Shares of Accolade Inc (NASDAQ: ACCD) opened about 25% up on Tuesday after the software and technology company reported better-than-expected financial results for its third quarter last night.
Accolade said its net income printed at $22.5 million in Q3 that translates to 31 cents per share. In the same quarter last year, the Pennsylvania-headquartered firm had posted a loss. On an adjusted basis, it remained in 39 cents of per-share loss in the recent quarter.
Accolade generated $83.5 million in revenue that represents an annualised growth of 117%. In comparison, analysts had called for 48 cents of adjusted per-share loss on $76 million in revenue.
Piper Sandler slashed its price target on ACCD on Friday to $35 that still represents another 50% upside from here.
For the current quarter, Accolade expects up to $93 million in revenue and $4.0 million to $8.0 million in adjusted EBITDA. Its full-year forecast now stands at up to $309 million in revenue and $48 million to $52 million in adjusted EBITDA.
The Nasdaq-listed company also said it sees a 25% growth in revenue next year and a further contraction in adjusted EBITDA loss.
In the earnings press release, CEO Rajeev Singh admired Accolade’s journey from an advocacy company to a personalised healthcare firm. He said:
In January 2021, we were serving about 100 customers and 2 million members. Today, with the integration of primary care, mental health, and expert medical opinion from our acquisitions of PlushCare and 2nd.MD, we now serve more than 600 customers and 10 million members.
The U.S. company also launched its first customers on Accolade Care and Accolade One at the start of this year.
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