March 8, 2023 : Seattle and Philadelphia area-located primary healthcare company Accolade is slashing its workforce and closing or reducing some facilities, as per a current regulatory filing.
The company representative declined to say how the reductions impact many Accolade workers. Accolade had about 2,350 workers as of February 2022, and the filing noted that the publicly traded business still plans to hire.
Established in 2007, Accolade provides healthcare delivery, navigation, and advocacy assistance through employers.
The enterprise went public in 2020 with a $220 million IPO; the following year, it obtained virtual care startup PlushCare for $450 million and 2nd.MD for $460 million. Accolade had over 10 million components through 600 employer clients in February last year.
Accolade registered $90.9 million in revenue for its most recent fiscal quarter, an increase of 9% from the previous year. Losses were $39.9 million for the quarter, approximated to a net income of $22.5 million in the year-ago time.
After striking record highs of around $60 per share, Accolade’s stock dropped particularly through 2021 and into the first half of last year. It fell snappily in April after the company said it was losing Comcast as a client.
The stock shut Monday at $12.83 per share. The firm’s market capitalization is less than $1 billion.
On Monday Accolade announced a collaboration with mental health services provider Lyra Health to the company’s Trusted Partner Ecosystem.
Accolade anticipates annual revenue between $361 million and $365 million for its 2023 financial year and estimates $410 million for 2024.
Accolade’s workforce reductions come amid broader layoffs in tech and life sciences enterprises nationwide and in Seattle. However, healthcare workers stay in demand, and healthcare group Providence was the best business hiring in Washington state in December, the Seattle Times stated.
According to its website, Accolade has additional offices in San Francisco, Scottsdale, Santa Monica, Houston, and Prague. The company documents 62 job openings on LinkedIn.
Several other tech-focused players in the healthcare sector, including Amazon, recently closed its $3.9 million acquisition of primary care firm One Medical.
98point6, a Seattle startup that offers virtual primary care services, announced a $100 million deal recently with Transcarent, which will acquire part of the firm’s business.