Phreesia Announces Second Quarter Fiscal 2024 Results
- Total revenue increased by 26% to $85.8 million
- Net loss decreased to $36.8 million
- Acquired MediFind for $9.0 million and Access eForms for $38.4 million
- Maintaining revenue outlook for FY2024 at $353-356 million
- Raising Adjusted EBITDA outlook to negative $54-49 million
- Maintaining $500 million revenue target for FY2025
- Expecting profitability in FY2025
- Cash and cash equivalents decreased to $127.7 million
"I am incredibly pleased and proud of our team’s accomplishments in the second quarter of fiscal year 2024. We continued to deliver excellent value for our clients and scale our business—all while helping patients take a more active role in their healthcare and achieve improved health outcomes," said CEO and Co-Founder Chaim Indig.
Please visit the Phreesia investor relations website at ir.phreesia.com to view the Company's Q2 Fiscal Year 2024 Stakeholder Letter.
Fiscal Second Quarter Ended July 31, 2023 Highlights
-
Total revenue was
$85.8 million $67.9 million 26% . -
Average number of healthcare services clients ("AHSCs") was 3,445 in the quarter as compared to 2,776 in the same period in the prior year, an increase of
24% . -
Healthcare services revenue per AHSC remained relatively flat at
$18,268 $18,248 -
Total revenue per AHSC was
$24,914 $24,448 2% . The increase was driven primarily by network solutions revenue growth that outpaced AHSC growth. See "Key Metrics" below for additional information. -
Net loss was
$36.8 million $46.7 million -
Adjusted EBITDA was negative
$11.5 million $26.0 million -
Cash and cash equivalents as of July 31, 2023 was
$127.7 million $49.0 million
Recent Events
On June 30, 2023, we acquired Comsort, Inc. d/b/a MediFind (“MediFind”) (the "MediFind Acquisition"), for total consideration of approximately
On August 11, 2023, we acquired Access eForms, LLC ("Access"), an innovative electronic forms management and automation provider that helps hospitals across the country streamline workflows, improve compliance and deliver a better patient experience, for total consideration of
Fiscal Year 2024 Outlook
We are maintaining our revenue outlook for the full fiscal year 2024 ending January 31, 2024 at between
We are raising our Adjusted EBITDA outlook for fiscal year 2024 to a range of negative
We have not reconciled our Adjusted EBITDA outlook to GAAP Net income (loss) because we do not provide an outlook for GAAP Net income (loss) due to the uncertainty and potential variability of Other (income) expense, net and (Benefit from) provision for income taxes, which are reconciling items between Adjusted EBITDA and GAAP Net income (loss). Because we cannot reasonably predict such items, a reconciliation of the non-GAAP financial measure outlook to the corresponding GAAP measure is not available without unreasonable effort. We caution, however, that such items could have a significant impact on the calculation of GAAP Net income (loss). For further information regarding the non-GAAP financial measures included in this press release, including a reconciliation of GAAP to non-GAAP financial measures and an explanation of these measures, please see “Non-GAAP financial measures” below.
Fiscal Year 2025 Target
We are maintaining our
We believe our platform and diverse revenue streams offer us multiple paths for achieving our targets.
1 For our target revenue, "annualized" is defined as multiplying the highest-revenue quarter in fiscal year 2025 by four.
2 For the purposes of this statement, we define "profitability" in terms of Adjusted EBITDA.
Available Information
We intend to use our Company website (including our Investor Relations website) as well as our Facebook, Twitter, LinkedIn and Instagram accounts as a means of disclosing material non-public information and for complying with our disclosure obligations under Regulation FD.
Forward Looking Statements
This press release includes express or implied statements that are not historical facts and are considered forward-looking within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally relate to future events or our future financial or operating performance and may contain projections of our future results of operations or of our financial information or state other forward-looking information. These statements include, but are not limited to, statements regarding: our future financial and operating performance, including our revenue, Adjusted EBITDA and our ability to reach profitability in fiscal year 2025; our ability to finance our plans to achieve our 2025 targets with our current cash balance and cash generated in the normal course of business; our outlook for fiscal year 2024 (including with respect to Adjusted EBITDA) and fiscal year 2025 targets; and our belief that our platform and revenue streams offer us multiple paths for achieving our targets; the expected results and benefits of our acquisitions, including our most recent acquisitions of MediFind and Access eForms; and our expectations regarding the expansion of our offerings and our network of clients and partners. In some cases, you can identify forward-looking statements by the following words: “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing,” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. Although we believe that the expectations reflected in these forward-looking statements are reasonable, these statements relate to future events or our future operational or financial performance and involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond our control, including, without limitation, risks associated with: our ability to effectively manage our growth and meet our growth objectives; our focus on the long-term and our investments in growth; the competitive environment in which we operate; our ability to develop and release new products and services; our ability to develop and release successful enhancements, features and modifications to our existing products and services; changes in market conditions and receptivity to our products and services; our ability to maintain the security and availability of our platform; changes in laws and regulations applicable to our business model; our ability to make accurate predictions about our industry and addressable market; the impact of pandemics on our business and economic conditions; our ability to attract, retain and cross-sell to healthcare services clients; our ability to continue to operate effectively with a primarily remote workforce and attract and retain key talent; our ability to realize the intended benefits of our acquisitions and partnerships, including our recent acquisitions of MediFind and Access eForms; difficulties in integrating our acquisitions and investments; and the recent high inflationary environment and other general, market, political, economic and business conditions (including as a result of the warfare and/or political and economic instability in
This press release includes certain non-GAAP financial measures as defined by SEC rules. We have provided a reconciliation of those measures to the most directly comparable GAAP measures, with the exception of our Adjusted EBITDA outlook for the reasons described above.
Conference Call Information
We will hold a conference call on Wednesday September 6, 2023, at 5:00 p.m. Eastern Time to review our fiscal 2024 second quarter financial results. To participate in our live conference call and webcast, please dial (888) 350-3437 (or (646) 960-0153 for international participants) using conference code number 4000153 or visit the “Events & Presentations” section of our Investor Relations website at 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.
ABOUT PHREESIA
Phreesia is a trusted leader in patient activation, giving providers, health plans, life sciences companies and other organizations tools to help patients take a more active role in their care. Founded in 2005, Phreesia enabled more than 120 million patient visits in 2022 – more than 1 in 10 visits across the
Phreesia, Inc. |
|||||||
Consolidated Balance Sheets |
|||||||
(in thousands, except share and per share data) |
|||||||
|
July 31, 2023 |
|
January 31, 2023 |
||||
|
(Unaudited) |
|
|
||||
Assets |
|
|
|
||||
Current: |
|
|
|
||||
Cash and cash equivalents |
$ |
127,677 |
|
|
$ |
176,683 |
|
Settlement assets |
|
25,158 |
|
|
|
22,599 |
|
Accounts receivable, net of allowance for doubtful accounts of |
|
53,913 |
|
|
|
51,394 |
|
Deferred contract acquisition costs |
|
820 |
|
|
|
1,056 |
|
Prepaid expenses and other current assets |
|
11,662 |
|
|
|
10,709 |
|
Total current assets |
|
219,230 |
|
|
|
262,441 |
|
Property and equipment, net of accumulated depreciation and amortization of |
|
22,816 |
|
|
|
21,670 |
|
Capitalized internal-use software, net of accumulated amortization of |
|
41,205 |
|
|
|
35,150 |
|
Operating lease right-of-use assets |
|
227 |
|
|
|
569 |
|
Deferred contract acquisition costs |
|
1,370 |
|
|
|
1,754 |
|
Intangible assets, net of accumulated amortization of |
|
12,994 |
|
|
|
11,401 |
|
Deferred tax asset |
|
— |
|
|
|
81 |
|
Goodwill |
|
40,611 |
|
|
|
33,736 |
|
Other assets |
|
1,989 |
|
|
|
3,255 |
|
Total Assets |
$ |
340,442 |
|
|
$ |
370,057 |
|
Liabilities and Stockholders’ Equity |
|
|
|
||||
Current: |
|
|
|
||||
Settlement obligations |
$ |
25,158 |
|
|
$ |
22,599 |
|
Current portion of finance lease liabilities and other debt |
|
7,112 |
|
|
|
5,172 |
|
Current portion of operating lease liabilities |
|
416 |
|
|
|
934 |
|
Accounts payable |
|
7,948 |
|
|
|
10,836 |
|
Accrued expenses |
|
27,794 |
|
|
|
21,810 |
|
Deferred revenue |
|
16,441 |
|
|
|
17,688 |
|
Total current liabilities |
|
84,869 |
|
|
|
79,039 |
|
Long-term finance lease liabilities and other debt |
|
8,055 |
|
|
|
2,725 |
|
Operating lease liabilities, non-current |
|
216 |
|
|
|
349 |
|
Long-term deferred revenue |
|
99 |
|
|
|
125 |
|
Long-term deferred tax liabilities |
|
183 |
|
|
|
— |
|
Total Liabilities |
|
93,422 |
|
|
|
82,238 |
|
Commitments and contingencies |
|
|
|
||||
Stockholders’ Equity: |
|
|
|
||||
Common stock, |
|
554 |
|
|
|
542 |
|
Additional paid-in capital |
|
971,120 |
|
|
|
926,957 |
|
Accumulated deficit |
|
(680,382 |
) |
|
|
(606,084 |
) |
Treasury stock, at cost, 1,300,430 and 971,236 shares as of July 31, 2023 and January 31, 2023, respectively |
|
(44,272 |
) |
|
|
(33,596 |
) |
Total Stockholders’ Equity |
|
247,020 |
|
|
|
287,819 |
|
Total Liabilities and Stockholders’ Equity |
$ |
340,442 |
|
|
$ |
370,057 |
|
Phreesia, Inc. |
|||||||||||||||
Consolidated Statements of Operations |
|||||||||||||||
(Unaudited) |
|||||||||||||||
(in thousands, except share and per share data) |
|||||||||||||||
|
Three months ended
|
|
Six months ended
|
||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Revenue: |
|
|
|
|
|
|
|
||||||||
Subscription and related services |
$ |
39,301 |
|
|
$ |
31,069 |
|
|
$ |
77,188 |
|
|
$ |
60,170 |
|
Payment processing fees |
|
23,631 |
|
|
|
19,581 |
|
|
|
47,884 |
|
|
|
38,962 |
|
Network solutions |
|
22,898 |
|
|
|
17,217 |
|
|
|
44,603 |
|
|
|
32,089 |
|
Total revenues |
|
85,830 |
|
|
|
67,867 |
|
|
|
169,675 |
|
|
|
131,221 |
|
Expenses: |
|
|
|
|
|
|
|
||||||||
Cost of revenue (excluding depreciation and amortization) |
|
14,449 |
|
|
|
14,873 |
|
|
|
29,356 |
|
|
|
29,259 |
|
Payment processing expense |
|
15,852 |
|
|
|
12,554 |
|
|
|
31,942 |
|
|
|
24,712 |
|
Sales and marketing |
|
37,244 |
|
|
|
38,341 |
|
|
|
74,657 |
|
|
|
78,372 |
|
Research and development |
|
27,471 |
|
|
|
22,542 |
|
|
|
53,940 |
|
|
|
43,177 |
|
General and administrative |
|
20,988 |
|
|
|
20,073 |
|
|
|
40,865 |
|
|
|
40,928 |
|
Depreciation |
|
4,244 |
|
|
|
4,220 |
|
|
|
8,748 |
|
|
|
8,498 |
|
Amortization |
|
2,537 |
|
|
|
1,599 |
|
|
|
5,023 |
|
|
|
3,203 |
|
Total expenses |
|
122,785 |
|
|
|
114,202 |
|
|
|
244,531 |
|
|
|
228,149 |
|
Operating loss |
|
(36,955 |
) |
|
|
(46,335 |
) |
|
|
(74,856 |
) |
|
|
(96,928 |
) |
Other income, net |
|
50 |
|
|
|
38 |
|
|
|
8 |
|
|
|
7 |
|
Interest income (expense), net |
|
786 |
|
|
|
(206 |
) |
|
|
1,504 |
|
|
|
(589 |
) |
Total other income (expense), net |
|
836 |
|
|
|
(168 |
) |
|
|
1,512 |
|
|
|
(582 |
) |
Loss before provision for income taxes |
|
(36,119 |
) |
|
|
(46,503 |
) |
|
|
(73,344 |
) |
|
|
(97,510 |
) |
Provision for income taxes |
|
(648 |
) |
|
|
(213 |
) |
|
|
(954 |
) |
|
|
(448 |
) |
Net loss |
$ |
(36,767 |
) |
|
$ |
(46,716 |
) |
|
$ |
(74,298 |
) |
|
$ |
(97,958 |
) |
Net loss per share attributable to common stockholders, basic and diluted(1) |
$ |
(0.68 |
) |
|
$ |
(0.89 |
) |
|
$ |
(1.39 |
) |
|
$ |
(1.88 |
) |
Weighted-average common shares outstanding, basic and diluted |
|
53,794,060 |
|
|
|
52,325,209 |
|
|
|
53,574,584 |
|
|
|
52,135,250 |
|
(1) Our potential dilutive securities have been excluded from the computation of diluted net loss per share as the effect would be to reduce the net loss per share. Therefore, the weighted-average number of common shares outstanding used to calculate both basic and diluted net loss per share attributable to common stockholders is the same. |
|||||||||||||||
Phreesia, Inc. |
|||||||
Consolidated Statements of Cash Flows |
|||||||
(Unaudited) |
|||||||
(in thousands) |
|||||||
|
Six months ended
|
||||||
|
2023 |
|
2022 |
||||
Operating activities: |
|
|
|
||||
Net loss |
$ |
(74,298 |
) |
|
$ |
(97,958 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
||||
Depreciation and amortization |
|
13,771 |
|
|
|
11,701 |
|
Stock-based compensation expense |
|
35,786 |
|
|
|
28,709 |
|
Amortization of deferred financing costs and debt discount |
|
169 |
|
|
|
144 |
|
Cost of Phreesia hardware purchased by customers |
|
650 |
|
|
|
546 |
|
Deferred contract acquisition costs amortization |
|
620 |
|
|
|
905 |
|
Non-cash operating lease expense |
|
342 |
|
|
|
1,022 |
|
Deferred taxes |
|
142 |
|
|
|
440 |
|
Changes in operating assets and liabilities: |
|
|
|
||||
Accounts receivable |
|
(2,370 |
) |
|
|
(6,696 |
) |
Prepaid expenses and other assets |
|
769 |
|
|
|
3,190 |
|
Deferred contract acquisition costs |
|
— |
|
|
|
(177 |
) |
Accounts payable |
|
(2,415 |
) |
|
|
3,715 |
|
Accrued expenses and other liabilities |
|
6,061 |
|
|
|
983 |
|
Lease liabilities |
|
(652 |
) |
|
|
(647 |
) |
Deferred revenue |
|
(1,565 |
) |
|
|
647 |
|
Net cash used in operating activities |
|
(22,990 |
) |
|
|
(53,476 |
) |
Investing activities: |
|
|
|
||||
Acquisitions, net of cash acquired |
|
(3,873 |
) |
|
|
— |
|
Capitalized internal-use software |
|
(9,820 |
) |
|
|
(10,242 |
) |
Purchases of property and equipment |
|
(2,102 |
) |
|
|
(2,634 |
) |
Net cash used in investing activities |
|
(15,795 |
) |
|
|
(12,876 |
) |
Financing activities: |
|
|
|
||||
Proceeds from issuance of common stock upon exercise of stock options |
|
675 |
|
|
|
1,141 |
|
Treasury stock to satisfy tax withholdings on stock compensation awards |
|
(10,725 |
) |
|
|
(6,309 |
) |
Proceeds from employee stock purchase plan |
|
1,863 |
|
|
|
1,949 |
|
Finance lease payments |
|
(3,427 |
) |
|
|
(2,899 |
) |
Constructive financing |
|
1,688 |
|
|
|
— |
|
Principal payments on financing agreements |
|
(45 |
) |
|
|
(216 |
) |
Debt issuance costs and loan facility fee payments |
|
(250 |
) |
|
|
(397 |
) |
Net cash used in financing activities |
|
(10,221 |
) |
|
|
(6,731 |
) |
Net decrease in cash and cash equivalents |
|
(49,006 |
) |
|
|
(73,083 |
) |
Cash and cash equivalents – beginning of period |
|
176,683 |
|
|
|
313,812 |
|
Cash and cash equivalents – end of period |
$ |
127,677 |
|
|
$ |
240,729 |
|
|
|
|
|
||||
Supplemental information of non-cash investing and financing information: |
|
|
|
||||
Property and equipment acquisitions through finance leases |
$ |
7,067 |
|
|
$ |
526 |
|
Purchase of property and equipment and capitalized software included in current liabilities |
$ |
1,509 |
|
|
$ |
2,379 |
|
Capitalized stock-based compensation |
$ |
714 |
|
|
$ |
695 |
|
Issuance of stock to settle liabilities for stock-based compensation |
$ |
7,221 |
|
|
$ |
8,814 |
|
Issuance of stock as consideration in business combinations |
$ |
4,676 |
|
|
$ |
— |
|
Issuance of liabilities as consideration in business combinations |
$ |
91 |
|
|
$ |
— |
|
Capitalized software acquired through vendor financing |
$ |
2,047 |
|
|
$ |
— |
|
Cash paid for: |
|
|
|
||||
Interest |
$ |
354 |
|
|
$ |
446 |
|
Non-GAAP financial measures
This press release and statements made during the above-referenced webcast may include certain non-GAAP financial measures as defined by SEC rules.
Adjusted EBITDA is a supplemental measure of our performance that is not required by, or presented in accordance with, GAAP. Adjusted EBITDA is not a measurement of our financial performance under GAAP and should not be considered as an alternative to net income or loss or any other performance measure derived in accordance with GAAP, or as an alternative to cash flows from operating activities as a measure of our liquidity. We define Adjusted EBITDA as net income or loss before interest (income) expense, net, provision for income taxes, depreciation and amortization, and before stock-based compensation expense and other income, net.
We have provided below a reconciliation of Adjusted EBITDA to net loss, the most directly comparable GAAP financial measure. We have presented Adjusted EBITDA in this press release and our Quarterly Report on Form 10-Q to be filed after this press release because it is a key measure used by our management and board of directors to understand and evaluate our core operating performance and trends, to prepare and approve our annual budget, and to develop short and long-term operational plans. In particular, we believe that the exclusion of the amounts eliminated in calculating Adjusted EBITDA can provide a useful measure for period-to-period comparisons of our core business. Accordingly, we believe that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors. We have not reconciled our Adjusted EBITDA outlook to GAAP Net income (loss) because we do not provide an outlook for GAAP Net income (loss) due to the uncertainty and potential variability of Other (income) expense, net and (Benefit from) provision for income taxes, which are reconciling items between Adjusted EBITDA and GAAP Net income (loss). Because we cannot reasonably predict such items, a reconciliation of the non-GAAP financial measure outlook to the corresponding GAAP measure is not available without unreasonable effort. We caution, however, that such items could have a significant impact on the calculation of GAAP Net income (loss).
Our use of Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our financial results as reported under GAAP. Some of these limitations are as follows:
- Although depreciation and amortization expense are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and Adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements;
- Adjusted EBITDA does not reflect: (1) changes in, or cash requirements for, our working capital needs; (2) the potentially dilutive impact of non-cash stock-based compensation; (3) tax payments that may represent a reduction in cash available to us; or (4) interest (income) expense, net; and
- Other companies, including companies in our industry, may calculate Adjusted EBITDA or similarly titled measures differently, which reduces its usefulness as a comparative measure.
Because of these and other limitations, you should consider Adjusted EBITDA along with other GAAP-based financial performance measures, including various cash flow metrics, net loss, and our GAAP financial results. The following table presents a reconciliation of Adjusted EBITDA to net loss for each of the periods indicated:
Phreesia, Inc. |
|||||||||||||||
Adjusted EBITDA |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
Three months ended July 31, |
|
Six months ended July 31, |
||||||||||||
(in thousands) |
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Net loss |
$ |
(36,767 |
) |
|
$ |
(46,716 |
) |
|
$ |
(74,298 |
) |
|
$ |
(97,958 |
) |
Interest (income) expense, net |
|
(786 |
) |
|
|
206 |
|
|
|
(1,504 |
) |
|
|
589 |
|
Provision for income taxes |
|
648 |
|
|
|
213 |
|
|
|
954 |
|
|
|
448 |
|
Depreciation and amortization |
|
6,781 |
|
|
|
5,819 |
|
|
|
13,771 |
|
|
|
11,701 |
|
Stock-based compensation expense |
|
18,648 |
|
|
|
14,558 |
|
|
|
35,786 |
|
|
|
28,709 |
|
Other expense, net |
|
(50 |
) |
|
|
(38 |
) |
|
|
(8 |
) |
|
|
(7 |
) |
Adjusted EBITDA |
$ |
(11,526 |
) |
|
$ |
(25,958 |
) |
|
$ |
(25,299 |
) |
|
$ |
(56,518 |
) |
Phreesia, Inc. |
|||||||||||
Reconciliation of GAAP and Adjusted Operating Expenses |
|||||||||||
(Unaudited) |
|||||||||||
|
Three months ended July 31, |
|
Six months ended July 31, |
||||||||
(in thousands) |
2023 |
|
2022 |
|
2023 |
|
2022 |
||||
GAAP operating expenses |
|
|
|
|
|
|
|
||||
General and administrative |
$ |
20,988 |
|
$ |
20,073 |
|
$ |
40,865 |
|
$ |
40,928 |
Sales and marketing |
|
37,244 |
|
|
38,341 |
|
|
74,657 |
|
|
78,372 |
Research and development |
|
27,471 |
|
|
22,542 |
|
|
53,940 |
|
|
43,177 |
Cost of revenue (excluding depreciation and amortization) |
|
14,449 |
|
|
14,873 |
|
|
29,356 |
|
|
29,259 |
|
$ |
100,152 |
|
$ |
95,829 |
|
$ |
198,818 |
|
$ |
191,736 |
Stock compensation included in GAAP operating expenses |
|
|
|
|
|
|
|
||||
General and administrative |
$ |
5,747 |
|
$ |
5,206 |
|
$ |
11,625 |
|
$ |
10,334 |
Sales and marketing |
|
7,111 |
|
|
5,423 |
|
|
13,528 |
|
|
11,077 |
Research and development |
|
4,563 |
|
|
2,967 |
|
|
8,441 |
|
|
5,528 |
Cost of revenue (excluding depreciation and amortization) |
|
1,227 |
|
|
962 |
|
|
2,192 |
|
|
1,770 |
|
$ |
18,648 |
|
$ |
14,558 |
|
$ |
35,786 |
|
$ |
28,709 |
Adjusted operating expenses |
|
|
|
|
|
|
|
||||
General and administrative |
$ |
15,241 |
|
$ |
14,867 |
|
$ |
29,240 |
|
$ |
30,594 |
Sales and marketing |
|
30,133 |
|
|
32,918 |
|
|
61,129 |
|
|
67,295 |
Research and development |
|
22,908 |
|
|
19,575 |
|
|
45,499 |
|
|
37,649 |
Cost of revenue (excluding depreciation and amortization) |
|
13,222 |
|
|
13,911 |
|
|
27,164 |
|
|
27,489 |
|
$ |
81,504 |
|
$ |
81,271 |
|
$ |
163,032 |
|
$ |
163,027 |
Phreesia, Inc. |
|||||||||||
Key Metrics |
|||||||||||
(Unaudited) |
|||||||||||
|
Three months ended
|
|
Six months ended
|
||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||
Key Metrics: |
|
|
|
|
|
|
|
||||
Average number of healthcare services clients ("AHSCs") |
|
3,445 |
|
|
2,776 |
|
|
3,377 |
|
|
2,651 |
Healthcare services revenue per AHSC |
$ |
18,268 |
|
$ |
18,248 |
|
$ |
37,036 |
|
$ |
37,397 |
Total revenue per AHSC |
$ |
24,914 |
|
$ |
24,448 |
|
$ |
50,244 |
|
$ |
64,004 |
We remain focused on building secure and reliable products that derive a strong return on investment for our clients and implementing them with speed and ease. This strategy continues to enable us to grow our network of healthcare services clients. The investments we make to grow, strengthen and sustain our network of healthcare services clients lead to growth in all of our revenue categories.
The definitions of our key metrics are presented below.
- AHSCs. We define AHSCs as the average number of clients that generate subscription and related services or payment processing revenue each month during the applicable period. In cases where we act as a subcontractor providing white-label services to our partner's clients, we treat the contractual relationship as a single healthcare services client. We believe growth in AHSCs is a key indicator of the performance of our business and depends, in part, on our ability to successfully develop and market our Platform to healthcare services organizations that are not yet clients. While growth in AHSCs is an important indicator of expected revenue growth, it also informs our management of the areas of our business that will require further investment to support expected future AHSC growth. For example, as AHSCs increase, we may need to add to our customer support team and invest to maintain effectiveness and performance of our Platform and software for our healthcare services clients and their patients.
- Healthcare services revenue per AHSC. We define Healthcare services revenue as the sum of subscription and related services revenue and payment processing revenue. We define Healthcare services revenue per AHSC as Healthcare services revenue in a given period divided by AHSCs during that same period. We are focused on continually delivering value to our healthcare services clients and believe that our ability to increase Healthcare services revenue per AHSC is an indicator of the long-term value of the Phreesia platform.
- Total revenue per AHSC. We define Total revenue per AHSC as Total revenue in a given period divided by AHSCs during that same period. Our healthcare services clients directly generate subscription and related services and payment processing revenue. Additionally, our relationships with healthcare services clients who subscribe to the Phreesia Platform give us the opportunity to engage with life sciences companies, health plans and other payer organizations, patient advocacy, public interest and other not-for-profit organizations who deliver direct communication to patients through our Platform. As a result, we believe that our ability to increase Total revenue per AHSC is an indicator of the long-term value of the Phreesia Platform.
Additional Information |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
Three months ended
|
|
Six months ended
|
||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Patient payment volume (in millions) |
$ |
989 |
|
|
$ |
811 |
|
|
$ |
2,005 |
|
|
$ |
1,648 |
|
Payment facilitator volume percentage |
|
82 |
% |
|
|
80 |
% |
|
|
82 |
% |
|
80 |
% |
|
- Patient payment volume. We believe that patient payment volume is an indicator of both the underlying health of our healthcare services clients’ businesses and the continuing shift of healthcare costs to patients. We measure patient payment volume as the total dollar volume of transactions between our healthcare services clients and their patients utilizing our payment platform, including via credit and debit cards that we process as a payment facilitator as well as cash and check payments and credit and debit transactions for which we act as a gateway to other payment processors.
- Payment facilitator volume percentage. We define payment facilitator volume percentage as the volume of credit and debit card patient payment volume that we process as a payment facilitator as a percentage of total patient payment volume. Payment facilitator volume is a major driver of our payment processing revenue. Our payment facilitator volume percentage could decline slightly over time should we increase our penetration of enterprise customers that are less likely to use Phreesia as a payment facilitator.
View source version on businesswire.com: https://www.businesswire.com/news/home/20230906148801/en/
Investor Contact:
Balaji Gandhi
Phreesia, Inc.
investors@phreesia.com
(929) 506-4950
Media Contact:
Maureen McKinney
Phreesia, Inc.
mmckinney@phreesia.com
(773) 330-8908
Source: Phreesia, Inc.
