Phreesia(PHR) - 2025 Q2 - Quarterly Results

Revenue Performance - Total revenue for Q2 fiscal 2025 was $102.1 million, up 19% year-over-year[1] - Revenue outlook for fiscal 2025 is maintained at $416 million to $426 million, implying 17% to 20% year-over-year growth[2] - Total revenues for the six months ended July 31, 2024, increased to $203.33 million, up from $169.68 million in the same period in 2023[12] - Subscription and related services revenue for the six months ended July 31, 2024, grew to $95.35 million, up from $77.19 million in the same period in 2023[12] - Payment processing fees revenue for the six months ended July 31, 2024, increased to $52.36 million, compared to $47.88 million in the same period in 2023[12] - Network solutions revenue for the six months ended July 31, 2024, rose to $55.62 million, up from $44.60 million in the same period in 2023[12] Healthcare Services Clients (AHSCs) - Average number of healthcare services clients (AHSCs) reached 4,169, up 21% year-over-year[1] - AHSCs expected to reach approximately 4,200 in fiscal 2025 and 4,500 in fiscal 2026[2] - Average number of healthcare services clients (AHSCs) for the three months ended July 31, 2024 was 4,169, compared to 3,445 in the same period in 2023[20] Profitability and Loss - Net loss improved to $18.0 million compared to $36.8 million in the prior year[1] - Net loss for the six months ended July 31, 2024, was $37.73 million, compared to $74.30 million in the same period in 2023[12] - Net loss for Q3 2024 was $18.0 million, a 51% improvement compared to $36.8 million in Q3 2023[17] - Comprehensive loss for the six months ended July 31, 2024, was $37.74 million, compared to $74.30 million in the same period in 2023[13] Adjusted EBITDA - Adjusted EBITDA was $6.5 million, compared to negative $11.5 million in the prior year[1] - Adjusted EBITDA outlook for fiscal 2025 updated to $26 million to $31 million[2] - Adjusted EBITDA for Q3 2024 was $6.5 million, a significant improvement from $(11.5) million in Q3 2023[17] Cash Flow and Liquidity - Free cash flow turned positive at $3.7 million, compared to negative $15.2 million in the prior year[1] - Cash and cash equivalents as of July 31, 2024, were $81.8 million[1] - Net cash provided by operating activities in Q3 2024 was $11.1 million, compared to $(9.3) million in Q3 2023[14] - Cash and cash equivalents as of July 31, 2024, were $81.80 million, compared to $87.52 million as of January 31, 2024[11] - Free cash flow for the three months ended July 31, 2024 was $3.658 million, compared to $(15.174) million in the same period in 2023[18] - Free cash flow for the six months ended July 31, 2024 was $(2.509) million, compared to $(34.912) million in the same period in 2023[18] Operating Expenses and Costs - Adjusted operating expenses for the three months ended July 31, 2024 were $78.918 million, compared to $81.504 million in the same period in 2023[19] - Adjusted operating expenses for the six months ended July 31, 2024 were $157.745 million, compared to $163.032 million in the same period in 2023[19] - Stock-based compensation expense for Q3 2024 was $16.4 million, a 12% decrease from $18.6 million in Q3 2023[14] - Depreciation and amortization expenses increased 8% to $7.3 million in Q3 2024 from $6.8 million in Q3 2023[14] - Capital expenditures for Q3 2024 totaled $7.4 million, a 24% decrease from $9.7 million in Q3 2023[14] - Interest expense for Q3 2024 was $0.4 million, a 29% increase from $0.3 million in Q3 2023[15] Balance Sheet and Assets - Total assets as of July 31, 2024, were $362.24 million, slightly down from $370.33 million as of January 31, 2024[11] - Accounts receivable, net as of July 31, 2024, were $61.27 million, down from $64.86 million as of January 31, 2024[11] - Total current liabilities as of July 31, 2024, were $102.00 million, compared to $110.12 million as of January 31, 2024[11] - Accounts receivable increased by $5.0 million in Q3 2024, compared to a decrease of $0.8 million in Q3 2023[14] - Deferred revenue decreased by $2.7 million in Q3 2024, compared to a decrease of $1.8 million in Q3 2023[14] Revenue per AHSC - Total revenue per AHSC expected to increase in fiscal 2025 compared to $98,944 in fiscal 2024[2] - Healthcare services revenue per AHSC for the three months ended July 31, 2024 was $17,729, compared to $18,268 in the same period in 2023[20] - Total revenue per AHSC for the three months ended July 31, 2024 was $24,494, compared to $24,914 in the same period in 2023[20] Payment Volume and Processing - Patient payment volume for the three months ended July 31, 2024 was $1.093 billion, compared to $989 million in the same period in 2023[23] - Payment facilitator volume percentage for the three months ended July 31, 2024 was 81%, compared to 82% in the same period in 2023[23]