Phreesia Announces Fourth Quarter Fiscal 2023 Results
WILMINGTON, Del. , March 22 /Businesswire/ - Phreesia, Inc. (NYSE: PHR) (“Phreesia” or the "Company") announced financial results today for the fiscal fourth quarter and fiscal year ended January 31, 2023.
"There were many accomplishments and milestones achieved during Phreesia’s 18th year and fourth as a public company. We experienced challenges, opportunities and successes, and we greatly appreciate the hard work of our team members as well as the support and partnership of our clients and investors", said CEO and Co-Founder Chaim Indig.
Please visit the Phreesia investor relations website at ir.phreesia.com to view the Company's Q4 Fiscal Year 2023 Stakeholder Letter.
Fiscal Fourth Quarter Ended January 31, 2023 Highlights
- Revenue was $76.6 million in the quarter, up 32% year-over-year.
- Average number of healthcare services clients ("AHSCs") was 3,140 in the quarter, up 36% year-over-year.
- Healthcare services revenue per AHSC was $17,705 in the quarter, down 4% year-over-year. The decline was primarily driven by healthcare services client growth significantly outpacing growth in payment processing volume and payment processing revenue. See "Key Metrics" below for additional information.
- Total revenue per AHSC was $24,390 in the quarter, down 3% year-over-year. The decline was primarily driven by healthcare services client growth significantly outpacing growth in payment processing volume and payment processing revenue. See "Key Metrics" below for additional information.
- Net loss was $38.0 million in the quarter compared to $46.5 million in the same period in the prior year.
- Adjusted EBITDA was negative $17.6 million in the quarter compared to negative $30.5 million in the same period in the prior year.
- Cash and cash equivalents as of January 31, 2023 was $176.7 million, down $32.9 million from October 31, 2022.
Fiscal Year Ended January 31, 2023 Highlights
- Revenue was $280.9 million in fiscal year 2023, up 32% year-over-year.
- AHSCs were 2,856 in fiscal year 2023, up 38% year-over-year.
- Healthcare services revenue per AHSC was $72,599 in fiscal year 2023, down 6% year-over-year. The decline was primarily driven by AHSC growth significantly outpacing growth in payment processing volume and payment processing revenue. See "Key Metrics" below for additional information.
- Total revenue per AHSC was $98,358 in fiscal year 2023, down 4% year-over-year. The decline was primarily driven by AHSC growth significantly outpacing payment processing volume and revenue growth. See "Key Metrics" below for additional information.
- Net loss was $176.1 million in fiscal year 2023, as compared to $118.2 million in fiscal year 2022.
- Adjusted EBITDA was negative $92.5 million in fiscal year 2023, as compared to negative $59.0 million in fiscal year 2022.
- Cash and cash equivalents as of January 31, 2023 was $176.7 million, down from $313.8 million as of January 31, 2022.
Recent Events
On March 10, 2023, Silicon Valley Bank ("SVB") was closed by the California Department of Financial Protection and Innovation, which appointed the Federal Deposit Insurance Corporation ("FDIC") as receiver. On March 9, 2023, we transferred a substantial portion of our cash and cash equivalents from SVB to other financial institutions. We had total cash and cash equivalents of approximately $170 million as of March 10, 2023.
On March 12, 2023, a Joint Statement by the U.S. Treasury, Federal Reserve, and FDIC, and a statement by the Federal Reserve Board, was issued stating that actions were approved enabling the FDIC to complete its resolutions of SVB in a manner that fully protects all depositors. As a result of our actions to move a substantial portion of our cash to other financial institutions and the actions taken by the FDIC on March 12, 2023, we have determined that all of our cash and cash equivalents continue to be available for our use.
We are also party to the Third SVB Facility which contains certain restrictive covenants including a covenant that limits our ability to retain specified levels of cash in accounts outside of SVB. On March 10, 2023, in connection with the transfer of a substantial portion of our cash and cash equivalents from SVB to other financial institutions, we obtained consent from SVB to hold up to $165 million of cash in accounts outside SVB until May 15, 2023. The consent serves to permit us to borrow against the Third SVB Facility once the cash and cash equivalents retained outside of SVB are compliant with the covenant and so long as we remain in compliance with all other covenants under the Third SVB Facility. With the exception of this consent, the SVB developments and related FDIC actions noted above have not materially impacted our financial position or our operations.
We believe that our cash and cash equivalents along with cash generated in the normal course of business, are sufficient to fund our operations for at least the next 12 months.
Fiscal Year 2024 Outlook
For the full fiscal year 2024 ending January 31, 2024, we expect revenue to be between $353 million and $356 million, implying year-over-year growth of 26% to 27%. For the full fiscal year 2024, ending January 31, 2024, we expect Adjusted EBITDA to be between negative $65 million and negative $60 million.
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 $500 million revenue target to be achieved by annualizing our highest-revenue quarter in fiscal year 20251 and continue to expect to reach profitability2 in fiscal year 2025. We also believe our cash and cash equivalents, along with cash generated in the normal course of business, can support our path to our fiscal year 2025 targets.
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. 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; 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 or epidemics 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; 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 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 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 March 22, 2023, at 5:00 p.m. Eastern Time to review our fiscal fourth quarter and fiscal year 2023 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 provides healthcare organizations a suite of robust applications to manage the patient intake process. Our innovative SaaS platform engages patients in their healthcare and provides a modern, convenient experience, while enabling our clients to enhance clinical care and drive efficiency.
Phreesia, Inc. Consolidated Balance Sheets (Unaudited) (in thousands, except share data) |
|||||||
|
January 31, 2023 |
|
January 31, 2022 |
||||
Assets |
|
|
|
||||
Current: |
|
|
|
||||
Cash and cash equivalents |
$ |
176,683 |
|
|
$ |
313,812 |
|
Settlement assets |
|
22,599 |
|
|
|
19,590 |
|
Accounts receivable, net of allowance for doubtful accounts of $1,053 and $863 as of January 31, 2023 and 2022, respectively |
|
51,394 |
|
|
|
40,262 |
|
Deferred contract acquisition costs |
|
1,056 |
|
|
|
1,642 |
|
Prepaid expenses and other current assets |
|
10,709 |
|
|
|
11,043 |
|
Total current assets |
|
262,441 |
|
|
|
386,349 |
|
Property and equipment, net of accumulated depreciation and amortization of $59,847 and $53,321 as of January 31, 2023 and 2022, respectively |
|
21,670 |
|
|
|
34,645 |
|
Capitalized internal-use software, net of accumulated amortization of $37,236 and $31,139 as of January 31, 2023 and 2022, respectively |
|
35,150 |
|
|
|
17,643 |
|
Operating lease right-of-use assets |
|
569 |
|
|
|
2,337 |
|
Deferred contract acquisition costs |
|
1,754 |
|
|
|
2,437 |
|
Intangible assets, net of accumulated amortization of $2,549 and $1,178 as of January 31, 2023 and 2022, respectively |
|
11,401 |
|
|
|
12,772 |
|
Deferred tax asset |
|
81 |
|
|
|
515 |
|
Goodwill |
|
33,736 |
|
|
|
33,621 |
|
Other assets |
|
3,255 |
|
|
|
4,157 |
|
Total Assets |
$ |
370,057 |
|
|
$ |
494,476 |
|
Liabilities and Stockholders’ Equity |
|
|
|
||||
Current: |
|
|
|
||||
Settlement obligations |
$ |
22,599 |
|
|
$ |
19,590 |
|
Current portion of finance lease liabilities and other debt |
|
5,172 |
|
|
|
5,821 |
|
Current portion of operating lease liabilities |
|
934 |
|
|
|
1,281 |
|
Accounts payable |
|
10,836 |
|
|
|
5,119 |
|
Accrued expenses |
|
21,810 |
|
|
|
20,128 |
|
Deferred revenue |
|
17,688 |
|
|
|
16,493 |
|
Total current liabilities |
|
79,039 |
|
|
|
68,432 |
|
Long-term finance lease liabilities and other debt |
|
2,725 |
|
|
|
7,423 |
|
Operating lease liabilities, non-current |
|
349 |
|
|
|
1,276 |
|
Long-term deferred revenue |
|
125 |
|
|
|
65 |
|
Total Liabilities |
|
82,238 |
|
|
|
77,196 |
|
Commitments and contingencies (Note 11) |
|
|
|
||||
Stockholders’ Equity: |
|
|
|
||||
Common stock, $0.01 par value—500,000,000 shares authorized as of both January 31, 2023 and 2022; 54,187,172 and 52,095,964 shares issued as of January 31, 2023 and 2022, respectively |
|
542 |
|
|
|
521 |
|
Additional paid-in capital |
|
926,957 |
|
|
|
860,657 |
|
Accumulated deficit |
|
(606,084 |
) |
|
|
(429,938 |
) |
Treasury stock, at cost, 971,236 and 301,003 shares as of January 31, 2023 and 2022, respectively |
|
(33,596 |
) |
|
|
(13,960 |
) |
Total Stockholders’ Equity |
|
287,819 |
|
|
|
417,280 |
|
Total Liabilities and Stockholders’ Equity |
$ |
370,057 |
|
|
$ |
494,476 |
|
Phreesia, Inc. Consolidated Statements of Operations (Unaudited) (in thousands, except share and per share data) |
|||||||||||||||
|
Three months ended
|
|
Fiscal Year ended
|
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Revenue: |
|
|
|
|
|
|
|
||||||||
Subscription and related services |
$ |
35,813 |
|
|
$ |
26,445 |
|
|
$ |
128,975 |
|
|
$ |
95,514 |
|
Payment processing fees |
|
19,780 |
|
|
|
16,140 |
|
|
|
78,368 |
|
|
|
65,201 |
|
Network solutions |
|
20,993 |
|
|
|
15,435 |
|
|
|
73,567 |
|
|
|
52,518 |
|
Total revenue |
|
76,586 |
|
|
|
58,020 |
|
|
|
LIVE VIDEO EVERY SATURDAY
LIVE BROADCASTS
Sounds Make the News ®
 Atlanta - WAOK-Urban  Berkley / San Francisco - KPFA-Progressive  Chicago - WVON-Urban  Los Angeles - KJLH - Urban  New York - WKDM-Mandarin Chinese  New York - WADO-Spanish  New York - WBAI - Progressive  Washington - WOL-Urban  | |||||
