Phreesia (PHR) came out with a quarterly loss of $0.31 per share versus the Zacks Consensus Estimate of a loss of $0.37. This compares to loss of $0.68 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 16.22%. A quarter ago, it was expected that this developer of health care software would post a loss of $0.51 per share when it actually produced a loss of $0.35, delivering a surprise of 31.37%. Over the last four quarters, the ...

Wall Street analysts expect Phreesia (PHR) to post quarterly loss of $0.37 per share in its upcoming report, which indicates a year-over-year increase of 45.6%. Revenues are expected to be $102.05 million, up 18.9% from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe. Prior to a company's earnings announcement, it is crucial to co ...

Core Viewpoint - Phreesia (PHR) shares have increased by 13.2% in the past four weeks, closing at $22.65, with a mean price target of $28.94 indicating a potential upside of 27.8% [1] Group 1: Price Targets and Analyst Consensus - The average of 16 short-term price targets ranges from a low of $23 to a high of $34, with a standard deviation of $2.57, suggesting a potential increase of 1.6% to 50.1% from the current price [6] - Analysts have shown strong agreement in revising earnings per share (EPS) estimates higher, which correlates with potential stock price increases [9] - The Zacks Rank for PHR is 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [10] Group 2: Limitations of Price Targets - Solely relying on price targets for investment decisions may lead to disappointing returns, as analysts' ability to set unbiased targets has been questioned [2][5] - Empirical research indicates that price targets often mislead investors rather than guide them accurately [7] - Analysts may set overly optimistic price targets due to business incentives, which can inflate expectations [11]

Core Insights - The correlation between earnings estimate revisions and stock price movements is significant, influenced by institutional investors who adjust their valuations based on these estimates [1][6][8] Company Overview: Phreesia - Phreesia has received an upgrade to a Zacks Rank 1 (Strong Buy), indicating a positive outlook for its earnings estimates [3][4] - The Zacks rating upgrade reflects an upward trend in earnings estimates, which is a critical factor affecting stock prices [3][5] - Analysts have raised their earnings estimates for Phreesia, with the Zacks Consensus Estimate increasing by 21.3% over the past three months [12] Earnings Outlook - Phreesia is expected to report earnings of -$1.16 per share for the fiscal year ending January 2025, representing a year-over-year change of 53.8% [7] - The rising earnings estimates suggest an improvement in Phreesia's underlying business, which could lead to higher stock prices as investors respond positively [5][15] Zacks Rating System - The Zacks Rank system classifies stocks based on earnings estimate revisions, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [11] - The system maintains a balanced distribution of ratings, ensuring that only the top 5% of stocks receive a 'Strong Buy' rating, indicating superior earnings estimate revisions [13][15]

The investigation concerns whether Phreesia and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. On May 30, 2024, Phreesia issued a press release announcing financial results for the first quarter of its fiscal year 2025. Among other items, Phreesia update its "revenue outlook for fiscal year 2025 to a range of $416 million to $426 million from a previous range of $424 million to $434 million." Phreesia advised that "[t]he updated revenue range ...

Core Viewpoint - Pomerantz LLP is investigating potential securities fraud or unlawful business practices involving Phreesia, Inc. and its officers or directors [1] Financial Performance - On May 30, 2024, Phreesia announced its financial results for Q1 of fiscal year 2025, updating its revenue outlook to a range of $416 million to $426 million, down from a previous range of $424 million to $434 million [3] - The updated revenue outlook reflects the accelerated wind-down of a clearinghouse client relationship and assumes no additional revenue from potential future acquisitions before January 31, 2025 [3] - Following the announcement, Phreesia's stock price dropped by $2.39 per share, or 11.22%, closing at $18.92 per share on May 31, 2024 [3]

Group 1 - The stock of Phreesia (PHR) has experienced a significant downtrend, declining 18.3% over the past four weeks, but is now in oversold territory, indicating a potential for a turnaround [1][5] - The Relative Strength Index (RSI) for PHR is currently at 26.52, suggesting that the heavy selling pressure may be exhausting itself and a price reversal could be imminent [5][6] - Analysts have raised their earnings estimates for PHR, with a consensus EPS estimate increase of 8.7% over the last 30 days, which typically correlates with price appreciation [6][7] Group 2 - PHR holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a near-term turnaround [7]

PART I — FINANCIAL INFORMATION [Item 1. Financial Statements](index=7&type=section&id=Item%201.%20Financial%20Statements) Phreesia, Inc. reported **$101.2 million** in revenue and a **$19.7 million** net loss for Q1 FY2025, significantly improving from the prior year with reduced cash used in operations Consolidated Balance Sheet Highlights (Unaudited) | Account | April 30, 2024 (in thousands) | January 31, 2024 (in thousands) | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $79,527 | $87,520 | | Total current assets | $190,901 | $195,684 | | Total Assets | $372,086 | $370,326 | | **Liabilities & Stockholders' Equity** | | | | Total current liabilities | $108,282 | $110,119 | | Total Liabilities | $119,344 | $118,877 | | Total Stockholders' Equity | $252,742 | $251,449 | Consolidated Statement of Operations Highlights (Unaudited) | Metric | Three months ended April 30, 2024 (in thousands) | Three months ended April 30, 2023 (in thousands) | | :--- | :--- | :--- | | Total revenues | $101,217 | $83,845 | | Operating loss | $(19,420) | $(37,901) | | Net loss | $(19,722) | $(37,531) | | Net loss per share, basic and diluted | $(0.35) | $(0.70) | Consolidated Statement of Cash Flows Highlights (Unaudited) | Cash Flow Activity | Three months ended April 30, 2024 (in thousands) | Three months ended April 30, 2023 (in thousands) | | :--- | :--- | :--- | | Net cash used in operating activities | $(721) | $(13,659) | | Net cash used in investing activities | $(5,446) | $(6,079) | | Net cash used in financing activities | $(1,825) | $(7,178) | | Net decrease in cash and cash equivalents | $(7,993) | $(26,916) | [Notes to Unaudited Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) The notes detail accounting policies, revenue sources, and financial statement composition, confirming sufficient liquidity and the establishment of a new Indian subsidiary - Management believes the company's cash and cash equivalents of **$79.5 million**, along with cash from operations and available borrowing capacity, are sufficient to fund operations for at least the next 12 months[38](index=38&type=chunk) - The company generates revenue from three primary sources: subscription and related services, payment processing fees, and network solutions for life sciences and payer clients[66](index=66&type=chunk) Stock-Based Compensation Expense by Type | Award Type | Three months ended April 30, 2024 (in thousands) | Three months ended April 30, 2023 (in thousands) | | :--- | :--- | :--- | | RSUs | $11,323 | $12,899 | | PSUs | $2,804 | $1,644 | | Liability awards | $2,697 | $2,525 | | ESPP | $364 | $370 | | Stock options | $0 | $37 | | **Total** | **$17,188** | **$17,475** | - During the quarter, the company established and commenced operations of a subsidiary in India, Phreesia India Private Limited, to support various business functions, replacing services previously provided by a third-party[131](index=131&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reported a **21%** revenue increase to **$101.2 million** and positive Adjusted EBITDA of **$4.1 million**, despite impacts from recent cybersecurity incidents and a slight decline in revenue per client [Financial Highlights and Recent Developments](index=29&type=section&id=Financial%20Highlights%20and%20Recent%20Developments) Q1 FY2025 saw **21%** revenue growth to **$101.2 million**, a narrowed net loss, and positive Adjusted EBITDA, alongside impacts from cybersecurity incidents at Change Healthcare, Ascension Health, and Phreesia's ConnectOnCall service Q1 FY2025 Financial Highlights | Metric | Three months ended April 30, 2024 | Three months ended April 30, 2023 | | :--- | :--- | :--- | | Total revenue | $101.2 million | $83.8 million | | Net loss | $(19.7) million | $(37.5) million | | Adjusted EBITDA | $4.1 million | $(13.8) million | | Net cash used in operating activities | $(0.7) million | $(13.7) million | | Free cash flow | $(6.2) million | $(19.7) million | - The cyberattack on Change Healthcare accelerated the wind-down of a relationship with a clearinghouse client, reducing payment processing revenue by approximately **$1.7 million** in the first quarter of fiscal 2025[146](index=146&type=chunk) - On May 12, 2024, the company's ConnectOnCall service experienced a service disruption due to a cybercriminal gaining access; the incident is not expected to have a material impact on overall business operations as it is separate from the main patient intake platform[152](index=152&type=chunk)[154](index=154&type=chunk)[155](index=155&type=chunk) [Key Metrics](index=32&type=section&id=Key%20Metrics) Key performance indicators show **23%** growth in average healthcare services clients to **4,065**, but a slight decline in revenue per AHSC, while patient payment volume increased **15%** to **$1.166 billion** Key Performance Metrics | Metric | Three months ended April 30, 2024 | Three months ended April 30, 2023 | | :--- | :--- | :--- | | Average number of healthcare services clients (AHSCs) | 4,065 | 3,309 | | Healthcare services revenue per AHSC | $18,155 | $18,779 | | Total revenue per AHSC | $24,900 | $25,338 | | Patient payment volume (in millions) | $1,166 | $1,016 | - The decline in revenue per AHSC was primarily driven by AHSC growth significantly outpacing the growth in payment processing volume and revenue[160](index=160&type=chunk) [Results of Operations](index=33&type=section&id=Results%20of%20Operations) Total revenue increased **21%** to **$101.2 million**, driven by growth across all segments, while improved cost control led to a significant reduction in operating loss Revenue by Segment (in thousands) | Revenue Stream | Q1 FY2025 | Q1 FY2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Subscription and related services | $46,742 | $37,887 | $8,855 | 23% | | Payment processing fees | $27,060 | $24,253 | $2,807 | 12% | | Network solutions | $27,415 | $21,705 | $5,710 | 26% | | **Total revenue** | **$101,217** | **$83,845** | **$17,372** | **21%** | - Sales and marketing expense decreased by **$5.4 million (14%)** year-over-year, primarily due to lower employee salary and benefits costs, travel expenses, and the full run-off of expenses from winding down Medicare Advantage lead generation activities[178](index=178&type=chunk)[179](index=179&type=chunk) - Research and development expense increased by **$2.4 million (9%)** due to higher employee salary and benefits costs and increased software costs[180](index=180&type=chunk) [Non-GAAP Financial Measures](index=38&type=section&id=Non-GAAP%20Financial%20Measures) Adjusted EBITDA significantly improved to **$4.1 million** from a **$13.8 million** loss, and free cash flow improved to negative **$6.2 million**, reflecting higher revenue and lower operating expenses Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | Line Item | Three months ended April 30, 2024 | Three months ended April 30, 2023 | | :--- | :--- | :--- | | Net loss | $(19,722) | $(37,531) | | Interest income, net | $(239) | $(718) | | Provision for income taxes | $510 | $306 | | Depreciation and amortization | $6,673 | $6,990 | | Stock-based compensation expense | $16,840 | $17,138 | | Other expense, net | $31 | $42 | | **Adjusted EBITDA** | **$4,093** | **$(13,773)** | Reconciliation of Net Cash Used in Operating Activities to Free Cash Flow (in thousands) | Line Item | Three months ended April 30, 2024 | Three months ended April 30, 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | $(721) | $(13,659) | | Less: Capitalized internal-use software | $(4,570) | $(4,732) | | Less: Purchases of property and equipment | $(876) | $(1,347) | | **Free cash flow** | **$(6,167)** | **$(19,738)** | [Liquidity and Capital Resources](index=39&type=section&id=Liquidity%20and%20Capital%20Resources) As of April 30, 2024, Phreesia had **$79.5 million** in cash and access to a **$50 million** credit facility, with significantly improved net cash used in operating activities - As of April 30, 2024, the company had cash and cash equivalents of **$79.5 million** and access to a **$50 million** senior secured asset-based revolving credit facility with Capital One, which matures in December 2028[195](index=195&type=chunk)[198](index=198&type=chunk) Summary of Cash Flows (in thousands) | Activity | Three months ended April 30, 2024 | Three months ended April 30, 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | $(721) | $(13,659) | | Net cash used in investing activities | $(5,446) | $(6,079) | | Net cash used in financing activities | $(1,825) | $(7,178) | | **Net decrease in cash and cash equivalents** | **$(7,993)** | **$(26,916)** | - The significant improvement in net cash used in operating activities was primarily driven by an increase in cash received from customers due to higher revenues[207](index=207&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=42&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces minimal interest rate risk but is exposed to foreign currency exchange risk from operations in Canada and India, though a 1% change is not expected to be material - The company's primary market risks are interest rate risk and foreign currency exchange risk[218](index=218&type=chunk) - Interest rate risk is low due to the short maturity of cash equivalents and no outstanding debt on the Capital One Credit Facility as of April 30, 2024[219](index=219&type=chunk)[220](index=220&type=chunk) - The company is subject to foreign currency exchange risk from operations in Canada and India, particularly related to the Canadian Dollar and Indian Rupee, with approximately **89%** of expenses denominated in USD for the three months ended April 30, 2024[221](index=221&type=chunk) [Controls and Procedures](index=42&type=section&id=Item%204.%20Controls%20and%20Procedures) As of April 30, 2024, the CEO and CFO concluded that disclosure controls and procedures were effective, with no material changes to internal control over financial reporting during the quarter - Management, including the CEO and CFO, concluded that as of April 30, 2024, the company's disclosure controls and procedures were effective at the reasonable assurance level[224](index=224&type=chunk) - There were no material changes in the company's internal control over financial reporting during the quarter ended April 30, 2024[225](index=225&type=chunk) PART II — OTHER INFORMATION [Legal Proceedings](index=43&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any legal proceedings expected to have a material adverse effect on its business or financial condition - The company is not presently a party to any legal proceedings that would have a material adverse effect on its business[228](index=228&type=chunk) [Risk Factors](index=43&type=section&id=Item%201A.%20Risk%20Factors) The company faces diverse risks including managing rapid growth, intense competition, cybersecurity threats, regulatory compliance (HIPAA, data privacy), intellectual property protection, and heavy reliance on third-party vendors and partners [Risks relating to our business and industry](index=43&type=section&id=Risks%20relating%20to%20our%20business%20and%20industry) Business risks include managing rapid growth, intense competition, a history of net losses, cybersecurity threats, and the challenges of a fully remote operational model - The company's rapid growth strains operations and employees, and failure to manage this growth could hinder revenue increases and business strategy implementation[230](index=230&type=chunk) - The company faces intense competition from a fragmented market, including EHR and PM systems, which could harm business and operating results[234](index=234&type=chunk) - The company has a history of net losses, including **$19.7 million** for the three months ended April 30, 2024, and may not achieve profitability in the future as it continues to invest in growth[242](index=242&type=chunk) - Cybersecurity incidents, such as the recent one affecting ConnectOnCall and those impacting partners like Change Healthcare, pose significant risks of economic loss, reputational damage, and legal liability[247](index=247&type=chunk) [Risks relating to our payments business](index=54&type=section&id=Risks%20relating%20to%20our%20payments%20business) Risks to the payments business include platform limitations, failure to integrate new technologies, increased card network fees, and non-compliance with network rules, which could lead to fines or termination of payment facilitator status - The payments platform, generating **27%** of total revenue, is a core business component, and any disruption or failure to grow it could materially harm the business[291](index=291&type=chunk) - Increases in card network fees (interchange fees) could reduce earnings if the company is unable to pass these costs on to clients due to competitive pressure[293](index=293&type=chunk) - Non-compliance with card network rules could lead to fines, suspension, or termination of the company's payment facilitator status, adversely affecting the business[294](index=294&type=chunk) [Risks relating to our data and intellectual property](index=55&type=section&id=Risks%20relating%20to%20our%20data%20and%20intellectual%20property) Risks include inadequate protection of proprietary technology, potential litigation from open-source software use or third-party IP infringement claims, and reliance on licensed third-party data - The business depends on proprietary technology, and inadequate intellectual property protection may prevent the company from safeguarding its technology and brand[298](index=298&type=chunk) - Use of open-source software could lead to litigation or require the company to disclose proprietary source code, harming its competitive position[301](index=301&type=chunk) - The company could face legal proceedings from third parties alleging infringement of their intellectual property rights, which could be uncertain, costly, and divert management resources[307](index=307&type=chunk) [Risks relating to laws and regulations applicable to our industry](index=59&type=section&id=Risks%20relating%20to%20laws%20and%20regulations%20applicable%20to%20our%20industry) The company faces extensive regulatory risks from complex federal and state laws, including HIPAA, evolving data privacy laws (CCPA, GDPR), TCPA for messaging, and an uncertain healthcare regulatory framework - The company, as a 'Business Associate' under HIPAA, is subject to numerous federal and state laws governing protected health information, with non-compliance potentially leading to significant fines and penalties[317](index=317&type=chunk)[319](index=319&type=chunk) - Evolving data privacy laws in the U.S. (like CCPA) and internationally (like GDPR) create complex compliance issues, potentially requiring business practice changes and incurring substantial costs[324](index=324&type=chunk)[327](index=327&type=chunk) - The company's calling and text messaging services are subject to the Telephone Consumer Protection Act (TCPA), posing a risk of significant liability from individual or class-action lawsuits[353](index=353&type=chunk)[355](index=355&type=chunk) - The healthcare regulatory framework is uncertain and evolving, with potential changes to the ACA and new rules on interoperability and 'information blocking' that could impact the business[343](index=343&type=chunk)[344](index=344&type=chunk) [Risks relating to our dependence on third parties](index=67&type=section&id=Risks%20relating%20to%20our%20dependence%20on%20third%20parties) The company heavily relies on third-party contractors, vendors, and partners for critical services, creating risks related to service quality, security, supply chain disruptions, and business continuity, as highlighted by recent cyberattacks on partners - The company relies on third-party contractors for critical services like software development and cloud hosting, including international locations like India and Ukraine, exposing it to geopolitical and operational risks[360](index=360&type=chunk) - The company relies on a sole supplier for the manufacturing of its PhreesiaPads and Arrivals Kiosks, creating a significant supply chain risk[369](index=369&type=chunk) - Service delivery is dependent on internet infrastructure and third-party data centers, where any failure, such as the recent cyberattack on partner Change Healthcare, could disrupt services and negatively impact the business[372](index=372&type=chunk)[374](index=374&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=76&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered securities were sold during the quarter ended April 30, 2024, that had not been previously reported on a Form 8-K - No unregistered securities were sold during the quarter that had not been previously reported[399](index=399&type=chunk) [Other Information](index=76&type=section&id=Item%205.%20Other%20Information) Three company executives, including the CEO and CFO, adopted Rule 10b5-1 trading plans in April 2024 for the potential sale of common stock shares - On April 18, 2024, Amy Beth VanDuyn, SVP of Human Resources, adopted a Rule 10b5-1 Trading Plan for the potential sale of up to **25,447** shares of common stock, expiring December 31, 2024[402](index=402&type=chunk) - On April 19, 2024, CEO Chaim Indig adopted a Rule 10b5-1 Trading Plan for the potential exercise of stock options and sale of up to **100,000** shares, expiring April 17, 2026[403](index=403&type=chunk) - On April 19, 2024, CFO Balaji Gandhi adopted a Rule 10b5-1 Trading Plan for the sale of up to **43,362** shares plus additional shares from his bonus, expiring March 14, 2025[404](index=404&type=chunk) [Exhibits](index=77&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including corporate governance documents, officer certifications, and XBRL data files - The exhibits filed with this report include corporate governance documents, CEO and CFO certifications (Sections 302 and 906), and XBRL data files[405](index=405&type=chunk)

Financial Data and Key Metrics - Q1 revenue increased by 21% to $101.2 million [16] - Adjusted EBITDA turned positive for the first time in three years, reaching $4.1 million [16] - Average Healthcare Services clients increased by 103 from the prior quarter, with total revenue per AHSC at $24,900 [16] - Operating cash flow for Q1 was just under breakeven at negative $721,000 [20] - Cash position stood at $80 million as of April 30, 2024 [20] Business Line Data and Key Metrics - Payment processing revenue was negatively impacted by $1.7 million due to the accelerated wind-down of a clearinghouse client relationship [17] - The clearinghouse client relationship represented approximately $8 million in annual revenue, impacting fiscal 2025 results [18] - Network solutions are expected to be the primary driver of revenue growth per client, with payments and other products lagging behind [44] Market Data and Key Metrics - The company updated its fiscal 2025 revenue outlook to a range of $416 million to $426 million, reflecting an $8 million reduction due to the clearinghouse client wind-down [19] - Adjusted EBITDA outlook for fiscal 2025 was increased to a range of $21 million to $26 million, reflecting improved operating leverage [20] Company Strategy and Industry Competition - The company is focusing on shorter payback investments to accelerate profitability, driven by internal discounted cash flow analyses and shareholder feedback [22] - Investments in cybersecurity have been ramping up, with continued expectations for increased spending in this area [28] - The company is prioritizing growth while also being more aggressive in driving profitability, considering factors like cost of capital and interest rates [37] Management Commentary on Operating Environment and Future Outlook - Management highlighted the importance of the first quarter as a milestone in the company's journey back to profitability [13] - The company is well-positioned to start generating free cash flow in the second half of fiscal 2025 [21] - The healthcare provider market remains receptive to the company's solutions, with a general view that continuous investment in technology is necessary to drive efficiency and better margins [40] Other Important Information - The company has no borrowings on its revolving credit facility, providing financial flexibility over the next few years [21] - Gross margins reached over 80% in Q1, the highest level in recent history, with expectations to sustain this level through the year [57] Q&A Session Summary Question: Cybersecurity Investments and Financial Impact from Ascension Attack - The company has been increasing investments in cybersecurity for years, with plans to continue ramping up spending in this area [28] - The Ascension cyberattack did not have a significant financial impact on the company, but the industry-wide challenges are unprecedented [26][27] Question: Clearinghouse Client Wind-Down and Risks in the Model - The wind-down of the clearinghouse client relationship was mutually agreed upon due to the client's desire to consolidate vendors, and the process was accelerated by the Change Healthcare cyberattack [32] - No other significant risks related to client contracts or relationships with Change Healthcare were identified [33] Question: Drivers Behind EBITDA Increase and Margin Progression - The strong start to the year and focus on returning to profitability have reinforced the company's commitment to driving profitability more aggressively [37] - The company expects to continue seeing solid operating leverage, contributing to improved EBITDA margins [20] Question: Provider End Market and Phreesia Solution Deployment - The provider end market remains receptive to the company's solutions, with a focus on technology investments to drive efficiency and better margins [40] - The company has continued to win accounts and grow its market share despite industry challenges [40] Question: Strategy for Accelerating Revenue per Client Growth - Network solutions are expected to be the primary driver of revenue growth per client, with payments and other products playing a secondary role [44] Question: MediFind Appointment Requests and New Provider Targeting - The MediFind appointment request product has been well-received, with early traction showing promise for driving value across specialty providers [46] - The company expects MediFind to be a significant driver of network solutions revenue growth in the future [50] Question: Health of Payments Business and Gross Margins - Excluding the impact of the clearinghouse client wind-down, the payments business has been consistent with historical performance [56] - Gross margins reached over 80% in Q1, with expectations to sustain this level through the year [57] Question: Mix and Quality of Healthcare Services Clients - The company continues to add a diverse mix of healthcare services clients, with a focus on shorter payback periods and higher conversion rates [59] Question: Phreesia Launch and Margin Impact - The launch of Phreesia has not had a significant financial impact, as the expenses were already running through the P&L [61] Question: Take Rate Degradation in Payments and Pricing Strategy - The company is comfortable with current pricing levels, with take rates expected to fluctuate around 2.8% in the coming quarters [65] Question: Shorter Payback Investments and Client Upselling - The company is optimizing for profitability and quicker payback periods, with a focus on upselling additional products to clients [67][68]

For the quarter ended April 2024, Phreesia (PHR) reported revenue of $101.22 million, up 20.7% over the same period last year. EPS came in at -$0.35, compared to -$0.70 in the year-ago quarter. The reported revenue represents a surprise of +0.20% over the Zacks Consensus Estimate of $101.01 million. With the consensus EPS estimate being -$0.51, the EPS surprise was +31.37%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street ...