Phreesia(US:PHR)2019-12-10 11:10Financial Performance - The company processed $463.0 million in patient payments during the three months ended October 31, 2019, representing a 29% increase from $358.0 million in the same period of 2018[104]. - Total revenue increased by approximately 33% to $32.8 million for the three months ended October 31, 2019, compared to $24.8 million for the same period in 2018[109]. - The average revenue per provider client rose to $16,637 for the three months ended October 31, 2019, up from $13,308 in the same period of 2018[112]. - The company reported a net loss of $2.4 million for the three months ended October 31, 2019, an improvement from a net loss of $4.2 million in the same period of 2018[109]. - Adjusted EBITDA was positive $3.0 million for the three months ended October 31, 2019, compared to positive $0.4 million for the same period in 2018[109]. - Free cash flow was negative $6.6 million for the three months ended October 31, 2019, compared to negative $1.6 million in the same period of 2018[120]. - Patient payment volume for the nine months ended October 31, 2019, was $1,388.2 million, a 29% increase from $1,076.3 million in the same period of 2018[104]. Revenue Breakdown - Total revenue increased by $8.1 million to $32.8 million in the three months ended October 31, 2019, representing a 33% increase compared to the same period in 2018[134]. - Subscription and related services revenue from healthcare provider organizations increased by $3.7 million to $14.6 million in the three months ended October 31, 2019, a 34% increase year-over-year[133]. - Payment processing fees revenue rose by 27% to $11.6 million in the three months ended October 31, 2019, compared to $9.1 million in the same period in 2018[133]. - Revenue from life sciences clients for digital patient engagement increased by 40% to $6.7 million in the three months ended October 31, 2019, compared to $4.8 million in the same period in 2018[133]. Client Metrics - The average number of provider clients increased to 1,573 for the three months ended October 31, 2019, compared to 1,503 in the same period of 2018[112]. Expense Analysis - Total expenses increased by 26% to $35.1 million in the three months ended October 31, 2019, compared to $27.8 million in the same period in 2018[133]. - Operating loss improved by 27% to $2.2 million in the three months ended October 31, 2019, compared to a loss of $3.0 million in the same period in 2018[133]. - General and administrative expenses increased by 58% to $7.2 million in the three months ended October 31, 2019, compared to $4.5 million in the same period in 2018[133]. - Research and development expenses increased by 24% to $4.8 million in the three months ended October 31, 2019, compared to $3.9 million in the same period in 2018[133]. - Payment processing expense increased by 28% to $6.9 million in the three months ended October 31, 2019, compared to $5.4 million in the same period in 2018[141]. - Depreciation expense increased by $0.2 million to $2.2 million for the three months ended October 31, 2019, reflecting a 10% increase compared to the prior year[157]. - Amortization expense increased by $0.3 million to $1.3 million for the three months ended October 31, 2019, which is a 28% increase year-over-year[159]. - Other income decreased by $126,000 to $77,000 for the three months ended October 31, 2019, a decline of 62% compared to the same period in 2018[162]. - Interest expense decreased by $0.5 million to $0.2 million for the three months ended October 31, 2019, a reduction of 70% year-over-year due to debt refinancing[166]. IPO and Financing - The company closed its initial public offering in July 2019, raising $130.8 million in net proceeds[110]. - As of October 31, 2019, the company had cash and cash equivalents of $91.4 million, a significant increase from $1.5 million as of January 31, 2019[169]. - The company reported a net cash provided by financing activities of $99.4 million for the nine months ended October 31, 2019, compared to a net cash used of $2.4 million in the same period of 2018[174]. - Net cash provided by financing activities was $99.4 million, including $130.8 million from the IPO, offset by $15.0 million in dividends and $21.0 million in loan repayments[179]. Cash Flow and Debt - For the nine months ended October 31, 2019, cash used in operating activities was $0.4 million, resulting from a net loss of $16.6 million and changes in working capital of $4.7 million[175]. - Cash used in investing activities during the same period was $9.2 million, primarily due to capital expenditures of $4.8 million for hardware and data center equipment, and $4.3 million for capitalized internal-use software costs[177]. - Total long-term debt obligations as of October 31, 2019, amounted to $20.0 million, with $6.1 million due within one year and $13.3 million due in 1-3 years[182]. - Interest on long-term debt is projected at $4.3 million, with $2.5 million due in the next 1-3 years[182]. - Capital lease obligations total $4.4 million, with $2.4 million due within one year[182]. Risk Management - The company has engaged in foreign currency hedging transactions to mitigate risks associated with expenses in Canadian dollars, which have not materially affected financial statements[190]. - The company does not anticipate significant impact from interest rate changes on its cash and cash equivalents, given their short maturity[188]. Accounting Policies - There have been no significant changes in critical accounting policies during the nine months ended October 31, 2019, compared to the previous disclosures[184].