 Fiscal first quarter 2021 revenue of 35.9 million, a 25 increase compared to fiscal first quarter 2020 revenue of 28.8 million, driven primarily by strength in new customer adds across segments and offerings Launched pilot with Defense Health Agency, our first customer in the federal government sector Provides fiscal second quarter 2021 and full-year fiscal 2021 guidanceSEATTLE, Aug. 13, 2020 GLOBE NEWSWIRE -- Accolade, Inc. NASDAQ: ACCD, which provides personalized, technology-enabled solutions that help people better understand, navigate, and utilize the healthcare system and their workplace benefits, today announced financial results for the fiscal first quarter ended May 31, 2020.Accolade is a mission-driven organization, and in todays environment, our mission is more important than ever. The COVID-19 pandemic has made an already siloed and opaque healthcare system even more complex for people to navigate. During our fiscal first quarter, we delivered positive financial results in a strong demand environment driven in part by that increased complexity, said Rajeev Singh, Accolade CEO.Mr. Singh continued, Our commitment to innovating for our customers was demonstrated again via the delivery of a new offering - Accolade COVID Response Care - to help our customers and their employees return to their workplace safely. As we look ahead to the future we see employers increasingly elevating healthcare and benefits and their utilization to a more a strategic buying decision given its role in business continuity.Financial Highlights for Fiscal First Quarter 2021 ended May 31, 2020 Three months ended May 31, 2020 2019 change in millions, except percentages GAAP Financial Data: Revenue 35.9 28.8 25 Net loss 14.0 15.9 12 Non-GAAP Financial Data1: Adjusted EBITDA 9.4 11.7 19 Adjusted Gross Profit 13.8 11.4 21 Adjusted Gross Margin 38.3 39.6 1 A reconciliation of GAAP to non-GAAP results has been provided in this press release in the accompanying tables. An explanation of these measures is also included below under the heading Non-GAAP Financial Measures.Financial OutlookAccolade provides forward-looking guidance on Revenue and Adjusted EBITDA.For the fiscal second quarter ending August 31, 2020, we expect: Revenue between 34.5 million and 35.5 million Adjusted EBITDA, a non-GAAP measure, between 12.5 million and 14.5 millionFor the full fiscal year ending February 28, 2021, we expect: Revenue between 158.0 million and 161.0 million Adjusted EBITDA, a non-GAAP measure, between 32.0 million and 36.0 millionWe have not reconciled guidance for Adjusted EBITDA to net loss, the most directly comparable GAAP measure, and have 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 our control or cannot be reasonably predicted.Quarterly Conference Call DetailsThe company will host a conference call today, Thursday, August 13, 2020 at 5:00 p.m. E.T. to discuss its financial results. The call can be accessed by dialing 1-833-519-1281 for U.S. participants, or 1-914-800-3853 for international participants, referencing conference ID 3276322; or via a live audio webcast that will be available online at A replay of the call will be available via webcast for on-demand listening shortly after the completion of the call, at the same web link, and will remain available for approximately 90 days.Forward-Looking StatementsThis 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.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 following: i changes in laws and regulations applicable to our business model; ii changes in market or industry conditions, regulatory environment and receptivity to our technology and services; iii results of litigation or a security incident; iv the loss of one or more key customers or partners; v the impact of COVID-19 on our business and results of operation; and vi changes to our abilities to recruit and retain qualified team members. For a detailed discussion of the risk factors that could affect our actual results, please refer to the risk factors identified in our SEC reports, including, but not limited to our prospectus filed with the SEC on July 1, 2020 and the Quarterly Report on Form 10-Q for the fiscal quarter ended May 31, 2020 expected to be filed with the SEC on or about August 13, 2020. All information provided in this release and in the attachments is as of the date hereof, and we undertake no duty to update or revise this information unless required by law.About Accolade, Inc.Accolade provides personalized health and benefits solutions designed to empower every person to live their healthiest life. Using a blend of cloud-based technologies, specialized support from Accolade Health Assistants and Clinicians, and integrated data and programs across mobile, online and phone, Accolade navigates people through the healthcare system with trust, empathy and ease. Employers offer Accolade to employees and their families as the single place to turn for all health, healthcare, and benefits questions or concerns, increasing their engagement in benefits and connecting them to high-quality providers and care. By empowering members to make better decisions about their health, Accolade can support members in lowering the cost and complexity of healthcare while achieving consumer satisfaction ratings over 90 percent and an NPS of 60.Investor Contact:Asher Dewhurst, Investor Relations, 443-213-0500, Media Contact:Megan Torres, Public Relations, 206-679-9630, Financial TablesAccolade, Inc. and Subsidiaries Condensed Consolidated Balance Sheets unaudited In thousands, except share and per share data May 31, February 29, Assets2020 2020 Current assets: Cash and cash equivalents 77,682 33,155 Accounts receivable 2,971 294 Unbilled revenue 234 895 Current portion of deferred contract acquisition costs 1,395 1,368 Current portion of deferred financing fees 279 279 Prepaid and other current assets 14,193 12,944 Total current assets 96,754 48,935 Property and equipment, net 12,598 13,625 Goodwill 4,013 4,013 Acquired technology, net 1,692 2,054 Deferred contract acquisition costs 4,103 3,876 Other assets 1,322 745 Total assets 120,482 73,248 Liabilities, convertible preferred stock and stockholders deficit Current liabilities: Accounts payable 4,940 5,273 Accrued expenses 4,375 6,580 Accrued compensation 26,627 23,838 Deferred rent and other current liabilities 729 674 Due to customers 4,278 4,674 Current portion of deferred revenue 34,444 28,919 Total current liabilities 75,393 69,958 Loans payable, net of unamortized issuance costs 72,524 21,144 Deferred rent and other noncurrent liabilities 5,614 5,523 Deferred revenue 426 396 Total liabilities 153,957 97,021 Convertible preferred stock : Preferred stock; 19,513,996 shares authorized; 19,513,939 issued and outstanding at May 31, 2020 and February 29, 2020, respectively liquidation value of 239,244 at May 31, 2020 233,022 233,022 Stockholders deficit Common stock par value 0.0001; 65,000,000 shares authorized; 6,381,257 and 6,033,450 shares issued and outstanding at May 31, 2020 and February 29, 2020, respectively 2 2 Additional paid-in capital 68,329 64,071 Accumulated deficit 334,828 320,868 Total stockholders deficit 266,497 256,795 Total liabilities, convertible preferred stock and stockholders deficit 120,482 73,248 Accolade, Inc. and Subsidiaries Condensed Consolidated Statements of Operation unaudited In thousands, except share and per share data Three months ended May 31, 2020 2019 Revenue 35,894 28,763 Cost of revenue, excluding depreciation and amortization 22,239 17,435 Operating expenses: Product and technology 11,370 11,246 Sales and marketing 7,315 7,662 General and administrative 5,667 5,563 Depreciation and amortization 1,928 2,160 Total operating expenses 26,280 26,631 Loss from operations 12,625 15,303 Interest expense, net 1,282 543 Other expense 15 34 Loss before income taxes 13,922 15,880 Income tax expense 38 23 Net loss 13,960 15,903 Net loss per share, basic and diluted 1.86 3. 