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 ...

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 April 30, 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 oth ...

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]

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, 2022 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 ...

Financial Data and Key Metrics Changes - The average healthcare services clients increased by 33% year-over-year [10] - Revenue outlook for the year is maintained at $271 million to $275 million, implying a growth of 27% to 29% year-over-year [11] - Adjusted EBITDA outlook improved to a range of negative $126 million to negative $122 million, up from a prior outlook of negative $154 million to negative $149 million [13] Business Line Data and Key Metrics Changes - Life sciences growth was up 51% year-over-year, although revenue decreased slightly by $563,000 sequentially from Q4 [12] Market Data and Key Metrics Changes - Patient utilization trends were slightly below expectations, which may persist throughout the year [11] Company Strategy and Development Direction - The company focuses on building great products and expanding its client base, emphasizing a "land and expand" strategy [21][24] - Management is committed to addressing social determinants of health, aiming to empower providers rather than monetizing these services [33] Management's Comments on Operating Environment and Future Outlook - Management noted a mixture of COVID-related issues affecting both staff and patient attendance, impacting overall patient utilization trends [30] - The company is confident in its ability to achieve profitability by fiscal 2025, with expected revenue growth at a CAGR of 28% and expenses growing at 10% to 11% [77] Other Important Information - The company has maintained a consistent subscription revenue per provider client at $11,500 for several quarters [21] - The current cash balance and line of credit are deemed sufficient to finance the company's plans to achieve its 2025 targets [77] Q&A Session Summary Question: Dynamics around revenue per provider client and decline - Management explained that the decline is due to a "land and expand" strategy where new clients initially generate lower revenue [21] Question: Update on patient utilization trends - Management indicated that trends are influenced by a combination of COVID impacts and staffing issues [30] Question: Update on social determinants of health offering - Management emphasized the importance of addressing social determinants without monetizing them, focusing on empowering providers [33] Question: Insights on subscription revenue per client - Management noted low churn rates and success in upselling and cross-selling, indicating a strong customer retention strategy [64] Question: Pipeline for enterprise clients - Management stated that the go-to-market strategy remains consistent, focusing on delivering value and continuous engagement with clients [104] Question: Changes in marketing and campaign scrutiny - Management acknowledged increased scrutiny on marketing effectiveness and a shift away from traditional advertising methods [94]