Health benefits tech company Accolade sees revenue rise 24% to $36.8M, but stock dips

Health benefits tech company Accolade sees revenue rise 24% to $36.8M, but stock dips

Health benefits tech company Accolade sees revenue rise 24% to $36.8M, but stock dipsHealth benefits expertise company Accolade noticed revenue rise 24% in the newest quarter as telehealth usage surges amid the COVID-19 pandemic.

The company, which went public in July, reported revenue of $36.8 million for its fiscal second quarter and a lack of $15.4 million. It beat revenue estimates and simply missed on internet loss expectations.

Shares of Accolade sunk greater than 5% in after-hours buying and selling although the company raised its revenue outlook for the total yr.

Accolade CEO Raj Singh cited “unbelievable buyer engagement and satisfaction” for the company’s platform.

“Accolade is constructed on the elemental perception that we are able to enhance well being outcomes for our members whereas on the similar time decreasing complete healthcare prices for his or her employers,” he stated in a press release. “Whereas the present COVID-19 disaster has exacerbated the challenges going through the healthcare business, our robust monetary outcomes and persevering with momentum show that we are able to obtain these aims, even in a tough financial surroundings and healthcare disaster.”

Accolade, with headquarters in Seattle and Philadelphia, has clients together with Comcast Cable, American Airways, Lowe’s, and State Farm. It provides a concierge service that helps staff of its clients and their households navigate their well being benefits.

Earlier this yr Singh stated a few of its greatest clients similar to airways have been impacted severely by COVID-19, which might negatively influence the company’s member base and revenue.

But COVID-19 can also be serving to Accolade’s enterprise. The company has been in a position to convey different company clients aboard with new companies designed to assist staff navigate the fallout from the pandemic. Final quarter the company rolled out a COVID Response Care program, together with psychological well being help in partnership with psychological well being service Ginger.

Shares of Accolade are up practically 15% because it raised $220 million at a valuation of $1.2 billion in July.

Accolade was based in 2007 by Michael Cline and Tom Spann. The company has been led since 2015 by Singh, who beforehand co-founded journey expense software program big Concur, which offered to SAP for $8.3 billion in 2014. Concur co-founder Mike Hilton is the Accolade chief product officer.

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