Ladies and gentlemen, thank you for standing by, and welcome to the Accolade Conference Call. At this time, all participant lines are in a listen-only mode. After the speaker's presentation, there will be a question and answer session, to ask a question during the session, you need to press star then one on your telephone. Please be advised that today's conference is being recorded if require any operator assistance please press star zero. I would now like to hand this conference over to your speaker today, Todd Friedman, Senior Vice President of Investor Relations. Thank you. Please go ahead, sir. Thanks, operator. I'd like to welcome all of you and thank you for joining us today as we discuss our acquisition of 2nd.MD. I'd like to introduce today's speakers. From Accolade, we have our Chief Executive Officer, Rajeev Singh, and our Chief Financial Officer, Steve Barnes. From 2nd.MD, we're pleased to be joined by Chief Executive Officer, Jason Melton. We have posted slides regarding today's announcement on our website at ir.accolade.com. We will be referring to those slides during our remarks on this call. I'll be reading a safe harbor statement. You have a minute to go download those right now if you'd like. Please note that on today's call, we will be making certain statements that may be considered forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks, uncertainties, and other factors that could cause the actual results for Accolade to differ materially from those expressed or implied on this call. For additional information, please refer to our cautionary statement in our press release and our filings with the SEC, particularly the 8-K filed in relation to this transaction, all of which are available on our website. With that, we'll start the presentation on slide four, and I'd like to turn the call over to our CEO, Rajeev Singh. Thanks, Todd. We're excited to share today's news and appreciate all of you joining us on the call. It's been only one week since we last updated you on our last fiscal Q3 earnings. In that call, like most, we spoke about our vision for the future of healthcare. We believe that the future of healthcare will be integrated and collaborative and will be reimagined with the consumer or the member at the center of everyone's thinking. Since our IPO, we've talked about investing in evidence-based clinical programs to help our customers and their members choose the right care and realize the best outcomes. There are few services in the consumer's healthcare journey that deliver against that ambition more clearly and more tangibly than expert medical opinion. No company does it better than 2nd.MD. In a moment, I'm going to turn the call over to Jason Melton, 2nd.MD's CEO, to tell you more about their history and their vision. First, I want to share with you why we chose 2nd.MD and why expert medical opinion is the first acquisition we pursued following our IPO and follow-on. When we evaluate potential acquisitions at Accolade, our criteria is straightforward. That criteria is first, best-in-class solutions that will enhance our members' experience, particularly those that have also proven they improve clinical outcomes. Second, alignment in mission, vision, and culture. In short, companies and people who want to do the right thing every time and who are driven enough to believe that they can change healthcare in the United States. Third, an attractive financial profile that does one or more of the following: expands our addressable market, accelerates our revenue growth rate, adds meaningfully to our customer base, or complements our margin profile. We found all three of those elements in 2nd.MD, and that's why we're so excited about this combination. Together, integrating expert healthcare resources into a single solution that simplifies the care journey and empowers people to make the best decisions for their health and well-being. Turning to slide five. You're already familiar with Accolade. Our focus is on personal life, health, and benefits. The key to our success is our deep engagement across our customers' entire employee population and the 360-degree data set that allows us to follow our members across the entirety of their journey. It's a relationship-based clinical model that persists throughout a member's care journey, where Accolade is the single place our members turn for any need they may have. We provide support, deliver value via clinical programs, and when appropriate, connect members with other solutions from which they'll benefit. As evidenced by our growth, our category is attractive to prospective customers. In a recent survey, 73% of employers expressed an interest in advocacy and claims assistance, and 58% expressed an interest in high-touch concierge services. 2nd.MD will enable us to extend that relationship deeper into the member's care journey. Expert medical opinions have become one of the most valuable tools in our industry to help ensure members get the right care and follow the right path while helping employers manage costs by eliminating wasteful spend. In fact, in a recent survey, 73% of employers have expressed a desire to deliver expert medical opinion capabilities to their employees. 2nd.MD's specific offerings appeal to us and the market at large because first and foremost, they're the category leader in expert medical opinion. They have an expert-led clinical approach model that delivers medical certainty in high-cost, complex medical situations. They have built an extensive network with more than 900 physician experts covering all specialty areas and representing many of the premier U.S. healthcare institutions. They expand our customer base with more than 300 customers covering over seven million lives, and they have a proven ROI model to drive savings and bend trend. They average better than $5,000 in savings per consult, and that return grows to more than $27,000 when a surgery is required. We're deeply familiar with expert medical opinion because many of our customers have either deployed or have inquired with us about solutions like this for their members. We at Accolade are often driving engagement with those expert medical opinion programs via our navigation and advocacy role. We're excited about adding the approximately 300 customers from 2nd.MD to the Accolade family and see tremendous opportunity, given there is very little customer overlap between the two companies. One final point before we leave this slide. Our belief that collaboration and integration are required to fix healthcare is in no place more evident than our partnerships with health plans. Over the last two years at Accolade, we've talked about the strength of our health plan relationships. Humana and Blue Shield of California are two great examples of our collaboration in that space. 2nd.MD has been particularly effective in this regard, with very strong relationships with UnitedHealthcare Optum and Aetna, among others. UnitedHealthcare Optum specifically has been a very strong driver of customer acquisition. Both Aetna and UnitedHealthcare have been great partners in delivering a world-class customer experience, and we look forward to continued collaboration with those health plan partners. Please advance to slide six. Expert medical opinion capabilities and 2nd.MD fit perfectly into the Accolade vision. As a reminder, Accolade is fundamentally different than the rest of the industry because we have a 360-degree view of the member's healthcare journey via a data set that breaks down healthcare silos. We engage with a huge percentage of the population. We build long-term, longitudinal relationships with members that engender trust and respect, and our clinical programs are integrated into the member journey. While the rest of the industry is condition or transactionally oriented, Accolade is totally vested in, via our core services, the entire healthcare journey. Therein lies the magic of our capacity to drive higher engagement for the right healthcare solutions for our members. If you're looking at the slide, you see a number of actions under treatment decision and cost growth. There you'll find expert medical opinion, and this is where 2nd.MD is a leader in a growing space. At the moment of a patient's most critical decision, do I need this surgery? What treatment do I get? Which doctor do I use? What path do I take? The ability to rapidly get access to an expert physician is extremely difficult. It can take weeks and may never happen. That is the high value that 2nd.MD delivers. Our investment in building a robust engagement platform has driven 50-plus% engagement across entire member populations. That investment is especially notable in this acquisition because we drive better than 90% engagement in the high cost claimants who are the primary beneficiaries of expert medical opinion services. This is where we believe our complementary approach will yield remarkable value for both companies. Turning to slide seven. That investment, without question, leads up to the very moment where effective expert medical opinion implementation dramatically shifts the cost curve. In everything we do, we identify the right member, help them make the right decision, and set them on the right treatment path. I'll start with the right member. We proactively identify members with the greatest opportunity to bend the curve on cost, quality, and outcomes. The right decision is about integrating evidence-based care and whole person understanding to develop a targeted care plan. Finally, the right path speaks to our ability to deliver a full set of services and partners to change member and physician behavior and drive results. It is here that we can strengthen our capability to guide the member on the right path to deliver medical certainty. Expert medical opinion is an incredibly powerful tool to help members make better decisions. Where we can and will amplify the impact of the service is by leveraging our relationship-based longitudinal model to ensure members have the support that they need to act on the expert medical opinion and any of the various things they might encounter thereafter. We can improve those positive impacts more with the addition of 2nd.MD. That means fewer procedures, better outcomes, more trust in the healthcare system, and lower costs to our employers. Please turn to slide eight. We plan to offer 2nd.MD to our customers in several ways. Upon completing the acquisition, expert medical opinion will be added to Accolade Total Care, where it provides a rich complement to the intelligent provider matching and benefits and navigation services included in that offering. An offering which saw great traction over the last year. We expect that these new capabilities will even further differentiate our standing in the market. 2nd.MD will also continue to be sold as a standalone offering and will also be offered to all existing Accolade customers as an upsell. Turning to slide nine, I'd like to talk about the evolution of Accolade. We've demonstrated the ability to accelerate and adapt during times of change. Accolade invented high touch, high tech advocacy in 2007. We spent the next decade perfecting and expanding this model into one that every advocacy company in the industry aims to emulate today. 2020 came in with a whole host of unforeseen, unplanned for events. When life as we knew it changed drastically and quickly, those things that were difficult before, like getting the right care at the right time, became even harder. We met these challenges head on, doing what we've always done, delivering innovation and continuing to grow. We took our core capabilities and built on top of them, even during the pandemic. From intelligent provider matching, built on top of our MD Insider acquisition, to Accolade COVID Response Care and Mental Health Integrated Care, we've continued to demonstrate the power of our engagement platform and our ability to flex to the needs of the market. It's on that track record that we are very excited to add 2nd.MD to our portfolio. At this point, I'd like to ask CEO Jason Melton to join us on the call to tell you about their business. Jason? Thanks, Raj. We're all excited to be joining Accolade. 2nd.MD was born out of frustration with traditional office-centric specialty care. The uncertainty of choosing the right doctor for the condition, the months of waiting for an appointment to open up, the hours and miles spent traveling from specialist to specialist for in-person visits. These were daily struggles for 2nd.MD founder Clint Phillips, after his daughter Gabi suffered a stroke shortly after birth. No matter how hard they tried and how many waiting rooms they sat in, Clint's family couldn't get clear answers about what treatment options were best, which specialist to see next, and whether Gabi would ever even be able to walk. Clint believed that digital technology could provide a better way to deliver specialty expertise than making people drive from office to office, and thus 2nd.MD was born. Turning to slide 12, let me tell you how we see the current state of healthcare. Now, we probably don't need to convince anyone on this phone that healthcare is fundamentally broken. Costs are rising every year with no increase in quality, access, or ease of care. 30% of all healthcare costs are wasted, and 5% of employees are responsible for 50% of the cost. In our section of the market, those issues are amplified because we're usually dealing with the highest cost patients. Most people are surprised to learn that national studies show the average doctor in the U.S. is 17 years behind the latest research. In most cities, people have to wait up to 60 days to see a specialist. When they do see the specialist, those visits are frustratingly short. It's on that foundation that we are able to deliver immediate results and positive returns for our customers. Turn to slide 13. I'll explain why 2nd.MD is different from the traditional expert opinion market. What did traditional EMO look like? They were written opinions with no direct interaction with the expert. Their guidance took three to five weeks to receive. To change this, 2nd.MD provides live video consults directly with the expert. Everyone involved in the process, from the nurse to the records team to the elite doctor, are specialized in the member's condition. We provide you answers in three to five days, not weeks. Slide 14 shows you the powerful impact of this approach. 85% of consults result in an improved treatment plan, 35% of consults lead to an alternative diagnosis, and 30% of surgery consults result in the member voluntarily canceling their surgery, not because their insurance told them they couldn't have it, but because they consulted with an independent expert and they realized there's a better way. Our customers love us, as you can see from our best-in-class 91 Net Promoter Score. When we are engaged in a surgery consult, we save on average more than $27,000 per consultation. That is why we're so excited about today's news. We share a common vision and approach to deliver better health outcomes to our members. Let me spend a quick minute walking you through a typical consultation. Turn to slide 15. It starts with the initial contact, where a caring nurse, specialized in your condition, has a conversation with you about what's going on, what medical tests have you had, and what's been recommended. We send you electronically a release form that gives us the authority to gather your medical records, digitize them, and curate them in our system, which we do remarkably well and quickly. We recommend specialists who are experts on your condition and schedule a consultation at a time convenient for you. I'll pause here because this is one of the benefits to a virtual model that a traditional in-person second opinion can't offer. Most patients are very limited in their ability to get off work to travel to yet another doctor's office, scramble to find parking, and wait in the waiting room, all to spend less than five minutes speaking to the actual physician. The specialists themselves are often booked up months in advance. Between the inconvenience and the wait times for an appointment, the traditional physician-centric approach means most people simply don't get a second opinion for their condition. By contrast, in our virtual member-centric approach, more than half of our consults are conducted on nights and weekends at the member's request, with zero travel and zero wait times, driving higher utilization and a much better member experience. You have a live consultation by video or phone with the expert, and these last 30 minutes on average, which is far more time than most people get with their treating physician. This allows you and the specialist to explore a range of treatment options and the pros and cons of each as it relates to your own personal circumstances. Each consultation is concluded with a summary written directly by the expert specialist and follow-up support from our highly rated care team. 2nd.MD is member-focused and delivers a world-class experience in our members' time of need. On slide 16, you'll see images of our highly rated app, where you can initiate a case, chat with your care team nurse, see your organized medical records, consult with a 2nd.MD expert, and read and share your consult summary. The conversations with the expert specialists are rich in information and care and are often critical to getting to the right answers and empowering the member with the trust and the confidence to move forward with the plan that's best for them. If you turn to slide 17, let's look at the major cost drivers. This is where we get really excited about this combination. Our customers judge us on our ability to bend medical trend line. Accolade's engagement engine has the potential to add rocket fuel to our utilization. If you look at the top spending conditions, as ranked by employers' top three cost drivers, you see the significant impact we have on total spend. When we recommend a change in the treatment plan on a musculoskeletal case, we save the payer $32,000. For cancer, $33,000, and on cardiovascular cases, $39,000. Even on mental health cases, we're saving $7,000. These are hard number reductions in spend, not including the soft cost benefits of reduced absenteeism and presenteeism. Individually, 2nd.MD and Accolade have pursued similar missions in different parts of the market. Together, we can amplify the impact we have for our customers and our members. I'd like to turn the call over to Steve to walk through some of the details. Thanks, Jason, and welcome to Accolade to you and the 2nd.MD team. We expect that this transaction will have a significant positive impact on Accolade. 2nd.MD adds more than 300 customers of varying sizes to our base. Combined, we will have more than 400 customers. Like Accolade, 2nd.MD has a mix of household names that mirror our diversity across strategic, enterprise, and mid-market customers. Importantly, when we look at some of the strategic aspects of this deal, 2nd.MD adds some compelling distribution capabilities. Within our customer base, we have virtually no overlap, providing immediate opportunity for cross-sell and upsell. 2nd.MD also brings strong distribution relationships with health plans, and we're excited to grow those relationships. As we look out at future opportunities, we dramatically expand our addressable market. As you may recall, we have sized Accolade's market at approximately $24 billion. With the estimated $22 billion available in the expert medical opinion space, we nearly double our TAM to $46 billion. We will not lack for growth opportunity in our core markets for a long time to come. Turning to slide 20, I will walk you through the transaction details. The purchase price is up to $460 million, comprised of $230 million in cash and up to $230 million in common stock. For the stock portion, $130 million will be issued at closing and up to another $100 million is payable upon the achievement of defined revenue milestones following the closing. The total stock portion equates to roughly 5 million shares, which was based on the volume-weighted average price for a period of 10 days prior to signing. We expect to close the acquisition by the end of February, subject to all the usual closing conditions such as Hart-Scott-Rodino. We will provide guidance after the transaction closes, along with our fiscal Q4 results. Finally, 2nd.MD reported approximately $35 million in revenue for calendar year 2020. As mentioned in the press release, 2nd.MD is growing faster than Accolade, so we expect the acquisition will be accretive to our revenue growth rate. With that, I'd like to turn to the last slide, where Raj will make some closing remarks. Thank you, Steve, and thank you, Jason and Todd. Thank you to each of you for joining us today. To the 2nd.MD shareholders and leadership that are listening today, thank you for your trust and for the unbelievable spirit of partnership throughout the early stages of our journey together. We're just getting started. To 2nd.MD employees listening in today, we can't wait to meet you, to learn from you, and to go forward and build a great and enduring business together that changes the way healthcare works in this country. To Accolade employees listening in, this is an exciting day. We're combining with a company with shared values, mission, and an offering that is perfectly complementary to what we do. This is another step towards our end objective. Finally, to the customers and partners of both 2nd.MD and Accolade, you can expect the same high NPS, high-quality service from the combined businesses as always, with new opportunities to demonstrate value along the way. With that, operator, I'd like to open the call up to questions. As a reminder, to ask a question, you will need to press star one on your telephone. To withdraw your question, press the pound key. Please stand by while we compile the Q&A roster. Our first question comes from the line of Michael Cherny from Bank of America. Your line is now open. Good evening. Long time no talk, and congratulations on tonight's transaction. Thanks, Mike. Just diving in a little bit more in terms of the attach rate. When you think about the customer bases, I appreciate the fact that there's very little overlap. For the customers where there isn't overlap, of the 300, I don't really know the best way to say this, but do they have anything that looks close to a care coordination, care navigation tool that Accolade provides? As you think about the cross-sell opportunities you push forward, what is that replacement versus de novo potential you have from these new prospects that will now be serviced by Accolade? Raj, you may be on mute. Oops, sorry about that. Sorry, Mike, I was answering that question just to myself here. First, thanks for the question, and secondly, I think a couple of core points. The first is that point around very little overlap really contemplates the idea that navigation and advocacy services like ours aren't fundamentally widely present in the 2nd.MD customer base. We see significant opportunity there. Secondly, where there are opportunities where advocacy or perhaps navigation capabilities do exist, we think our integrated capabilities are going to be highly differentiated. We think that true on both sides, where Accolade and 2nd.MD building in the capacity to expose these capabilities at the exact moment in the consumer or member journey, where those capabilities are required and most relevant, will be a highly differentiated capability. We'll expect to be building integrated workflows, integrated care teams, and integrated data sets that we think will be compelling even to those customers who might have experienced another product in either category. Thanks for that. One other question along those lines. You talked about integrated data sets. How should we think about the need for product investment and overlapping product investment between the two platforms and the dynamic of potential for integration of platforms versus the fact that, as you mentioned, you're keeping the 2nd.MD as a also standalone sale on a go-forward basis? That's a great question, Mike. The way we think about it is really, we're committed on both fronts, meaning, you heard Jason today talk about a 91 NPS score. We're committed to a perfect consumer or member experience for the people that we serve. We know in order to deliver that between the two companies, we're going to have to build real integration, and that real integration will yield not only in product and technology investment, but also in process workflow and data and process and workflow investment and clinical investment. The good news is, on both sides, you've got two companies that have a history of investing in those categories of their P&Ls, and we expect that the existing investments are going to be prioritized to yield value for an acquisition of this size. Awesome. Thanks. Congrats again. Thank you. Thank you. Our next question comes from the line of Sean Wieland from Piper Sandler. Your line is now open. Hi, it's Jessica on for Sean. Congratulations. We were hoping you guys might be able to talk a little bit about the composition of the 2nd.MD expert network. Where are these doctors coming from, and just what do their employment agreements look like? Also interested to know how COVID maybe changed the supply of providers available to add to the network. Thanks. First of all, thank you for joining us, Jessica, and thanks for the question. Why don't I farm that question out to Jason Melton, the CEO of 2nd.MD? Yes, thank you. It's a great question. We have just a little over 900 expert specialists covering every specialty and subspecialty, and they come mainly from the top hospitals and medical institutions. We do have a few institutional partnerships with some of the larger hospitals out there that provide some of that network capacity. We have continued to grow that over time as needed. We are looking for people who are at the top of their fields. We study where they trained, where they did their fellowship, are they teaching professors at top university hospitals? What textbooks have they written? What techniques have they developed? What research are they leading? That's how we've built that network. Again, they really have come from the top institutions around the country. In terms of the second part of your question, how has COVID increased the willingness of doctors to be part of a digital health platform? It's certainly true. While we have been very blessed with being able to attract the top doctors onto our platform well before COVID, there's certainly an increased awareness of this is a real way to interact with people and provide their expertise and guidance. While we're not actively looking to build our specialist network because we have plenty of capacity, there are a lot of people that come to us and say, "We'd love to be a part of what you do. Thank you. Then can you just give us a quick overview of maybe the top two or three specialties that you employ? Fire away, Jason. Certainly. Our highest area of use is musculoskeletal, followed by oncology and cardiology, and then GI. Those would be our top four areas of use, and they correspond very well with most of our clients' highest areas of cost. Thank you. Thank you. Our next question comes from the line of Jailendra Singh from Credit Suisse. Your line is now open. Thank you. Congratulations, guys. Good deal. Just wanted to kind of follow up on the synergy discussion earlier. I was wondering if you are willing to quantify the synergies you see from the transaction, both from revenue and cost perspective. I know that when two growth companies come together, cost synergies are very limited, but still focus is primarily on revenue synergies. Any color you can provide on the magnitude there, and how should we think about the timing, or over what period do you expect to realize those synergies? Any thoughts on that? Let me start that. Steve, I'll let you jump in. I know you're not chomping at the bit to answer the question. Jailendra, I think you hit the most important point that we can make today, here in the early stages of inking the transaction. These are two growth companies in the very early stages of markets that we think are massive. You heard Steve's presentation speak to the idea of a $46 billion market opportunity. That's nearly doubled with the acquisition of 2nd.MD. We're really excited about that growth opportunity. We're excited that we're in the early innings. We see growth as a primary synergy that we're seeking. It's a little early for us to give you much detail beyond that. I'll let Steve chime in with any color commentary you'd like to provide. Sure. Thanks, Raj, and hi, Jailendra. What I would add to what Raj said, certainly the TAM has expanded a lot and there are, we think, very many greenfield opportunities. When we look at the customer bases as having very little overlap, we are quite bullish on the opportunity there. What we would say today, Jailendra, about synergies is that we're excited about the acquisition and the fact that 2nd.MD is growing even faster than Accolade, and that we expect the combination to be accretive to our growth rate. When we come back in the fourth quarter with guidance for fiscal 2022, we'll speak further to that. Generally speaking, we think that long-term target P&L model that we've spoken with you about stays roughly intact and that we're excited about the transaction. Okay, great. One question for Jason. I know, Jason, when we spoke last time, you talked about creating a national virtual first specialty care model, which you call FirstMD. How has that come along? Maybe if you can provide any update and how that fits into this ecosystem with combination with Accolade. Any update you can provide there, Jason? Yes, Jailendra. I'd say it's something that we've had a lot of good discussions with Accolade about and see a lot of promise for that, but it's still early stages, I would say. Okay. Thanks a lot, guys. Thanks, Jailendra. Thank you. Thank you. Our next question comes from the line of Jeff Garro from William Blair & Company. Your line is now open. Yeah. Thanks for taking the question. I'll ask a couple upfront about the go-to-market. I'm curious about 2nd.MD's payer distribution relationship, if that's their dominant go-to-market strategy. Then just curious how Accolade's go-to-market might change to pursue those additional 2nd.MD customers on a standalone basis. Sure. I'll jump on that one first and then open it up to Jason and Steve for further color commentary. I think one of the more important points, Jeff, is we've talked over the last several years about our reach to the customer via our direct sales channel, but also how working with the rest of the ecosystem is a really important part of how we demonstrate our value to the customer. That has expanded over the last four or five years from relationships with brokers and consultants to relationships with carriers. Of course, our relationship with Humana, announced a couple of years ago, is now really yielding or bearing fruit in a number of different ways in our business. One of the things that really attracted us to the 2nd.MD team and business was that same collaborative nature and their opportunity to continue to grow, both via direct sales channel, because customers found the offering significantly valuable in driving real ROI, and via the payer channel. I think we mentioned both Aetna and UnitedHealthcare in our earlier remarks, where those channels saw real value in a differentiated offering that they evaluated against the rest of the marketplace. We'll continue to leverage those channels. We'll be looking to bring synergies to both of those channels, both the UnitedHealthcare, Aetna and Humana and California Blue Shield on the Accolade side, among others. We expect to be having conversations with all of those partners around all of the respective offerings of Accolade. Jason and Steve, anything you would add to that? This is Jason. I would just say that as we've gotten to know Accolade during this process, we've just been so pleased with understanding their approach to serving their customers, to providing a tremendous value and also to helping people in great ways. We firmly believe that the combination of our businesses together are going to allow us to help a lot more people and provide a lot more value to our clients. We think everybody, our direct clients, our health plan partners, are going to be really happy with the result. This is Steve. I'd just tag onto that a bit more. When you think about the ROI that we've spoken about for Accolade since our IPO, and recently spoke about the upcoming Aon study that will further validate the demonstrable savings that we're delivering through Accolade. We also think that the 2nd.MD ROI is so compelling that it gets us that step further to the point Raj has spoken about on previous calls, taking, bending cost curve even further. We're really excited about that opportunity to combine the two offerings and take that out to the field, both via our direct distribution and the health plan channels partnerships. Excellent. Very helpful. One more for me on the gross margin profile. You mentioned a similar profile, but would love any comments on the trend or scalability or the incremental margins for 2nd.MD. Thanks. Do you want to grab that one? Yeah, sure. Jeff, you're right in the comments we mentioned that we're of a similar gross margin profile. It's very early days yet. We're going to bring the company together over the coming months. Our first priority will be to look for those opportunities to deepen the existing customer relationships via cross-sell and up-sell and pursuing new opportunities with customers. We think gross margin opportunities will certainly evidence themselves as we bring the company together and invest in technology platform, down the line. We'll come back to you with some more detail on that when we give guidance in the fourth quarter. If I could add just one sort of overriding point to this. Again, speaking to the common philosophies of both companies. One of the things we've been absolutely adamant about at Accolade is that we're building a business that requires human interaction with the people that we serve. We want to build relationships, long-term, longitudinal, that engender trust and respect, and we're building a company around that principle. When we really dug into the market and understood the differentiation of 2nd.MD, we found a company that delivers video consults for every person they serve, which is in stark contrast to the rest of the industry, and does so within three days. Three to four days. That is substantively different than the rest of the industry where we're specifically speaking or where largely the industry's looking at written consults, local referrals, and two to three-week turnaround times. Their investment in that human relationship and in that human contact in that moment that matters is something that was really attractive to us. We think our customers are going to find that very attractive as well. Great to hear. Thank you, guys. Thank you. Our next question comes from the line of Stephanie Davis from SVB Leerink. Hey, guys. Thanks for taking my question. Jason, congratulations on the sale. Thank you very much. I completely understand the cost savings potential with expert second opinion, but changing consumer behavior is always just the toughest part of these offerings. With that in mind, how are you planning on integrating the solution into Accolade workflow so it does get that proper traction? Any benchmarks you have around utilization would be helpful. Thanks for the question. Secondly, I agree with your point around human behavior. It is fundamentally at the core of the value proposition that Accolade's always delivered, meaning getting people to make the right healthcare decisions at the right time, yielding the kind of cost savings that we drive for most of our customers or for all of our customers. I think that extends into that point that I made in answer to Jeff's question, Stephanie, around the 2nd.MD model is built around a person-to-person, clinician-to-patient interaction in real time, and within three to four days of requesting an expert medical opinion, a video consult. That video consult, where the patient has the opportunity to ask questions, to seek guidance on different courses of action, is just not something you can get from a piece of paper like the rest of the industry delivers. Our view there is that 2nd.MD was already the best-in-class as it related to changing consumer behavior by virtue of that important moment where the consumer is sitting right in front, via virtual visit, the specialist or care deliverer. As it relates to integration with our workflows, you should expect that one of the things we've always been good at is building relationships, identifying the right member for the right type of care at the right time, educating that member on what's available to them. One of the things we've talked about forever is the idea that we drive engagement for almost all third-party solutions up in every customer that we serve. We certainly know that to be true in expert medical opinion. We haven't had the opportunity, as Steve mentioned, with a bunch of customer overlap between Accolade and 2nd.MD, but we'd expect that to be true here, particularly given the integration points that we'll be taking to market. With that in mind, is there some potential for some more active outbounds for folks where you see they're entering the pipeline, or is this more going to be an inbound sort of solution? Stephanie, I'm not sure what you mean when you say outbound. Do you mean in terms of delivery of the Accolade service or the 2nd.MD service? No, like active outreach to employees for folks that might benefit from second opinion work that normally wouldn't seek it out. Without doubt. That's a part of our engagement model today, as it relates to helping people understand their care options, whether that's second opinions or otherwise. We'd absolutely see that being a part of the story, to the degree we believed that a member needed that capability. All right. That's super helpful. Last quick one, any other thoughts about further forays into telemedicine, or are we keeping it expert second opinion for now? I think we're thrilled with the opportunity to pull together these two businesses and to bring together an incredibly talented 2nd.MD team to be a part of Accolade when we can complete this transaction. We've got some work to do to make this as successful as it can be and make it work for our customers, and that's what we're really focused on right now. All right. That's super helpful. Thank you, guys. Congrats again. Thank you. Thank you. Our next question comes from the line of Matthew Gillmor from Baird. Hey, thanks, and congrats to both teams on this deal. I was hoping to either ask probably Steve or Jason about how the 2nd.MD revenue model works. Is it a PEPM? Our understanding with some of the competitors that was sort of a low single-digit PEPM is sort of where they were, but kind of curious what you could say. Steve, how will this fold into your disclosures from ACV and gross dollar retention? Does it fit in nicely, or should we be expecting different disclosures with this deal? Steve, you want to start with the last question? Matthew, I don't take any offense to the fact that you asked specifically for two other people to answer the question. No worries. I'm teasing you. Steve, why don't you start, and then you can kick it over to Jason. Yeah, absolutely. Hey, Matt. Right when we come to the end of the year, in the fourth quarter, we'll report out on the ACV number for Accolade. The 2nd.MD model is also highly recurring. I know we'll ask Jason to chime in here, but it's a PMPM or sometimes PMPM plus case rate. There's also a similar predictability. We'll come back to you at that time in the fourth quarter with that forward guidance and a way to look at that with respect to our ACV and the right metric for the combined company. Jason, anything further you'd add around what kind of pricing model beyond the PMPM or PMPM plus case rate? We've offered a very flexible pricing model in the marketplace that's been well received. We see for the last couple of years and going into this year, a little over 70% is on a recurring basis through PEPM, PMPM, and the rest through case rate or a hybrid thereof. Great. That's helpful. Raj, I don't want you to feel left out. You mentioned earlier that many of your customers either use a second opinion, and I'm talking about the legacy Accolade customers here, that they use expert second opinion, or they're interested in it. Can you quantify sort of what that looks like in terms of your customer base? As we're thinking about the cross-sell opportunity from 2nd.MD back into Accolade, is there any kind of low-hanging fruit to call out? I guess I was thinking that maybe you've got some relationships where Accolade has the contractual right to swap out the second opinion vendor if they wanted to. I know you'd have to do that in conjunction with your customer, just trying to think about that aspect of the cross-sell. Thank you Matt, for letting me chime in. The way to think about it is there are opportunities in our trusted supplier relationships where broadly we have an opportunity to swap out capabilities on our customer's behalf. We always take that in partnership with our customer, meaning, that's never about our distribution rights and more about what's in the best interest of that customer, and how can we make that as easy and as painless for the customer when we do so. When you think about how our customer base looks versus, I cited a study from the Business Group on Health that spoke to 70% plus of customers saying they wanted a capability like that. It depends by market segment. You certainly have more penetration in those strategic accounts than you do in the enterprise and middle market space, where we see very little penetration and where we're extremely excited about the crossover opportunity. We think, based on the conversations we've had with our customers over the last 12- 18 months, that this is something that's been on their mind and that they're going to see clearly in terms of the value of an integrated solution. Great. Thanks a lot, guys. Thank you. Thank you. Thank you. Our next question comes from the line of Robert Jones from Goldman Sachs. Great. Thanks for the question. A lot of the questions I had obviously have been asked and answered, and then it looks like maybe on the synergy front, we'll have to wait till 4Q. I guess maybe just on the go to market, it looked like the offering based on slide eight would be part of Accolade Total Care as part of the base offering. Just wanted to maybe get your thoughts or what was the idea behind making it part of that offering and not part of the full Accolade Total Health and Benefits offering? Wondering how it would affect pricing across all three offerings if it was something that one of your customers or one of your new customers wanted to turn on. Thanks, Robert. Quickly, when we think about our product strategy, it's long been about meeting the buyer where the customer would like to be met, speaking to multiple value propositions. If Total Health and Benefits is a fundamental total population health offering, Total Care was about these moments of high acuity or these moments where we're dealing with higher-cost individuals looking for physicians, looking for specialists, and looking for guidance in terms of making the right decision, looking at cost, quality, and appropriateness as the guiding factors, along with the advice of our clinical personnel. Our opportunity to add second opinion or expert medical opinion to that capability, we think is directly in line with what customers hope for in that category. Going forward, Total Care will include this expert medical opinion capability. Regardless of the offering you started your relationship with Accolade on, you have an opportunity to take advantage of this expert medical opinion capability as a buy-up or as an upsell opportunity. It's a little early for us to comment on pricing and what that upsell might be, and how the model will work in a more efficient way moving forward for our customers. We see opportunity across the entire customer base, and we're really excited about how differentiated a Total Care offering that was already catching some traction in fiscal 2021 will look in fiscal 2022. Okay, great. Thanks so much. Thanks, Bob. Thank you. Our next question comes from the line of David Larsen from BTIG. Your line is now open. Hi. Congratulations on this transaction. It seems like it makes a lot of sense from my point of view. Just with respect to saving dollars within the cancer category, can you maybe just give one example or two examples on what that would look like? How exactly are those dollars saved? Is this through pharma or procedures? Any color there would be helpful. Sure. Jason, you want to grab that one? Yeah, I'd be happy to. It's an excellent question. Where we've been able to identify savings the most in oncology cases is largely been around procedures. Someone's been told they had breast cancer and they need a double mastectomy. They speak to an independent expert and realize maybe they don't need the procedure, or it's a single lumpectomy, and often there's quite a bit of savings there. We do see the largest percentage of the lives that we've been able to impact and really have a life saved, have come from those cancer cases. It's a bit harder to quantify the financial benefit of that, but there is a tremendous amount of savings from the medication as well, helping somebody get on the right treatment pathway, the right chemo, for example, or immunotherapy. That happens often in our cancer cases. Okay, great. Thanks. Congrats on the deal. Yeah. Thank you. Thank you. Our next question comes from the line of Hannah Baade from D.A. Davidson. Your line is now open. Hey, guys. Thanks for taking the question. Can you touch on the personalization of the second opinion specialist recommendations? Specifically, do members have some interaction to help in choosing their provider, or is this more of a supply and demand model within your physician network? Fire away, Jason. Yes. We like to offer a choice of specialists when we're interacting with a member. Typically, we know who is going to be a best fit for the case, but we offer consumer choice into the equation, and sometimes the member has a preference for a male or a female or someone from a certain part of the country. We factor that in to the doctor selection with them and give them choice. From a supply and demand perspective, we have never had a case where we've not been able to find the elite expert to help somebody. We feel very confident in our panel of expert specialists. Okay, great. Maybe one for both Raj and Jason. Can you expand on the role for your care team nurses following the integration? Just curious how the patient journey is going to flow from Accolade to 2nd.MD, and if the Health Assistant or care nurse will change over when they start to use 2nd.MD. That's a great question. Thank you for asking it. We're in the throes of defining processes in a way. I think our fundamental focus, and maybe this is the best way to start the answer. Our fundamental focus is going to be to deliver a service where the consumer or member has no idea whether they're talking to what was a 2nd.MD nurse versus an Accolade nurse versus an Accolade Health Assistant. They're going to be dealing with Accolade 2nd.MD resources across the spectrum, and their journey should be seamless and completely coordinated across the entire journey, regardless of the offerings that they're using or the way that those offerings have been purchased. You should expect that there'll be some integration associated with the efforts when someone's running Accolade Total Health and Benefits and the 2nd.MD expert medical opinion service, so that that can occur. It's a little early for us to give you much detail exactly as to where those integrations are and the roles that each of the respective nursing teams will play. Suffice it to say, we expect there to be close coordination. Awesome. Thanks, guys. Thank you. At this time, I'm showing no further questions. I would like to turn the call back over to Raj Singh for closing remarks. We are deeply appreciative of all of you jumping on the phone with us at such short notice. We're really excited about the opportunity to partner with the 2nd.MD team and the employees and customers and partners of 2nd.MD. I know that all of us on the call here from 2nd.MD and Accolade are really excited to engage with the employees and the teams tomorrow and the days following. Thanks again for being here. Ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect.