Phreesia, Inc. (NYSE: PHR) (“Phreesia” or the "Company")
announced financial results today for the fiscal third quarter
ended October 31, 2023.
"I am proud of our work during the third quarter to further our
mission of helping patients take a more active role in their care,"
said CEO and Co-Founder Chaim Indig.
Please visit the Phreesia investor relations website at
ir.phreesia.com to view the Company's Q3 Fiscal Year 2024
Stakeholder Letter.
Fiscal Third Quarter Ended October 31, 2023
Highlights
- Total revenue was $91.6 million in the quarter as compared to
$73.1 million in the same period in the prior year, an increase of
25%.
- Average number of healthcare services clients ("AHSCs") was
3,688 in the quarter as compared to 2,982 in the same period in the
prior year, an increase of 24%.
- Healthcare services revenue per AHSC was $17,845 in the quarter
as compared to $17,645 in the same period in the prior year. See
"Key Metrics" below for additional information.
- Total revenue per AHSC was $24,842 in the quarter as compared
to $24,515 in the same period in the prior year, an increase of 1%.
The increase was driven primarily by subscription and related
services and network solutions revenue growth that outpaced AHSC
growth. See "Key Metrics" below for additional information.
- Net loss was $31.9 million in the quarter compared to $40.2
million in the same period in the prior year.
- Adjusted EBITDA was negative $6.6 million in the quarter
compared to negative $18.3 million in the same period in the prior
year.
- Cash and cash equivalents as of October 31, 2023 was $103.4
million, down $73.3 million from January 31, 2023.
Recent Events
Acquisition of ConnectOnCall
On October 3, 2023, we acquired ConnectOnCall.com, LLC
(“ConnectOnCall”) for total consideration of $13.9 million.
ConnectOnCall is a founder-owned company with an innovative medical
answering solution that makes it easier for on-call providers to
respond to patient calls—especially after hours—and improves the
patient experience. We acquired ConnectOnCall to expand our
offerings to provider organizations, helping them make the
call-triaging process more efficient and less expensive.
Termination of Third SVB Facility
On December 4, 2023, we terminated the Third SVB Facility and
replaced it with the Capital One Facility described below. We
incurred termination fees of $0.8 million in connection with the
termination of the Third SVB Facility.
Capital One Facility
On December 4, 2023, we entered into a new 5-year $50 million
senior secured asset-based revolving credit facility ("Capital One
Credit Facility") maturing in December 2028. The new Capital One
Credit Facility was entered into with Capital One, N.A., acting as
administrative agent and replaces our previous senior secured
revolving credit facility with Silicon Valley Bank, which we
terminated on the same date. We believe the new Capital One Credit
Facility will give us additional financial flexibility through the
5-year term. The facility is available to us for working capital
and general corporate purposes.
Outlook and Target
Fiscal Year 2024 Outlook
We are maintaining our revenue outlook for fiscal year 2024 at
$353 million to $356 million, implying year-over-year growth of 26%
to 27%.
We are raising our Adjusted EBITDA outlook for fiscal year 2024
to approximately negative $39 million from a previous range of
negative $54 million to negative $49 million.
Fiscal Year 2025 Outlook and Target
We are introducing our revenue outlook for fiscal 2025. We
expect revenue to be in the range of $424 million to $434 million.
The revenue range provided for fiscal 2025 assumes no additional
revenue from potential future acquisitions completed between now
and January 31, 2025.
In conjunction with our initial revenue outlook for fiscal 2025,
we are revising our timeline for reaching annualized revenue of
$500 million. Over the past two months, in order to accelerate our
path to profitability1, we have made decisions to hold back on
certain planned investments in our go to market and in the payer
space because we do not believe the revenue from those investments
will be realized soon enough to justify the returns in the current
cost of capital environment. As a result of these decisions, we now
expect to achieve $500 million of annualized revenue in a quarter
in fiscal 20262 as compared to our previous target of a quarter in
fiscal 2025.
In conjunction with our increased prioritization of achieving
profitability1, we are introducing our Adjusted EBITDA Outlook for
fiscal 2025. We expect Adjusted EBITDA for fiscal 2025 to be in the
range of $10 million to $20 million. Our new outlook represents an
acceleration to profitability1 compared to our previous target of
achieving profitability1 at some point during fiscal year 2025. We
believe our decisions will enhance long-term shareholder value.
We believe our $103.4 million in cash and cash equivalents as of
October 31, 2023, along with cash generated in our normal
operations gives us sufficient flexibility to reach our fiscal 2025
revenue and Adjusted EBITDA 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 revenue
and Adjusted EBITDA outlook.
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, 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
profitability1 in fiscal year 2025; our ability to finance our
plans to achieve our fiscal year 2025 outlook with our current cash
balance and cash generated in the normal course of business; our
outlook for fiscal year 2024 and fiscal year 2025 (including with
respect to Adjusted EBITDA) and our fiscal year 2025 and 2026
targets; our belief that our decisions to hold back on certain
planned investments will accelerate profitability1 and that our and
increased prioritization of achieving profitability1 will enhance
long-term shareholder value; our belief that our new revolving
credit facility with Capital One will give us additional financial
flexibility; the expected results and benefits of our acquisitions,
including our recent acquisition of ConnectOnCall; 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 comply with the
covenants in our credit agreement with Capital One; 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, Access eForms and ConnectOnCall;
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 Annual Report on Form 10-K for the fiscal year
ended January 31, 2023 and in our Quarterly Report on Form 10-Q for
the fiscal quarter ended October 31, 2023 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.
________________________ 1 For the purposes of this statement,
we define "profitability" in terms of Adjusted EBITDA. 2 For our
target revenue, "annualized" is defined as multiplying the
highest-revenue quarter in fiscal year 2026 by four.
Conference Call Information
We will hold a conference call on Tuesday December 5, 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 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. To learn more, visit
phreesia.com.
Phreesia, Inc.
Consolidated Balance
Sheets
(in thousands, except share and
per share data)
October 31, 2023
January 31, 2023
(Unaudited)
Assets
Current:
Cash and cash equivalents
$
103,366
$
176,683
Settlement assets
24,083
22,599
Accounts receivable, net of allowance for
doubtful accounts of $1,556 and $1,053 as of October 31, 2023 and
January 31, 2023, respectively
57,439
51,394
Deferred contract acquisition costs
777
1,056
Prepaid expenses and other current
assets
13,575
10,709
Total current assets
199,240
262,441
Property and equipment, net of accumulated
depreciation and amortization of $72,516 and $59,847 as of October
31, 2023 and January 31, 2023, respectively
19,899
21,670
Capitalized internal-use software, net of
accumulated amortization of $43,744 and $37,236 as of October 31,
2023 and January 31, 2023, respectively
44,257
35,150
Operating lease right-of-use assets
431
569
Deferred contract acquisition costs
1,178
1,754
Intangible assets, net of accumulated
amortization of $4,044 and $2,549 as of October 31, 2023 and
January 31, 2023, respectively
32,506
11,401
Deferred tax asset
—
81
Goodwill
75,468
33,736
Other assets
1,668
3,255
Total Assets
$
374,647
$
370,057
Liabilities and Stockholders’
Equity
Current:
Settlement obligations
$
24,083
$
22,599
Current portion of finance lease
liabilities and other debt
6,753
5,172
Current portion of operating lease
liabilities
571
934
Accounts payable
10,904
10,836
Accrued expenses
28,290
21,810
Deferred revenue
22,034
17,688
Other current liabilities
5,790
—
Total current liabilities
98,425
79,039
Long-term finance lease liabilities and
other debt
6,845
2,725
Operating lease liabilities,
non-current
174
349
Long-term deferred revenue
97
125
Long-term deferred tax liabilities
222
—
Other long-term liabilities
4,286
—
Total Liabilities
110,049
82,238
Commitments and contingencies
Stockholders’ Equity:
Common stock, $0.01 par value -
500,000,000 shares authorized as of both October 31, 2023 and
January 31, 2023; 56,964,279 and 54,187,172 shares issued as of
October 31, 2023 and January 31, 2023, respectively
570
542
Additional paid-in capital
1,021,870
926,957
Accumulated deficit
(712,323
)
(606,084
)
Treasury stock, at cost, 1,355,169 and
971,236 shares as of October 31, 2023 and January 31, 2023,
respectively
(45,519
)
(33,596
)
Total Stockholders’ Equity
264,598
287,819
Total Liabilities and Stockholders’
Equity
$
374,647
$
370,057
Phreesia, Inc.
Consolidated Statements of
Operations
(Unaudited)
(in thousands, except share and
per share data)
Three months ended
October 31,
Nine months ended
October 31,
2023
2022
2023
2022
Revenue:
Subscription and related services
$
42,595
$
32,992
$
119,783
$
93,162
Payment processing fees
23,218
19,626
71,102
58,588
Network solutions
25,806
20,485
70,409
52,574
Total revenues
91,619
73,103
261,294
204,324
Expenses:
Cost of revenue (excluding depreciation
and amortization)
15,529
14,562
44,885
43,821
Payment processing expense
15,410
12,770
47,352
37,482
Sales and marketing
36,478
36,631
111,135
115,003
Research and development
28,544
22,669
82,484
65,846
General and administrative
20,240
19,600
61,105
60,528
Depreciation
4,483
4,865
13,231
13,363
Amortization
2,980
1,817
8,003
5,020
Total expenses
123,664
112,914
368,195
341,063
Operating loss
(32,045
)
(39,811
)
(106,901
)
(136,739
)
Other expense, net
(47
)
(211
)
(39
)
(204
)
Interest income (expense), net
523
61
2,027
(528
)
Total other income (expense),
net
476
(150
)
1,988
(732
)
Loss before provision for income
taxes
(31,569
)
(39,961
)
(104,913
)
(137,471
)
Provision for income taxes
(372
)
(206
)
(1,326
)
(654
)
Net loss
$
(31,941
)
$
(40,167
)
$
(106,239
)
$
(138,125
)
Net loss per share attributable to
common stockholders, basic and diluted
$
(0.58
)
$
(0.76
)
$
(1.96
)
$
(2.64
)
Weighted-average common shares
outstanding, basic and diluted
55,251,074
52,606,400
54,139,555
52,294,026
(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)
Nine months ended
October 31,
2023
2022
Operating activities:
Net loss
$
(106,239
)
$
(138,125
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
21,234
18,383
Stock-based compensation expense
53,749
43,491
Amortization of deferred financing costs
and debt discount
253
227
Cost of Phreesia hardware purchased by
customers
1,232
939
Deferred contract acquisition costs
amortization
855
1,318
Non-cash operating lease expense
484
1,543
Deferred taxes
181
515
Changes in operating assets and
liabilities:
Accounts receivable
(3,361
)
(4,094
)
Prepaid expenses and other assets
(761
)
(802
)
Deferred contract acquisition costs
—
(356
)
Accounts payable
(1,226
)
4,411
Accrued expenses and other liabilities
6,530
1,931
Lease liabilities
(884
)
(981
)
Deferred revenue
(1,347
)
(2,624
)
Net cash used in operating
activities
(29,300
)
(74,224
)
Investing activities:
Acquisitions, net of cash acquired
(14,279
)
—
Capitalized internal-use software
(13,889
)
(15,576
)
Purchases of property and equipment
(3,344
)
(4,028
)
Net cash used in investing
activities
(31,512
)
(19,604
)
Financing activities:
Proceeds from issuance of common stock
upon exercise of stock options
925
1,225
Treasury stock to satisfy tax withholdings
on stock compensation awards
(12,176
)
(9,523
)
Proceeds from employee stock purchase
plan
2,782
2,832
Finance lease payments
(5,156
)
(4,316
)
Constructive financing
1,688
—
Principal payments on financing
agreements
(318
)
(216
)
Debt issuance costs and loan facility fee
payments
(250
)
(397
)
Net cash used in financing
activities
(12,505
)
(10,395
)
Net decrease in cash and cash
equivalents
(73,317
)
(104,223
)
Cash and cash equivalents – beginning
of period
176,683
313,812
Cash and cash equivalents – end of
period
$
103,366
$
209,589
Supplemental information of non-cash
investing and financing information:
Operating lease assets acquired in
exchange for operating lease liabilities
$
346
$
—
Property and equipment acquisitions
through finance leases
$
7,438
$
526
Purchase of property and equipment and
capitalized software included in current liabilities
$
2,911
$
3,354
Capitalized stock-based compensation
$
1,023
$
1,036
Issuance of stock to settle liabilities
for stock-based compensation
$
10,641
$
10,852
Issuance of stock as consideration in
business combinations
$
35,321
$
—
Deferred consideration liabilities payable
in business combinations
$
10,294
$
—
Capitalized software acquired through
vendor financing
$
2,047
$
—
Cash paid for:
Interest
$
649
$
647
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
October 31,
Nine months ended
October 31,
(in thousands, unaudited)
2023
2022
2023
2022
Net loss
$
(31,941
)
$
(40,167
)
$
(106,239
)
$
(138,125
)
Interest (income) expense, net
(523
)
(61
)
(2,027
)
528
Provision for income taxes
372
206
1,326
654
Depreciation and amortization
7,463
6,682
21,234
18,383
Stock-based compensation expense
17,963
14,782
53,749
43,491
Other expense, net
47
211
39
204
Adjusted EBITDA
$
(6,619
)
$
(18,347
)
$
(31,918
)
$
(74,865
)
Phreesia, Inc.
Reconciliation of GAAP and
Adjusted Operating Expenses
(Unaudited)
Three months ended
October 31,
Nine months ended
October 31,
(in thousands)
2023
2022
2023
2022
GAAP operating expenses
General and administrative
$
20,240
$
19,600
$
61,105
$
60,528
Sales and marketing
36,478
36,631
111,135
115,003
Research and development
28,544
22,669
82,484
65,846
Cost of revenue (excluding depreciation
and amortization)
15,529
14,562
44,885
43,821
$
100,791
$
93,462
$
299,609
$
285,198
Stock compensation included in GAAP
operating expenses
General and administrative
$
5,798
$
5,318
$
17,423
$
15,652
Sales and marketing
6,322
5,543
19,850
16,620
Research and development
4,561
2,979
13,002
8,507
Cost of revenue (excluding depreciation
and amortization)
1,282
942
3,474
2,712
$
17,963
$
14,782
$
53,749
$
43,491
Adjusted operating expenses
General and administrative
$
14,442
$
14,282
$
43,682
$
44,876
Sales and marketing
30,156
31,088
91,285
98,383
Research and development
23,983
19,690
69,482
57,339
Cost of revenue (excluding depreciation
and amortization)
14,247
13,620
41,411
41,109
$
82,828
$
78,680
$
245,860
$
241,707
Phreesia, Inc.
Key Metrics
(Unaudited)
Three months ended
October 31,
Nine months ended
October 31,
2023
2022
2023
2022
Key Metrics:
Average number of healthcare services
clients ("AHSCs")
3,688
2,982
3,481
2,761
Healthcare services revenue per AHSC
$
17,845
$
17,645
$
54,836
$
54,957
Total revenue per AHSC
$
24,842
$
24,515
$
75,063
$
94,637
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
October 31,
Nine months ended
October 31,
2023
2022
2023
2022
Patient payment volume (in millions)
$
965
$
815
$
2,970
$
2,463
Payment facilitator volume percentage
82
%
81
%
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/20231205004369/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
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