I'm Jeff Garro, the healthcare IT analyst here at Stephens, and it's my pleasure to welcome Accolade to our conference. Steve Barnes, the Chief Financial Officer, and Todd Friedman, the SVP of Investor Relations. So thanks for joining us, guys. I'll just jump right into the questions. So, yeah, maybe start on a macro level. With Accolade's primary customers being self-insured employers, what have they been telling you about key priorities that they're looking to address with their benefits for calendar 2024, and how do you see those priorities evolving over the next 12 months? Well, first of all, thanks a lot, Jeff, and to the Stephens team for having Accolade today. You know, the themes we're hearing from customers and prospects for 2024 has been pretty consistent over the last several years. Cost and complexity of healthcare continues to rise to the top, and where Accolade really provides a differentiated solution. If you think about healthcare costs rising 6%-8% every year for a couple of decades, on average, this year has been no exception. In fact, with inflation, what it's been, it's brought this need to top of mind. Certainly a lot of factors are at play in here, inflation, overall healthcare complexity, and certainly there's a GLP-1 aspect that's on the minds of every single employer. Weave into that, the complexity of the healthcare system. We know that members, our employees and their families, of the, the customers that we serve, struggle with the complexity of the system. We know that customers are buying things like point solutions for their, their members, but they're not being utilized. What Accolade does is weave together those different solutions and capabilities into one cohesive platform, to be a single place for people to go. When we do that, we drive better outcomes for employees, drive a better experience, and very importantly, when we combine all that, we're driving the cost of healthcare down, and we're doing that consistently. That's how we show up each year, and that's what wins the day for us with customers and why they're making a choice to move to advocacy and moving on to the Accolade integrated healthcare platform. Excellent. Excellent. Appreciate that. Great starting point, and maybe we'll dive in a little bit more and ask if you have any more specific thoughts around the hot topic of the day, GLP-1s, and, you know, what you're doing to help customers both plan benefits and manage costs right now and for next year, and how you think that evolves strategically as we look out over a multi-year period. Yes, sure. So for sure, GLP-1s are a hot topic for existing customers, for prospects. Everything from, what should we cover for, whether it's certainly diabetes or prediabetes, but also obesity, plan design, pre-authorization methodologies. The way... You know, Accolade is extremely well-positioned to help with this, with this situation for customers, because we are that single place to go, and we have a clinically rigorous capability where our, even our advocacy and navigation platform has physicians embedded into that capability. So we can do a clinically sound assessment of a member of that population, to understand, do they fit into the contract of what that employer is looking to cover? We can stay with that member all the way through their journey, from entering onto the drug, ensuring compliance and clinical capabilities, and in other cases, offer a different solution. For example, a partner of ours is Virta, which is diabetes reversal. So a customer may say, "Before we have a person jump onto a GLP-1 drug, we'd like them to make sure that we've considered, are they someone who might be more appropriate for Virta?" And so what we're doing is creating a platform that has the capability of optionality and work with customers on what they're looking to do. But it's certainly top of mind for every customer. Makes sense. Makes sense. So maybe translate from those kind of key macro issues into Accolade's new customer wins and, and bookings, and maybe you could just discuss how, how those customer priorities are translating into demand, and, and how's demand progressing from leads to pipeline to closed bookings? Sure. So, we've seen, 2023, calendar 2023, the demand environment continue to be strong for the reasons we're talking about here. You know, employers, whether we're in a, lower cost employment environment, high employment environment, lower employment environment, inflation, or not, we've seen a consistent, demand from customers over the past several years of looking for alternatives towards rising costs. And so the demand environment remains strong, the market for what we do is large, and we're winning, certainly, more than our fair share of opportunities for companies that are looking for a differentiated solution. So with that, we've seen bookings continue to pace in a strong way towards the ultimate revenue growth targets that we've outlined in that 20% growth rate trajectory over the next several years at least. And we're seeing the bookings tracking towards that. Excellent. Excellent. Appreciate that. Maybe to dive in a little bit further there, Accolade used to be pretty narrowly focused on adding new accounts for your core offering ahead of fall open enrollment. But now you talk about a year-round selling season, a product portfolio that includes various upsell opportunities with existing clients, and you have a broader set of channel partners. So maybe you could talk about how your go-to-market strategy and execution on that strategy has evolved across those different components. Yeah, absolutely. I appreciate this question a lot, Jeff, because if you knew Accolade three years ago, when we came public, you knew us as an advocacy and navigation company. Today, we're a personalized healthcare platform that integrates primary care, expert medical opinion, and a plethora of partners on top of that advocacy platform. What that creates is a more fulsome solution for customers, and also it creates both a bundled solution of all those capabilities together for a customer that may want to do a complete redesign and launch on the beginning of their plan year, which is usually January first, or an existing or new customer that would like to add other capabilities that we can unbundle, specifically expert medical opinion or a partner. So what that allows us to do is to have an ongoing selling season year-round, because those other capabilities can be plugged into for a new customer or an existing customer. There's another factor at play here, which is the channel with which we reach out to customers. We've evolved from a point of mostly direct selling several years ago, to now, today, continuing that direct selling capability, but also having relationships with channel partners, particularly health plans, where in some cases, we're working with health plans who are distributing our offerings on a co-branded basis, advocacy and other of our offerings. In other cases, we're serving as the primary care capability in a virtual first primary care front door type of arrangement with health plans. What that, again, gives us is an ongoing capability of reaching customers and members to have a continuing growth in revenue throughout the year, as opposed to that kind of all focused just on January one launches. So the important part here is, to us, the integration of all these capabilities has created this very diversified and healthy capability in terms of driving revenue growth while we help the customers achieve member outcomes that is not dependent on one single part of the solution. Excellent. Excellent. That helps. And I might transition a little bit by speaking a little bit about the financial model and how all this booking activity translates into revenue and revenue growth. And, you know, retention is a key part of the formula there, and, you know, just the general, highly visible business model that you have. So if you'd speak to those topics, as well as the level of bookings performance that you need to achieve in one given fiscal year to drive 20% revenue growth in the next fiscal year. Absolutely. So, as you mentioned, you know, that it's a very visible, predictable revenue model from a standpoint of, for our, business-to-business, customers, we typically have a PEPM arrangement with customers. That is going to be set up in a way that going into any given fiscal year, we've got a set of a base of customers. We refer to that in terms of revenue as annual contract value. So we've got good visibility forward. We're typically working with customers to sign multi-year contracts, so we've got good visibility there. And what you need to put together in order to build that revenue model is new bookings growth, and then you have a retention factor. We've been running retaining around 95% of the total contract value year-over-year, pretty consistently for several years now. So that gives us good visibility into the business. There's another side of it, that's a utilization-based element that applies to the primary care business, both on the direct-to-consumer side and the enterprise side, as well as an expert medical opinion business that, in some cases, is a case rate revenue model. Take all that together, we've got good visibility to what those elements look like year-over-year, and we're driving bookings growth in the neighborhood of that, 20%+ bookings growth to drive that revenue growth year-over-year. One last factor that's really important here, something that Accolade has today that we didn't have two years ago prior to the acquisitions of PlushCare and 2nd.MD, is a capability of selling back into our customer base, which provides a great opportunity to work with the existing customer base to provide more value, but also to leverage up, you might think of it as a net dollar retention concept, where top of the advocacy platform, incremental value through expert medical opinion, primary care, trusted partners on top of that, helps us drive part of that revenue growth off of even our existing base. So that, that also plays into the factor of how we look forward towards that growth. Excellent. I don't know if you guys will start disclosing anything new, but I think myself and the rest of the analyst community will keep kind of pushing to understand that net dollar retention, maybe a little bit more than gross dollar retention in the future, which will be interesting to watch evolve. But you talked about the acquisitions that you completed back in 2021, you know, adding virtual primary care and expert medical opinion capabilities, and you certainly did a good amount of initial integration work and rolled out a broader product portfolio to include those capabilities. But I think since then, you've started to do even more. You know, I think about it in terms of enhancing the way information flows on the back end of your operations, the way tasks are routed between frontline teams, upgrades to the member-facing app. Could you elaborate on those and any other items that, yeah, I guess as part of the integration or not, to kind of just level up the service delivery component? Absolutely. This has been a huge focus for our company over the past 2+ years, since the two acquisitions. Year 1 was primarily focused on a market-facing integration and going to market with these capabilities. Somewhat on a standalone basis, connecting on the front end, what we've been really focused on, that's really come to fruition over the past 6-12 months, is an integrated capability behind the scenes. That's what you're getting at. And what we've invested in quite a bit, Jeff, is the ability for leveraging data upfront for customers, that we can build these 360-degree profiles of every member, so we can stratify populations and make very efficient that when a member calls in or messages in and needs to access Accolade for some type of healthcare system assistance, we can efficiently get that person to exactly what they're looking for. If you're messaging in around a primary care capability or a doctor, we can get you right over to a doctor booking instance in which you can get to a doctor appointment right away. All of that has been backend work that we've been doing to integrate those capabilities of Accolade, 2nd.MD, PlushCare, and the trusted partners that we're designed around. Those are making much more efficient the entire operation for us to serve members and to scale the business. You know, one of the things this ties into, importantly, is at the beginning of the year, we announced some cost restructuring that we had done in the business, very much in this aspect of we had taken three companies together that each had their own go-to-market teams, as well as product development teams, and really were able to reduce some costs in terms of headcount and other costs in order to drive the efficiency of that program. It's been very much a important part of the step towards profitability that we're taking here, into the next fiscal year, when we'll break through to be positive in terms of EBITDA, and then going forward from there. Excellent. Excellent. Very, very helpful. You know, don't wanna get too far ahead of things here, but I know you guys just had your sales kickoff meeting for the year, I think here in Nashville, not too long ago. Yeah. You know, you talked about the integration work, first market-facing, now, you know, more service delivery, and then the streamlining of resources. So you don't have an expert medical opinion salesperson separate from a navigation salesperson. It's one salesperson. So how does that come together as we think about the next 12 months for a salesperson to be selling all the capabilities? You know, to what extent can they demonstrate these capabilities for a prospect, rather than just talking about something in a slide deck? Yeah, absolutely. Really important question. So first of all, there's been a lot of education internally for our... not just our sales teams, but led by marketing and product, and also business development teams, to all bring that together in a highly integrated way. And then we have subject matter experts who can accompany those sales teams as they're doing demonstrations for customers with really showing how that lights up in a system. How we do things like leveraging those 360-degree profiles, stratifying populations, using task-based routing to make it very efficient within our frontline care teams, to get a person to where they need to go in their healthcare journey, to be efficient, to get to the right site of care at the right time, at the best cost and quality. All of that, we demonstrate that to customers, and our sales teams are trained to be very knowledgeable about all those capabilities, and then we partner them up with, with those subject matter experts when they're on those sales calls in order to bring that to life. Excellent. Excellent. Super helpful. So maybe continue on the service delivery front a little bit, and I have two parts to the question. You know, just broadly thinking about the investment from Accolade in technology in, you know, previous years, that's still continuing, and the use of data and, you know, to the extent which a new customer, you know, might be starting new with Accolade, but in terms of their experience, it's not going to be like this day one thing, where you're just building up a relationship. Your ability to take in data and intelligently advise your customer's members from day one, and probably a good opportunity as well to talk, you know, on a little bit of a forward-looking basis, maybe it's already kind of in action, the deployment of artificial intelligence as a way that Accolade can continue to combine technology and humanity in providing your services. Yeah. Appreciate the way you ended that point there, Jeff, because it's exactly how we think about Accolade in the terms of the platform and our differentiation, is that it's the combination of technology and human capability to service members and get them where they need to go. One of the things that we do in terms of that platform that we've been investing in for the last six or seven years, it all starts with data ingestion, and the ability to ingest two to three years of claims data, benefits eligibility data, and other HRIS data to build these profiles around all the members we serve. So whether it's a new customer going live or an existing customer, perhaps, switching carriers, all that comes into play so that we can ingest that data and then leverage our engine, which can look at that history, understand how you look differently than I do from a healthcare perspective, and therefore, create outreach programs as might be needed in order to tailor the service. Or when you do call or message inbound, we know the best, most efficient way to get you where you're going. We do that by leveraging both internal, the system has been learning and leveraging machine learning capabilities off of all of our entire book of business. We've also leveraged some off-the-shelf technologies in terms of AI, to do both... Leveraging clinical stratification capabilities by understanding what person might be on a certain healthcare journey that would have them, for example, eligible for a diabetes program or a maternity program, or they may be managing a high-risk pregnancy, things like that. We're leveraging those terms of internal data that tell us what those profiles might look like. In terms of external data or external capabilities of AI, we're using this quite a bit to make our frontline care teams more efficient. Doing things like listening for keywords during a call and determining what a member might be asking for, and helping train up the frontline care team in order to understand what creates a great member experience, and how do we continue to build on that so that we can be more efficient in terms of getting customers or members to the right place. So it's both clinical and operational that we're leveraging use of those technologies. Excellent. Appreciate that. And, you know, staying on a little bit the operational front and thinking about the various capabilities that you offer now, especially the virtual primary care and expert medical opinion, and then starting to translate it into the financial model as well. I just, you know, back to the point on net dollar retention, and you mentioned, you know, the utilization component of revenue. Is there a kind of a general framework we should think of for utilization of those services? And, and maybe level set at, you know, where's adoption today on an enterprise level for virtual primary care and expert medical opinion, and, any way we should think about the kind of a curve for client adoption on a, on a member level once the, the enterprise has signed up for those services as part of their Accolade relationship? Sure. It's a really critical part of how we drive revenue in the business, and so starting with the expert medical opinion side is that through the acquisition of 2nd.MD, there's a significant amount of corporate history there that we've been able to leverage. And so you see, the value of EMO is really high. I mean, getting a person to be able to meet with one of our almost 1,000 specialists within five days or seven days over video with one of the best specialists in the country to serve you from one of the best clinics, for example, is incredibly high in terms of clinical value and also ROI. But it's a very, it's a lower utilization. You're talking about whereas our advocacy business will talk to 50%, 60%, 70% of our population, it's in the neighborhood of 1% of our population that might need an expert medical opinion in any given year. So we're modeling what is the ramp to that. It will often take a brand-new customer a year to two years to ramp into that type of utilization because there is an education process of outreach and engagement with members who need that. What we've seen is an acceleration of that when you pair it up with advocacy. One of the really exciting parts of the business, and we've talked about this on our past several earnings calls, that we're seeing more and more deals be bundled, where out of the gate, a customer's gonna appreciate that that having Expert Medical Opinion embedded with advocacy is really important, and that gives us the opportunity to have even higher utilization of what is clearly needed. We've had customers come to us and say, "I know that 3%-5% of my population could use this service. I just need to help them understand that we have it and get them to it before they go get that surgery or other type of high-cost interaction." The important part here is that leveraging this with advocacy is driving able to drive that utilization up to an even better place. In terms of primary care, we launched our first set of customers on the enterprise side, this past January 1, 2023, with in the range of 500,000 members, and so we're learning a lot about the ramp on that. Aspirationally, we think there's, you know, if in the United States, 30% of Americans don't have their own primary care relationship, and something like 50% have a poor relationship or no relationship, we think there's an opportunity there to get to 20% of a population, something like that. That's gonna take two to three years to ramp up to that kind of a number. We're seeing year one showing that we're on the track to towards that goal. Excellent. Great, great to hear there. Let Let me follow up a little bit on the primary care side. Could you talk about how targeted you can be in the outreach and engagement there, and specific patient populations, cohorts, or use cases? You talked about people that don't have a primary care doc. Presumably, you have some data to figure out who those people are and target outreach to them. And then there's also... You know, I think about it as kind of an in-between a regular primary care relationship and a urgent care relationship. There's a gap to fill. How can Accolade help fill that gap to, you know, continue the kind of goal of PlushCare to be more than just a urgent care offering via telehealth, and to not be a replacement for someone's regular primary care doctor either? Yeah. Really, appreciate the way you laid that out, Jeff. First of all, you're right. We built our PlushCare on its own prior to the acquisition and continuing we view this as a longitudinal relationship with a member, that truly can be your primary care doctor, that can do 85%-90% of the things you need out from your primary care doctor, even on a virtual basis, including getting you to labs and other capabilities in an offline setting, and then get you to an on-the-ground doctor if that's what you need to get to. But back to your question, it all starts with data. You're absolutely right. When we ingest those claims data, we can see that a particular member hasn't been to a primary care doctor in two or three years. It's a perfect opportunity. Perhaps a person is calling in to do open enrollment or ask a simple benefits question. It gives us a chance to either, over mobile messaging or live on the phone, say, "Hey, Jeff, I noticed you haven't seen a primary care doc in within the past three years or so. Is there anything I can help you with there?" He might answer, "Well, last time I tried, it was gonna be six months until I could get an appointment." I just heard an example of that in a one-on-one earlier this morning. That's a real situation. I think the average time to get an appointment is 27 days in some major cities. We can get you within two hours to an Accolade Care or PlushCare doctor with an incredible experience, who's gonna wanna build that longitudinal relationship. Sometimes, a person comes to Accolade Care or PlushCare for an urgent care need. You know the saying, sometimes you come for the urgent care, but stay for the primary care. That's oftentimes the way that that works. You can choose your primary care doctor with Accolade by seeing a profile of that doctor in terms of their credentials and their experiences, and the types of patients they want to see, and allows you to make a choice and make an appointment, and you can stick with that doctor, which is something consumers love. And our PlushCare and Accolade Care docs really appreciate working on the platform. We've seen NPS scores from our doctors being two, three, four, 5x what they are in other settings, because of their appreciation for working on that platform. Creating that wow experience from a consumer standpoint and a doctor standpoint, I think it's part of what's driving the growth and the stickiness, both on the direct consumer side and the need on the employer side. Excellent. Great, great to hear. It's gonna be fun to see that evolve as you get more clients on the enterprise level to adopt that as part of their solution, and then see utilization ramp on specific member populations over time. Wanna hit one more on the topic of kind of same-store growth levers. I was hoping you could discuss the trusted partner ecosystem and how it's evolved, and maybe just frame up the economic opportunity associated with that. Yes. The this is a really important part of the platform and, and our differentiation as well, which is, what we'd look to do is look at the highest cost complexity, in some cases, creating really difficult experiences for consumers, and partner with the digital health ecosystem that clearly has seen a ton of innovation and investment across the last several years. And so in categories like mental health, diabetes, MSK, LGBTQIA+, which is important to employers, and women's health, these are some of the big areas that Accolade can leverage that capability from the ecosystem, create a tight integration, and drive higher utilization through the engagement that we drive with the advocacy engine. This also creates an incremental revenue opportunity for us. You know, if you think around, we have some customers that have four, five trusted partners on their ecosystem. You heard at our investor day back in May, a couple of our customers talking about that. That can drive 10%-20% type of incremental revenue for a customer through the administrative fees and other types of revenue arrangements, that again, one of the great things about Accolade, I think, is that we drive better outcomes, we drive better value for employers, and we build a revenue model that will benefit from that as we do that. So we're driving higher good utilization, while also increasing our revenue per customer or net dollar retention. So that's the kind of a model that we see from the TPE, or a trusted partner ecosystem. Layering on top of that, the other capabilities, like expert medical opinion, virtual primary care, other utilization-based elements like that, drive the opportunity with the customer even higher. Excellent. Follow up there, you mentioned like a 10%-20% uplift for a customer using the trusted partner, partner ecosystem. Is that an appropriate range to think about for a mature customer? And any way you could describe kind of where the customer base is at in terms of maturity of adoption of the ecosystem? I'd say for the TPE, that that's more of a look at a mature customer or one of these customers that's really leaned hard into the TPE system, and we have our, our TPE capability. We have several of those, but it is, that's in the earlier stages. We've got a good handful, a couple of handfuls of customers that are in that kind of category, and then we're seeing and every new customer, I think almost every single one, is bundling some capability, whether it be expert medical opinion, primary care, or trusted partners from day one. So we're gonna see even more of that coming through. But we're still in the earlier stages of having customers who've fully leaned into that. Understood. So switch topics a little bit, but stay on kind of revenue drivers and thinking about utilization on the direct-to-consumer virtual primary care part of the business... Could you discuss what you've seen year to date in terms of results and drivers of those results, and maybe also hit on the visibility that you have into that part of the business? Sure. So first of all, the direct-to-consumer business, the PlushCare offering, has been growing even faster than our total growth rate of 20%, and growing, you know, closer to 25% over the past year. And we saw, as we reported on our last earnings call, through the first half, continuing to outpace the total top line growth rate of the company, driven by a few things. First of all, I think it's driven by the differentiation of the offering. This dynamic I was describing earlier, because it, we can serve as your primary care doctor, it's an attractive place for consumers to come to, and there's a strong repeat rate that happens with the business. The revenue model benefits from that, too. There's a subscription fee element, and then a visit fee element that builds that up. We have seen continuing benefit of in terms of interest and visits from the GLP-1 dynamic that has occurred this year, particularly not just around diabetes, but the weight loss dynamic has contributed. But I'd say it's a factor. Most importantly, it's the attractiveness of the platform. I think while we benefited from tailwinds like COVID, we're certainly GLP-1s. I don't think any of us have seen something quite like this before. That's part of the healthcare dynamic right now. That's was contributor to part of the growth in this year, and so we're expecting that that will continue at some level. All right. Let me dive in a little bit deeper there. Not specifically around GLP-1s, but just about the drivers of utilization for that business, and can relatedly, the unit economics of it, that it... You know, being a direct-to-consumer business, I mean, my understanding is part of the expertise is finding where there is incremental demand, whether it's GLP-1, or related to COVID, or flu season, or any other medical condition that people are looking for care for and need a convenient way to access that care. So if you could speak to how the business reacts to, you know, underlying components of demand, customer acquisition costs as a piece of that, and how that factors into your planning for any given year. Yeah, absolutely. So first of all, the business starts with what we call internally, creating a wow experience for consumers. What that means, just exceeding expectations every time, creating a seamless experience for you, which means an incredible, incredibly capable doctor, a smooth experience from the mobile application, all the way from the visit, all the way through to follow-up. We obsess about that, and that business operates in NPS in the range of 90. You know, it's incredibly high. So it starts there. Secondly, we have a sophisticated consumer marketing capability underneath, which is doing things that you described there in the beginning of your comments, Jeff. It's, it's whether if we're in flu season, obviously making sure people who are searching for a doctor during flu season can find, PlushCare, and we can find efficiently those consumers. GLP-1s is a dynamic that's happening today. COVID was one, certainly, a couple of years back. What we're doing is we're constantly balancing the customer acquisition cost to LTV, you know, the long-term value of those customers, as we look at, subscription fees, or attrition or churn rates or, and retention rates, along with the cost of acquisition. And what we're seeing is a really, attractive balance there in terms of growth as part of the platform and capability. Importantly, we think of our care business as not just direct to consumer versus employer. The same doctors on that platform are serving, you know, direct consumer customers as well as the employer customers. In the end, we view it as this is a care capability, a primary care capability that's serving customers however we can reach them. Direct to consumer, through employers, start working with health plans in some cases, to be their virtual-first alternative. All of that combines to a healthy mix on that front end, but then the unit economics behind it are typically visit fees for employers, in some cases, a small PEPM, and then on the consumer side, you have the visit fees, which also are paired with a subscription fee element. Excellent. So that helps, and just to, on this topic, follow it down a little bit further, could you talk about the level of direct-to-consumer virtual primary care utilization that's embedded in your guidance for the fiscal year to help us think about really what to assume for the second half, versus what you experienced in the first half? Sure. So in the most recent second quarter call in the beginning of October, we talked about seeing continuing growth from various aspects, but in particular, we called out GLP-1s that were... had a surge in Q1, fiscal Q1 for us, that came down a bit, but was still growing quite, quite you know, versus the year-over-year period. We expect that will continue you know, somewhat on the track that we saw in the second quarter, but you know, Jeff, just like we will often talk about on the employer-facing side of the business, what is our assumptions around employment in the overall economy? What do we assume around member growth? We tend to take a fairly middle-of-the-road view on that, and not assume that we're going to see, you know, the continuing surge, for example, that we saw in Q1. Particularly as sometimes with the GLP-1 aspect of that business, it can be affected by supply availability and things like that. So we're assuming a relatively, you know, sustained what we saw in Q2 for the outlook for the year. And importantly, differentiating the service for what it is, the primary care capability that can service really all the needs of a patient or a consumer. Excellent. Excellent. I appreciate that. Maybe one last one on revenue drivers. I think we've hit just about everything except for performance fees, so maybe you could speak to where you see performance or execution against performance fees tracking towards FY 2024, and maybe try to parse out what relates to Accolade's execution, and then how just the macro environment can impact performance fee achievement one way or another. Sure, absolutely, and I'll take a quick step back for anyone who's newer to Accolade, to understand that when we contract with a employer customer, and I'm speaking now to the advocacy and navigation part of the business, we typically have a fixed fee that's about two-thirds or 70% of the fee, and then there's another portion that's performance-based, which is the one you're referring to. And then a portion of that is directly related to healthcare cost savings. So as you look historically, when you put all that together, we're earning somewhere between 90% and 95% of the total fee opportunity, which allows for some variability, particularly in the savings-based element, because healthcare costs can be volatile. This year, it looks like we're penciling out to be somewhere we're likely to show up in that same range that we've seen before. You know, where we sit right now, we're. You're always looking at a couple of months of claims data behind. All that's telling us that we ought to be on track with what we've seen before, in large part. Importantly, Accolade generally needs to, quote, unquote, “beat an index,” right? So we're. That the healthcare cost index, which has risen this year, in part due to GLP-1 drugs, we have to do better than that index, adjusted for certain aspects that are happening in the environment, whether it be inflationary costs or, in some cases, carving out for things like higher cost events. Excellent, excellent. That helps. So a bit of a one-off question, but I know it's a topic that investors have been asking about over the last year. So talking about your federal government business and the TRICARE contract, specifically, maybe you could give us the latest timeline on the next TRICARE contract, and whether there's any contribution from TRICARE assumed in your comments on the last quarter, around being confident in achieving +2% to +4% Adjusted EBITDA margins in FY 2025. Sure. That's the, this is the one part of the customer segment we haven't hit on, that- Yeah ... it's really important. So we do, we reach, government employees through arrangement with, with DHA. Today, we have a arrangement through what's called the Autism Care Demonstration, where we're serving families who have children on the spectrum in terms of autism. So we have a business today that's running, in the government sector, that's, you know, high single-digit millions, you know, approaching $10 million of revenue. We have, the T-5 carrier bid that has been, through its- looks like it's in its final stages here, of, of being determined who the carriers are. When that happens, we would, hope to be partnered with, one or both, parts of the country, to be able to deliver some of the innovative patient services around that. What's unclear is when that will actually determine when the launch dates will be. Some have speculated in the press that maybe it'll be a January 2025 launch. With all the uncertainty associated with the government contract, we have pretty modest assumptions in our numbers, as far as what we'll be hitting in terms of T-5. The good news for us is, we've built all the infrastructure required to be able to work with the government. There was some technology work that had to get done in order to build elements of our platform that could do data exchanges and other capabilities with the government. That's all, that's all in place, so as we bring, we hope to bring on some business related to T-5, we would be able to, make variable cost investments associated with that, that should preserve, to your point about path to profitability, which we're very, very focused on, the, the profitability, path for, for fiscal 2025, to get to, that 2%-4% revenue base. And so, the way we're going about that government contract, I think sets us up well. So interpret as the, you know, the kind of pause in activity there due to the procurement process, it doesn't impact the way that Accolade, and in turn, Accolade investors should think about the financial profile of those contracts, and any expansion of those contracts, there would likely be scale benefits to Accolade. Well said. Yeah. I have a few more I'd like to squeeze in, but I'll look to the audience and see if there are any questions people wanna throw out. All right, we'll turn a little bit more towards the margins and the balance sheet and cash flow statement as well. Nearing cash flow positive, could you hit on the current state of the balance sheet, and with that, near-term cash deployment priorities? Yeah, absolutely. We have a very healthy balance sheet in the sense that we have about $300 million in cash. I think the last balance sheet date was $303. We do have convertible notes on our books, about two eight- $287 million that are due in April of 2026. Importantly, as we break through to profitability on EBITDA basis, which, free cash flow auto roughly approximate as we break through there, we expect the cash and debt to roughly be in the same ballpark, and then have lots of optionality around how to address the converts, whether we pay down or refinance over the next couple of years. So we view the position as really strong in terms of not needing to go back to the capital markets to raising incremental capital as we break through to the business being profitable in this next fiscal year for us, so calendar 2024, fiscal 2025. Excellent. And maybe a good one to close on is just going back to how Accolade thinks about a balanced approach between growth and profitability. You're kind of seeing different approaches from, we'll call them, peers or just other kind of healthcare IT companies, different pushes from investors. I think you guys have been relatively consistent with your approach, but, you know, where the business stands today, where the market is today, how's that balance going forward? Yeah, appreciate the setup there, Jeff, because you're right. We think we've been consistent with the approach that we... We're operating in a very large market, and we think growing at 20%, or so, in the healthcare services business in the industry is unusual, and a really significant opportunity that we're going after with this differentiated platform to serve customers and drive ROI for them every day. So we're really focused on continuing to demonstrate growth in the business, but also, investors now, as much as ever, we've been focused on it, but certainly now as much as ever, it's really important to demonstrate the business can be profitable. And we're excited by the fact that we've reached, you know, a level of scale, differentiation, and also gross margin expansion, which translates directly into EBITDA margin growth. As we exit fiscal 2024, here for us, calendar 2023, fiscal 2024, got good visibility that it's profitable growth from here in terms of incremental revenues, incremental gross margin. We expect gross margin to continue to grow as we drive that EBITDA growth over the coming years. As we've laid out on Investor Day, you know, we've got long-term targets to be a 15%-20% EBITDA margin business, with painting a picture to the next five years, trying to taking a giant step towards that. It's an exciting time for the business as we demonstrate that scale and leverage and differentiation. Excellent. Maybe one quick follow-up there, just on the gross margin line. I think it's interesting to hear your comments there around expansion. Could you help break that down a little bit between just the scale benefits of building a bigger business and let's see, adding more to the product portfolio and how that contributes to gross margin over time? Yeah, absolutely. So there's certainly some benefits of scale, and there's really three. Scale, getting to a business this year, north of $400 million, next year in the range of $500 million, gives you some significant leverage on some of the fixed or semi-fixed costs in the business. That's one. Secondly, leveraging technology. Some of the AI items I mentioned, like, things like, task-based routing on our frontline care teams to make those calls and interactions efficient, call scheduling, things that we do that just drive efficiency of those frontline care teams, are also we're seeing the benefits of technology-driven enhancements. And then finally, having more than, you know, again, three years ago, we had just advocacy. There's not that incremental revenue opportunity as much, unless populations are expanding. Compare that to today, where we have the opportunity to increase revenue per customer, leverage the cost of, you know, going back into the customer base, to your point about net dollar retention, and upselling and providing more value through these other capabilities we have, is really an exciting part of that, you know, kind of blended story on gross margin, which again, is very much part of how we drive profitability in the business. Excellent. Great to hear. I think we'll have to cut off, cut it off there with time. But again, thank you to Steve and from Accolade for joining us today. Thanks very much, Jeff.