What happened
Shares of Accolade (ACCD -4.30%) were up as much as 25% for the week early Friday, according to data provided by S&P Global Market Intelligence. The stock closed last week at $7.43 a share, and then rose to as high as $10.01 on Tuesday. It saw a 52-week low of $4.61 and a 52-week high of $22.92 and is down more than 56% over the past 12 months.
So what
The independent health benefits navigator announced third-quarter earnings on Monday. Accolade reported revenue of $90.9 million, up 9% year over year, and a net income loss of $39.9 million, compared to positive net income of $22.5 in the same period a year ago.
What really drove the healthcare stock up was likely the company's fiscal 2023 and 2024 forecasts, which surpassed analysts' projections. The company said it expects revenue in fiscal 2023 (which ends Feb. 28) of between $361 million and $365 million, compared to $310 million in fiscal 2022. For 2024, the company's preliminary forecast projected revenue of $410 million.
Now what
Investors will also want to see progress made toward making a profit. In fiscal 2022, the company reported a net income loss of $123.12 million, and so far through nine months in fiscal 2023, it has already lost $429.2 million.
Accolade has a disruptive platform, as it gives enrollees a personal health assistant whose job it is to guide patients through the healthcare system by finding a provider, explaining covered services, and handling claim payment questions. The key for the company is to continue to add enrollees to the point where revenue outstrips expenses. Two years ago, the company had 50 corporate customers, and now it has more than 700.
