Phreesia, Inc. (NYSE: PHR) (“Phreesia” or the "Company")
announced financial results today for the fiscal third quarter
ended October 31, 2024.
"We are excited about the future here at Phreesia,” said CEO and
Co-Founder Chaim Indig. “Our network continues to grow, adoption of
our current offerings is increasing, and we are beginning to see
the promise of new solutions we are investing in.”
Please visit the Phreesia investor relations website at
ir.phreesia.com to view the Company's Q3 Fiscal Year 2025
Stakeholder Letter.
Fiscal Third Quarter Ended October 31, 2024
Highlights
- Total revenue was $106.8 million in the quarter, up 17%
year-over-year.
- Average number of healthcare services clients ("AHSCs") was
4,237 in the quarter, up 15% year-over-year.
- Total revenue per AHSC was $25,207 in the quarter, up 1%
year-over-year. See "Key Metrics" below for additional
information.
- Healthcare services revenue per AHSC was $17,481 in the
quarter, down 2% year-over-year. See "Key Metrics" below for
additional information.
- Net loss was $14.4 million in the quarter compared to net loss
of $31.9 million in the same period in the prior year.
- Adjusted EBITDA1 was $9.8 million in the quarter compared to
negative $6.6 million in the same period in the prior year.
- Net cash provided by operating activities was $5.8 million for
the three months ended October 31, 2024, as compared to net cash
used in operating activities of $6.3 million for the three months
ended October 31, 2023.
- Free cash flow2 was $1.6 million for the three months ended
October 31, 2024, as compared to negative $11.6 million for the
three months ended October 31, 2023.
- Cash and cash equivalents as of October 31, 2024 was $81.7
million, a decrease of $5.8 million from January 31, 2024 and down
$0.1 million from July 31, 2024.
Fiscal Year 2025 Outlook
We are narrowing our revenue outlook for fiscal 2025 to a range
of $418 million to $420 million from a previous range of $416
million to $426 million, implying year-over-year growth of 17% to
18%.
We are updating our Adjusted EBITDA outlook for fiscal 2025 to a
range of $34 million to $36 million from a previous range of $26
million to $31 million. Our outlook reflects our strong performance
in the fiscal third quarter and our continued focus on margin
improvement.
We are maintaining our expectation for AHSCs to reach
approximately 4,200 for fiscal 2025, compared to 3,601 in fiscal
2024. We are maintaining our expectation for Total revenue per AHSC
to increase in fiscal 2025 compared to the $98,944 we achieved in
fiscal 2024.
Fiscal Year 2026 Outlook
We are introducing our revenue outlook for fiscal 2026. We
expect revenue to be in the range of $472 million to $482 million.
The revenue range provided for fiscal 2026 assumes no additional
revenue from potential future acquisitions completed between now
and January 31, 2026.
We are introducing our Adjusted EBITDA outlook for fiscal 2026.
We expect Adjusted EBITDA to be in the range of $78 million to $88
million. The Adjusted EBITDA range provided for fiscal 2026 assumes
continued improvement in operating leverage across the Company
through focusing on efficiency.
We expect AHSCs to reach approximately 4,500 in fiscal 2026.
Additionally, we expect Total revenue per AHSC in fiscal 2026 to
increase from fiscal 2025.
We believe our $81.7 million in cash and cash equivalents as of
October 31, 2024, along with cash generated in our normal
operations, gives us sufficient flexibility to reach our fiscal
2025 and fiscal 2026 outlook. Additionally, our available borrowing
capacity under our credit facility with Capital One provides us
with an additional source of capital to pursue future growth
opportunities not incorporated into our fiscal 2025 and fiscal 2026
outlook. As of October 31, 2024 we have no borrowings outstanding
under our credit facility.
Non-GAAP Financial Measures
We have not reconciled our Adjusted EBITDA outlook to GAAP Net
income (loss) because we do not provide an outlook for GAAP Net
income (loss) due to the uncertainty and potential variability of
Other (income) expense, net and (Benefit from) provision for income
taxes, which are reconciling items between Adjusted EBITDA and GAAP
Net income (loss). Because we cannot reasonably predict such items,
a reconciliation of the non-GAAP financial measure outlook to the
corresponding GAAP measure is not available without unreasonable
effort. We caution, however, that such items could have a
significant impact on the calculation of GAAP Net income (loss).
For further information regarding the non-GAAP financial measures
included in this press release, including a reconciliation of GAAP
to non-GAAP financial measures and an explanation of these
measures, please see “Non-GAAP financial measures” below.
Available Information
We intend to use our Company website (including our Investor
Relations website) as well as our Facebook, X, LinkedIn and
Instagram accounts as a means of disclosing material non-public
information and for complying with our disclosure obligations under
Regulation FD.
Forward Looking Statements
This press release includes express or implied statements that
are not historical facts and are considered forward-looking within
the meaning of Section 27A of the Securities Act of 1933, as
amended and Section 21E of the Securities Exchange Act of 1934, as
amended. Forward-looking statements generally relate to future
events or our future financial or operating performance and may
contain projections of our future results of operations or of our
financial information or state other forward-looking information.
These statements include, but are not limited to, statements
regarding: our future financial and operating performance,
including our revenue, operating leverage, margins, Adjusted
EBITDA, cash flows and profitability3; our ability to finance our
plans to achieve our fiscal 2025 and fiscal 2026 outlook with our
current cash balance and cash generated in the normal course of
business; and our outlook for fiscal 2025 and fiscal 2026,
including our expectations regarding revenue, Adjusted EBITDA,
AHSCs and Total revenue per AHSC. In some cases, you can identify
forward-looking statements by the following words: “may,” “will,”
“could,” “would,” “should,” “expect,” “intend,” “plan,”
“anticipate,” “believe,” “estimate,” “predict,” “project,”
“potential,” “continue,” “ongoing,” or the negative of these terms
or other comparable terminology, although not all forward-looking
statements contain these words. Although we believe that the
expectations reflected in these forward-looking statements are
reasonable, these statements relate to future events or our future
operational or financial performance and involve known and unknown
risks, uncertainties and other factors that may cause our actual
results, performance or achievements to be materially different
from any future results, performance or achievements expressed or
implied by these forward-looking statements. Furthermore, actual
results may differ materially from those described in the
forward-looking statements and will be affected by a variety of
risks and factors that are beyond our control, including, without
limitation, risks associated with: our ability to effectively
manage our growth and meet our growth objectives; our focus on the
long-term and our investments in growth; the competitive
environment in which we operate; our ability to comply with the
covenants in our credit agreement with Capital One; changes in
market conditions and receptivity to our products and services; our
ability to develop and release new products and services and
successful enhancements, features and modifications to our existing
products and services; our ability to maintain the security and
availability of our platform; the impact of cyberattacks, security
incidents or breaches impacting our business; changes in laws and
regulations applicable to our business model; our ability to make
accurate predictions about our industry and addressable market; our
ability to attract, retain and cross-sell to healthcare services
clients; our ability to continue to operate effectively with a
primarily remote workforce and attract and retain key talent; our
ability to realize the intended benefits of our acquisitions and
partnerships; and difficulties in integrating our acquisitions and
investments; and other general, market, political, economic and
business conditions (including from the results of the 2024 U.S.
presidential and congressional elections and the warfare and/or
political and economic instability in Ukraine, the Middle East or
elsewhere). The forward-looking statements contained in this press
release are also subject to other risks and uncertainties,
including those listed or described in our filings with the
Securities and Exchange Commission (“SEC”), including in our
Quarterly Report on Form 10-Q for the fiscal quarter ended October
31, 2024 that will be filed with the SEC following this press
release. The forward-looking statements in this press release speak
only as of the date on which the statements are made. We undertake
no obligation to update, and expressly disclaim the obligation to
update, any forward-looking statements made in this press release
to reflect events or circumstances after the date of this press
release or to reflect new information or the occurrence of
unanticipated events, except as required by law.
This press release includes certain non-GAAP financial measures
as defined by SEC rules. We have provided a reconciliation of those
measures to the most directly comparable GAAP measures, with the
exception of our Adjusted EBITDA outlook for the reasons described
above.
Conference Call Information
We will hold a conference call on Monday December 9, 2024 at
5:00 p.m. Eastern Time to review our fiscal 2025 third quarter
financial results. To participate in our live conference call and
webcast, please dial (800) 715-9871 (or (646) 307-1963 for
international participants) using conference code number 7404611 or
visit the “Events & Presentations” section of our Investor
Relations website at ir.phreesia.com. A replay of the call will be
available via webcast for on-demand listening shortly after the
completion of the call, at the same web link, and will remain
available for approximately 90 days.
About Phreesia
Phreesia is a trusted leader in patient activation, giving
providers, life sciences companies and other organizations tools to
help patients take a more active role in their care. Founded in
2005, Phreesia enabled approximately 150 million patient visits in
2023—more than 1 in 10 visits across the U.S.—scale that we believe
allows us to make meaningful impact. Offering patient-driven
digital solutions for intake, outreach, education and more,
Phreesia enhances the patient experience, drives efficiency and
improves healthcare outcomes.
Phreesia, Inc.
Consolidated Balance
Sheets
(in thousands, except share and
per share data)
October 31, 2024
January 31, 2024
(Unaudited)
Assets
Current:
Cash and cash equivalents
$
81,740
$
87,520
Settlement assets
25,046
28,072
Accounts receivable, net of allowance for
doubtful accounts of $1,468 and $1,392 as of October 31, 2024 and
January 31, 2024, respectively
71,408
64,863
Deferred contract acquisition costs
362
768
Prepaid expenses and other current
assets
11,017
14,461
Total current assets
189,573
195,684
Property and equipment, net of accumulated
depreciation and amortization of $87,861 and $76,859 as of October
31, 2024 and January 31, 2024, respectively
25,973
16,902
Capitalized internal-use software, net of
accumulated amortization of $53,210 and $45,769 as of October 31,
2024 and January 31, 2024, respectively
51,322
46,139
Operating lease right-of-use assets
1,656
266
Deferred contract acquisition costs
450
986
Intangible assets, net of accumulated
amortization of $7,536 and $4,925 as of October 31, 2024 and
January 31, 2024, respectively
29,014
31,625
Goodwill
75,845
75,845
Other assets
1,870
2,879
Total Assets
$
375,703
$
370,326
Liabilities and Stockholders’
Equity
Current:
Settlement obligations
$
25,046
$
28,072
Current portion of finance lease
liabilities and other debt
8,866
6,056
Current portion of operating lease
liabilities
1,021
393
Accounts payable
15,870
8,480
Accrued expenses
29,080
37,130
Deferred revenue
22,188
24,113
Other current liabilities
7,130
5,875
Total current liabilities
109,201
110,119
Long-term finance lease liabilities and
other debt
10,292
5,400
Operating lease liabilities,
non-current
840
134
Long-term deferred revenue
199
97
Long-term deferred tax liabilities
446
270
Other long-term liabilities
133
2,857
Total Liabilities
121,111
118,877
Commitments and contingencies
Stockholders’ Equity:
Preferred stock, undesignated, $0.01 par
value - 20,000,000 shares authorized as of both October 31, 2024
and January 31, 2024; no shares issued or outstanding as of both
October 31, 2024 and January 31, 2024
—
—
Common stock, $0.01 par value -
500,000,000 shares authorized as of both October 31, 2024 and
January 31, 2024; 59,439,197 and 57,709,762 shares issued as of
October 31, 2024 and January 31, 2024, respectively
594
577
Additional paid-in capital
1,094,629
1,039,361
Accumulated deficit
(795,106
)
(742,969
)
Accumulated other comprehensive loss
(5
)
—
Treasury stock, at cost, 1,355,169 shares
as of both October 31, 2024 and January 31, 2024
(45,520
)
(45,520
)
Total Stockholders’ Equity
254,592
251,449
Total Liabilities and Stockholders’
Equity
$
375,703
$
370,326
Phreesia, Inc.
Consolidated Statements of
Operations
(Unaudited)
(in thousands, except share and
per share data)
Three months ended
October 31,
Nine months ended
October 31,
2024
2023
2024
2023
Revenue:
Subscription and related services
$
49,363
$
42,595
$
144,717
$
119,783
Payment processing fees
24,704
23,218
77,064
71,102
Network solutions
32,733
25,806
88,351
70,409
Total revenues
106,800
91,619
310,132
261,294
Expenses:
Cost of revenue (excluding depreciation
and amortization)
17,854
15,529
49,720
44,885
Payment processing expense
16,683
15,410
51,648
47,352
Sales and marketing
30,071
36,478
92,266
111,135
Research and development
29,315
28,544
87,738
82,484
General and administrative
19,633
20,240
58,182
61,105
Depreciation
3,566
4,483
11,011
13,231
Amortization
3,521
2,980
10,052
8,003
Total expenses
120,643
123,664
360,617
368,195
Operating loss
(13,843
)
(32,045
)
(50,485
)
(106,901
)
Other expense, net
(144
)
(47
)
(261
)
(39
)
Interest income, net
26
523
311
2,027
Total other (expense) income,
net
(118
)
476
50
1,988
Loss before provision for income
taxes
(13,961
)
(31,569
)
(50,435
)
(104,913
)
Provision for income taxes
(442
)
(372
)
(1,702
)
(1,326
)
Net loss
$
(14,403
)
$
(31,941
)
$
(52,137
)
$
(106,239
)
Net loss per share attributable to
common stockholders, basic and diluted
$
(0.25
)
$
(0.58
)
$
(0.91
)
$
(1.96
)
Weighted-average common shares
outstanding, basic and diluted
57,891,591
55,251,074
57,358,637
54,139,555
(1) Our potential dilutive securities have
been excluded from the computation of diluted net loss per share as
the effect would be to reduce the net loss per share. Therefore,
the weighted-average number of common shares outstanding used to
calculate both basic and diluted net loss per share attributable to
common stockholders is the same.
Phreesia, Inc.
Consolidated Statements of
Comprehensive Loss
(Unaudited)
(in thousands)
Three months ended
October 31,
Nine months ended
October 31,
2024
2023
2024
2023
Net loss
$
(14,403
)
$
(31,941
)
$
(52,137
)
$
(106,239
)
Other comprehensive loss, net of tax:
Change in foreign currency translation
adjustments, net of tax
(3
)
—
(5
)
—
Other comprehensive loss, net of
tax
(3
)
—
(5
)
—
Comprehensive loss
$
(14,406
)
$
(31,941
)
$
(52,142
)
$
(106,239
)
Phreesia, Inc.
Consolidated Statements of
Cash Flows
(Unaudited)
(in thousands)
Three months ended
October 31,
Nine months ended
October 31,
2024
2023
2024
2023
Operating activities:
Net loss
$
(14,403
)
$
(31,941
)
$
(52,137
)
$
(106,239
)
Adjustments to reconcile net loss to net
cash provided by (used in) operating activities:
Depreciation and amortization
7,087
7,463
21,063
21,234
Stock-based compensation expense
16,525
17,963
49,813
53,749
Amortization of deferred financing costs
and debt discount
62
84
174
253
Cost of Phreesia hardware purchased by
customers
571
582
1,248
1,232
Deferred contract acquisition costs
amortization
1,322
235
1,706
855
Non-cash operating lease expense
207
142
568
484
Deferred taxes
57
39
176
181
Changes in operating assets and
liabilities:
Accounts receivable
(10,141
)
(991
)
(6,558
)
(3,361
)
Prepaid expenses and other assets
1,005
(1,530
)
4,286
(761
)
Deferred contract acquisition costs
(552
)
—
(765
)
—
Accounts payable
6,948
1,189
5,198
(1,226
)
Accrued expenses and other liabilities
(3,655
)
469
(6,202
)
6,530
Lease liabilities
(202
)
(232
)
(622
)
(884
)
Deferred revenue
954
218
(1,823
)
(1,347
)
Net cash provided by (used in)
operating activities
5,785
(6,310
)
16,125
(29,300
)
Investing activities:
Acquisitions, net of cash acquired
—
(10,406
)
—
(14,279
)
Capitalized internal-use software
(3,566
)
(4,069
)
(11,112
)
(13,889
)
Purchases of property and equipment
(616
)
(1,242
)
(5,919
)
(3,344
)
Net cash used in investing
activities
(4,182
)
(15,717
)
(17,031
)
(31,512
)
Financing activities:
Proceeds from issuance of common stock
upon exercise of stock options
17
250
583
925
Treasury stock to satisfy tax withholdings
on stock compensation awards
—
(1,451
)
—
(12,176
)
Proceeds from employee stock purchase
plan
840
919
2,443
2,782
Finance lease payments
(1,895
)
(1,729
)
(5,170
)
(5,156
)
Constructive financing
—
—
—
1,688
Principal payments on financing
agreements
(304
)
(273
)
(888
)
(318
)
Debt issuance costs and loan facility fee
payments
—
—
(152
)
(250
)
Financing payments of acquisition-related
liabilities
(309
)
—
(1,673
)
—
Net cash used in financing
activities
(1,651
)
(2,284
)
(4,857
)
(12,505
)
Effect of exchange rate changes on cash
and cash equivalents
(10
)
—
(17
)
—
Net decrease in cash and cash
equivalents
(58
)
(24,311
)
(5,780
)
(73,317
)
Cash and cash equivalents – beginning
of period
81,798
127,677
87,520
176,683
Cash and cash equivalents – end of
period
$
81,740
$
103,366
$
81,740
$
103,366
Supplemental information of non-cash
investing and financing information:
Right of use assets acquired in exchange
for operating lease liabilities
$
—
$
346
$
1,958
$
346
Property and equipment acquisitions
through finance leases
$
6,847
$
371
$
13,709
$
7,438
Purchase of property and equipment and
capitalized software included in current liabilities
$
3,508
$
2,911
$
3,508
$
2,911
Capitalized stock-based compensation
$
343
$
309
$
1,006
$
1,023
Issuance of stock to settle liabilities
for stock-based compensation
$
2,853
$
3,420
$
10,679
$
10,641
Issuance of stock as consideration in
business combinations
$
—
$
30,645
$
—
$
35,321
Deferred consideration liabilities payable
in business combinations
$
—
$
10,294
$
—
$
10,294
Capitalized software acquired through
vendor financing
$
—
$
—
$
—
$
2,047
Cash paid for:
Interest
$
595
$
295
$
1,459
$
649
Income taxes
$
549
$
—
$
2,559
$
48
Non-GAAP Financial Measures
This press release and statements made during the
above-referenced webcast may include certain non-GAAP financial
measures as defined by SEC rules.
Adjusted EBITDA is a supplemental measure of our performance
that is not required by, or presented in accordance with, GAAP.
Adjusted EBITDA is not a measurement of our financial performance
under GAAP and should not be considered as an alternative to net
income or loss or any other performance measure derived in
accordance with GAAP, or as an alternative to cash flows from
operating activities as a measure of our liquidity. We define
Adjusted EBITDA as net income or loss before interest income, net,
provision for income taxes, depreciation and amortization, and
before stock-based compensation expense and other expense, net.
We have provided below a reconciliation of Adjusted EBITDA to
net loss, the most directly comparable GAAP financial measure. We
have presented Adjusted EBITDA in this press release and our
Quarterly Report on Form 10-Q to be filed after this press release
because it is a key measure used by our management and board of
directors to understand and evaluate our core operating performance
and trends, to prepare and approve our annual budget, and to
develop short and long-term operational plans. In particular, we
believe that the exclusion of the amounts eliminated in calculating
Adjusted EBITDA can provide a useful measure for period-to-period
comparisons of our core business. Accordingly, we believe that
Adjusted EBITDA provides useful information to investors and others
in understanding and evaluating our operating results in the same
manner as our management and board of directors. We have not
reconciled our Adjusted EBITDA outlook to GAAP Net income (loss)
because we do not provide an outlook for GAAP Net income (loss) due
to the uncertainty and potential variability of Other (income)
expense, net and (Benefit from) provision for income taxes, which
are reconciling items between Adjusted EBITDA and GAAP Net income
(loss). Because we cannot reasonably predict such items, a
reconciliation of the non-GAAP financial measure outlook to the
corresponding GAAP measure is not available without unreasonable
effort. We caution, however, that such items could have a
significant impact on the calculation of GAAP Net income
(loss).
Our use of Adjusted EBITDA has limitations as an analytical
tool, and you should not consider it in isolation or as a
substitute for analysis of our financial results as reported under
GAAP. Some of these limitations are as follows:
- Although depreciation and amortization expense are non-cash
charges, the assets being depreciated and amortized may have to be
replaced in the future, and Adjusted EBITDA does not reflect cash
capital expenditure requirements for such replacements or for new
capital expenditure requirements;
- Adjusted EBITDA does not reflect: (1) changes in, or cash
requirements for, our working capital needs; (2) the potentially
dilutive impact of non-cash stock-based compensation; (3) tax
payments that may represent a reduction in cash available to us; or
(4) interest income, net; and
- Other companies, including companies in our industry, may
calculate Adjusted EBITDA or similarly titled measures differently,
which reduces its usefulness as a comparative measure.
Because of these and other limitations, you should consider
Adjusted EBITDA along with other GAAP-based financial performance
measures, including various cash flow metrics, net loss, and our
GAAP financial results. The following table presents a
reconciliation of Adjusted EBITDA to net loss for each of the
periods indicated:
Phreesia, Inc.
Adjusted EBITDA
(Unaudited)
Three months ended
October 31,
Nine months ended
October 31,
(in thousands)
2024
2023
2024
2023
Net loss
$
(14,403
)
$
(31,941
)
$
(52,137
)
$
(106,239
)
Interest income, net
(26
)
(523
)
(311
)
(2,027
)
Provision for income taxes
442
372
1,702
1,326
Depreciation and amortization
7,087
7,463
21,063
21,234
Stock-based compensation expense
16,525
17,963
49,813
53,749
Other expense, net
144
47
261
39
Adjusted EBITDA
$
9,769
$
(6,619
)
$
20,391
$
(31,918
)
We calculate Free cash flow as Net cash provided by (used in)
operating activities less capitalized internal-use software
development costs and purchases of property and equipment.
Additionally, Free cash flow is a supplemental measure of our
performance that is not required by, or presented in accordance
with, GAAP. We consider Free cash flow to be a liquidity measure
that provides useful information to management and investors about
the amount of cash generated by our business that can be used for
strategic opportunities, including investing in our business,
making strategic investments, partnerships and acquisitions and
strengthening our financial position.
The following table presents a reconciliation of Free cash flow
from Net cash provided by (used in) operating activities, the most
directly comparable GAAP financial measure, for each of the periods
indicated:
Phreesia, Inc.
Free cash flow
(Unaudited)
Three months ended
October 31,
Nine months ended
October 31,
(in thousands, unaudited)
2024
2023
2024
2023
Net cash provided by (used in) operating
activities
$
5,785
$
(6,310
)
$
16,125
$
(29,300
)
Less:
Capitalized internal-use software
(3,566
)
(4,069
)
(11,112
)
(13,889
)
Purchases of property and equipment
(616
)
(1,242
)
(5,919
)
(3,344
)
Free cash flow
$
1,603
$
(11,621
)
$
(906
)
$
(46,533
)
Phreesia, Inc.
Reconciliation of GAAP and
Adjusted Operating Expenses
(Unaudited)
Three months ended
October 31,
Nine months ended
October 31,
(in thousands)
2024
2023
2024
2023
GAAP operating expenses
General and administrative
$
19,633
$
20,240
$
58,182
$
61,105
Sales and marketing
30,071
36,478
92,266
111,135
Research and development
29,315
28,544
87,738
82,484
Cost of revenue (excluding depreciation
and amortization)
17,854
15,529
49,720
44,885
$
96,873
$
100,791
$
287,906
$
299,609
Stock compensation included in GAAP
operating expenses
General and administrative
$
6,049
$
5,798
$
18,534
$
17,423
Sales and marketing
5,431
6,322
16,500
19,850
Research and development
3,793
4,561
11,049
13,002
Cost of revenue (excluding depreciation
and amortization)
1,252
1,282
3,730
3,474
$
16,525
$
17,963
$
49,813
$
53,749
Adjusted operating expenses
General and administrative
$
13,584
$
14,442
$
39,648
$
43,682
Sales and marketing
24,640
30,156
75,766
91,285
Research and development
25,522
23,983
76,689
69,482
Cost of revenue (excluding depreciation
and amortization)
16,602
14,247
45,990
41,411
$
80,348
$
82,828
$
238,093
$
245,860
Phreesia, Inc.
Key Metrics
(Unaudited)
Three months ended
October 31,
Nine months ended
October 31,
2024
2023
2024
2023
Key Metrics:
Average number of healthcare services
clients ("AHSCs")
4,237
3,688
4,157
3,481
Healthcare services revenue per AHSC
$
17,481
$
17,845
$
53,351
$
54,836
Total revenue per AHSC
$
25,207
$
24,842
$
74,605
$
75,063
The definitions of our key metrics are presented below.
- AHSCs. We define AHSCs as the average number of clients that
generate subscription and related services or payment processing
revenue each month during the applicable period. In cases where we
act as a subcontractor providing white-label services to our
partner's clients, we treat the contractual relationship as a
single healthcare services client. We believe growth in AHSCs is a
key indicator of the performance of our business and depends, in
part, on our ability to successfully develop and market our
solutions to healthcare services organizations that are not yet
clients. While growth in AHSCs is an important indicator of
expected revenue growth, it also informs our management of the
areas of our business that will require further investment to
support expected future AHSC growth. For example, as AHSCs
increase, we may need to add to our customer support team and
invest to maintain effectiveness and performance of our solutions
for our healthcare services clients and their patients.
- Healthcare services revenue per AHSC. We define Healthcare
services revenue as the sum of subscription and related services
revenue and payment processing revenue. We define Healthcare
services revenue per AHSC as Healthcare services revenue in a given
period divided by AHSCs during that same period. We are focused on
continually delivering value to our healthcare services clients and
believe that our ability to increase Healthcare services revenue
per AHSC is an indicator of the long-term value of our
solutions.
- Total revenue per AHSC. We define Total revenue per AHSC as
Total revenue in a given period divided by AHSCs during that same
period. Our healthcare services clients directly generate
subscription and related services and payment processing revenue.
Additionally, our relationships with healthcare services clients
who subscribe to our solutions give us the opportunity to engage
with life sciences companies, health plans and other payer
organizations, patient advocacy, public interest and other
not-for-profit organizations who deliver direct communication to
patients through our solutions. As a result, we believe that our
ability to increase Total revenue per AHSC is an indicator of the
long-term value of our solutions.
Additional Information
(Unaudited)
Three months ended
October 31,
Nine months ended
October 31,
2024
2023
2024
2023
Patient payment volume (in millions)
$
1,081
$
965
$
3,340
$
2,970
Payment facilitator volume percentage
81
%
82
%
81
%
82
%
- Patient payment volume. We believe that patient payment volume
is an indicator of both the underlying health of our healthcare
services clients’ businesses and the continuing shift of healthcare
costs to patients. We measure patient payment volume as the total
dollar volume of transactions between our healthcare services
clients and their patients utilizing our payment platform,
including via credit and debit cards that we process as a payment
facilitator as well as cash and check payments and credit and debit
transactions for which we act as a gateway to other payment
processors.
- Payment facilitator volume percentage. We define payment
facilitator volume percentage as the volume of credit and debit
card patient payment volume that we process as a payment
facilitator as a percentage of total patient payment volume.
Payment facilitator volume is a major driver of our payment
processing revenue. Our payment facilitator volume percentage could
decline slightly over time should we increase our penetration of
enterprise customers that are less likely to use Phreesia as a
payment facilitator.
______________________________ 1 Adjusted EBITDA is a non-GAAP
measure. We define Adjusted EBITDA as net income or loss before
interest income, net, provision for income taxes, depreciation and
amortization, and before stock-based compensation expense and other
expense, net. See “Non-GAAP Financial Measures” for a
reconciliation of Adjusted EBITDA to the closest GAAP measure. 2
Free cash flow is a non-GAAP measure. We define Free cash flow as
net cash provided by (used in) operating activities less
capitalized internal-use software development costs and purchases
of property and equipment. See “Non-GAAP Financial Measures” for a
reconciliation of Free cash flow to the closest GAAP measure. 3 We
define “profitability,” discussed herein, in terms of Adjusted
EBITDA, a non-GAAP financial measure. See ‘Non-GAAP Financial
Measures’ for a definition of Adjusted EBITDA and a reconciliation
of our Adjusted EBITDA to Net loss, the closest GAAP measure.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241209683231/en/
Investor Relations Contact:
Balaji Gandhi Phreesia, Inc. investors@phreesia.com (929)
506-4950
Media Contact:
Nicole Gist Phreesia, Inc. nicole.gist@phreesia.com (407)
760-6274
Phreesia (NYSE:PHR)
과거 데이터 주식 차트
부터 11월(11) 2024 으로 12월(12) 2024
Phreesia (NYSE:PHR)
과거 데이터 주식 차트
부터 12월(12) 2023 으로 12월(12) 2024
