On Tuesday, Accolade stock rose 26.5 % after the company posted better-than-expected quarterly earnings.

On revenue of $83.45 million, the workplace benefits technology company reported earnings per share of 31 cents. Investing.com polled analysts, who predicted a loss of 77 cents per share on revenue of $75.89 million.

ACCD | Accolade Stock Price

"The strong outperformance was largely driven by earlier than expected achievement of approximately $7 million of performance-based revenue, including $2.5 million that was previously included in our third quarter guidance" Accolade CFO Steve Barnes said. "This revenue recognition is a direct result of Accolade's continued success in delivering measurement-based outcomes for our customers."

For the fourth quarter, revenue is estimated to range between $90 million and $93 million. Meanwhile, the corporation anticipates a 25% increase in revenue for the entire fiscal year 2022.

"Our preliminary revenue guidance of 25 % growth in the fiscal year 2023 shows the consistency and stability of our business, and our Adjusted EBITDA guidance demonstrates our focus on improving our bottom line performance with a target of achieving breakeven Adjusted EBITDA in the fiscal year 2025," Barnes added.