Phreesia Announces Fiscal Year End 2021 Results

Rhea-AI Summary

Phreesia, Inc. (NYSE: PHR) reported its financial results for the fiscal fourth quarter and year ending January 31, 2021. The company achieved a 27% year-over-year revenue increase to $41.8 million for Q4 and a 19% increase to $148.7 million for the fiscal year. However, adjusted EBITDA for Q4 turned negative at $0.09 million, down from $1.3 million the previous year, and cash reserves decreased by $35.3 million to $218.8 million. Looking ahead, Phreesia projects revenue growth between $178 million and $186 million for fiscal 2022, maintaining previous growth guidance.

Positive

• Q4 revenue increased 27% year-over-year to $41.8 million.
• Fiscal year revenue rose 19% year-over-year to $148.7 million.
• Projected revenue growth for fiscal 2022 between $178 million and $186 million.

Negative

• Adjusted EBITDA for Q4 was negative $0.09 million, down from $1.3 million year-over-year.
• Cash decreased by $35.3 million from the previous quarter.

Phreesia, Inc. (NYSE: PHR) (“Phreesia”) announced financial results today for the fiscal fourth quarter and fiscal year ended January 31, 2021.

"Our team’s strength and resilience throughout a challenging fiscal 2021 supported our clients and helped drive our financial results. We are proud to support the incredible ongoing efforts of healthcare providers across the country while furthering Phreesia's mission of creating a better, more engaging healthcare experience," said Phreesia CEO Chaim Indig.

Fiscal Fourth Quarter 2021 Highlights

• Revenue was $41.8 million in the quarter, up 27% year-over-year.
• Average number of provider clients was 1,808 in the quarter, up 13% year-over-year.
• Average revenue per provider client was $17,858, up 7% year-over-year.
• Adjusted EBITDA was negative $0.09 million in the quarter compared to $1.3 million in the same period in the prior year.
• Cash as of January 31, 2021 was $218.8 million, down $35.3 million from October 31, 2020.

Fiscal Year End January 31, 2021 Highlights

• Revenue was $148.7 million in fiscal 2021, up 19% year-over-year.
• Average number of provider clients was 1,711 in fiscal 2021, up 9% year-over-year.
• Average revenue per provider client was $69,499 in fiscal 2021, up 6% year-over-year.
• Adjusted EBITDA was $3.8 million in fiscal 2021, as compared to $4.8 million in fiscal 2020.
• Cash as of January 31, 2021 was $218.8 million, up $128.5 million from January 31, 2020.

Outlook for Fiscal 2022

For the full fiscal year 2022, ending January 31, 2022, the Company expects revenue to be between $178 million and $186 million, consistent with its previous growth guidance of 20 to 25 percent over fiscal year 2021.

Conference Call Information

The Company will hold a conference call on Wednesday, March 31, 2021, at 8:30 a.m. Eastern Time to review the Company’s fiscal fourth quarter and fiscal year 2021 financial results. To participate in the Company’s live conference call and webcast, please dial (866) 211-4557 (or (647) 689-6750 for international participants) using conference code number 3387628 or visit the “Events & Presentations” section of ir.phreesia.com. A replay of the call will be available via webcast for on-demand listening shortly after the completion of the call, at the same web link, and will remain available for approximately 90 days.

Recent Events

COVID-19

In March 2020, the World Health Organization declared the ongoing outbreak of a novel strain of coronavirus (COVID-19) a pandemic and the United States declared a national emergency with respect to COVID-19. The impact of the COVID-19 pandemic has been widespread and rapidly evolving, and has led to the implementation of various responses over the last year, including government-imposed quarantines, travel restrictions, business and school closures, and other public health safety measures. During the last few months, several vaccines for COVID-19 received FDA approval and are currently being administered across the country. Despite growing vaccination rates, we believe COVID-19 will continue to impact the normal operations of our clients, which are primarily healthcare providers. Because our business relies, in part, on the growth and success of our clients, any disruption to our clients' operations will impact our revenue as follows:

• Subscription and related services: Disruptions to provider operations impact our subscription and related services revenue because of disruptions to sales processes and client implementations.
• Payment processing: Any decline in non-essential and elective patient visits directly impacts the revenue we receive from payment processing tools.
• Life sciences: Because our life sciences revenue is driven by the number of patients receiving targeted messages, a decline in patient visits may impact our revenue earned through patient engagement.

During the third quarter of fiscal 2021, patient visits returned to pre-pandemic levels as restrictions were lifted. During the fourth quarter of fiscal 2021, patient visits remained stable despite a surge in COVID-19 cases. We have seen positive trends as a result of our ability to use our Platform and solutions to assist our healthcare provider clients as they implement new safety protocols in order to continue to see patients, including minimizing contact during intake of patients, mobile check-in, transitioning patients to telehealth visits and enabling providers to screen patients for COVID-19 risk factors. Our COVID-19 module was used in over 45 million patient screenings during fiscal 2021. In addition to patient screenings, health care provider clients are also using our COVID-19 Vaccination Management Solution to manage vaccine delivery and identify vaccine-hesitant patients.

Given the unknown timeline and the near-term uncertainty of COVID-19 on our business, there continues to be uncertainty as to the extent to which the global COVID-19 pandemic may adversely impact our business operations, financial performance, and results of operations at this time.

ACQUISITION

On January 8, 2021, we acquired QueueDr Inc. (QueueDr), a SaaS technology company, to enhance our appointments solution. The total consideration for the acquisition consists of $5.8 million in cash paid at the acquisition date, $2.1 million of liabilities incurred and $2.2 million in performance-related contingent payments.

Phreesia, Inc. Consolidated Balance Sheets (Unaudited) (in thousands, except share and per share data)
		January 31,
		2021				2020
Assets
Current:
Cash and cash equivalents		$	218,781			$	90,315
Settlement assets		15,488				12,368
Accounts receivable, net of allowances		29,052				21,978
Deferred contract acquisition costs		1,693				1,720
Prepaid expenses and other current assets		7,254				5,157
Total current assets		$	272,268			$	131,538
Property and equipment, net of accumulated depreciation and amortization of $40,148 and $35,551		26,660				14,487
Capitalized internal-use software, net of accumulated amortization of $25,476 and $19,554		10,476				8,735
Operating lease right-of-use assets (1)		2,654				—
Deferred contract acquisition costs		1,248				1,594
Intangible assets, net of accumulated amortization of $525 and $271		2,725				1,199
Long-term deferred tax assets		658				775
Goodwill		8,307				250
Other assets		1,

FAQ

What were Phreesia's Q4 2021 financial results?

Phreesia reported Q4 2021 revenue of $41.8 million, a 27% increase year-over-year, but had adjusted EBITDA of negative $0.09 million.

How did Phreesia perform in fiscal year 2021?

In fiscal year 2021, Phreesia achieved revenue of $148.7 million, a 19% increase from the previous year, with an adjusted EBITDA of $3.8 million.

What is the revenue outlook for Phreesia in fiscal 2022?

Phreesia expects revenue for fiscal 2022 to be between $178 million and $186 million, consistent with guidance of 20-25% growth.

What impact did COVID-19 have on Phreesia's business?

The COVID-19 pandemic affected provider operations, which in turn impacted Phreesia's revenue, particularly in subscription services and payment processing.