Phreesia(PHR)2020-12-09 17:35Financial Data and Key Metrics Changes - Total revenue for Q3 2021 was $38.5 million, representing a 17% year-over-year increase [11][26] - Average number of provider clients increased to 1,737, up 10% year-over-year [11] - Average revenue per provider client rose to $17,490, a 5% year-over-year increase [11] - Adjusted EBITDA was $1.2 million, down approximately $1.8 million year-over-year due to continued investments in long-term growth [11][34] - Cash on the balance sheet was $254.1 million, up $169.9 million from July 31 [35] Business Line Data and Key Metrics Changes - Subscription and related services revenue was $17.5 million, up 20% year-over-year [26] - Payment processing fee revenue reached $12.9 million, a 12% year-over-year increase [27] - Life Sciences revenue was $8.1 million, up 21% year-over-year, reflecting strong execution and demand [11][29] Market Data and Key Metrics Changes - Patient visit trends recovered to pre-pandemic levels during September and were sustained through the end of the quarter [27] - The company noted that the sales team focused on getting solutions to providers and patients who needed them during the pandemic [43] Company Strategy and Development Direction - The company is focused on long-term growth and has prioritized investments in R&D, expecting to accelerate spending in the coming quarters [31][37] - A leadership transition is planned with the current CFO retiring and a new CFO set to take over in May 2021 [14][15] - The company is committed to enhancing its environmental, social, and governance (ESG) initiatives, particularly in gender equality [21][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth drivers and the ability to meet growth objectives despite uncertainties related to COVID-19 [42] - The company expects revenue for the full fiscal year 2021 to be between $146 million and $147 million, with growth projected at 20% to 25% for fiscal year 2022 [37] Other Important Information - The company has transitioned to a fully remote operation and allowed its New York City office lease to expire [18][19] - The company is actively recruiting and expanding its sales and implementation teams to capture market opportunities [63] Q&A Session Summary Question: How will the quantified market opportunity contribute to growth? - Management indicated that it is a multiyear driver of growth, providing comfort in guidance moving forward [42] Question: What is the reason for the lower revenue per provider client despite strong client growth? - Management attributed this to a focus on getting solutions to providers and patients during the pandemic [43] Question: Can you highlight areas of increased R&D spending? - Management stated that they will continuously communicate where they are investing and will only do so after having clients using those products [47] Question: What are the underlying assumptions for the 20% to 25% guidance for fiscal year 2022? - Management emphasized that the guidance is based on current knowledge and not a prediction of future COVID impacts [54] Question: Can you provide details on the retirement of the CFO? - The current CFO will remain as an advisor after retirement, ensuring a smooth transition [56] Question: What is the current state of the sales force? - The sales organization has approximately 40 salespeople and around 100 SDRs, with a focus on ramping back up post-pandemic [131] Question: Are there any pricing pressures from competing solutions? - Management noted that while competition exists, they have not seen significant downward pressure on pricing [138]