nasdaq: ACCD) is a Personalized Healthcare company
that provides millions of people and their families with
exceptional healthcare experiences so they can live their
healthiest lives. Accolade’s employer, health plan, and consumer
solutions combine virtual primary care and mental health, expert
medical opinion, and best-in-class care navigation. These offerings
are built on a platform that is engineered to care through
predictive engagement of population health needs, proactive care
that improves outcomes and cost savings, and by addressing barriers
to access and continuity of care. Accolade consistently receives
consumer satisfaction ratings of over 90%. For more information,
visit accolade.com. Follow us on LinkedIn, Twitter, Instagram and
Facebook.
Investor Contact:
Todd Friedman, Investor Relations, IR@accolade.com
Media Contact:
Public Relations, Media@accolade.com
Source: Accolade
Financial Tables
Accolade, Inc. and
SubsidiariesCondensed Consolidated Balance Sheets
(unaudited)(In thousands, except share and per share
data)
|
February 28(29), |
|
|
2024 |
|
|
|
2023 |
|
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
185,718 |
|
|
$ |
321,083 |
|
Marketable securities |
|
51,315 |
|
|
|
— |
|
Accounts receivable, net |
|
21,800 |
|
|
|
23,435 |
|
Unbilled revenue |
|
5,902 |
|
|
|
3,260 |
|
Current portion of deferred contract acquisition costs |
|
4,369 |
|
|
|
4,022 |
|
Prepaid and other current assets |
|
15,808 |
|
|
|
14,149 |
|
Total current assets |
|
284,912 |
|
|
|
365,949 |
|
Property and equipment,
net |
|
19,140 |
|
|
|
14,763 |
|
Operating lease right-of-use
assets |
|
28,340 |
|
|
|
29,525 |
|
Goodwill |
|
278,191 |
|
|
|
278,191 |
|
Intangible assets, net |
|
165,407 |
|
|
|
203,202 |
|
Deferred contract acquisition
costs |
|
9,608 |
|
|
|
9,815 |
|
Other assets |
|
2,553 |
|
|
|
1,624 |
|
Total assets |
$ |
788,151 |
|
|
$ |
903,069 |
|
Liabilities and
stockholders’ equity |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
13,749 |
|
|
$ |
10,155 |
|
Accrued expenses and other current liabilities |
|
10,736 |
|
|
|
11,744 |
|
Accrued compensation |
|
23,392 |
|
|
|
39,346 |
|
Due to customers |
|
18,552 |
|
|
|
15,694 |
|
Current portion of deferred revenue |
|
34,770 |
|
|
|
35,191 |
|
Current portion of operating lease liabilities |
|
6,651 |
|
|
|
7,284 |
|
Total current liabilities |
|
107,850 |
|
|
|
119,414 |
|
Loans payable, net of
unamortized issuance costs |
|
208,482 |
|
|
|
282,323 |
|
Operating lease
liabilities |
|
26,077 |
|
|
|
27,189 |
|
Other noncurrent
liabilities |
|
156 |
|
|
|
203 |
|
Deferred revenue |
|
121 |
|
|
|
154 |
|
Total liabilities |
|
342,686 |
|
|
|
429,283 |
|
Commitments and
contingencies |
|
|
|
Stockholders’ equity |
|
|
|
Common stock par value $0.0001; 500,000,000 shares authorized;
78,070,781 and 73,089,075 shares issued and outstanding at February
28(29), 2024 and 2023, respectively |
|
8 |
|
|
|
7 |
|
Additional paid‑in capital |
|
1,499,603 |
|
|
|
1,428,073 |
|
Accumulated other comprehensive loss |
|
(47 |
) |
|
|
— |
|
Accumulated deficit |
|
(1,054,099 |
) |
|
|
(954,294 |
) |
Total stockholders’ equity |
|
445,465 |
|
|
|
473,786 |
|
Total liabilities and stockholders’ equity |
$ |
788,151 |
|
|
$ |
903,069 |
|
Accolade, Inc. and
SubsidiariesCondensed Consolidated Statements of
Operations and Comprehensive Loss (unaudited)(In
thousands, except share and per share data)
|
Three months ended February 28(29), |
|
Twelve months ended February 28(29), |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenue |
$ |
124,831 |
|
|
$ |
99,025 |
|
|
$ |
414,292 |
|
|
$ |
363,142 |
|
Cost of revenue, excluding
depreciation and amortization |
|
58,194 |
|
|
|
51,048 |
|
|
|
222,232 |
|
|
|
198,905 |
|
Operating expenses: |
|
|
|
|
|
|
|
Product and technology |
|
24,190 |
|
|
|
24,082 |
|
|
|
99,159 |
|
|
|
101,347 |
|
Sales and marketing |
|
24,727 |
|
|
|
23,540 |
|
|
|
100,066 |
|
|
|
99,113 |
|
General and administrative |
|
14,311 |
|
|
|
19,914 |
|
|
|
62,124 |
|
|
|
81,209 |
|
Depreciation and amortization |
|
11,306 |
|
|
|
11,628 |
|
|
|
45,164 |
|
|
|
46,377 |
|
Goodwill impairment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
299,705 |
|
Total operating expenses |
|
74,534 |
|
|
|
79,164 |
|
|
|
306,513 |
|
|
|
627,751 |
|
Loss from operations |
|
(7,897 |
) |
|
|
(31,187 |
) |
|
|
(114,453 |
) |
|
|
(463,514 |
) |
Interest income (expense),
net |
|
1,612 |
|
|
|
739 |
|
|
|
5,952 |
|
|
|
255 |
|
Other income (expense) |
|
(493 |
) |
|
|
(36 |
) |
|
|
9,931 |
|
|
|
(15 |
) |
Loss before income taxes |
|
(6,778 |
) |
|
|
(30,484 |
) |
|
|
(98,570 |
) |
|
|
(463,274 |
) |
Income tax benefit
(expense) |
|
(729 |
) |
|
|
51 |
|
|
|
(1,235 |
) |
|
|
3,624 |
|
Net loss |
$ |
(7,507 |
) |
|
$ |
(30,433 |
) |
|
$ |
(99,805 |
) |
|
$ |
(459,650 |
) |
Net loss per share, basic and
diluted |
$ |
(0.10 |
) |
|
$ |
(0.42 |
) |
|
$ |
(1.33 |
) |
|
$ |
(6.45 |
) |
Weighted‑average common shares
outstanding, basic and diluted |
|
77,352,584 |
|
|
|
72,075,136 |
|
|
|
74,906,938 |
|
|
|
71,279,831 |
|
|
|
|
|
|
|
|
|
Other comprehensive loss: |
|
|
|
|
|
|
|
Unrealized loss on marketable securities, net |
$ |
(47 |
) |
|
$ |
— |
|
|
$ |
(47 |
) |
|
$ |
— |
|
Comprehensive loss |
$ |
(7,554 |
) |
|
$ |
(30,433 |
) |
|
$ |
(99,852 |
) |
|
$ |
(459,650 |
) |
The following table summarizes the amount of stock-based
compensation included in the condensed consolidated statements of
operations:
|
Three months ended February 28(29), |
|
Twelve months ended February 28(29), |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
Cost of revenue, excluding depreciation and amortization |
$ |
1,033 |
|
$ |
1,149 |
|
$ |
4,309 |
|
$ |
4,794 |
Product and technology |
|
7,575 |
|
|
5,950 |
|
|
29,991 |
|
|
24,995 |
Sales and marketing |
|
3,220 |
|
|
4,503 |
|
|
14,243 |
|
|
17,275 |
General and
administrative |
|
3,465 |
|
|
6,233 |
|
|
12,398 |
|
|
25,580 |
Total stock‑based
compensation |
$ |
15,293 |
|
$ |
17,835 |
|
$ |
60,941 |
|
$ |
72,644 |
Accolade, Inc. and
SubsidiariesCondensed Consolidated Statements of
Cash Flows (unaudited)(In thousands)
|
Fiscal Year Ended February 28(29), |
|
|
2024 |
|
|
|
2023 |
|
|
|
2022 |
|
Cash flows from operating
activities: |
|
|
|
|
|
Net loss |
$ |
(99,805 |
) |
|
$ |
(459,650 |
) |
|
$ |
(123,124 |
) |
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
|
Goodwill impairment |
|
— |
|
|
|
299,705 |
|
|
|
— |
|
Depreciation and amortization expense |
|
45,164 |
|
|
|
46,377 |
|
|
|
42,608 |
|
Amortization of deferred contract acquisition costs |
|
5,437 |
|
|
|
3,698 |
|
|
|
2,945 |
|
Change in fair value of contingent consideration |
|
— |
|
|
|
— |
|
|
|
(45,416 |
) |
Deferred income taxes |
|
— |
|
|
|
(3,997 |
) |
|
|
(6,132 |
) |
Noncash interest expense (income) |
|
1,540 |
|
|
|
1,660 |
|
|
|
1,673 |
|
Accretion of discounts/premiums on marketable securities, net |
|
(215 |
) |
|
|
— |
|
|
|
— |
|
Stock‑based compensation expense |
|
60,941 |
|
|
|
72,644 |
|
|
|
72,939 |
|
Gain on repurchase of convertible notes |
|
(9,268 |
) |
|
|
— |
|
|
|
— |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
Accounts receivable and unbilled revenue |
|
(1,007 |
) |
|
|
4,106 |
|
|
|
(11,829 |
) |
Accounts payable and accrued expenses |
|
3,380 |
|
|
|
1,131 |
|
|
|
(1,899 |
) |
Deferred contract acquisition costs |
|
(5,575 |
) |
|
|
(7,314 |
) |
|
|
(4,148 |
) |
Deferred revenue and due to customers |
|
2,404 |
|
|
|
3,634 |
|
|
|
13,986 |
|
Accrued compensation |
|
(15,953 |
) |
|
|
157 |
|
|
|
(2,519 |
) |
Other liabilities |
|
(607 |
) |
|
|
1,627 |
|
|
|
(106 |
) |
Other assets |
|
(2,605 |
) |
|
|
(4,483 |
) |
|
|
(1,328 |
) |
Net cash used in operating activities |
|
(16,169 |
) |
|
|
(40,705 |
) |
|
|
(62,350 |
) |
Cash flows from investing
activities: |
|
|
|
|
|
Capitalized software development costs |
|
(7,547 |
) |
|
|
(5,123 |
) |
|
|
(1,096 |
) |
Purchases of property and equipment |
|
(4,935 |
) |
|
|
(2,105 |
) |
|
|
(2,521 |
) |
Purchase of marketable securities |
|
(51,147 |
) |
|
|
— |
|
|
|
(99,998 |
) |
Sale of marketable securities |
|
— |
|
|
|
— |
|
|
|
99,998 |
|
Cash paid for acquisitions, net of cash acquired |
|
— |
|
|
|
— |
|
|
|
(259,996 |
) |
Net cash used in investing activities |
|
(63,629 |
) |
|
|
(7,228 |
) |
|
|
(263,613 |
) |
Cash flows from financing
activities: |
|
|
|
|
|
Payments for repurchase of convertible notes |
|
(65,808 |
) |
|
|
— |
|
|
|
— |
|
Payments for debt extinguishment costs |
|
(355 |
) |
|
|
— |
|
|
|
— |
|
Proceeds from employee stock purchase plan |
|
3,579 |
|
|
|
2,927 |
|
|
|
4,703 |
|
Proceeds from stock option exercises |
|
7,017 |
|
|
|
2,064 |
|
|
|
8,600 |
|
Payment of contingent consideration for acquisition |
|
— |
|
|
|
(1,828 |
) |
|
|
— |
|
Payments of equity issuance costs |
|
— |
|
|
|
— |
|
|
|
(60 |
) |
Payment of debt issuance costs |
|
— |
|
|
|
— |
|
|
|
(8,368 |
) |
Payment for purchase of capped calls |
|
— |
|
|
|
— |
|
|
|
(34,443 |
) |
Proceeds from borrowings on debt |
|
— |
|
|
|
— |
|
|
|
287,500 |
|
Net cash provided (used) by financing activities |
|
(55,567 |
) |
|
|
3,163 |
|
|
|
257,932 |
|
Net decrease in cash and cash equivalents |
|
(135,365 |
) |
|
|
(44,770 |
) |
|
|
(68,031 |
) |
Cash and cash equivalents,
beginning of period |
|
321,083 |
|
|
|
365,853 |
|
|
|
433,884 |
|
Cash and cash equivalents, end
of period |
$ |
185,718 |
|
|
$ |
321,083 |
|
|
$ |
365,853 |
|
Supplemental cash flow
information: |
|
|
|
|
|
Interest paid |
$ |
1,640 |
|
|
$ |
1,640 |
|
|
$ |
930 |
|
Fixed assets included in accounts payable |
$ |
28 |
|
|
$ |
771 |
|
|
$ |
161 |
|
Other receivable related to stock option exercises |
$ |
6 |
|
|
$ |
13 |
|
|
$ |
4 |
|
Income taxes paid |
$ |
402 |
|
|
$ |
157 |
|
|
$ |
122 |
|
Common stock issued in connection with acquisitions |
$ |
— |
|
|
$ |
— |
|
|
$ |
455,586 |
|
Replacement awards issued in connection with acquisitions |
$ |
— |
|
|
$ |
— |
|
|
$ |
6,729 |
|
Non-GAAP Financial Measures
In addition to our financial results determined in accordance
with GAAP, we use the following non-GAAP financial measures to help
us evaluate trends, establish budgets, measure the effectiveness
and efficiency of our operations, and determine employee
incentives. We believe that non-GAAP financial information, when
taken collectively, may be helpful to investors because it provides
consistency and comparability with past financial performance.
However, non-GAAP financial information is presented for
supplemental informational purposes only, has limitations as an
analytical tool and should not be considered in isolation or as a
substitute for financial information presented in accordance with
GAAP. In addition, other companies, including companies in our
industry, may calculate similarly-titled non-GAAP measures
differently or may use other measures to evaluate their
performance. A reconciliation is provided below for each non-GAAP
financial measure to the most directly comparable financial measure
stated in accordance with GAAP. Investors are encouraged to review
the related GAAP financial measures and the reconciliation of these
non-GAAP financial measures to their most directly comparable GAAP
financial measures, and not to rely on any single financial measure
to evaluate our business. In evaluating these non-GAAP financial
measures, you should be aware that in the future we expect to incur
expenses similar to the adjustments in this presentation. Our
presentation of non-GAAP financial measures should not be construed
as an inference that our future results will be unaffected by these
expenses or any unusual or nonrecurring items.
Adjusted Gross Profit and Adjusted Gross
Margin
Adjusted Gross Profit is a non-GAAP financial measure that we
define as revenue less cost of revenue, excluding depreciation and
amortization, and excluding stock-based compensation and severance
costs. We define Adjusted Gross Margin as our Adjusted Gross Profit
divided by our revenue. We believe Adjusted Gross Profit and
Adjusted Gross Margin are useful to investors, as they eliminate
the impact of certain noncash expenses and allow a direct
comparison of these measures between periods without the impact of
noncash expenses and certain other nonrecurring operating
expenses.
Adjusted EBITDA
Adjusted EBITDA is a non-GAAP financial measure that we define
as net income (loss) adjusted to exclude interest expense (income),
net, income tax expense (benefit), depreciation and amortization,
stock-based compensation, acquisition and integration-related
costs, goodwill impairment, change in fair value of contingent
consideration, severance costs, and other expense (income).
Severance costs include severance payments related to the
realignment of our resources. Other expense (income) includes debt
extinguishment gain or loss and foreign exchange gain or loss. We
believe Adjusted EBITDA provides investors with useful information
on period-to-period performance as evaluated by management and
comparison with our past financial performance. We believe Adjusted
EBITDA is useful in evaluating our operating performance compared
to that of other companies in our industry, as this measure
generally eliminates the effects of certain items that may vary
from company to company for reasons unrelated to overall operating
performance.
Adjusted Gross Profit, Adjusted Gross Margin and Adjusted EBITDA
have certain limitations, including that they exclude the impact of
certain non-cash charges, such as depreciation and amortization,
whereas underlying assets may need to be replaced and result in
cash capital expenditures, and stock-based compensation expense,
which is a recurring charge.
The following table presents, for the periods indicated, a
reconciliation of our revenue to Adjusted Gross Profit:
|
Three months ended February 28(29), |
|
Twelve months ended February 28(29), |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
(in thousands,except
percentages) |
|
(in thousands,except
percentages) |
Revenue |
$ |
124,831 |
|
|
$ |
99,025 |
|
|
$ |
414,292 |
|
|
$ |
363,142 |
|
Cost of revenue, excluding depreciation and amortization |
|
(58,194 |
) |
|
|
(51,048 |
) |
|
|
(222,232 |
) |
|
|
(198,905 |
) |
Amortization of acquired intangible assets, cost of revenue |
|
(7,018 |
) |
|
|
(7,016 |
) |
|
|
(28,048 |
) |
|
|
(28,075 |
) |
Depreciation of property and equipment, cost of revenue |
|
(1,556 |
) |
|
|
(931 |
) |
|
|
(5,213 |
) |
|
|
(3,677 |
) |
GAAP gross profit |
$ |
58,063 |
|
|
$ |
40,030 |
|
|
$ |
158,799 |
|
|
$ |
132,485 |
|
GAAP gross margin |
|
46.5 |
% |
|
|
40.4 |
% |
|
|
38.3 |
% |
|
|
36.5 |
% |
|
|
|
|
|
|
|
|
GAAP gross profit |
$ |
58,063 |
|
|
$ |
40,030 |
|
|
$ |
158,799 |
|
|
$ |
132,485 |
|
Amortization of acquired intangible assets, cost of revenue |
|
7,018 |
|
|
|
7,016 |
|
|
|
28,048 |
|
|
|
28,075 |
|
Depreciation of property and equipment, cost of revenue |
|
1,556 |
|
|
|
931 |
|
|
|
5,213 |
|
|
|
3,677 |
|
Stock‑based compensation, cost of revenue |
|
1,033 |
|
|
|
1,149 |
|
|
|
4,309 |
|
|
|
4,794 |
|
Severance costs, cost of revenue |
|
(2 |
) |
|
|
911 |
|
|
|
686 |
|
|
|
1,025 |
|
Adjusted Gross Profit |
$ |
67,668 |
|
|
$ |
50,037 |
|
|
$ |
197,055 |
|
|
$ |
170,056 |
|
Adjusted Gross Margin |
|
54.2 |
% |
|
|
50.5 |
% |
|
|
47.6 |
% |
|
|
46.8 |
% |
The following table presents, for the periods indicated, a
reconciliation of our Adjusted EBITDA to our net loss:
|
Three months ended February 28(29), |
|
Twelve months ended February 28(29), |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
(in thousands) |
|
(in thousands) |
Net loss |
$ |
(7,507 |
) |
|
$ |
(30,433 |
) |
|
$ |
(99,805 |
) |
|
$ |
(459,650 |
) |
Adjusted for: |
|
|
|
|
|
|
|
Interest expense (income), net |
|
(1,612 |
) |
|
|
(739 |
) |
|
|
(5,952 |
) |
|
|
(255 |
) |
Income tax (benefit) expense |
|
729 |
|
|
|
(51 |
) |
|
|
1,235 |
|
|
|
(3,624 |
) |
Depreciation and amortization |
|
11,306 |
|
|
|
11,628 |
|
|
|
45,164 |
|
|
|
46,377 |
|
Stock‑based compensation |
|
15,293 |
|
|
|
17,835 |
|
|
|
60,941 |
|
|
|
72,644 |
|
Acquisition and integration‑related costs(1) |
|
(194 |
) |
|
|
779 |
|
|
|
(7 |
) |
|
|
1,218 |
|
Goodwill impairment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
299,705 |
|
Severance costs(2) |
|
(27 |
) |
|
|
3,777 |
|
|
|
864 |
|
|
|
7,065 |
|
Other expense (income)(3) |
|
493 |
|
|
|
36 |
|
|
|
(9,931 |
) |
|
|
15 |
|
Adjusted EBITDA |
$ |
18,481 |
|
|
$ |
2,832 |
|
|
$ |
(7,491 |
) |
|
$ |
(36,505 |
) |
(1) |
For the three
and twelve months ended February 28(29), 2024 and 2023, acquisition
and integration-related costs represent expenses associated with
litigation inherited through the PlushCare acquisition. Refer to
Note 14 in our condensed consolidated financial statements for
further details. |
(2) |
Severance costs represent expenses associated with workforce
realignment actions taken by management. |
(3) |
For the twelve months ended February 29, 2024, other expense
(income) includes a gain on extinguishment of debt. |
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