Phreesia(US:PHR)2020-06-09 16:28Financial Data and Key Metrics Changes - Total revenue for Q1 2021 was $33.4 million, an increase of 18% year-over-year [8][9] - Adjusted EBITDA was $1.5 million, up $1.8 million year-over-year [15] - Average number of provider clients increased by 5% year-over-year to 1,632 [8] - Average revenue per provider client rose by 7% year-over-year to $16,735 [8] Business Line Data and Key Metrics Changes - Subscription and related services revenue was $15.6 million, up 23% year-over-year [9] - Payment processing fees were $11.7 million, an increase of 1% year-over-year [9] - Life Sciences revenue reached $6.1 million, up 50% year-over-year [9][12] Market Data and Key Metrics Changes - Patient visits across the provider network declined approximately 50% from mid-March to the end of April compared to the beginning of March [11] - The decline in patient visits negatively impacted provider revenue growth by approximately $3 million in the quarter [11] Company Strategy and Development Direction - The company aims to enhance healthcare experiences through innovative solutions like virtual waiting rooms and zero contact intake [7][24] - Management acknowledges the increasing competition in the digital patient solutions space but believes that innovation is essential for the industry [24][68] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to adapt and thrive despite the challenges posed by the COVID-19 pandemic [7][36] - There is uncertainty regarding the recovery timeline for healthcare services, with management emphasizing the need for safety and comfort for patients and providers [32][33] Other Important Information - Cash on the balance sheet as of April 30, 2020, was $90.3 million, unchanged from January 31, 2020 [16] - The company is seeing some stretching out of payments from clients, which may impact cash flow from operations in the upcoming quarters [48] Q&A Session Summary Question: Demand for virtual waiting rooms - Management noted that demand is primarily from existing clients, with successful implementation of two-way chat features [18] Question: Impact of sales process on client growth - Management acknowledged that the sales organization has been impacted but highlighted strong execution in client implementation [19] Question: Changes in market dynamics and new competitors - Management indicated that new entrants have always been present in the space, but the company remains a market leader [24] Question: Financial health of the client base - Management stated that healthcare organizations are facing economic hardships, impacting payment volumes and cash flow [46] Question: Life Sciences revenue performance - Management credited strong execution and support from Life Sciences partners for the significant year-over-year growth [50] Question: Sensitivity of subscription revenue to patient volume - Management clarified that most subscription revenue is not heavily tied to patient visit volumes [56] Question: Future hiring plans - Management confirmed plans to restart hiring in their early career program to support long-term growth [81] Question: Tele-health offering usage - Management reported that over 50% of clients are utilizing the tele-health solution [83] Question: Relationship with RCM and Cerner - Management expressed confidence in their partnership with RCM and noted ongoing innovation efforts [85]