Health benefits technology company Accolade saw revenue rise 24% in the most recent 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 loss of $15.4 million. It beat revenue estimates and just missed on net loss expectations.
Shares of Accolade sunk more than 5% in after-hours trading even though the company raised its revenue outlook for the full year.
Accolade CEO Raj Singh cited “incredible customer engagement and satisfaction” for the company’s platform.
“Accolade is built on the fundamental belief that we can improve health outcomes for our members while at the same time lowering total healthcare costs for their employers,” he said in a statement. “While the current COVID-19 crisis has exacerbated the challenges facing the healthcare industry, our strong financial results and continuing momentum demonstrate that we can achieve these objectives, even in a difficult economic environment and healthcare crisis.”
Accolade, with headquarters in Seattle and Philadelphia, has customers including Comcast Cable, American Airlines, Lowe’s, and State Farm. It offers a concierge service that helps employees of its customers and their families navigate their health benefits.
Earlier this year Singh said some of its biggest customers such as airlines have been impacted severely by COVID-19, which could negatively impact the company’s member base and revenue.
But COVID-19 is also helping Accolade’s business. The company has been able to bring other corporate customers aboard with new services designed to help employees navigate the fallout from the pandemic. Last quarter the company rolled out a COVID Response Care program, along with mental health support in partnership with mental health service Ginger.
Shares of Accolade are up nearly 15% since it raised $220 million at a valuation of $1.2 billion in July.
Accolade was founded in 2007 by Michael Cline and Tom Spann. The company has been led since 2015 by Singh, who previously co-founded travel expense software giant Concur, which sold to SAP for $8.3 billion in 2014. Concur co-founder Mike Hilton is the Accolade chief product officer.
