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Phreesia(PHR) - 2023 Q1 - Earnings Call Transcript
PHRPhreesia(PHR)2022-06-03 01:09
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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 271millionto271 million to 275 million, implying a growth of 27% to 29% year-over-year [11] - Adjusted EBITDA outlook improved to a range of negative 126milliontonegative126 million to negative 122 million, up from a prior outlook of negative 154milliontonegative154 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 563,000sequentiallyfromQ4[12]MarketDataandKeyMetricsChanges−Patientutilizationtrendswereslightlybelowexpectations,whichmaypersistthroughouttheyear[11]CompanyStrategyandDevelopmentDirection−Thecompanyfocusesonbuildinggreatproductsandexpandingitsclientbase,emphasizinga"landandexpand"strategy[21][24]−Managementiscommittedtoaddressingsocialdeterminantsofhealth,aimingtoempowerprovidersratherthanmonetizingtheseservices[33]Management′sCommentsonOperatingEnvironmentandFutureOutlook−ManagementnotedamixtureofCOVID−relatedissuesaffectingbothstaffandpatientattendance,impactingoverallpatientutilizationtrends[30]−Thecompanyisconfidentinitsabilitytoachieveprofitabilitybyfiscal2025,withexpectedrevenuegrowthataCAGRof28563,000 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]