Accolade, Inc. reported a total revenue of $105.1 million for the three months ended November 30, 2024, marking a 6% increase from $99.4 million in the same period last year. For the nine months ended November 30, 2024, revenue reached $321.9 million, an 11% rise compared to $289.5 million for the corresponding period in 2023. However, the company experienced a significant net loss of $121.3 million for the latest quarter, compared to a loss of $21.1 million in the prior year. The nine-month net loss also widened to $172.8 million from $92.3 million year-over-year, primarily due to a goodwill impairment charge of $96.5 million recorded in the latest quarter.
The increase in revenue was driven by higher utilization of Accolade's services, particularly in usage-based fees, which rose 18% to $33.7 million for the quarter. Access fees saw a modest increase of 1%, totaling $71.4 million. Despite the revenue growth, the company faced challenges, including customer terminations that impacted overall performance. The total operating expenses surged to $168.8 million for the quarter, up from $76.6 million a year earlier, largely due to the goodwill impairment and increased personnel costs.
In terms of operational metrics, Accolade reported having over 1,200 commercial customers and more than 14 million members as of February 29, 2024. The company also noted a significant increase in its employee headcount, which rose to 81.2 million shares outstanding by November 30, 2024, compared to 78.1 million shares at the end of February 2024. The company continues to focus on expanding its customer base and enhancing its service offerings, which include advocacy, expert medical opinion, and virtual primary care services.
Looking ahead, Accolade has entered into a merger agreement with Transcarent, Inc., which is expected to provide a cash consideration of $7.03 per share to its stockholders. The merger, subject to stockholder approval, is part of Accolade's strategy to enhance its market position and operational capabilities. The company remains optimistic about its growth trajectory, despite the current financial challenges, and plans to leverage its technology and service offerings to improve member engagement and healthcare outcomes.
About Accolade, Inc.
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