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Accolade Seeks $100 Million In U.S. IPO

Mar. 05, 2020 2:03 PM ETAccolade, Inc. (ACCD)ORCL, IBM, MCK, MDRX2 Comments


  • Accolade has filed to raise $100 million in an IPO, although the final figure may differ.
  • The firm has developed an integrated healthcare and wellness platform for medium and large employers to provide their employees with health services.
  • ACCD is growing rapidly while generating operating losses and operational cash burn as a result of its commercialization ramp-up efforts.
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Quick Take

Accolade (NASDAQ:ACCD) has filed to raise $100 million in an IPO of its common stock, according to an S-1 registration statement.

The firm has developed a personal healthcare information and management platform for businesses.

ACCD is growing rapidly and has very positive industry dynamics in its favor.

I’ll provide an update when we learn more details about the IPO from management.

Company And Technology

Seattle, Washington-based Accolade was founded to provide businesses with the ability to offer their employees a comprehensive platform that provides all of their healthcare information in one integrated system.

In addition, the company provides health assistant and clinician services where applicable.

Management is headed by Chief Executive Officer Mr. Rajiv Singh, who has been with the firm since October 2015 and was previously co-founder of Concur Technologies, a business travel and expense software company.

Below is a brief overview video of Accolade's offerings:

Source: Accolade

The company’s primary offerings include:

  • Total Benefits

  • Total Care

  • Total Health and Benefits

Accolade has received at least $287 million from investors including Accretive Care Partners, Andreessen Horowitz, Carrick Capital and Thomas Spann.

Customer/User Acquisition

The company currently has 53 customers across industries including media, financial services, technology, energy, retail and transportation.

ACCD currently serves over 1.5 million members and generates revenue on a per-member-per-month fee basis and pursues new customers via a direct sales model that targets medium to large employers.The company has generated what it refers to as a 'gross dollar retention' rate of 100% and 95% for the fiscal years ended February 28, 2018 and 2019. Normally retention rates are reported as 'net' and not 'gross,' so I'm assuming the net figures are less positive and are under 100%, so the company is likely experiencing net churn on a revenue basis which is less than ideal.

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This article was written by

Donovan Jones profile picture

I'm the founder of IPO Edge on Seeking Alpha, a research service for investors interested in IPOs on US markets. Subscribers receive access to my proprietary research, valuation, data, commentary, opinions, and chat on U.S. IPOs. Join now to get an insider's 'edge' on new issues coming to market, both before and after the IPO. Start with a 14-day Free Trial.

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Comments (2)

Let me disagree with "aging of the U.S. population" as a driver of expected growth.
One aspect of aging is exiting from employment. And presumably exiting from that employer provided healthcare platform.
Moreover, assume that employee is replaced. Then the number of users for that Accolade customer remains constant, not growing.
@Mr Bad Example you've lived up to your name my good sir.
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