Thank you for standing by, and welcome to the Accolade Evolve Q&A Call. At this time, all participants are in listen only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you'll need to press star 1 on your telephone. As a reminder, today's program is being recorded. I would now like to introduce your host for today's program, Todd Friedman, Senior Vice President of Investor Relations. Please go ahead, sir. Thanks, Jonathan, and welcome everyone to our Q&A following this morning's keynotes. I hope you're all able to listen to the EVOLVE keynotes. I'm happy to be hosting the call today with Megan Torres, our VP of Corporate Marketing. With Megan and I on the call today, our Chief Executive Officer, Rajeev Singh, our Chief Financial Officer, Steve Barnes, and Dr. Shantanu Nundy, our Chief Medical Officer. A reminder for everyone that today's call is really meant to follow up on this morning's keynotes. We'll be reporting earnings October 7th, and we'll address your financial questions then. In the interest of time, please limit yourself to 1 question, and we'll come back around to the queue, time permitting. Quickly, please note that certain statements on this call will be 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 on our website and in our filings with the SEC, all of which you can find at ir.accolade.com. With that, I'd like to turn the call over to our CEO, Rajeev Singh, for some quick preliminary comments. We'll go right into your Q&A. Rajeev? Thank you, Todd. Thank you, Megan. Welcome all, and first of all, thank you for being here. Secondly, today's a really exciting day for the company. We announced a brand new category, personalized healthcare, a brand new category to really deliver a brand new value proposition, the capacity to deeply engage employees with their employers in a human way, and differentiated by the capacity to deliver healthcare in a brand new way. Personalized healthcare is fundamentally built on three core principles, the idea that it has to be human forward, that we have to be able to build personal relationships, that those personal relationships can be then expanded by a technology platform that uses data to personalize every interaction with that human being. Finally, for the first time, a measurable healthcare system that's built around a value orientation, helping employers who have long been underserved as it relates to value-based care migrate their businesses to a model associated with clinical quality, incredible employee engagement, care teams that are satisfied in delivering the care that they're driving for human beings, and lower cost. That's what we announced today. As a team, we've been hard at work for the last year to make that vision a reality, and we couldn't be more thrilled to talk with you about it. With that, let me open the call up for questions. Certainly. As a reminder, if you have a question, please press star then one. If your question has been answered and you'd like to remove yourself from the queue, please press the pound key. Our first question comes from the line of Adam Heussner from Credit Suisse. Your question please. Yeah. Hey, thanks for taking the question and appreciate all the information you guys have shared thus far. I wanted to go back to Accolade One, and particularly around whether or not this is kind of just a totally brand new solution that you have to upsell into existing customers, or will customers that had one of the existing or legacy solutions be essentially rolled over to this Accolade One product? Thanks for the question, Adam. I think I'll jump in here. By the way, Todd mentioned that Shantanu Nundy, our Chief Medical Officer, and Steve Barnes, our Chief Financial Officer, are also on the call. As it relates to your question, Accolade One is fundamentally a value proposition that expands on our existing solutions. If you're an Accolade Advocacy customer with any flavor of our advocacy offerings or an Accolade Expert Medical Opinion customer, Accolade One builds on those offerings by essentially integrating the full suite of capabilities that Accolade delivers and delivering it in a tightly integrated fashion that aligns around the value orientation. It is an upsell, Adam, in terms of us going back to the customer, and offering this brand new value proposition. What we can tell you today is based on the press release you saw, we found interest from our customers already, and we're excited about what the future holds. Thank you. Our next question comes from the line of Jeff Garro from Piper Sandler. Your question please. Thanks for taking the questions and congrats on the new category announcement and the new products as well. I'll follow up on Accolade One. Was hoping you could provide some details on the revenue model and pricing there and also throw in curious on the structure of an exposure to at-risk fees for Accolade One. Jeff, thanks for the question and thank you for being here. Let me start at the outset with some history that I know you already know, but that I think will be valuable for others. First, we've long been a company that has put a percentage of our fees at risk as it relates to our relationships with our customers. We believe in the concept that customers should pay for value and that in healthcare specifically, that principle isn't applied enough. We do so very often with our advocacy customers on a full trend line basis. Accolade One will lean into that definitively by virtue of the fact that we're now adding incremental capabilities to our advocacy offering, like primary care, like mental health, like expert medical opinions that are all included in the Accolade One offering. We're not quite ready to jump into a whole bunch of detail about how that impacts revenue per se, Jeff, until we get to the October 6 earnings call, or October 7 earnings call. What I can tell you definitively is we believe we'll be driving incremental value as it relates to clinical cost savings and clinical outcomes. Those healthcare cost savings and clinical outcomes will be a part of the relationship that we have with the customer. Our belief is that we'll generate incremental revenue, per customer from Accolade One versus our other standalone offerings. A part of those fees will be at risk. Thank you. Our next question comes from the line of Ryan MacDonald from Needham. Your question please. Thanks for taking my question. Wanted to ask on the mental health component, obviously integral in the messaging today, particularly weaving it directly into the two new products. Can you talk a little more about how this expands upon your existing partnerships with, say, Ginger and other mental health providers? Thanks. It's a great question. With that one, why don't I do this? Why don't I ask our Chief Medical Officer, Shantanu Nundy, to tackle that one? Yeah, happy to. First of all, I really love the question. As you know, one of the biggest challenges employers around the country are facing is the mental health crisis, which has only been exacerbated by the pandemic. I think for us, we're really excited. We look at the idea of embedding mental health into primary care as a really scalable place, and way to address that crisis, right? I think a lot of folks don't fully understand that primary care doctors are very well equipped to diagnose and manage most mental health conditions, and that by putting therapists side by side with them on the same platform using the same data, that we can actually warrant better outcomes, both for their mental health conditions as well as their physical health conditions. I think in addition, we know the mental health crisis is large and substantive, right? Mental health is a broad term that encompasses many aspects of health. We see the ability for us to leverage partners to be able to complement that core offering. As we look to any given population, and we want to understand what those population specific needs are, we do anticipate seeing a role for those partners to help complement that, depending on the specific needs of that population. Thank you. We'd like to remind ladies and gentlemen, if you have a question at this time, please press star then one. Our next question comes to the line of Stephanie Davis from SVB Leerink. Your question please. Hey, Raj and team. Thank you for taking my question. When I think about a structurally high touch solution layered on top of an outcomes-based payment model, it creates this framework for a lot of margin variability. Should we still think of a mostly linear path to that 15%-20% long-term margin target? On a related question, and this is coming from my PEO background, but how are you de-risking the tail scenarios in such a risk-on model? Is there reinsurance or something else we should think about? Hey, Stephanie. Thank you for the question. A couple of thoughts. First of all, one of the things that we think we're building on with the relationship with Accolade One is the existing relationship we have with our customers who are very familiar with our track record of delivering value, and delivering value on a cost savings basis as well as the clinical value. Build off of those relationships, and we certainly believe that our customer base is an ample place to begin our journey into Accolade One. Built off of that trust and built off of those relationships, we think we have ample opportunity to warrant incremental value drivers, improved clinical outcomes and incremental cost savings, that will give us great visibility into how the business is growing from a revenue and a margin perspective. Accolade One doesn't change our view on any of the margin expectations that we've laid out for the market in the past. As it relates to more depth around things like reinsurance, et cetera, we're going to punt that question, Stephanie, for now, as it relates to getting into more depth around the financial model beyond this, and look for more detail on some of those questions in the upcoming earnings call. Understood. Thank you. Thank you. Our next question comes from the line of David Grossman from Stifel. Your question please. Thank you. Rajeev Singh, I thought I heard you say in your opening comments that you hope Accolade One helps you migrate new segments of the market to value-based care. If I heard that correctly, could you perhaps just expand on that comment? Just a second question, if you could, just about whether there were any new technology components either to the True Health engine or to the Total Health and Benefits dashboard, that were introduced today, or is it really just more of a comprehensive integration of what you already have? Thanks for the question, David. A couple of immediate thoughts, and then I'll ask Shantanu if he's got anything that he wants to add. The first point, if you were to look over the course of the history of value-based delivery models, predominantly those models have been delivered in Medicare/Medicaid populations with the idea of risk stratification and risk scoring associated with those populations. Ultimately, for a variety of reasons, most value-based delivery models have focused in those populations. Self-insured employers, in our view, have largely been left out of the value that can be created in models like these. When we talk about bringing value-based care to a new segment, we're really talking about the 110 million people being covered by their employers today, and the idea that by and large, all 110 million of those people are operating in a fee-for-service healthcare system without real measurables around quality, around population health, like the measurables that we're demonstrating for our customers with the True Health dashboard that you saw a demo of earlier. That's the answer to part 1 of the question. In terms of part two, and this is maybe where Shantanu can add some more color as well, one of the things we were most excited about when we brought on the 2nd.MD transaction as well as the PlushCare transaction, is access to more data, access to primary care data from the electronic medical record data that obviously Shantanu could give you more color on, but also access to medical records for our expert medical consults as well as the case notes from those expert medical consults. Every one of those data elements now feeds our True Health engine and our True Health action plan, the idea being that every component of the story gets smarter as we add more data. From a silo-breaking perspective, the addition of electronic medical records to the claims data and the RX data, and the other incremental healthcare ecosystem data that we've always collected, is something we're really excited about and we think is going to add significant value. Shantanu, anything you'd add to that? Yeah, absolutely. I think first I'll underscore the point that I think, by and large, value-based care has missed working Americans. It's been really difficult for traditional healthcare actors to be able to build those value-based models that apply to commercial populations. I think from my perspective, from a clinical perspective, part of the challenge is that commercial populations are really varied. The needs of each individual are pretty substantially different, so a lot of the traditional more one-size-fits-all models don't warrant the kinds of costs and quality impacts that we think are needed for the model. I think for us, that personalization that Raj spoke about, so that ability to look at each individual and understand what is that person's very specific health need and burden, and how can we specifically leverage both digital solutions as well as brick-and-mortar solutions to be able to really intelligently impact that journey and impact that outcome and spend, we think is going to be imperative to making the model work at scale. Those are really the key components we think to make this thing work. Great. Thank you. Thank you. Our next question comes from the line of Michael Cherny from Bank of America. Your question, please. Thanks so much for taking the question. I apologize if parts of this were asked, but how does this factor into your approach towards the selling season, especially the work that you were doing ahead of time before this was launched? Does that mean that we should think about this as something that your clients and prospects will really be able to get their arms around starting next year into the 2023 benefit season? Yeah. I think that's a great way to look at it, Michael, and thank you for being here, and thank you for the question. I think you hit it spot on. We've been hard at work, from a selling season perspective, delivering the capabilities that we've always been known for around Advocacy and around Expert Medical Opinion. As we head into the selling season for calendar 2022, Accolade One, Accolade Care, Advocacy, and our Expert Medical Opinion offerings are all going to be in our bag as it relates to the value we can deliver to customers based on what their needs are. Every customer wants to be met where they are in their journey for improving healthcare and improving employee engagement for the companies that they're serving. We feel really empowered by the idea, and I think our field teams do as well, that we now have a variety of different ways to meet people where they are and drive employee engagement and better healthcare outcomes for them. Cut that into a smaller answer, yes. Expect this to be a calendar 2022, therefore fiscal 2023 offering for us, that will have a material impact on the business. Just as you think about this platform now, Rajeev, I know you've talked in the past about viewing the carriers and inaction as your biggest competition. As you think about the go-forward basis and as you roll out Accolade One, Accolade Care into the selling season effort, who do you feel like you're selling against on both these new platforms? Thank you, Mike. That's a great question. I think very clearly, the biggest barrier to everyone in healthcare tech is fundamentally inaction and inertia. We at times have looked at the challenges in healthcare and been overly focused on cost reduction or overly focused on a particular condition or a particular transaction. We think what Accolade One gives us an opportunity to do is have a bigger, broader, more strategic dialogue with HR buyers, CFOs, and CEOs to say, The number one problem we are really facing right now is about employee engagement. It's about the idea that your attrition rates are up. It's about the idea that your people want to be seen in a different way, and that we have to start looking at benefits programs and healthcare strategically, not just about healthcare cost reduction, which we know we know how to do, but instead about how do we deliver a human experience in this most human of moments, and how do we leverage data to then turn that experience into something personal? Those are benefits that people won't leave. Those are benefits that families require. In many respects, Mike, Accolade One for us, and the reason we had to invent a brand-new category like personalized healthcare, was we don't think anyone's out here having this strategic dialogue with the customer. Nor do we think anyone has the capacity to personalize that engagement because everyone else is focused very transactionally or very condition-oriented or very episodically. As it relates to Accolade One, we think it stands apart from whatever's happening in the industry, and that's why you can enable things like value-based care for employers. I think as it relates to Accolade Care, getting more specific to your question there, clearly, there's a variety of companies out there offering varieties of primary care. They might be offering it in an on-site, near site model. They might be offering it in a virtual-only model. What we think makes us unique as it relates to Accolade Care and why we're so excited about it is a variety of things. First, we're talking about physicians from the top 50 medical schools. Second, those physicians work on an ongoing basis, either full-time for Accolade or the majority of them, if they don't work full-time for Accolade, the rest of them work more than 60% of their hours working with Accolade. They're convicted around the idea of building long-term relationships with human beings. When you embed mental health professionals into those care teams, the collaborative care model also makes us different. If you were to blend now the capabilities that Accolade's already delivered and always delivered around engagement and activation, those capabilities, to us, put us in a position where we think we'll drive extraordinary engagement that oftentimes care solutions have not been able to deliver while we're doing it in a unique and differentiated way. I think we'll probably be competing with a group of companies that you might expect in that primary care space, which is why it was so important for us to build a differentiated value proposition before we brought that offering to the market. Perfect. Thank you. Thank you. Thank you, Mike. Please go ahead, operator. Oh, pardon me. This does conclude the question-and-answer session of today's program. I'd like to hand the program back to Rajeev Singh for any further remarks. We really appreciate all of you being here. We're excited about the future, and we're certainly thrilled to be able to bring to the market a set of innovation that we think is going to add significant value to the companies we serve and make people's lives better. Thanks, everyone, and we'll talk again soon. Thank you, ladies and gentlemen, for your participation in today's conference. This does conclude the program. You may now disconnect. Good day.