Phreesia(US:PHR)2025-05-28 20:02Financial Performance - Total revenue increased 15% to $115.9 million for the three months ended April 30, 2025, compared to $101.2 million for the same period in 2024[145] - Net loss was $3.9 million for the three months ended April 30, 2025, compared to a net loss of $19.7 million for the same period in 2024[145] - Adjusted EBITDA was $20.8 million for the three months ended April 30, 2025, compared to $4.1 million for the same period in 2024[145] - Free cash flow was $7.5 million for the three months ended April 30, 2025, compared to negative $6.2 million for the same period in 2024[145] - Total revenue for the three months ended April 30, 2025, was $115.9 million, an increase of $14.7 million or 15% compared to $101.2 million in the same period of 2024[167] - Adjusted EBITDA for the three months ended April 30, 2025, was $20.8 million, compared to $4.1 million in the same period of 2024[186] Client and Revenue Metrics - Average number of healthcare services clients (AHSCs) increased to 4,411 for the three months ended April 30, 2025, from 4,065 in the same period in 2024[154] - Total revenue per AHSC increased by 6% to $26,283 for the three months ended April 30, 2025, compared to $24,900 for the same period in 2024[154] - Subscription and related services revenue increased by $7.6 million to $54.4 million, primarily due to new healthcare services clients and expansion of existing clients[167] - Payment processing fees revenue rose by $2.9 million to $29.9 million, driven by an increase in patient visits and payments processed[175] - Patient payment volume increased to $1,314 million for the three months ended April 30, 2025, compared to $1,166 million for the same period in 2024[155] - Payment facilitator volume percentage increased to 82% for the three months ended April 30, 2025, compared to 81% for the same period in 2024[155] Cash and Liquidity - Cash and cash equivalents as of April 30, 2025, were $90.9 million, an increase of $6.7 million compared to January 31, 2025[145] - As of April 30, 2025, cash and cash equivalents totaled $90.9 million, up from $84.2 million as of January 31, 2025[189] - 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[189] Expenses and Cost Management - Research and development expenses increased by $2.9 million to $31.8 million, attributed to higher labor and software costs[174][176] - Sales and marketing expenses decreased by $6.0 million to $26.0 million, primarily due to a reduction in labor costs[172] - General and administrative expenses decreased by $2.6 million to $16.4 million, mainly from lower third-party costs and labor costs[177] Other Financial Information - Other income (expense), net improved to income of $0.3 million from an expense of less than $0.1 million year-over-year[181] - Provision for income taxes increased by $0.2 million to $0.7 million, primarily due to higher Canadian and Indian income tax expenses[183] - Interest expense income, net was a loss of $0.2 million for the three months ended April 30, 2025, compared to income of $0.2 million in the prior year[182] Cash Flow Activities - For the three months ended April 30, 2025, net cash provided by operating activities was $14.85 million, compared to a net cash used of $0.72 million for the same period in 2024[199] - Free cash flow for the three months ended April 30, 2025, was $7.46 million, a significant improvement from a free cash flow of $(6.17) million in the prior year[197] - Net cash used in investing activities for the three months ended April 30, 2025, was $7.39 million, primarily due to $3.89 million in capitalized internal-use software costs and $3.50 million in property and equipment purchases[201] - Net cash used in financing activities for the three months ended April 30, 2025, was $0.84 million, mainly for principal payments on finance leases[204] - The company has a financing agreement with an outstanding principal of $1.6 million as of April 30, 2025, requiring monthly payments of $0.1 million for 36 months at an effective interest rate of 10.5%[195] Foreign Currency Exposure - Approximately 86% of the company's expenses for the three months ended April 30, 2025, were denominated in US Dollars, exposing it to foreign currency exchange risks[213] - Foreign currency gains for the three months ended April 30, 2025, were $0.3 million, while losses for the same period in 2024 were less than $0.1 million[214] Financial Flexibility - The company entered into a 5-year $50 million senior secured asset-based revolving credit facility in December 2023, enhancing financial flexibility through fiscal 2028[191]