Accolade (ACCD) Releases Preliminary Q4 2020 Results
Accolade revealed preliminary Q4 and full-year 2020 results after the bell yesterday and announced a private offering of $250 million convertible notes, with a $37.5 million option (pricing to be determined). The reasons for the offering are the usual – working capital, acquisitions, strategic investments and general corporate purposes.
Fourth-quarter revenue (fiscal Q4 ended February 28) is expected to be $56.9 million to $57.9 million, up 30.4% at the high end and well ahead of the $52.6 million expected and management’s guidance from the Q3 call of $51 million to $54 million. Full-year 2020 revenue is expected to be $168 million to $169 million versus $160 million consensus. Fourth-quarter net loss is expected to be -$7.1 million to -$5.6 million. Management cited revenue drivers as growth in customer count and achievement of performance-related revenue, which is typically highest in Q4. Reduced spending and hiring due to the pandemic helped curb the net loss. Official results are due out on May 5.
The press release didn’t say anything about the $460 million 2nd.Md acquisition, which management announced had closed on March 4 (after Q4 ended). I’m sure we’ll hear a lot about that in May.
Like a lot of stocks, ACCD has been wandering somewhat aimlessly for a while. I don’t expect that to change purely as a result of these preliminary results, but they are certainly encouraging and should be enough to give the stock a boost today, while increasing investor confidence that Accolade is on the right track in 2021.