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 | --- | --- | --- | --- | --- | --- | |-----------|-------------------------------|-----------------------------------|-------------------------------|-- ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38977 PHREESIA, INC. (Exact name of registrant as specified in its charter) Delaware 20-2275479 (State or othe ...

Phreesia, Inc. (NYSE:PHR) Q1 2024 Results Conference Call May 31, 2023 5:00 PM ET Company Participants Balaji Gandhi - CFO Chaim Indig - CEO Conference Call Participants Anne Samuel - JPMorgan Ryan Daniels - William Blair Jessica Tassan - Piper Sandler Glen Santangelo - Jefferies Scott Schoenhaus - KeyBanc Ryan MacDonald - Needham John Ransom - Raymond James Tom Kelliher - RBC Capital Markets Stephanie Davis - SVB Richard Close - Canaccord Genuity Daniel Grosslight - Citi Jeff Garro - Stephens Robert Simmon ...

Financial Performance - Total revenue increased 32% to $83.8 million for the three months ended April 30, 2023, compared to $63.4 million for the same period in 2022[127] - Net loss was $37.5 million for the three months ended April 30, 2023, an improvement from a net loss of $51.2 million in the same period in 2022[127] - Adjusted EBITDA improved to negative $13.8 million for the three months ended April 30, 2023, compared to negative $30.6 million in the same period in 2022[127] - Total revenue for the three months ended April 30, 2023, was $83.8 million, a 32% increase from $63.4 million in the same period of 2022[146] - Subscription and related services revenue increased by $8.8 million to $37.9 million, representing a 30% growth year-over-year[148] - Payment processing fees revenue rose by $4.9 million to $24.3 million, a 25% increase compared to the prior year[146] - Network solutions revenue grew by $6.8 million to $21.7 million, marking a 46% increase from the previous year[146] Client Metrics - Average number of healthcare services clients (AHSCs) increased to 3,309 for the three months ended April 30, 2023, from 2,526 in the same period in 2022[134] - Healthcare services revenue per AHSC decreased by 2% to $18,779 for the three months ended April 30, 2023, compared to $19,193 in the same period in 2022[134] - Total revenue per AHSC increased by 1% to $25,338 for the three months ended April 30, 2023, compared to $25,081 in the same period in 2022[134] Cash Flow and Liquidity - Cash and cash equivalents decreased by $26.9 million to $149.8 million as of April 30, 2023, compared to January 31, 2023[127] - Net cash used in operating activities improved to $13.7 million for the three months ended April 30, 2023, from $33.6 million in the same period in 2022[127] - Free cash flow for the three months ended April 30, 2023, was $(19.7) million, an improvement from $(40.7) million in the same period of 2022[167] - As of April 30, 2023, the company had cash and cash equivalents of $149.8 million, down from $176.7 million as of January 31, 2023[168] - Net cash used in operating activities was $(13.7) million for the three months ended April 30, 2023, compared to $(33.6) million in the same period of 2022, reflecting improved cash flow management[178] - The company incurred $6.1 million in net cash used in investing activities during the three months ended April 30, 2023, primarily for capitalized internal-use software costs[180] - Financing activities resulted in a net cash outflow of $7.2 million for the three months ended April 30, 2023, mainly due to treasury stock purchases[182] Expenses - Research and development expenses increased by $5.8 million to $26.5 million, reflecting a 28% rise year-over-year[154] - Sales and marketing expenses decreased by $2.6 million to $37.4 million, a 7% decline compared to the same period in 2022[152] - General and administrative expenses decreased by $1.0 million to $19.9 million, a 5% reduction year-over-year[156] - Payment processing expenses increased by $3.9 million to $16.1 million, a 32% increase from the previous year[151] - Amortization expenses rose by $0.9 million to $2.5 million, a 55% increase compared to the same period in 2022[159] Interest and Debt - Interest income for the three months ended April 30, 2023, was $0.7 million, compared to an expense of $0.4 million in the same period of 2022[161] - The company has potential borrowing capacity under its credit agreement, which was increased to $100 million with an interest rate of 7.50% as of April 30, 2023[171] - As of April 30, 2023, the company had no outstanding debt under the Third SVB Facility[193] - The company recorded a finance lease with total undiscounted payments of $7.7 million through the fiscal year ended January 31, 2027[185] Market and Risk Factors - The company believes its existing cash and cash equivalents, along with cash generated from operations, will be sufficient to meet its needs for at least the next 12 months[168] - Changes in interest rates are not expected to materially affect the company's financial condition, even with a 100 basis point increase or decrease[192] - Future borrowing against the Third SVB Facility may be impacted by changes in interest rates, affecting interest expense[194] - Changes in interest rates will also impact the discount rate and resulting interest expense for any new finance leases[194] - There were no significant changes in the company's market risk disclosures compared to the previous fiscal year[195] - The company will continue to evaluate its investment policy to meet overall objectives in future periods[192]

Financial Data and Key Metrics - Revenue in Q4 was $77 million, up 32% YoY, marking the eighth consecutive quarter of over 30% YoY revenue growth [9] - Average number of healthcare services clients in Q4 was 3,140, up 36% YoY, with 158 clients added sequentially [10] - Total revenue per average healthcare services client was $24,390, down 3% YoY and 1% sequentially, driven by client growth outpacing revenue growth in subscription and payment processing [11] - Subscription-related services revenue grew 35% YoY, payment processing revenue grew 23% YoY, and network solutions revenue grew 36% YoY [11] - For fiscal 2024, revenue is expected to be in the range of $353 million to $356 million, implying 26% to 27% growth over fiscal 2023 [12] - Adjusted EBITDA for fiscal 2024 is expected to be in the range of negative $65 million to negative $60 million, showing continued improvement toward profitability [12] Business Line Data and Key Metrics - Healthcare services revenue, combining subscription and related services with payment processing, grew 31% YoY in Q4 [10] - Network solutions revenue saw strong growth, driven by client focus on ROI and the effectiveness of the company's team [22] - The company facilitated over 120 million visits in fiscal 2023, up 20% YoY, with healthcare services client growth slightly outpacing visit growth [38] Market Data and Key Metrics - The company expects a sequential increase in average healthcare services clients in Q1 of fiscal 2024, similar to the 158-client increase seen in Q4 of fiscal 2023 [13] - The company remains comfortable with its ability to finance fiscal 2025 targets, including reaching $500 million in annualized revenue and achieving adjusted EBITDA profitability [14] Company Strategy and Industry Competition - The company is focused on delivering durable and profitable growth, with a strong emphasis on ROI and client value [22] - The company is investing in product development and new markets, with a goal of returning to adjusted EBITDA profitability in fiscal 2025 [14] - The company is well-positioned to capitalize on the growing demand for healthcare automation and patient engagement solutions [22] Management Commentary on Operating Environment and Future Outlook - Management highlighted the strong performance of the network solutions segment, attributing it to client focus on ROI and the effectiveness of the company's team [22] - The company is optimistic about its ability to achieve fiscal 2025 targets, including reaching $500 million in annualized revenue and achieving adjusted EBITDA profitability [14] - Management emphasized the importance of maintaining a culture of ownership and stewardship of capital, which has contributed to the company's strong financial performance [49] Other Important Information - The company announced a CFO transition, with Balaji Gandhi taking over as CFO on March 24, 2023 [6][7] - The company introduced a new key metric, total revenue per average healthcare services client, which was $24,390 in Q4 [11] Q&A Session Summary Question: Growth in Network Solutions Segment - The company attributed strong growth in the network solutions segment to client focus on ROI and the effectiveness of its team [22] - Management expects continued growth in this segment, driven by client demand for ROI-focused solutions [22] Question: Outlook for Fiscal 2024 - The company expects revenue growth of 26% to 27% in fiscal 2024, driven by client growth and stable revenue per client [12][35] - Management highlighted the importance of maintaining operating leverage and achieving adjusted EBITDA profitability in fiscal 2025 [14] Question: Payment Processing Revenue - Payment processing revenue grew 23% YoY in Q4, with management expecting stable growth in fiscal 2024 [11][35] - The company is focused on improving payment processing margins and expects to see improvement as it scales [95] Question: Social Determinants of Health Screening Tool - The company provides social determinants of health modules as part of its package but does not currently monetize this offering [42] - Management believes this is the right thing to do for clients and patients, and there are no plans to charge for this service [42] Question: EBITDA Performance and Guidance - Management discussed the factors that contributed to better-than-expected EBITDA performance in fiscal 2023, including improved productivity and cost management [46][48] - The company expects continued improvement in EBITDA, with a goal of achieving profitability in fiscal 2025 [14] Question: New Metric - Total Revenue per Average Healthcare Services Client - The company introduced this metric to provide a more comprehensive view of revenue performance across subscription, payment processing, and network solutions [52] - Management expects this metric to fluctuate based on the contribution of different revenue streams in any given quarter [52] Question: Long-Term Growth and Client Retention - The company is focused on both client acquisition and expansion, with a strong emphasis on delivering value to existing clients [50][52] - Management highlighted the importance of cross-selling and upselling to drive long-term growth [100] Question: R&D Investments and Product Development - The company is investing in R&D to drive product innovation and expand into new markets [122] - Management expects R&D expenses to grow in line with revenue, contributing to long-term operating leverage [124] Question: Payer and Referral Management Growth - The company is seeing early success in the payer space, with the first enrollment period for MemberConnect performing better than expected [26][27] - Management is optimistic about the growth potential of these newer vectors but is still in the learning phase [27] Question: Commercial Team and Cross-Selling - The company has separate teams for new client acquisition and client expansion, both of which are performing well [92] - Management is focused on cross-training and enabling the commercial team to sell the full suite of solutions [100] Question: Payment Fees per Provider Client - Payment fees per provider client declined 10% YoY in Q4, driven by a mix of client types [119] - Management expects this metric to stabilize and return to more normalized growth in fiscal 2024 [120] Question: Capital Allocation and Acquisitions - The company is committed to being a good steward of capital and will consider acquisitions if they align with strategic goals and deliver strong returns [149] - Management emphasized the importance of acquiring great capabilities rather than just good deals [149] Question: Life Sciences Growth - Growth in the life sciences segment is being driven by greater wallet share from existing clients, new client acquisitions, and strong execution [151] - The company is focused on delivering value to life sciences clients and expanding its footprint in this market [151] Question: Hospital Market Expansion - The company has seen success in various hospital segments, including children's hospitals, community hospitals, and regional hospitals [170] - Management is focused on delivering value to hospitals through automation and improved workflows [170]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended January 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _ to _ Commission File Number: 001-38977 PHREESIA, INC. (Exact Name of Registrant as Specified in Its Charter) Delaware 20-2275479 (State or Other J ...

Phreesia, Inc. (NYSE:PHR) Q3 2023 Earnings Conference Call December 8, 2022 5:00 PM ET Company Participants Balaji Gandhi - SVP, IR Chaim Indig - CEO & Co-Founder Randy Rasmussen - CFO Conference Call Participants Anne Samuel - JPMorgan Ryan Daniels - William Blair Richard Close - Canaccord Genuity Jessica Tassan - Piper Sandler Stephanie Davis - SVB Securities Glen Santangelo - Jefferies Daniel Grosslight - Citi John Ransom - Raymond James Scott Schoenhaus - KeyBanc Joe Vruwink - Baird Ryan MacDonald - Nee ...

Revenue Growth - Total revenue increased 31% to $73.1 million for the three months ended October 31, 2022, compared to $55.9 million for the same period in 2021[130] - Total revenue increased 32% to $204.3 million for the nine months ended October 31, 2022, compared to $155.2 million for the same period in 2021[130] - Total revenue for the three months ended October 31, 2022, increased by $17.2 million, or 31%, to $73.1 million compared to $55.9 million for the same period in 2021[152] - Subscription and related services revenue rose by $8.6 million, or 35%, to $33.0 million for the three months ended October 31, 2022, driven by new healthcare services clients and expansion to existing clients[154] - Total revenue for the nine months ended October 31, 2022, increased by $49.1 million, or 32%, to $204.3 million compared to $155.2 million for the same period in 2021[153] Financial Losses - Net loss was $40.2 million for the three months ended October 31, 2022, compared to $36.3 million for the same period in 2021[130] - Adjusted EBITDA was negative $18.3 million for the three months ended October 31, 2022, compared to negative $17.6 million for the same period in 2021[130] - Adjusted EBITDA for the three months ended October 31, 2022, was a loss of $18.3 million, compared to a loss of $17.6 million for the same period in 2021[187] - Free cash flow was negative $27.5 million for the three months ended October 31, 2022, compared to negative $39.0 million for the same period in 2021[130] - Free cash flow for the three months ended October 31, 2022, was a negative $27.5 million, an improvement from negative $39.0 million in the same period of 2021[189] Cash and Cash Equivalents - Cash and cash equivalents as of October 31, 2022, were $209.6 million, a decrease of $104.2 million compared to January 31, 2022[130] - As of October 31, 2022, the company had cash and cash equivalents of $209.6 million, down from $313.8 million as of January 31, 2022[191] - The company believes that existing cash and cash equivalents, along with available financial resources, will be sufficient to meet its needs for at least the next 12 months[192] - The net decrease in cash and cash equivalents for the nine months ended October 31, 2022, was $104.2 million, contrasting with an increase of $181.6 million in the same period of 2021[197] Operating Activities - Net cash used in operating activities was $20.7 million for the three months ended October 31, 2022, compared to $24.5 million for the same period in 2021[130] - Cash used in operating activities for the nine months ended October 31, 2022, was $74.2 million, an increase from $36.7 million in the same period of 2021, reflecting higher employee compensation costs and outside services costs[199] - The increase in cash used in operating activities was driven by higher employee headcount and compensation costs, partially offset by increased cash received from customers due to higher revenues[200] Expenses - Cost of revenue (excluding depreciation and amortization) increased by $2.9 million, or 25%, to $14.6 million for the three months ended October 31, 2022, primarily due to higher employee compensation and benefits costs[156] - Research and development expense increased by $7.4 million, or 48%, to $22.7 million for the three months ended October 31, 2022, driven by higher compensation and increased headcount[166] - Sales and marketing expense rose by $4.6 million, or 14%, to $36.6 million for the three months ended October 31, 2022, primarily due to increased compensation and third-party costs[162] - General and administrative expense increased by $1.6 million, or 9%, to $19.6 million for the three months ended October 31, 2022, mainly due to higher compensation costs[170] - Payment processing expense increased by $8.7 million, or 30%, to $37.5 million for the nine months ended October 31, 2022, driven by an increase in patient payments processed[161] Depreciation and Amortization - Depreciation expense increased by $1.1 million to $4.9 million for the three months ended October 31, 2022, representing a 31% increase compared to $3.7 million for the same period in 2021[174] - For the nine months ended October 31, 2022, depreciation expense rose by $2.6 million to $13.4 million, a 25% increase from $10.7 million in the prior year[175] - Amortization expense increased by $0.3 million to $1.8 million for the three months ended October 31, 2022, reflecting a 20% increase from $1.5 million in the same period of 2021[176] Financing Activities - Net cash used in financing activities for the nine months ended October 31, 2022, was $10.4 million, compared to a net cash inflow of $242.9 million in the same period of 2021, which included $245.8 million from a common stock offering[203][204] - The Third SVB Facility allows for borrowings up to $100.0 million, with an interest rate of 5.75% as of October 31, 2022, and no outstanding balance[194] - The company was in compliance with all covenants related to the Third SVB Facility as of October 31, 2022[196] Market Risks and Accounting Policies - The company continues to be exposed to market risks, including interest rate and foreign exchange risks, with no significant changes reported during the nine months ended October 31, 2022[210] - There were no significant changes in critical accounting policies and estimates during the nine months ended October 31, 2022[208] - The primary sources of cash from operating activities include cash received from customers and interest earned on money market mutual funds[198]

Financial Data and Key Metrics Changes - Revenue for Q2 2023 was $68 million, representing a 33% year-over-year increase, marking the sixth consecutive quarter of over 30% revenue growth [12][11] - Health care services revenue, which includes subscription and related services and payment processing revenue, increased by 29% year-over-year [13] - Adjusted EBITDA outlook for fiscal 2023 was raised to a range of negative $109 million to negative $106 million, improved from the previous range of negative $126 million to negative $122 million [17] Business Line Data and Key Metrics Changes - The average number of health care services clients reached 2,776, with an addition of 250 clients sequentially, achieving a 40% year-over-year growth [12] - Payment processing revenue grew by 20% year-over-year, following a 38% growth in the same quarter last year [14] - Life Sciences revenue saw a significant increase of 46% year-over-year, building on a 95% growth from the previous year [15] Market Data and Key Metrics Changes - Phreesia now impacts over 10% of patient visits in the U.S. daily, indicating a strong market presence [15] - The company expects to end fiscal 2023 with cash and cash equivalents between $165 million and $170 million, supporting its growth plans [18] Company Strategy and Development Direction - The company is focused on maintaining a best-in-class product offering, expanding relationships with existing clients, and growing its network with new clients [18] - Investments in product development and client success are seen as critical to driving future growth and shareholder value [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving adjusted EBITDA profitability by fiscal 2025, supported by strong performance and effective cost management [17][33] - There is a pragmatic approach to utilization expectations, with no anticipated significant increases in the second half of the year [54] Other Important Information - The company has not observed any significant trends in rising patient self-pay balances affecting its payment processing outlook [56] - Management emphasized the importance of building trust with clients and providing value to drive expansion within existing accounts [81] Q&A Session Summary Question: Insights on EBITDA guidance raise - Management highlighted a focus on smart spending and careful evaluation of expenses as key factors in the improved EBITDA outlook [21][22] Question: Life Sciences business performance - Management noted that investments in network growth and product development have significantly contributed to the strong performance in Life Sciences [23] Question: Visibility on digital advertising and Life Sciences growth - Management indicated decent visibility for the fiscal year but noted January as a month with less visibility due to client fiscal year-end contracts [27][29] Question: Cash flow guidance and balance sheet confidence - Management confirmed confidence in cash balances and the ability to execute on the fiscal 2025 plan without any borrowings [33][34] Question: Average revenue per client trends - Management clarified that the decline in average revenue per client is primarily due to the growth in the payments business, while subscription revenue per client has remained stable [49][50] Question: Utilization expectations - Management does not expect a significant increase in utilization in the second half of the year, based on current data and provider feedback [54][76] Question: Competition and market dynamics - Management acknowledged ongoing competition but emphasized the complexity of their offerings and the value they provide to clients [61][62] Question: Payment processing ramp-up for new clients - Management explained that there is typically a ramp-up period of three to four months for new clients to fully transition to their payment solutions [69] Question: Client retention and health care services - Management reported consistent client retention rates, with no significant changes observed in the macro environment affecting retention [117][118]