Phreesia, Inc. (NYSE: PHR) (“Phreesia” or the "Company")
announced financial results today for the fiscal second quarter
ended July 31, 2024.
"We reached another very important milestone in Phreesia’s
evolution by crossing over to positive Free cash flow1 in the
fiscal second quarter of 2025,” said CEO and Co-Founder Chaim
Indig. “We believe this milestone marks the start of a new era for
Phreesia in which we are able to deploy internally generated cash
to drive stakeholder value.”
Please visit the Phreesia investor relations website at
ir.phreesia.com to view the Company's Q2 Fiscal Year 2025
Stakeholder Letter.
Fiscal Second Quarter Ended July 31, 2024 Highlights
- Total revenue was $102.1 million in the quarter, up 19%
year-over-year.
- Average number of healthcare services clients ("AHSCs") was
4,169 in the quarter, up 21% year-over-year.
- Total revenue per AHSC was $24,494 in the quarter, down 2%
year-over-year. See "Key Metrics" below for additional
information.
- Healthcare services revenue per AHSC was $17,729 in the
quarter, down 3% year-over-year. See "Key Metrics" below for
additional information.
- Net loss was $18.0 million in the quarter compared to net loss
of $36.8 million in the same period in the prior year.
- Adjusted EBITDA was $6.5 million in the quarter compared to
negative $11.5 million in the same period in the prior year.
- Net cash provided by operating activities was $11.1 million for
the three months ended July 31, 2024, as compared to net cash used
in operating activities of $9.3 million for the three months ended
July 31, 2023.
- Free cash flow was $3.7 million for the three months ended July
31, 2024, as compared to negative $15.2 million for the three
months ended July 31, 2023.
- Cash and cash equivalents as of July 31, 2024 was $81.8
million, a decrease of $5.7 million from January 31, 2024 and up
$2.3 million from April 30, 2024.
Fiscal Year 2025 and 2026 Outlook
We are maintaining our revenue outlook for fiscal 2025 of $416
million to $426 million, implying year-over-year growth of 17% to
20%.
We are updating our Adjusted EBITDA outlook for fiscal 2025 to a
range of $26 million to $31 million from a previous range of $21
million to $26 million. Our outlook reflects our strong performance
in the fiscal second quarter and our continued focus on margin
improvement.
We expect AHSCs to reach approximately 4,200 for fiscal 2025
compared to 3,601 for fiscal 2024. We expect Total revenue per AHSC
to increase in fiscal 2025 compared to the $98,944 we achieved in
fiscal 2024.
We expect AHSCs to reach approximately 4,500 in fiscal 2026.
Additionally, we expect Total revenue per AHSC in fiscal 2026 to
increase from fiscal 2025.
We believe our $81.8 million in cash and cash equivalents as of
July 31, 2024, along with cash generated in our normal operations,
gives us sufficient flexibility to reach our fiscal 2025 and fiscal
2026 outlook. Additionally, our available borrowing capacity under
our credit facility with Capital One provides us with an additional
source of capital to pursue future growth opportunities not
incorporated into our fiscal 2025 and fiscal 2026 outlook. As of
July 31, 2024 we have no borrowings outstanding under our credit
facility.
Non-GAAP Financial Measures
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.
Available Information
We intend to use our Company website (including our Investor
Relations website) as well as our Facebook, X, 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, margins, Adjusted EBITDA, cash flows and
profitability2; our ability to finance our plans to achieve our
fiscal 2025 and fiscal 2026 outlook with our current cash balance
and cash generated in the normal course of business; and our
outlook for fiscal 2025 and fiscal 2026, including our expectations
on AHSCs. 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 comply with the covenants in our credit agreement with
Capital One; changes in market conditions and receptivity to our
products and services; our ability to develop and release new
products and services and successful enhancements, features and
modifications to our existing products and services; our ability to
maintain the security and availability of our platform; the impact
of cyberattacks, security incidents or breaches impacting our
business; changes in laws and regulations applicable to our
business model; our ability to make accurate predictions about our
industry and addressable market; 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; and 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 Ukraine, the
Middle East or elsewhere). The forward-looking statements contained
in this press release are also subject to other risks and
uncertainties, including those listed or described in our filings
with the Securities and Exchange Commission (“SEC”), including in
our Quarterly Report on Form 10-Q for the fiscal quarter ended July
31, 2024 that will be filed with the SEC following this press
release. The forward-looking statements in this press release speak
only as of the date on which the statements are made. We undertake
no obligation to update, and expressly disclaim the obligation to
update, any forward-looking statements made in this press release
to reflect events or circumstances after the date of this press
release or to reflect new information or the occurrence of
unanticipated events, except as required by law.
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 4, 2024 at
5:00 p.m. Eastern Time to review our fiscal 2025 second quarter
financial results. To participate in our live conference call and
webcast, please dial (800) 715-9871 (or (646) 307-1963 for
international participants) using conference code number 7404611 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, life sciences companies, payers and other organizations
tools to help patients take a more active role in their care.
Founded in 2005, Phreesia enabled approximately 150 million patient
visits in 2023—more than 1 in 10 visits across the U.S.—scale that
we believe allows us to make meaningful impact. Offering
patient-driven digital solutions for intake, outreach, education
and more, Phreesia enhances the patient experience, drives
efficiency and improves healthcare outcomes.
Phreesia, Inc.
Consolidated Balance
Sheets
(in thousands, except share and
per share data)
July 31, 2024
January 31, 2024
(Unaudited)
Assets
Current:
Cash and cash equivalents
$
81,798
$
87,520
Settlement assets
25,320
28,072
Accounts receivable, net of allowance for
doubtful accounts of $1,365 and $1,392 as of July 31, 2024 and
January 31, 2024, respectively
61,274
64,863
Deferred contract acquisition costs
841
768
Prepaid expenses and other current
assets
11,695
14,461
Total current assets
180,928
195,684
Property and equipment, net of accumulated
depreciation and amortization of $84,295 and $76,859 as of July 31,
2024 and January 31, 2024, respectively
20,955
16,902
Capitalized internal-use software, net of
accumulated amortization of $50,559 and $45,769 as of July 31, 2024
and January 31, 2024, respectively
49,767
46,139
Operating lease right-of-use assets
1,863
266
Deferred contract acquisition costs
742
986
Intangible assets, net of accumulated
amortization of $6,666 and $4,925 as of July 31, 2024 and January
31, 2024, respectively
29,884
31,625
Goodwill
75,845
75,845
Other assets
2,251
2,879
Total Assets
$
362,235
$
370,326
Liabilities and Stockholders’
Equity
Current:
Settlement obligations
$
25,320
$
28,072
Current portion of finance lease
liabilities and other debt
7,161
6,056
Current portion of operating lease
liabilities
989
393
Accounts payable
6,976
8,480
Accrued expenses
32,668
37,130
Deferred revenue
21,370
24,113
Other current liabilities
7,515
5,875
Total current liabilities
101,999
110,119
Long-term finance lease liabilities and
other debt
7,297
5,400
Operating lease liabilities,
non-current
1,075
134
Long-term deferred revenue
63
97
Long-term deferred tax liabilities
390
270
Other long-term liabilities
76
2,857
Total Liabilities
110,900
118,877
Commitments and contingencies
Stockholders’ Equity:
Preferred stock, undesignated, $0.01 par
value—$20,000,000 shares authorized as of both July 31, 2024 and
January 31, 2024; no shares issued or outstanding as of both July
31, 2024 and January 31, 2024
—
—
Common stock, $0.01 par value -
500,000,000 shares authorized as of both July 31, 2024 and January
31, 2024; 59,057,170 and 57,709,762 shares issued as of July 31,
2024 and January 31, 2024, respectively
591
577
Additional paid-in capital
1,076,969
1,039,361
Accumulated deficit
(780,703
)
(742,969
)
Accumulated other comprehensive loss
(2
)
—
Treasury stock, at cost, 1,355,169 shares
as of both July 31, 2024 and January 31, 2024
(45,520
)
(45,520
)
Total Stockholders’ Equity
251,335
251,449
Total Liabilities and Stockholders’
Equity
$
362,235
$
370,326
Phreesia, Inc.
Consolidated Statements of
Operations
(Unaudited)
(in thousands, except share and
per share data)
Three months ended
Six months ended
July 31,
July 31,
2024
2023
2024
2023
Revenue:
Subscription and related services
$
48,612
$
39,301
$
95,354
$
77,188
Payment processing fees
25,300
23,631
52,360
47,884
Network solutions
28,203
22,898
55,618
44,603
Total revenues
102,115
85,830
203,332
169,675
Expenses:
Cost of revenue (excluding depreciation
and amortization)
16,143
14,449
31,866
29,356
Payment processing expense
16,668
15,852
34,965
31,942
Sales and marketing
30,184
37,244
62,195
74,657
Research and development
29,542
27,471
58,423
53,940
General and administrative
19,497
20,988
38,549
40,865
Depreciation
3,921
4,244
7,445
8,748
Amortization
3,382
2,537
6,531
5,023
Total expenses
119,337
122,785
239,974
244,531
Operating loss
(17,222
)
(36,955
)
(36,642
)
(74,856
)
Other (expense) income, net
(86
)
50
(117
)
8
Interest income, net
46
786
285
1,504
Total other (expense) income,
net
(40
)
836
168
1,512
Loss before provision for income
taxes
(17,262
)
(36,119
)
(36,474
)
(73,344
)
Provision for income taxes
(750
)
(648
)
(1,260
)
(954
)
Net loss
$
(18,012
)
$
(36,767
)
$
(37,734
)
$
(74,298
)
Net loss per share attributable to
common stockholders, basic and diluted
$
(0.31
)
$
(0.68
)
$
(0.66
)
$
(1.39
)
Weighted-average common shares
outstanding, basic and diluted
57,502,959
53,794,060
57,089,232
53,574,584
(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
Comprehensive Loss
(Unaudited)
(in thousands)
Three months ended
Six months ended
July 31,
July 31,
2024
2023
2024
2023
Net loss
$
(18,012
)
$
(36,767
)
$
(37,734
)
$
(74,298
)
Other comprehensive loss, net of tax:
Change in foreign currency translation
adjustments, net of tax
(3
)
—
(2
)
—
Other comprehensive loss, net of
tax
(3
)
—
(2
)
—
Comprehensive loss
$
(18,015
)
$
(36,767
)
$
(37,736
)
$
(74,298
)
Phreesia, Inc.
Consolidated Statements of
Cash Flows
(Unaudited)
(in thousands)
Three months ended
Six months ended
July 31,
July 31,
2024
2023
2024
2023
Operating activities:
Net loss
$
(18,012
)
$
(36,767
)
$
(37,734
)
$
(74,298
)
Adjustments to reconcile net loss to net
cash provided by (used in) operating activities:
Depreciation and amortization
7,303
6,781
13,976
13,771
Stock-based compensation expense
16,448
18,648
33,288
35,786
Amortization of deferred financing costs
and debt discount
51
84
112
169
Cost of Phreesia hardware purchased by
customers
334
234
677
650
Deferred contract acquisition costs
amortization
192
280
384
620
Non-cash operating lease expense
188
109
361
342
Deferred taxes
56
(75
)
119
142
Changes in operating assets and
liabilities:
Accounts receivable
4,976
(832
)
3,583
(2,370
)
Prepaid expenses and other assets
2,867
(383
)
3,281
769
Deferred contract acquisition costs
(213
)
—
(213
)
—
Accounts payable
1,186
568
(1,750
)
(2,415
)
Accrued expenses and other liabilities
(1,392
)
4,239
(2,547
)
6,061
Lease liabilities
(201
)
(405
)
(420
)
(652
)
Deferred revenue
(2,722
)
(1,812
)
(2,777
)
(1,565
)
Net cash provided by (used in)
operating activities
11,061
(9,331
)
10,340
(22,990
)
Investing activities:
Acquisitions, net of cash acquired
—
(3,873
)
—
(3,873
)
Capitalized internal-use software
(2,976
)
(5,088
)
(7,546
)
(9,820
)
Purchases of property and equipment
(4,427
)
(755
)
(5,303
)
(2,102
)
Net cash used in investing
activities
(7,403
)
(9,716
)
(12,849
)
(15,795
)
Financing activities:
Proceeds from issuance of common stock
upon exercise of stock options
219
426
566
675
Treasury stock to satisfy tax withholdings
on stock compensation awards
—
(3,775
)
—
(10,725
)
Proceeds from employee stock purchase
plan
690
896
1,603
1,863
Finance lease payments
(1,995
)
(1,983
)
(3,275
)
(3,427
)
Constructive financing
—
1,688
—
1,688
Principal payments on financing
agreements
(295
)
(45
)
(584
)
(45
)
Debt issuance costs and loan facility fee
payments
—
(250
)
(152
)
(250
)
Financing payments of acquisition-related
liabilities
—
—
(1,364
)
—
Net cash used in financing
activities
(1,381
)
(3,043
)
(3,206
)
(10,221
)
Effect of exchange rate changes on cash
and cash equivalents
(6
)
—
(7
)
—
Net increase (decrease) in cash and
cash equivalents
2,271
(22,090
)
(5,722
)
(49,006
)
Cash and cash equivalents – beginning
of period
79,527
149,767
87,520
176,683
Cash and cash equivalents – end of
period
$
81,798
$
127,677
$
81,798
$
127,677
Supplemental information of non-cash
investing and financing information:
Right of use assets acquired in exchange
for operating lease liabilities
$
1,194
$
—
$
1,958
$
—
Property and equipment acquisitions
through finance leases
$
333
$
—
$
6,862
$
7,067
Purchase of property and equipment and
capitalized software included in current liabilities
$
1,517
$
1,509
$
1,517
$
1,509
Capitalized stock-based compensation
$
315
$
377
$
663
$
714
Issuance of stock to settle liabilities
for stock-based compensation
$
1,649
$
1,924
$
7,826
$
7,221
Issuance of stock as consideration in
business combinations
$
—
$
4,676
$
—
$
4,676
Issuance of liabilities as consideration
in business combinations
$
—
$
91
$
—
$
91
Capitalized software acquired through
vendor financing
$
—
$
2,047
$
—
$
2,047
Cash paid for:
Interest
$
381
$
296
$
864
$
354
Income taxes
$
417
$
13
$
2,010
$
53
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, net,
provision for income taxes, depreciation and amortization, and
before stock-based compensation expense and other expense, 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, 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
Six months ended
July 31,
July 31,
(in thousands)
2024
2023
2024
2023
Net loss
$
(18,012
)
$
(36,767
)
$
(37,734
)
$
(74,298
)
Interest income, net
(46
)
(786
)
(285
)
(1,504
)
Provision for income taxes
750
648
1,260
954
Depreciation and amortization
7,303
6,781
13,976
13,771
Stock-based compensation expense
16,448
18,648
33,288
35,786
Other expense (income), net
86
(50
)
117
(8
)
Adjusted EBITDA
$
6,529
$
(11,526
)
$
10,622
$
(25,299
)
We calculate Free cash flow as Net cash provided by (used in)
operating activities less capitalized internal-use software
development costs and purchases of property and equipment.
Additionally, Free cash flow is a supplemental measure of our
performance that is not required by, or presented in accordance
with, GAAP. We consider Free cash flow to be a liquidity measure
that provides useful information to management and investors about
the amount of cash generated by our business that can be used for
strategic opportunities, including investing in our business,
making strategic investments, partnerships and acquisitions and
strengthening our financial position.
The following table presents a reconciliation of Free cash flow
from Net cash provided by (used in) operating activities, the most
directly comparable GAAP financial measure, for each of the periods
indicated:
Phreesia, Inc.
Free cash flow
(Unaudited)
Three months ended
Six months ended
July 31,
July 31,
(in thousands, unaudited)
2024
2023
2024
2023
Net cash provided by (used in) operating
activities
$
11,061
$
(9,331
)
$
10,340
$
(22,990
)
Less:
Capitalized internal-use software
(2,976
)
(5,088
)
(7,546
)
(9,820
)
Purchases of property and equipment
(4,427
)
(755
)
(5,303
)
(2,102
)
Free cash flow
$
3,658
$
(15,174
)
$
(2,509
)
$
(34,912
)
Phreesia, Inc.
Reconciliation of GAAP and
Adjusted Operating Expenses
(Unaudited)
Three months ended
Six months ended
July 31,
July 31,
(in thousands)
2024
2023
2024
2023
GAAP operating expenses
General and administrative
$
19,497
$
20,988
$
38,549
$
40,865
Sales and marketing
30,184
37,244
62,195
74,657
Research and development
29,542
27,471
58,423
53,940
Cost of revenue (excluding depreciation
and amortization)
16,143
14,449
31,866
29,356
$
95,366
$
100,152
$
191,033
$
198,818
Stock compensation included in GAAP
operating expenses
General and administrative
$
6,276
$
5,747
$
12,485
$
11,625
Sales and marketing
5,303
7,111
11,069
13,528
Research and development
3,629
4,563
7,256
8,441
Cost of revenue (excluding depreciation
and amortization)
1,240
1,227
2,478
2,192
$
16,448
$
18,648
$
33,288
$
35,786
Adjusted operating expenses
General and administrative
$
13,221
$
15,241
$
26,064
$
29,240
Sales and marketing
24,881
30,133
51,126
61,129
Research and development
25,913
22,908
51,167
45,499
Cost of revenue (excluding depreciation
and amortization)
14,903
13,222
29,388
27,164
$
78,918
$
81,504
$
157,745
$
163,032
Phreesia, Inc.
Key Metrics
(Unaudited)
Three months ended
Six months ended
July 31,
July 31,
2024
2023
2024
2023
Key Metrics:
Average number of healthcare services
clients ("AHSCs")
4,169
3,445
4,117
3,377
Healthcare services revenue per AHSC
$
17,729
$
18,268
$
35,879
$
37,036
Total revenue per AHSC
$
24,494
$
24,914
$
49,388
$
50,244
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
solutions 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 solutions
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 our
solutions.
- 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 our solutions 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 solutions. As a result, we believe that our
ability to increase Total revenue per AHSC is an indicator of the
long-term value of our solutions.
Additional Information
(Unaudited)
Three months ended
Six months ended
July 31,
July 31,
2024
2023
2024
2023
Patient payment volume (in millions)
$
1,093
$
989
$
2,259
$
2,005
Payment facilitator volume percentage
81
%
82
%
81
%
82
%
- 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.
______________________________ 1 During the second quarter of
fiscal 2025, our net cash provided by operating activities was
$11.1 million and our Free cash flow was $3.7 million. We define
Free cash flow as net cash provided by (used in) operating
activities less cash paid for capitalized internal-use software
development costs and cash paid for purchases of property and
equipment. See “Non-GAAP Financial Measures” for a reconciliation
of Free cash flow to the closest GAAP measure. 2 We define
“profitability,” discussed herein, in terms of Adjusted EBITDA. See
‘Non-GAAP Financial Measures’ for a reconciliation of our Net loss
to Adjusted EBITDA.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240904933358/en/
Investor Relations Contact:
Balaji Gandhi Phreesia, Inc. investors@phreesia.com (929)
506-4950
Media Contact:
Nicole Gist Phreesia, Inc. nicole.gist@phreesia.com (407)
760-6274
Phreesia (NYSE:PHR)
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