Why Are Accolade Shares Down Over 40% Today - Accolade (NASDAQ:ACCD)

Accolade Inc ACCD shares plunged almost 50% after disappointing Q4 FY22 earnings and FY23 guidance.
Q4 FY22 revenue increased 58% Y/Y to $93.8 million, beating the consensus of $91.57 million.
The company reported a wider net loss of $(34.56) million compared to $(4.73) million a year ago.
EPS loss came at $(0.51) higher than the consensus of $(0.36).
Guidance: For Q1 FY23, Accolade expects revenues of $81 million - $83 million, below the consensus of $85.91 million.
It expects adjusted EBITDA loss of $(20) million - $(22) million.
For FY23, the company forecasts revenues of $350 million - $365 million, below the consensus of $387.39 million.
It expects adjusted EBITDA of $(35) million - $(40) million.
Credit Suisse has downgraded Accolade to Neutral and cut the price target to $9.
Morgan Stanley downgraded the stock to Equal-Weight, with a price target lowered to $9.
SVB Leerink too downgraded ACCD to Market Perform and lowered the price target to $8.
Needham maintains Buy on Accolade but cuts the price target to $12
Piper Sandler maintains Overweight with the price target slashed to $11
B of A Securities also downgraded Accolade to Neutral, with lowered price target to $9.
Price Action: ACCD shares are down 45% at $6.08 during the market session on the last check Friday.