WILMINGTON, Del.--(BUSINESS WIRE)--Phreesia, a leader in patient intake, outreach and activation, is proud to release data from an analysis of its cancer prevention campaigns illustrating the significant impact its platform can have on increasing rates of cancer screenings. By engaging patients at critical moments in their healthcare journey, Phreesia is driving an effort to ensure that cancer is caught early, at a stage when it can be treated with good health outcomes. The analysis revealed that when pati ...

Phreesia (PHR) is a Zacks Rank #1 (Strong Buy) that has a F for Value and B for Growth.  This is medical information systems company is flying under the radar of most investors as it is a small cap and currently losing money.  The thing is, the company recently accelerated it push to profitability.  Let’s explore more about this company in this Bull of The Day article.DescriptionPhreesia, Inc. engages in the provision of patient check-in solutions for medical practices. The firm offers appointments, clinica ...

WILMINGTON, Del.--(BUSINESS WIRE)--Phreesia, a leader in patient intake, outreach and activation, is pleased to announce that it has joined the National Adult and Influenza Immunization Summit’s Call to Action for Adult Immunizations campaign to improve adult vaccination rates. More than three in four adults are missing routinely recommended vaccines and, due to preventive care put on hold during the COVID-19 pandemic, low vaccination rates have worsened. The mission of the campaign is to encourage healthc ...

WILMINGTON, Del.--(BUSINESS WIRE)--Phreesia, a leader in patient intake, outreach and activation, is proud to announce that Audrey Gato, Vice President of Client Solutions, has been named to The Software Report’s list of the Top 50 Women Leaders in SaaS of 2023. Honorees were chosen based on their leadership and contributions to the Software-as-a-Service industry. This is the sixth consecutive year a female leader from Phreesia has been named to the list. Previous Phreesia awardees include Allison Hoffman, ...

WILMINGTON, Del.--(BUSINESS WIRE)--Phreesia is pleased to announce that the healthcare marketing industry trade publication PM360 has named the Post-Script Engagement, Phreesia’s new medication adherence solution, to its list of 2023 Most Innovative Marketing Technologies or Services. Over the last decade, PM360’s annual Innovations Issue has spotlighted the pharma industry’s most innovative companies, products, strategies, services and more. Phreesia’s Post-Script Engagement offering was one of 56 overall ...

Financial Performance - Total revenue increased 25% to $91.6 million for the three months ended October 31, 2023, compared to $73.1 million for the same period in 2022[155] - Net loss decreased to $31.9 million for the three months ended October 31, 2023, from a net loss of $40.2 million in the same period of 2022[155] - Adjusted EBITDA improved to negative $6.6 million for the three months ended October 31, 2023, compared to negative $18.3 million for the same period in 2022[155] - Total revenue for the three months ended October 31, 2023, was $91.6 million, an increase of 25% compared to $73.1 million in the same period in 2022[184] - Total revenue for the nine months ended October 31, 2023, was $261.3 million, an increase of 28% compared to $204.3 million in the same period in 2022[185] - Adjusted EBITDA for the nine months ended October 31, 2023, was $(31,918) thousand, an improvement from $(74,865) thousand in the same period of 2022[218] Client and Patient Metrics - Average number of healthcare services clients (AHSCs) increased to 3,688 for the three months ended October 31, 2023, from 2,982 in the same period of 2022[169] - Patient payment volume rose to $965 million for the three months ended October 31, 2023, compared to $815 million for the same period in 2022[171] - Total revenue per AHSC was $24,842 for the three months ended October 31, 2023, up 1% from $24,515 in the same period last year[184] - Healthcare services revenue per AHSC remained relatively flat at $17,845 for the three months ended October 31, 2023, compared to $17,645 in the prior year[184] Revenue Breakdown - Subscription and related services revenue increased by $9.6 million to $42.6 million for the three months ended October 31, 2023, representing a 29% growth year-over-year[186] - Payment processing fees revenue rose by $3.6 million to $23.2 million for the three months ended October 31, 2023, an 18% increase compared to the prior year[186] - Network solutions revenue increased by $5.3 million to $25.8 million for the three months ended October 31, 2023, a 26% growth year-over-year[186] - Subscription and related services revenue for the nine months ended October 31, 2023, increased by $26.6 million to $119.8 million, a 29% growth year-over-year[185] - Payment processing fees for the nine months ended October 31, 2023, increased by $12.5 million to $71.1 million, a 21% increase compared to the prior year[193] Expenses - Sales and marketing expense decreased by $0.2 million to $36.5 million for the three months ended October 31, 2023, compared to $36.6 million for the same period in 2022, primarily due to a $1.8 million decrease in total compensation and benefits costs[195] - Research and development expense increased by $5.9 million to $28.5 million for the three months ended October 31, 2023, representing a 26% increase compared to $22.7 million for the same period in 2022[199] - General and administrative expense increased by $0.6 million to $20.2 million for the three months ended October 31, 2023, reflecting a 3% increase from $19.6 million for the same period in 2022[203] - Sales and marketing expense decreased by $3.9 million to $111.1 million for the nine months ended October 31, 2023, a 3% decline from $115.0 million for the same period in 2022[197] - Research and development expense increased by $16.6 million to $82.5 million for the nine months ended October 31, 2023, representing a 25% increase compared to $65.8 million for the same period in 2022[201] - General and administrative expense increased by $0.6 million to $61.1 million for the nine months ended October 31, 2023, a 1% increase from $60.5 million for the same period in 2022[205] Cash Flow and Financial Position - Cash and cash equivalents decreased to $103.4 million as of October 31, 2023, down $73.3 million from January 31, 2023[155] - Free cash flow was negative $11.6 million for the three months ended October 31, 2023, compared to negative $27.5 million for the same period in 2022[155] - Free cash flow for the nine months ended October 31, 2023, was $(46,533) thousand, compared to $(93,828) thousand for the same period in 2022, indicating a 50.5% reduction in cash outflow[220] - During the nine months ended October 31, 2023, net cash used in operating activities was $29.3 million, a decrease from $74.2 million in the same period of 2022[239] - The company believes its cash and cash equivalents, along with cash generated from operations, are sufficient to fund operations for at least the next 12 months[232] Acquisitions - The company acquired MediFind for $8.9 million on June 30, 2023, to enhance patient-centered care offerings[161] - The acquisition of Access for $37.4 million on August 11, 2023, aims to improve workflows and patient experience in hospitals[162] - The company spent $14.3 million on acquisitions (MediFind, Access, and ConnectOnCall) during the nine months ended October 31, 2023[241] - The acquisition of ConnectOnCall included liabilities with an acquisition-date fair value of $10,000 thousand, payable in seven quarterly installments from December 2023 through June 2025[236] Debt and Financing - A new 5-year $50 million senior secured asset-based revolving credit facility was established on December 4, 2023, to enhance financial flexibility[166] - The company entered into a new 5-year $50 million Capital One Credit Facility on December 4, 2023, to replace the terminated Third SVB Facility[229] - As of October 31, 2023, the company had no debt outstanding under the Third SVB Facility and entered into the Capital One Credit Facility on December 4, 2023[255] - The company had no outstanding debt under the Capital One Credit Facility as of the filing date of the report[256] Market Risks and Accounting Policies - The company is exposed to market risks, primarily interest rate and foreign exchange risks, in its operations in the United States and Canada[253] - The company’s estimates and assumptions in financial reporting may differ from actual results, affecting future financial statements and cash flows[250] - There were no significant changes in the company's critical accounting policies and estimates during the three months ended October 31, 2023[251] - During the nine months ended October 31, 2023, there were no significant changes in the company's disclosures about market risk[257] - Changes in interest rates will impact interest expense if the company borrows against the Capital One Credit Facility in the future[256] - The company does not anticipate that a 100 basis point change in interest rates would materially affect its financial condition[254]

Financial Data and Key Metrics Changes - Total revenue for Q2 2024 was $86 million, representing a 26% year-over-year increase [5] - Subscription and related services revenue grew by 26% year-over-year, while processing revenue increased by 21% and Network Solutions revenue rose by 33% [5] - Adjusted EBITDA improved by $14 million year-over-year, reaching negative $12 million [5] - The average number of healthcare services clients increased by 24% year-over-year to 3,445 [5] - The company maintained its revenue outlook for fiscal 2024 in the range of $353 million to $356 million, implying a growth of 26% to 27% over fiscal 2023 [6] Business Line Data and Key Metrics Changes - Subscription revenue has shown consistent deceleration over the past year, raising concerns about future growth [41] - Network Solutions has been a strong performer, contributing significantly to revenue growth [48] Market Data and Key Metrics Changes - The healthcare services client additions are expected to reaccelerate to about 175 in Q3, including clients gained from Access eForms [51] - The company is focusing on expanding its presence in the hospital space, which is seen as a significant growth area [118] Company Strategy and Development Direction - The company aims to return to adjusted EBITDA profitability during fiscal year 2025, with a target of $125 million in quarterly revenue, equating to $500 million annually [7] - The strategy includes maintaining a focus on shareholder value and capital allocation to support financial targets for fiscal 2025 and beyond [7] - The company is investing in its platform to enhance communication with patients and improve service delivery [38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to finance its fiscal year 2025 targets with its current cash position [7] - The management acknowledged the competitive landscape but emphasized the importance of delivering value to clients and improving patient outcomes [26] Other Important Information - The company has made significant investments in its platform, which has impacted gross margins but is expected to yield long-term benefits [9] - The integration of Access eForms is anticipated to enhance the company's offerings in the acute-care space, although immediate revenue impact may be minimal [91] Q&A Session Summary Question: Can you elaborate on the cost of revenues being down year-over-year despite strong revenue growth? - Management noted that cost controls and platform optimization have contributed to this improvement [8] Question: What is the outlook for subscription revenue growth in fiscal 2025? - Management indicated that subscription revenue needs to accelerate to meet fiscal 2025 targets, with a focus on network solutions to drive growth [41] Question: How does the Access eForms acquisition fit into the overall strategy? - The acquisition is seen as a strategic move to enhance product offerings and improve client value, although immediate financial contributions may be limited [91] Question: What are the expectations for healthcare services client growth going forward? - Management expects continued growth in healthcare services clients, with a target of 175 additions in Q3 [51] Question: How is the company managing sales and marketing expenses while adding clients? - Management stated that they are calibrating sales and marketing expenses to support client growth effectively [111]

>$3.6B patient payments processed latest twelve months3,4 Patient-centered care • Flexible payment options Phreesia Phreesia Land new clients Grow footprint within existing clients 3 • $610B out-of-pocket spend by 20302 • Improved cash flow and profitability How we make money IN THE OFFICE t + • Proven ability to continuously innovate The Phreesia platform | --- | --- | --- | --- | --- | --- | |-----------|-------------------------------|-----------------------------------|-------------------------------|-- ...

[PART I — FINANCIAL INFORMATION](index=7&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=7&type=section&id=Item%201.%20Financial%20Statements) Presents Phreesia's unaudited consolidated financial statements for periods ended July 31, 2023, along with notes on accounting policies and recent acquisitions [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) | Balance Sheet Item | July 31, 2023 (in thousands) | January 31, 2023 (in thousands) | Change | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $127,677 | $176,683 | ▼ $49,006 | | Total current assets | $219,230 | $262,441 | ▼ $43,211 | | Goodwill | $40,611 | $33,736 | ▲ $6,875 | | Total Assets | $340,442 | $370,057 | ▼ $29,615 | | Total current liabilities | $84,869 | $79,039 | ▲ $5,830 | | Total Liabilities | $93,422 | $82,238 | ▲ $11,184 | | Accumulated deficit | $(680,382) | $(606,084) | ▲ $74,298 | | Total Stockholders' Equity | $247,020 | $287,819 | ▼ $40,799 | [Consolidated Statements of Operations](index=8&type=section&id=Consolidated%20Statements%20of%20Operations) | Metric (in thousands) | Three Months Ended July 31, 2023 | Three Months Ended July 31, 2022 | YoY Change | | :--- | :--- | :--- | :--- | | Total revenues | $85,830 | $67,867 | +26.5% | | Operating loss | $(36,955) | $(46,335) | +20.2% | | Net loss | $(36,767) | $(46,716) | +21.3% | | Net loss per share | $(0.68) | $(0.89) | +23.6% | | Metric (in thousands) | Six Months Ended July 31, 2023 | Six Months Ended July 31, 2022 | YoY Change | | :--- | :--- | :--- | :--- | | Total revenues | $169,675 | $131,221 | +29.3% | | Operating loss | $(74,856) | $(96,928) | +22.8% | | Net loss | $(74,298) | $(97,958) | +24.2% | | Net loss per share | $(1.39) | $(1.88) | +26.1% | [Consolidated Statements of Stockholders' Equity](index=9&type=section&id=Consolidated%20Statements%20of%20Stockholders%27%20Equity) - The accumulated deficit increased by **$74.3 million** during the first six months of fiscal 2024, from **$(606.1) million** at January 31, 2023, to **$(680.4) million** at July 31, 2023, primarily driven by the net loss for the period[27](index=27&type=chunk) [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) | Cash Flow Activity (in thousands) | Six Months Ended July 31, 2023 | Six Months Ended July 31, 2022 | | :--- | :--- | :--- | | Net cash used in operating activities | $(22,990) | $(53,476) | | Net cash used in investing activities | $(15,795) | $(12,876) | | Net cash used in financing activities | $(10,221) | $(6,731) | | **Net decrease in cash and cash equivalents** | **$(49,006)** | **$(73,083)** | - Cash used in operating activities decreased significantly year-over-year, from **$53.5 million** in the first six months of fiscal 2023 to **$23.0 million** in the same period of fiscal 2024, despite the ongoing net loss. This improvement was mainly due to smaller negative changes in working capital and higher non-cash stock-based compensation expense[29](index=29&type=chunk) [Notes to Unaudited Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) - The company has a history of net losses and negative cash flows, which management expects to continue for at least the next year. Operations are primarily funded through proceeds from stock issuances and debt[35](index=35&type=chunk) - On June 30, 2023, the company acquired MediFind for an aggregate consideration of **$8.9 million**, consisting of cash and stock, to expand its consumer-facing healthcare offerings[128](index=128&type=chunk) - Subsequent to the quarter end, on August 11, 2023, the company acquired Access eForms for total consideration of **$38.4 million** in cash and stock to enhance its capabilities in the acute care market[136](index=136&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Phreesia's financial performance for the three and six months ended July 31, 2023, highlighting revenue growth, narrowed net loss, and liquidity [Financial Highlights](index=31&type=section&id=Financial%20Highlights) | Metric | Three Months Ended July 31, 2023 | Three Months Ended July 31, 2022 | | :--- | :--- | :--- | | Total revenue | $85.8 million | $67.9 million (+26%) | | Net loss | $(36.8) million | $(46.7) million | | Adjusted EBITDA | $(11.5) million | $(26.0) million | | Net cash used in operating activities | $(9.3) million | $(19.8) million | [Key Metrics](index=33&type=section&id=Key%20Metrics) | Key Metric | Three Months Ended July 31, 2023 | Three Months Ended July 31, 2022 | | :--- | :--- | :--- | | Average number of healthcare services clients (AHSCs) | 3,445 | 2,776 | | Healthcare services revenue per AHSC | $18,268 | $18,248 | | Total revenue per AHSC | $24,914 | $24,448 | - Patient payment volume increased by **22%** to **$989 million** for the three months ended July 31, 2023, compared to **$811 million** in the prior year period, indicating strong underlying activity on the platform[154](index=154&type=chunk)[156](index=156&type=chunk) [Comparison of results of operations](index=36&type=section&id=Comparison%20of%20results%20of%20operations) | Revenue Stream (in thousands) | Three Months Ended July 31, 2023 | Three Months Ended July 31, 2022 | YoY Change | | :--- | :--- | :--- | :--- | | Subscription and related services | $39,301 | $31,069 | +26% | | Payment processing fees | $23,631 | $19,581 | +21% | | Network solutions | $22,898 | $17,217 | +33% | | **Total revenue** | **$85,830** | **$67,867** | **+26%** | - Research and development expenses increased by **22%** to **$27.5 million** for the quarter, primarily due to a **$4.2 million** increase in compensation and benefits costs from higher headcount and compensation[180](index=180&type=chunk) - Sales and marketing expenses decreased by **3%** to **$37.2 million** for the quarter, mainly driven by a **$2.0 million** decrease in compensation costs due to lower average headcount[176](index=176&type=chunk) [Liquidity and capital resources](index=42&type=section&id=Liquidity%20and%20capital%20resources) - As of July 31, 2023, the company had cash and cash equivalents of **$127.7 million**, a decrease of **$49.0 million** from January 31, 2023. Management believes existing cash is sufficient to meet needs for at least the next 12 months[205](index=205&type=chunk)[141](index=141&type=chunk) - Following the closure of Silicon Valley Bank (SVB), the company transferred most of its cash to other institutions. While it has a **$100 million** credit facility with SVB (now First Citizens), a covenant restricts borrowing while significant cash is held outside the bank. The company obtained a temporary consent extension through November 15, 2023[212](index=212&type=chunk)[213](index=213&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=45&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks are interest rate and foreign exchange, mainly affecting interest income on cash and cash equivalents, with minimal variable-rate debt exposure - The company's main market risk exposure is to interest rates, which primarily impacts the interest income earned on its cash and cash equivalents[232](index=232&type=chunk)[233](index=233&type=chunk) - As of July 31, 2023, the company had no debt outstanding under its variable-rate credit facility, mitigating risk from rising interest expenses[234](index=234&type=chunk) [Item 4. Controls and Procedures](index=45&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective as of July 31, 2023, with no material changes to internal controls during the quarter - Based on an evaluation as of July 31, 2023, the Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level[237](index=237&type=chunk) - No material changes were made to the company's internal control over financial reporting during the quarter ended July 31, 2023[238](index=238&type=chunk) [PART II — OTHER INFORMATION](index=46&type=section&id=PART%20II%20%E2%80%94%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=46&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently a party to any legal proceedings that would materially adversely affect its business, operating results, financial condition, or cash flows - As of the filing date, Phreesia is not involved in any legal proceedings that are expected to have a material adverse effect on the company[241](index=241&type=chunk) [Item 1A. Risk Factors](index=46&type=section&id=Item%201A.%20Risk%20Factors) This section details numerous risks and uncertainties associated with the company's business, including operational, financial, data security, and regulatory challenges - The company has experienced rapid growth and increasing expenses, and failure to manage this growth effectively could prevent revenue increases and hinder the implementation of its business strategy[243](index=243&type=chunk) - Phreesia has a history of net losses, including **$36.8 million** for the quarter, and may not achieve profitability in the future as it continues to invest in its business[255](index=255&type=chunk) - The company faces significant risks related to privacy and security breaches of its platform, which could lead to economic loss, reputational damage, and legal liability due to the sensitive patient data it handles[259](index=259&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=78&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities occurred during the quarter ended July 31, 2023, that were not previously reported on a Form 8-K - There were no unregistered sales of equity securities during the quarter ended July 31, 2023, that had not been previously disclosed[413](index=413&type=chunk) [Item 5. Other Information](index=78&type=section&id=Item%205.%20Other%20Information) This section discloses that David Linetsky, SVP of Life Sciences, terminated a prior Rule 10b5-1 Trading Plan and adopted a new one on July 19, 2023 - On July 18, 2023, David Linetsky, SVP of Life Sciences, terminated his existing Rule 10b5-1 trading plan and adopted a new one on July 19, 2023, covering the sale of up to **77,473 shares** plus additional shares from future vested equity awards[416](index=416&type=chunk)[418](index=418&type=chunk) [Item 6. Exhibits](index=81&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including the company's amended certificate of incorporation, equity plan documents, and required certifications

Financial Data and Key Metrics Changes - Revenue in the first quarter was $84 million, up 32% year-over-year, marking the ninth consecutive quarter of over 30% year-over-year revenue growth [28][41] - Adjusted EBITDA outlook for fiscal 2024 was raised to a range of negative $60 to negative $55 million, showing continued improvement on the path to profitability [56] Business Line Data and Key Metrics Changes - Average number of healthcare services clients was 3,309, up 31% year-over-year, with total revenue for average healthcare services clients at $25,338, up 1% year-over-year [41] - Subscription and related services revenue grew 30% year-over-year, payment processing revenue grew 25% year-over-year, and network solutions revenue was up 46% year-over-year [41] Market Data and Key Metrics Changes - The company maintained its revenue outlook for fiscal 2024 in the range of $353 million to $356 million, implying growth of 26% to 27% over fiscal 2023 revenue [56] - A significant increase in payment volume was noted, with a $1 billion volume quarter in payment processing, indicating strong market demand [101] Company Strategy and Development Direction - The company is focused on maintaining revenue and profitability targets for fiscal 2025, aiming for $125 million of revenue in a quarter, which implies $500 million of annualized revenue [43] - Continued investment in R&D is emphasized as a key area for future growth, with the company planning to enhance its product offerings and capabilities [70] Management's Comments on Operating Environment and Future Outlook - Management noted that patient volumes in the first quarter were stronger than anticipated, indicating a positive trend in demand [58] - The company expressed confidence in its ability to finance its fiscal 2025 targets with its current cash position, which stands at approximately $150 million [86] Other Important Information - The company is actively exploring partnerships and integrations with other healthcare IT service offerings to drive incremental subscription growth [103] - Management highlighted the importance of client satisfaction and product quality as key drivers of business success [94] Q&A Session Summary Question: What contributed to the higher patient volumes in the first quarter? - Management attributed the stronger-than-expected volumes to seasonal strength and effective campaign pacing [58] Question: How should we think about the sales and marketing expenses going forward? - Management indicated that operating leverage on sales and marketing expenses will be a source of achieving EBITDA positivity [63] Question: What is the outlook for the Medicare Advantage market? - Management acknowledged headwinds in the Medicare market but remains optimistic about the growth potential of the MemberConnect product [180]