Group 1 - The stock of Phreesia (PHR) closed at $24.84, showing a 2.6% increase over the past four weeks, with a mean price target of $31.80 indicating a potential upside of 28% [1] - Analysts have set 15 short-term price targets for PHR, ranging from a low of $29 to a high of $36, with a standard deviation of $2.34, suggesting a consensus among analysts [2] - The Zacks Consensus Estimate for the current year has increased by 14.4% over the last 30 days, with three estimates moving higher and no negative revisions [11] Group 2 - There is strong agreement among analysts regarding PHR's ability to report better earnings than previously predicted, which supports the expectation of an upside [4][10] - PHR holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates, indicating a strong potential for near-term upside [12] - While price targets can be misleading, the direction implied by the consensus price target for PHR appears to be a useful guide for potential price movement [9][12]

Group 1 - Phreesia (NYSE: PHR) continues to perform as expected despite recent market volatility and sell-off [1] - The company has been affected by market conditions but remains resilient [1] - Dr. Duru, a veteran in financial markets, provides unique perspectives on trading and investing through his blog [1] Group 2 - The blog covers various financial instruments including stocks, options, currencies, and Bitcoin [1] - It utilizes both technical and fundamental analysis for short-term and long-term strategies [1] - Dr. Duru has extensive academic and professional experience in engineering, operations research, and data analytics [1]

Market Overview - The current addressable market is approximately $10.0 billion, derived from $6.3 billion in subscription services, $2.3 billion in consumer-related transaction fees, and $1.9 billion in network solutions revenue[31]. - The company serves approximately 50,000 unique healthcare services clients in the ambulatory and hospital markets[31]. - The company facilitated patient visits for over 4,300 healthcare services clients across all 50 states in fiscal 2025[24]. Technology Solutions - The company offers a comprehensive range of technology solutions, including patient registration, appointment scheduling, and payment processing, aimed at improving operational efficiency[26]. - The company’s technology solutions are customizable and scalable to any size healthcare service organization[26]. - The company integrates its technology into over 4,300 healthcare services clients' PM and EHR systems, enhancing operational workflows[12]. - The company’s payment processing features are designed to operate seamlessly within client workflows, enhancing revenue cycle solutions[12]. - The company’s technology innovations include enhancements to user interface, improving user experience and satisfaction[12]. Patient Engagement and Outcomes - The company aims to activate and engage patients in their healthcare journey, resulting in improved health outcomes[35]. - The company’s solutions have demonstrated increased rates of preventive care and vaccinations through effective patient communication[24]. - The Patient Activation Measure (PAM) will be included in the Centers for Medicare and Medicaid Services' Merit-based Incentive Payments System starting in 2024, potentially impacting client performance metrics[38]. Revenue Cycle Solutions - The company offers a comprehensive suite of revenue cycle solutions that improve key metrics, including time-of-service collections and patient convenience with online payments[49]. - The company’s revenue cycle solutions help maximize timely collection of patient payments through insurance verification and point-of-sale applications[34]. - Flexible patient payment options have led to an increase in time-of-service collections for the majority of healthcare services clients, enhancing cash flow and profitability[38]. - The company’s solutions help healthcare services clients capture the right clinical information, aligning with quality reporting initiatives and reducing errors in patient data collection[38]. Client Relationships and Growth - The company plans to expand its client base in the U.S. healthcare industry, which is large and underserved, by utilizing its direct sales force to win new clients[40]. - There is a significant opportunity to deepen relationships with existing healthcare services clients by increasing the number of subscriptions and add-on applications purchased[41]. - The company intends to continue innovating and enhancing its solutions to address key challenges in healthcare, driving incremental revenue from existing clients[42]. Compliance and Security - The company is subject to extensive federal and state laws regarding privacy and security, including HIPAA and the California Consumer Privacy Act[61]. - The company has industry certifications including HITRUST and PCI-DSS Level 1 Service Provider, demonstrating commitment to data security standards[53]. - The company is subject to various federal and state laws regarding privacy, data protection, and information security, which may increase compliance costs and legal risks[73]. - The company’s subsidiary, Insignia, is a federal government contractor and must comply with the Federal Acquisition Regulation (FAR) and related requirements[76]. Financial Overview - The company’s cash and cash equivalents primarily consist of money market funds and cash on deposit, with a focus on preserving principal while maximizing income[382]. - As of January 31, 2025, the company had no debt outstanding under the Capital One Credit Facility[383]. - For the fiscal year ended January 31, 2025, approximately 85% of the company's expenses were denominated in U.S. Dollars[384]. - Foreign currency losses from the re-measurement of monetary account balances amounted to $0.4 million for the year ended January 31, 2025[385]. - A 1% increase or decrease in foreign exchange rates between the Canadian Dollar, Indian Rupee, and U.S. Dollar is not expected to have a material effect on the company's results of operations or financial condition[386]. Employee and Workplace Culture - As of January 31, 2025, the company had 2,082 full-time employees, with 817 in the United States and 1,265 internationally[83]. - The company was recognized as one of the "Best Places to Work in Healthcare" for the eighth time and named to the list of "The Top 100 Software Companies of 2024" by the Software Report[84]. - The company has operated as a fully remote organization since 2020, allowing access to a broader talent pool[87]. - The company has a commitment to gender equality and inclusive workplace practices, including pathways to leadership for women and pay equity[86]. - The company has not experienced any work stoppages and maintains a good relationship with its employees[83]. Strategic Initiatives - Strategic investments, partnerships, and acquisitions are being pursued to enhance the company's ability to activate patients in their care and expand its suite of solutions[43]. - The business model focuses on developing new, value-added applications that increase revenue and enhance client unit economics, with expectations of improving net income and margins over time[45]. - The company’s sales cycles typically range from three to six months, with most contracts structured as annual, auto-renewing agreements[56]. - The company’s marketing team focuses on educating potential clients about the value of its solutions, which positively impact health outcomes[57]. - The company’s client services team is organized by market specialization, ensuring deep expertise and efficient onboarding for healthcare services clients[64]. Risk Management - The company is exposed to market risks, including interest rate and foreign exchange risks, but does not expect significant impact from a 100 basis point change in interest rates[382]. - In February 2025, the company entered into foreign currency forward contracts to hedge against foreign currency exchange risk related to Canadian Dollar payroll payments[386]. - The foreign currency forward contracts are expected to limit the company's exposure to foreign currency exchange risk associated with forecasted Canadian Dollar payroll payments[387]. - The company emphasizes the importance of protecting its intellectual property through trademarks, trade secrets, and contractual rights[81].

Financial Performance - Total revenue for Q4 fiscal 2025 was $109.7 million, representing a 15% year-over-year increase[7] - Fiscal 2025 total revenue reached $419.8 million, an 18% increase year-over-year[7] - Total revenues for the three months ended January 31, 2025, increased to $109.681 million, up 15.5% from $95.005 million in the same period of 2024[22] - Subscription and related services revenue rose to $51.793 million, a 13.5% increase from $45.653 million year-over-year[22] - Payment processing fees grew to $24.676 million, reflecting a 5% increase compared to $23.508 million in the prior year[22] Profitability Metrics - Adjusted EBITDA for Q4 was $16.4 million, compared to negative $3.5 million in the same period last year[7] - Adjusted EBITDA for the three months ended January 31, 2025, was $16,373, compared to a loss of $3,461 for the same period in 2024[34] - Free cash flow for Q4 was $9.2 million, compared to negative $10.9 million in the same period last year[7] - Free cash flow for the fiscal year ended January 31, 2025, was $8,292, a significant improvement from a negative $57,475 in the previous year[37] - The company reported a net loss of $58.5 million for fiscal 2025, improved from a net loss of $136.9 million in fiscal 2024[7] - Net loss for the fiscal year ended January 31, 2025, was $(58.527) million, a significant reduction from $(136.885) million in the previous fiscal year[22] - The company reported a net loss of $6,390 for the three months ended January 31, 2025, compared to a net loss of $30,646 for the same period in 2024[34] Client Metrics - Average number of healthcare services clients (AHSCs) was 4,341 in Q4, up 10% year-over-year[7] - The company anticipates AHSCs to reach approximately 4,500 in fiscal 2026[9] - The average number of healthcare services clients (AHSCs) increased to 4,341 in Q1 2025 from 3,962 in Q1 2024, representing a growth of 9.6%[40] - Total revenue per AHSC for the fiscal year ended January 31, 2025, was $99,884, up from $98,944 in the previous year, indicating a growth of 0.9%[40] Cash and Liquidity - Cash and cash equivalents as of January 31, 2025, were $84.2 million, providing sufficient flexibility for future growth[10] - Cash and cash equivalents at the end of the period were $84.220 million, slightly down from $87.520 million a year earlier[26] - The company reported a net cash provided by operating activities of $16.256 million for the three months ended January 31, 2025, compared to a net cash used of $(3.078) million in the same period of 2024[26] Future Outlook - The outlook for fiscal 2026 revenue is projected to be between $472 million and $482 million[8] - Adjusted EBITDA for fiscal 2026 is expected to range from $78 million to $88 million[9] Operating Expenses - Operating loss for the three months ended January 31, 2025, improved to $(7.612) million from $(29.578) million in the same quarter of 2024[22] - GAAP operating expenses for the three months ended January 31, 2025, totaled $93,411, down from $100,696 in the same period of 2024, a decrease of 7.8%[39] - Stock-based compensation expense for the fiscal year ended January 31, 2025, was $66,975, compared to $71,613 in 2024, a reduction of 6.2%[39] Asset and Liability Overview - Total assets increased to $388.415 million as of January 31, 2025, compared to $370.326 million in the previous year[20] - Total liabilities rose to $123.607 million, up from $118.877 million year-over-year[20] Development Costs - Capitalized internal-use software development costs for the fiscal year ended January 31, 2025, were $15,380, down from $19,291 in 2024, a decrease of 20.0%[37] Payment Volume - Patient payment volume reached $1,080 million in Q1 2025, compared to $977 million in Q1 2024, reflecting an increase of 10.5%[41] - The payment facilitator volume percentage remained stable at 82% for both Q1 2025 and Q1 2024[41]

Company Overview - Phreesia (PHR) shares increased by 5.6% to $30.01 in the last trading session, with a higher-than-average trading volume, compared to a 4.9% gain over the past four weeks [1] - The company is recognized for its leadership, as Sally Thayer, Vice President of Product Management, was named to The Software Report's list of the Top 50 Women Leaders in Software of 2024, marking the seventh consecutive year a female leader from Phreesia has received this honor [2] Financial Performance - Phreesia is expected to report a quarterly loss of $0.19 per share, reflecting a year-over-year improvement of 66.1%, with anticipated revenues of $108.91 million, up 14.6% from the same quarter last year [3] - The consensus EPS estimate for the upcoming quarter has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [4] Industry Context - Phreesia operates within the Zacks Medical Info Systems industry, which includes other companies like Pulmonx Corporation (LUNG), whose shares also saw a 5.3% increase to $7.38 in the last trading session, with a 4.3% return over the past month [4] - Pulmonx's consensus EPS estimate for its upcoming report has remained unchanged at -$0.43, representing a year-over-year change of -19.4% [5]

Core Viewpoint - Phreesia's stock has shown significant performance, increasing by 16.4% over the past month and reaching a 52-week high of $29.36, outperforming the broader medical sector and medical information systems industry [1][2]. Financial Performance - Phreesia has consistently exceeded earnings expectations, reporting an EPS of -$0.25 against a consensus estimate of -$0.29 in its last earnings report [2]. - For the current fiscal year, Phreesia is projected to have an EPS of -$1.10 with revenues of $419.04 million, reflecting a 56.18% change in EPS and a 17.61% change in revenues [3]. - The next fiscal year forecasts an EPS of -$0.38 and revenues of $476.77 million, indicating a year-over-year change of 66.18% in EPS and 13.78% in revenues [3]. Valuation Metrics - Despite reaching a 52-week high, the future valuation metrics of Phreesia need to be assessed to determine if the stock has become overvalued [4]. Zacks Style Scores - Phreesia has a Value Score of D, a Growth Score of A, and a Momentum Score of D, resulting in a combined VGM Score of B [6]. Zacks Rank - Phreesia holds a Zacks Rank of 2 (Buy), supported by rising earnings estimates, suggesting potential for further stock price appreciation [7].

Core Viewpoint - Phreesia (PHR) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which are a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system reflects changes in earnings estimates, which are strongly correlated with near-term stock price movements, particularly due to institutional investors adjusting their valuations based on these estimates [4][6]. - For the fiscal year ending January 2025, Phreesia is expected to earn -$1.10 per share, representing a 56.2% change from the previous year's reported figure, with a 10.2% increase in the Zacks Consensus Estimate over the past three months [8]. Zacks Rating System - The Zacks Rank stock-rating system classifies stocks into five groups based on earnings estimates, with a proven track record of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [7]. - The upgrade of Phreesia to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Technical Analysis - Phreesia Inc (PHR) has reached a key technical support level with its 50-day simple moving average crossing above its 200-day simple moving average, forming a "golden cross" [1] - A golden cross is a bullish technical chart pattern indicating potential upward momentum, typically involving the 50-day and 200-day moving averages [2] - The golden cross pattern consists of three stages: a downtrend bottoming out, a crossover of moving averages triggering a positive trend reversal, and continued upward momentum [3] Recent Performance - PHR has gained 11.8% over the past four weeks [4] - The company currently holds a 3 (Hold) rating on the Zacks Rank, suggesting potential for a breakout [4] Earnings Outlook - PHR has a positive earnings outlook with no earnings estimate cuts for the current quarter and 5 upward revisions in the past 60 days [4] - The Zacks Consensus Estimate for PHR has increased [4] Investment Consideration - Investors may consider PHR for potential gains due to its technical indicators and positive earnings estimate revisions [5]

Core Viewpoint - Phreesia (PHR) has shown a significant price increase of 25.5% over the past four weeks, with a mean price target of $29.80 indicating a potential upside of 25% from the current price of $23.84 [1] Group 1: Price Target Insights - The consensus price target is often viewed with skepticism due to analysts' tendency to set overly optimistic targets, which may mislead investors [2][8] - A tight clustering of price targets, indicated by a low standard deviation of $3.30, suggests strong agreement among analysts regarding the stock's price movement [6] - The lowest price estimate is $23, indicating a potential decline of 3.5%, while the highest estimate suggests a 51% increase to $36 [6] Group 2: Earnings Estimates and Analyst Sentiment - The Zacks Consensus Estimate for the current year has increased by 8.6%, reflecting positive sentiment among analysts with no negative revisions [4] - Analysts' growing optimism regarding PHR's earnings prospects is supported by strong agreement in revising EPS estimates higher, which correlates with potential stock price increases [11] - PHR holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, indicating strong potential for upside [12]

Company Overview - Phreesia (NYSE: PHR) provides software solutions for healthcare providers, focusing on registration, scheduling, payments, and clinical support [1] - The software enhances patient intake processes and improves overall patient experiences [1] Recent Performance - Prior to the Q3 2024 earnings report, Phreesia's stock price increased by 21.0% [1] Analyst Background - Dr. Duru, who has been blogging about financial markets since 2000, has extensive experience through various market cycles, including the dot-com bubble, financial crisis, and the coronavirus pandemic [1] - Dr. Duru's blog "One-Twenty Two" offers unique perspectives on financial markets, covering a range of topics including stocks, options, currencies, and Bitcoin [1] - The blog utilizes both technical and fundamental analysis for trading and investing strategies [1]