Cover Page
Cover Page - shares | 6 Months Ended | |
Jul. 31, 2020 | Sep. 04, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jul. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-38977 | |
Entity Registrant Name | PHREESIA, INC. | |
Amendment Flag | false | |
Entity Central Index Key | 0001412408 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --01-31 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-2275479 | |
Entity Address, Address Line One | 432 Park Avenue South | |
Entity Address, Address Line Two | 12th Floor | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10016 | |
City Area Code | 888 | |
Local Phone Number | 654-7473 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | PHR | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 37,972,741 |
Balance Sheets
Balance Sheets - USD ($) $ in Thousands | Jul. 31, 2020 | Jan. 31, 2020 | |
Current: | |||
Cash and cash equivalents | $ 84,199 | $ 90,315 | |
Settlement assets | 10,717 | 12,368 | |
Accounts receivable, net of allowances | 22,972 | 21,978 | |
Deferred contract acquisition costs | 1,684 | 1,720 | |
Prepaid expenses and other current assets | 8,378 | 5,157 | |
Total current assets | 127,950 | 131,538 | |
Property and equipment, net of accumulated depreciation and amortization of $40,219 and $35,551 | 17,070 | 14,487 | |
Capitalized internal-use software, net of accumulated amortization of $22,420 and $19,554 | 9,501 | 8,735 | |
Operating lease right-of-use assets | [1] | 2,406 | 0 |
Deferred contract acquisition costs | 1,256 | 1,594 | |
Intangible assets, net of accumulated amortization of $390 and $271 | 1,080 | 1,199 | |
Deferred tax asset | 666 | 775 | |
Goodwill | 250 | 250 | |
Other assets | 108 | 180 | |
Total assets | 160,287 | 158,758 | |
Current: | |||
Settlement obligations | 10,717 | 12,368 | |
Current portion of debt and finance lease liabilities | 4,939 | 2,324 | |
Current portion of operating lease liabilities | [1] | 1,221 | 0 |
Accounts payable | 5,103 | 6,017 | |
Accrued expenses | 9,838 | 9,243 | |
Deferred revenue | 6,257 | 5,401 | |
Total current liabilities | 38,075 | 35,353 | |
Long term debt and finance lease liabilities | 23,131 | 21,540 | |
Operating lease liabilities, noncurrent | [1] | 1,394 | 0 |
Total liabilities | 62,600 | 56,893 | |
Commitments and contingencies (Note 12) | |||
Stockholders’ Equity: | |||
Common stock, $0.01 par value - 500,000,000 shares authorized as of July 31, 2020 and January 31, 2020, respectively; 37,882,837 and 36,610,763 shares issued and outstanding as of July 31, 2020 and January 31, 2020, respectively | 379 | 366 | |
Additional paid-in capital | 395,145 | 386,383 | |
Accumulated deficit | (296,968) | (284,485) | |
Treasury stock | (869) | (399) | |
Total Stockholders’ Equity | 97,687 | 101,865 | |
Total Liabilities and Stockholders’ Equity | $ 160,287 | $ 158,758 | |
[1] | Figures as of July 31, 2020 reflect the Company's February 1, 2020 adoption of Accounting Standards Update ("ASU") No. 2016-02, Leases . For additional details, see Note 3(c), "Summary of significant accounting policies — Impact of recently adopted accounting pronouncements." |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jul. 31, 2020 | Jan. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Accumulated depreciation and amortization, property and equipment | $ 40,219 | $ 35,551 |
Accumulated amortization, capitalized internal-use software | 22,420 | 19,554 |
Accumulated amortization, intangible assets | $ 390 | $ 271 |
Common stock, par value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 37,882,837 | 36,610,763 |
Common stock, shares outstanding (in shares) | 37,882,837 | 36,610,763 |
Unaudited Statements of Operati
Unaudited Statements of Operations - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2020 | Jul. 31, 2019 | Jul. 31, 2020 | Jul. 31, 2019 | |
Revenue: | ||||
Revenues | $ 35,009,000 | $ 30,817,000 | $ 68,405,000 | $ 59,126,000 |
Expenses: | ||||
Cost of revenue (excluding depreciation and amortization) | 5,271,000 | 4,210,000 | 10,005,000 | 8,206,000 |
Payment processing expense | 6,747,000 | 7,101,000 | 13,595,000 | 14,050,000 |
Sales and marketing | 10,098,000 | 8,120,000 | 19,532,000 | 15,822,000 |
Research and development | 5,530,000 | 4,690,000 | 10,535,000 | 8,989,000 |
General and administrative | 9,631,000 | 7,421,000 | 18,351,000 | 13,665,000 |
Depreciation | 2,410,000 | 2,136,000 | 4,678,000 | 4,291,000 |
Amortization | 1,632,000 | 1,279,000 | 2,985,000 | 2,498,000 |
Total expenses | 41,319,000 | 34,957,000 | 79,681,000 | 67,521,000 |
Operating loss | (6,310,000) | (4,140,000) | (11,276,000) | (8,395,000) |
Other income (expense) | 424,000 | 327,000 | (291,000) | (818,000) |
Change in fair value of warrant liability | 0 | (2,884,000) | 0 | (3,307,000) |
Interest income (expense) | (419,000) | (745,000) | (739,000) | (1,549,000) |
Total other income (expense) | 5,000 | (3,302,000) | (1,030,000) | (5,674,000) |
Loss before provision for income taxes | (6,305,000) | (7,442,000) | (12,306,000) | (14,069,000) |
Provision for income taxes | (66,000) | (51,000) | (177,000) | (119,000) |
Net loss | (6,371,000) | (7,493,000) | (12,483,000) | (14,188,000) |
Preferred stock dividend paid | 0 | (14,955,000) | 0 | (14,955,000) |
Accretion of redeemable preferred stock | 0 | (48,312,000) | 0 | (56,175,000) |
Net loss attributable to common stockholders, basic and diluted | $ (6,371,000) | $ (70,760,000) | $ (12,483,000) | $ (85,318,000) |
Net loss per share attributable to common stockholders, basic and diluted (in dollars per share) | $ (0.17) | $ (10.42) | $ (0.33) | $ (19.20) |
Weighted-average common shares outstanding, basic and diluted (in shares) | 37,735,155 | 6,793,363 | 37,523,966 | 4,443,155 |
Subscription and related services | ||||
Revenue: | ||||
Revenues | $ 17,129,000 | $ 14,004,000 | $ 32,728,000 | $ 26,686,000 |
Payment processing fees | ||||
Revenue: | ||||
Revenue from contract with customer | 11,828,000 | 11,665,000 | 23,535,000 | 23,222,000 |
Life sciences | ||||
Revenue: | ||||
Revenue from contract with customer | $ 6,052,000 | $ 5,148,000 | $ 12,142,000 | $ 9,218,000 |
Unaudited statements of redeema
Unaudited statements of redeemable preferred stock and stockholders' equity (deficit) - USD ($) $ in Thousands | Total | Common Stock | APIC | Accumulated Deficit | Treasury stock | Series A | Series B | Junior Preferred | Redeemable Preferred |
Beginning balance, redeemable preferred stock (in shares) at Jan. 31, 2019 | 13,674,365 | 9,197,142 | 32,746,041 | 42,560,530 | |||||
Beginning balance, redeemable preferred stock at Jan. 31, 2019 | $ 206,490 | $ 79,311 | $ 51,872 | $ 32,746 | $ 42,561 | ||||
Redeemable Preferred Stock | |||||||||
Accretion of redeemable preferred stock | 7,863 | $ 5,196 | $ 2,667 | ||||||
Ending balance, redeemable preferred stock (in shares) at Apr. 30, 2019 | 13,674,365 | 9,197,142 | 32,746,041 | 42,560,530 | |||||
Ending balance, redeemable preferred stock at Apr. 30, 2019 | 214,353 | $ 84,507 | $ 54,539 | $ 32,746 | $ 42,561 | ||||
Beginning balance (in shares) at Jan. 31, 2019 | 1,994,721 | ||||||||
Beginning balance at Jan. 31, 2019 | (210,974) | $ 20 | $ 0 | $ (210,994) | $ 0 | ||||
Stockholders' Equity (Deficit) | |||||||||
Net loss | (6,695) | (6,695) | |||||||
Stock-based compensation expense | 599 | 599 | |||||||
Exercise of stock options and vesting of restricted stock (in shares) | 29,798 | ||||||||
Exercise of stock options and vesting of restricted stock units | 37 | 37 | |||||||
Issuance of common stock warrants | 833 | 833 | |||||||
Accretion of redeemable preferred stock | (7,863) | (1,469) | (6,394) | ||||||
Ending balance (in shares) at Apr. 30, 2019 | 2,024,519 | ||||||||
Ending balance at Apr. 30, 2019 | (224,063) | $ 20 | 0 | (224,083) | 0 | ||||
Beginning balance, redeemable preferred stock (in shares) at Jan. 31, 2019 | 13,674,365 | 9,197,142 | 32,746,041 | 42,560,530 | |||||
Beginning balance, redeemable preferred stock at Jan. 31, 2019 | 206,490 | $ 79,311 | $ 51,872 | $ 32,746 | $ 42,561 | ||||
Ending balance, redeemable preferred stock (in shares) at Jul. 31, 2019 | 0 | 0 | 0 | 0 | |||||
Ending balance, redeemable preferred stock at Jul. 31, 2019 | 0 | $ 0 | $ 0 | $ 0 | $ 0 | ||||
Beginning balance (in shares) at Jan. 31, 2019 | 1,994,721 | ||||||||
Beginning balance at Jan. 31, 2019 | (210,974) | $ 20 | 0 | (210,994) | 0 | ||||
Stockholders' Equity (Deficit) | |||||||||
Net loss | (14,188) | ||||||||
Ending balance (in shares) at Jul. 31, 2019 | 35,759,355 | ||||||||
Ending balance at Jul. 31, 2019 | 102,853 | $ 357 | 380,875 | (278,380) | 0 | ||||
Beginning balance, redeemable preferred stock (in shares) at Apr. 30, 2019 | 13,674,365 | 9,197,142 | 32,746,041 | 42,560,530 | |||||
Beginning balance, redeemable preferred stock at Apr. 30, 2019 | 214,353 | $ 84,507 | $ 54,539 | $ 32,746 | $ 42,561 | ||||
Redeemable Preferred Stock | |||||||||
Accretion of redeemable preferred stock | 48,312 | $ 27,510 | $ 20,802 | ||||||
Conversion of preferred stock into common stock and cancellation of redeemable preferred stock (in shares) | (13,674,365) | (9,197,142) | (32,746,041) | (42,560,530) | |||||
Conversion of preferred stock into common stock and cancellation of redeemable preferred stock | (262,665) | $ (112,017) | $ (75,341) | $ (32,746) | $ (42,561) | ||||
Ending balance, redeemable preferred stock (in shares) at Jul. 31, 2019 | 0 | 0 | 0 | 0 | |||||
Ending balance, redeemable preferred stock at Jul. 31, 2019 | 0 | $ 0 | $ 0 | $ 0 | $ 0 | ||||
Beginning balance (in shares) at Apr. 30, 2019 | 2,024,519 | ||||||||
Beginning balance at Apr. 30, 2019 | (224,063) | $ 20 | 0 | (224,083) | 0 | ||||
Stockholders' Equity (Deficit) | |||||||||
Net loss | (7,493) | (7,493) | |||||||
Stock-based compensation expense | 1,467 | 1,467 | |||||||
Exercise of stock options and vesting of restricted stock (in shares) | 22,038 | ||||||||
Exercise of stock options and vesting of restricted stock units | 41 | 41 | |||||||
Accretion of redeemable preferred stock | (48,312) | (1,508) | (46,804) | ||||||
Payment of preferred stock dividends | (14,955) | (14,955) | |||||||
Issuance of common stock in initial public offering, net of issuance costs (in shares) | 7,812,500 | ||||||||
Issuance of common stock in initial public offering, net of issuance costs of $6,084 | 124,698 | $ 78 | 124,619 | ||||||
Conversion of preferred stock into common stock and cancellation of redeemable preferred stock (in shares) | 25,311,535 | ||||||||
Conversion of preferred stock into common stock and cancellation of redeemable preferred stock | 262,665 | $ 253 | 262,412 | ||||||
Conversion and exercise of preferred stock warrants into common stock (shares) | 588,763 | ||||||||
Conversion and exercise of preferred stock warrants into common stock | 8,805 | $ 6 | 8,799 | ||||||
Ending balance (in shares) at Jul. 31, 2019 | 35,759,355 | ||||||||
Ending balance at Jul. 31, 2019 | 102,853 | $ 357 | 380,875 | (278,380) | 0 | ||||
Beginning balance, redeemable preferred stock (in shares) at Jan. 31, 2020 | 0 | 0 | 0 | 0 | |||||
Beginning balance, redeemable preferred stock at Jan. 31, 2020 | 0 | $ 0 | $ 0 | $ 0 | $ 0 | ||||
Ending balance, redeemable preferred stock (in shares) at Apr. 30, 2020 | 0 | 0 | 0 | 0 | |||||
Ending balance, redeemable preferred stock at Apr. 30, 2020 | 0 | $ 0 | $ 0 | $ 0 | $ 0 | ||||
Beginning balance (in shares) at Jan. 31, 2020 | 36,610,763 | ||||||||
Beginning balance at Jan. 31, 2020 | 101,865 | $ 366 | 386,383 | (284,485) | (399) | ||||
Stockholders' Equity (Deficit) | |||||||||
Net loss | (6,112) | (6,112) | |||||||
Stock-based compensation expense | 2,872 | 2,872 | |||||||
Exercise of stock options and vesting of restricted stock (in shares) | 988,678 | ||||||||
Exercise of stock options and vesting of restricted stock units | 1,737 | $ 10 | 1,727 | ||||||
Treasury stock from vesting of restricted stock units | (447) | (447) | |||||||
Ending balance (in shares) at Apr. 30, 2020 | 37,599,441 | ||||||||
Ending balance at Apr. 30, 2020 | 99,915 | $ 376 | 390,982 | (290,597) | (846) | ||||
Beginning balance, redeemable preferred stock (in shares) at Jan. 31, 2020 | 0 | 0 | 0 | 0 | |||||
Beginning balance, redeemable preferred stock at Jan. 31, 2020 | 0 | $ 0 | $ 0 | $ 0 | $ 0 | ||||
Ending balance, redeemable preferred stock (in shares) at Jul. 31, 2020 | 0 | 0 | 0 | 0 | |||||
Ending balance, redeemable preferred stock at Jul. 31, 2020 | 0 | $ 0 | $ 0 | $ 0 | $ 0 | ||||
Beginning balance (in shares) at Jan. 31, 2020 | 36,610,763 | ||||||||
Beginning balance at Jan. 31, 2020 | 101,865 | $ 366 | 386,383 | (284,485) | (399) | ||||
Stockholders' Equity (Deficit) | |||||||||
Net loss | $ (12,483) | ||||||||
Exercise of stock options and vesting of restricted stock (in shares) | 1,203,593 | ||||||||
Ending balance (in shares) at Jul. 31, 2020 | 37,882,837 | ||||||||
Ending balance at Jul. 31, 2020 | $ 97,687 | $ 379 | 395,145 | (296,968) | (869) | ||||
Beginning balance, redeemable preferred stock (in shares) at Apr. 30, 2020 | 0 | 0 | 0 | 0 | |||||
Beginning balance, redeemable preferred stock at Apr. 30, 2020 | 0 | $ 0 | $ 0 | $ 0 | $ 0 | ||||
Ending balance, redeemable preferred stock (in shares) at Jul. 31, 2020 | 0 | 0 | 0 | 0 | |||||
Ending balance, redeemable preferred stock at Jul. 31, 2020 | 0 | $ 0 | $ 0 | $ 0 | $ 0 | ||||
Beginning balance (in shares) at Apr. 30, 2020 | 37,599,441 | ||||||||
Beginning balance at Apr. 30, 2020 | 99,915 | $ 376 | 390,982 | (290,597) | (846) | ||||
Stockholders' Equity (Deficit) | |||||||||
Net loss | (6,371) | (6,371) | |||||||
Stock-based compensation expense | 3,428 | 3,428 | |||||||
Exercise of stock options and vesting of restricted stock (in shares) | 283,396 | ||||||||
Exercise of stock options and vesting of restricted stock units | 738 | $ 3 | 735 | ||||||
Treasury stock from vesting of restricted stock units | (23) | (23) | |||||||
Ending balance (in shares) at Jul. 31, 2020 | 37,882,837 | ||||||||
Ending balance at Jul. 31, 2020 | $ 97,687 | $ 379 | $ 395,145 | $ (296,968) | $ (869) |
Unaudited statements of redee_2
Unaudited statements of redeemable preferred stock and stockholders' equity (deficit) (Parenthetical) $ in Thousands | 3 Months Ended |
Jul. 31, 2019USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
Issuance of common stock in initial public offering, issuance costs | $ 6,084 |
Unaudited statements of cash fl
Unaudited statements of cash flows - USD ($) $ in Thousands | 6 Months Ended | ||
Jul. 31, 2020 | Jul. 31, 2019 | ||
Cash flows from operating activities: | |||
Net loss | $ (12,483) | $ (14,188) | |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | |||
Depreciation and amortization | 7,663 | 6,789 | |
Stock-based compensation expense | 6,300 | 2,067 | |
Change in fair value of warrants liability | 0 | 3,307 | |
Amortization of debt discount | 245 | 265 | |
Loss on extinguishment of debt | 0 | 1,073 | |
Cost of hardware purchased by customers | 439 | 319 | |
Deferred contract acquisition costs amortization | 1,775 | 974 | |
Non-cash operating lease expense | 777 | 0 | |
Deferred tax asset | 109 | 0 | |
Changes in operating assets and liabilities | |||
Accounts receivable | (994) | (679) | |
Prepaid expenses and other assets | (2,892) | (3,657) | |
Deferred contract acquisition costs | (1,401) | (858) | |
Accounts payable | (1,275) | 4,548 | |
Accrued expenses and other liabilities | 1,116 | 3,330 | |
Lease liability | (755) | 0 | |
Deferred revenue | 856 | (705) | |
Net cash (used in) provided by operating activities | (520) | 2,585 | |
Cash flows used in investing activities: | |||
Capitalized internal-use software | (2,737) | (2,878) | |
Purchase of property and equipment | (4,659) | (2,754) | |
Net cash used in investing activities | (7,396) | (5,632) | |
Cash flows from financing activities: | |||
Proceeds from IPO, net of underwriters' discounts and commissions | 0 | 130,781 | |
Proceeds from revolving line of credit | 0 | 9,876 | |
Payments of revolving line of credit | 0 | (17,676) | |
Proceeds from term loan | 0 | 20,000 | |
Repayment of term loan | 0 | (1,042) | |
Repayment of loan payable | 0 | (20,000) | |
Payment of preferred stock dividends | 0 | (14,955) | |
Insurance financing arrangement | 2,009 | 0 | |
Principal portion of finance lease payments | (1,301) | (1,164) | |
Principal payments on financing arrangements | (220) | 0 | |
Debt extinguishment costs | 0 | (300) | |
Debt issuance costs | (69) | (112) | |
Proceeds from issuance of common stock upon exercise of stock options | 2,475 | 78 | |
Purchase of treasury stock | (869) | 0 | |
Payment of offering costs | 0 | (3,930) | |
Loan facility fee payment | (225) | 0 | |
Net cash provided by financing activities | 1,800 | 101,556 | |
Net (decrease) increase in cash and cash equivalents | (6,116) | 98,509 | |
Cash and cash equivalents – beginning of period | 90,315 | 1,543 | |
Cash and cash equivalents – end of period | 84,199 | 100,051 | |
Supplemental information of non-cash investing and financing information: | |||
Right-of-use assets recorded in exchange for lease liabilities | [1] | 3,183 | 0 |
Property and equipment acquisitions through finance leases | 3,657 | 1,510 | |
Capitalized software acquired through vendor financing | 174 | 0 | |
Deferred issuance costs included in accounts payable and accrued expenses | 0 | 1,958 | |
Purchase of property and equipment and capitalized software included in accounts payable | 1,358 | 699 | |
Issuance of warrants related to debt | 0 | 833 | |
Cashless transfer of term loan and related accrued fees into increase in debt balance | 20,257 | 0 | |
Cashless transfer of lender fees through increase in debt balance | 406 | 0 | |
Cash payments for: | |||
Interest | $ 833 | $ 1,347 | |
[1] | Includes $2,741 initial right of use asset recorded upon adoption of ASC 842. |
Unaudited statements of cash _2
Unaudited statements of cash flows (Parenthetical) - USD ($) $ in Thousands | Jul. 31, 2020 | Feb. 01, 2020 | Jan. 31, 2020 | ||
Statement of Cash Flows [Abstract] | |||||
Lease right-of-use assets | $ 2,406 | [1] | $ 2,741 | $ 0 | [1] |
[1] | Figures as of July 31, 2020 reflect the Company's February 1, 2020 adoption of Accounting Standards Update ("ASU") No. 2016-02, Leases . For additional details, see Note 3(c), "Summary of significant accounting policies — Impact of recently adopted accounting pronouncements." |
Background and liquidity
Background and liquidity | 6 Months Ended |
Jul. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background and liquidity | Background and liquidity (a) Background Phreesia, Inc. (the Company) is a leading provider of comprehensive solutions that transform the healthcare experience by engaging patients in their care and enabling healthcare provider organizations to optimize operational efficiency, improve profitability and enhance clinical care. Through the SaaS-based Phreesia Platform (the Phreesia Platform), the Company offers healthcare provider organizations a robust suite of solutions to manage the patient intake process and a leading payments solution for secure processing of patient payments. The Company’s Platform also provides life sciences companies with an engagement channel for targeted and direct communication with patients. In connection with the patient intake and registration process, Phreesia offers its provider customers the ability to lease tablets (PhreesiaPads) and on-site kiosks (Arrival Stations) along with their monthly subscription. The Company was formed in May 2005, and has its corporate headquarters in New York, and operations offices in Raleigh, North Carolina and Ottawa, Canada. (b) Initial public offering On July 22, 2019, the Company closed its initial public offering (IPO), in which the Company issued and sold 7,812,500 shares of common stock at a public offering price of $18.00 per share, resulting in net proceeds of $130,781, after deducting underwriting discounts and commissions of $9,844 but before deducting deferred offering costs of $6,412. In addition to the shares of common stock sold by the Company upon the IPO, certain selling stockholders sold an aggregate of 2,868,923 shares of common stock as part of the IPO. In addition, all then outstanding shares of Convertible Preferred stock converted into 25,311,525 shares of common stock and the Company issued 757,625 shares of common stock as a result of the cashless exercise of warrants as of January 31, 2020. On December 17, 2019, the Company closed its follow-on offering of 7,762,500 shares of common stock sold by certain selling stockholders. The Company did not receive any proceeds from the follow-on offering but did incur $1,047 in transaction costs, recorded as general and administrative expense within the statement of operations. (c) Liquidity Since the Company commenced operations, it has not generated sufficient revenue to meet its operating expenses and has continued to incur significant net losses. To date, the Company has primarily relied upon the proceeds from issuances of preferred stock and debt, and most recently with proceeds from the IPO, to fund its operations as well as sales of Company products and services in the normal course of business. Management believes that net losses and negative cash flows will continue for at least the next year. Management believes that the Company’s cash and cash equivalents at July 31, 2020, along with cash generated in the normal course of business, and available borrowing capacity under its May 2020 Credit Facility (See Note 6), are sufficient to fund its operations for at least the next 12 months. The Company will obtain additional financing if needed to successfully implement its long-term strategy. There can be no assurance that additional financing, if needed, can be obtained on terms acceptable to the Company. The ability of the Company to achieve successful operations will depend on, among other things, new business, the retention of customers, and the effectiveness of sales and marketing initiatives. The Company is subject to a number of risks similar to other companies in its stage of business life cycle, including dependence on key individuals, competition in the marketplace, and the need to fund future product and services development. |
Basis of presentation
Basis of presentation | 6 Months Ended |
Jul. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of presentation | Basis of presentation (a) Basis of presentation The accompanying financial statements have been prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP) and include the accounts of Phreesia, Inc. and its branch operation in Canada. (b) Fiscal year The Company’s fiscal year ends on January 31. References to fiscal 2021 and 2020 refer to the fiscal years ended January 31, 2021 and January 31, 2020, respectively. (c) Unaudited interim financial statements The accompanying unaudited interim financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. In the opinion of management, the accompanying unaudited financial statements reflect all adjustments, which include normal recurring adjustments, necessary for the fair statement of the Company’s interim financial position as of July 31, 2020 and the results of its operations, changes in its stockholders' equity and its cash flows for the periods ended July 31, 2020 and 2019. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. The results for the interim periods are not necessarily indicative of results to be expected for the full year, any other interim periods, or any future year or period. The Company’s management believes that the disclosures herein are adequate to make the information presented not misleading when read in conjunction with the audited financial statements and accompanying notes for the fiscal year ended January 31, 2020. (d) Reclassifications Certain reclassifications have been made to the prior period presentation to conform to the current period presentation. In the Company's balance sheet as of January 31, 2020, the Company has reclassified $2.3 million from current portion of finance lease liabilities to current portion of debt and finance lease liabilities, and the Company has reclassified $2.1 million from long-term finance leases to long-term debt and finance leases. In the Company's unaudited statement of cash flows for the six months ended July 31, 2019, the Company has reclassified $1.0 million from change in deferred contract acquisition costs to deferred contract acquisition cost amortization. The reclassification had no effect on previously reported net loss or net cash provided by operating activities. |
Summary of significant accounti
Summary of significant accounting policies | 6 Months Ended |
Jul. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of significant accounting policies | Summary of significant accounting policies The Company’s significant accounting policies are disclosed in the audited financial statements for the fiscal year ended January 31, 2020. Since the date of those audited financial statements, there have been no material changes to the Company’s significant accounting policies, including the status of recent accounting pronouncements, other than those detailed below. (a) Use of estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates and assumptions on historical experience, known trends and events and various other factors that management believes to be reasonable under the circumstances, the results of which form the basis for making judgments. Although management believes its estimates and assumptions are reasonable under the circumstances at the time they are made, they are based upon information available at the time they are made. Management evaluates the estimates and assumptions on an ongoing basis and, if necessary, makes adjustments. Actual results may differ from those estimates made under different assumptions or circumstances. The most significant assumptions and estimates relate to the accounts receivable allowance, capitalized internal-use software, the determination of the useful lives of property and equipment, the fair value of securities underlying stock-based compensation, the fair value of its business acquisitions, and the realization of deferred tax assets. (b) Concentrations of credit risk Financial instruments which potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, accounts receivable and settlement assets. The Company’s cash and cash equivalents are held by established financial institutions. The Company does not require collateral from its customers and generally requires payment within 30 to 60 days of billing. Settlement assets are amounts due from well-established payment processing companies and normally take one or two business days to settle which mitigates the associated risk of concentration. The Company has one third-party payment processor. The Company’s customers are primarily physician’s offices located in the United States and pharmaceutical companies. The Company did not have any individual customers that represented more than 10% of total revenues for the three and six months ended July 31, 2020 and 2019. As of July 31, 2020, one customer accounted for 10.8% of accounts receivable. (c) New accounting pronouncements Impact of recently adopted accounting pronouncements On May 1, 2020, the Company adopted ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which is intended to align the requirements for capitalization of implementation costs incurred in a cloud computing arrangement that is a service contract with the existing guidance for internal-use software. The guidance requires capitalized costs to be included within prepaid expenses and the guidance requires amortization of capitalized costs to be included in the same line as the associated cloud subscription costs in the statement of operations. The Company adopted ASU 2018-15 prospectively for implementation costs incurred subsequent to May 1, 2020. See Note 4 - Composition of Certain Financial Statement Captions for additional information. On February 1, 2020, the Company adopted the Financial Accounting Standards Board's (FASB) Accounting Standard Update (ASU) No. 2016-02, Leases (Topic 842) (ASC 842) which requires lessees to record most leases on their balance sheets but to recognize the expenses in their statement of operations in a manner similar to the prior standard. Topic 842 states that a lessee would recognize a lease liability for the obligation to make lease payments and a right-of-use asset for the right to use the underlying asset for the lease term. The Company adopted the new lease guidance using a modified retrospective transition method applied to those leases which were not completed as of February 1, 2020. As a result, the Company was not required to adjust its comparative period financial information for effects of the standard or make the new required lease disclosures for the periods before the date of adoption. The Company elected the ‘package of practical expedients,’ which permits the Company not to reassess under the new standard our prior conclusions about lease identification, lease classification and initial direct costs. The Company did not elect the use-of-hindsight practical expedient. The new standard also provides practical expedients for an entity’s ongoing accounting. The Company elected the short-term lease recognition exemption for all of its leases. This means, for those leases that qualify, the Company will not recognize right-of-use assets or lease liabilities, including existing short-term leases as of the transition date. The Company also elected the practical expedient to not separate lease and non-lease components for its office and computer equipment leases. Upon adoption of Topic 842 the Company recognized operating lease right-of-use assets and operating lease liabilities related to our office leases of $2,741 and $2,928, respectively. The Company’s accounting for lessee finance and all lessor leases remains substantially unchanged from legacy guidance. The standard did not have a significant impact on our statements of operations or statements of cash flows. No adjustment to retained earnings was recorded because the adoption did not change the Company's net assets. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820) : Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (ASU 2018-13). ASU 2018-13 updates the disclosure requirements for fair value measurements and is effective for financial statements issued for fiscal years beginning after December 15, 2019. The Company adopted the new guidance effective February 1, 2020, and it did not have a material effect on its financial statements. On February 1, 2020, the Company adopted ASU 2016-13, Financial Instruments - Credit Losses. The update requires the recognition of all losses expected over the life of a financial instrument upon origination or purchase of the instrument. The Company adopted this update using a modified retrospective method. No adjustment to retained earnings was recorded as a result of the adoption of this standard, which did not have a material impact on the Company's financial statements. Recent accounting pronouncements not yet adopted There are no recently issued accounting pronouncements the Company has not yet adopted that will materially impact the Company's financial statements. |
Composition of certain financia
Composition of certain financial statement captions | 6 Months Ended |
Jul. 31, 2020 | |
Composition Of Certain Financial Statement [Abstract] | |
Composition of certain financial statement captions | Composition of certain financial statement captions (a) Accrued expenses Accrued expenses as of July 31, 2020 and January 31, 2020 are as follows: July 31, 2020 January 31, 2020 Payroll-related expenses and taxes $ 5,522 $ 5,032 Payment processing fees liability 2,418 2,738 Other 1,898 1,473 Total $ 9,838 $ 9,243 (b) Property and equipment Property and equipment as of July 31, 2020 and January 31, 2020 are as follows: Useful Life (years) July 31, 2020 January 31, 2020 PhreesiaPads and Arrivals Stations 3 $ 28,771 $ 26,389 Computer equipment 3 22,969 18,394 Computer software 3 2,582 2,297 Hardware development 3 1,024 1,024 Furniture and fixtures 7 743 743 Leasehold improvements 2 1,200 1,191 Total property and equipment $ 57,289 $ 50,038 Less accumulated depreciation and amortization (40,219) (35,551) Property and equipment — net $ 17,070 $ 14,487 Depreciation expense related to property and equipment amounted to $2,410 and $2,136 for the three months ended July 31, 2020 and 2019, respectively. Depreciation expense related to property and equipment amounted to $4,678 and $4,291 for the six months ended July 31, 2020 and 2019, respectively. Finance lease depreciation, included in depreciation expense, was $1,586 for the six months ended July 31, 2020. Assets under finance leases included in computer equipment were $15,940 and $12,283 as of July 31, 2020 and January 31, 2020. Accumulated amortization of assets under finance leases was $9,310 and $7,724 as of July 31, 2020 and January 31, 2020, respectively. (c) Capitalized internal use software For the three months ended July 31, 2020 and 2019, the Company capitalized $1,876 and $1,467, respectively, of costs related to the Phreesia Platform. For the six months ended July 31, 2020 and 2019, the Company capitalized $3,632 and $2,878, respectively, of costs related to the Phreesia Platform. During the three months ended July 31, 2020 and 2019, amortization expense related to capitalized internal-use software was $1,573 and $1,220, respectively. During the six months ended July 31, 2020 and 2019, amortization expense related to capitalized internal-use software was $2,866 and $2,379, respectively. As of July 31, 2020 and January 31, 2020, the net book value of the Phreesia Platform was $9,501 and $8,735, respectively. (d) Intangible assets and goodwill The following presents the details of intangible assets as of July 31, 2020 and January 31, 2020: Useful Life (years) July 31, 2020 January 31, 2020 Acquired technology gross carrying value 5 $ 490 $ 490 Customer relationship gross carrying value 7 980 980 Total intangible assets $ 1,470 $ 1,470 Less accumulated amortization (390) (271) Net carrying value $ 1,080 $ 1,199 The remaining useful life for acquired technology in years is 3.4 and 3.9 as of July 31, 2020 and January 31, 2020, respectively. The remaining useful life for customer relationships in years is 5.4 and 5.9 as of July 31, 2020 and January 31, 2020, respectively. Amortization expense associated with intangible assets amounted to $60 and $60 for the three months ended July 31, 2020 and 2019, respectively. Amortization expense associated with intangible assets amounted to $119 and $119 for the six months ended July 31, 2020 and 2019, respectively. The estimated amortization expense for intangible assets for the next five years and thereafter is as follows as of July 31, 2020: July 31, 2020 2021 (Remaining six months) $ 119 Years ending January 31, 2022 238 2023 238 2024 224 2025 - thereafter 261 Total $ 1,080 There were no changes to the Company's goodwill balance during the six months ended July 31, 2020. The Company did not record any impairments of goodwill during the three and six months ended July 31, 2020 or 2019, respectively. Goodwill was $250 as of July 31, 2020 and January 31, 2020. (e) Accounts receivable Accounts receivable as of July 31, 2020 and January 31, 2020 are as follows: July 31, 2020 January 31, 2020 Billed $ 20,501 $ 22,245 Unbilled 3,147 676 Total accounts receivable, gross $ 23,648 $ 22,921 Less accounts receivable allowances (676) (943) Total accounts receivable $ 22,972 $ 21,978 Activity in our allowance for doubtful accounts was as follows for the six months ended July 31, 2020: July 31, 2020 Balance, January 31, 2020 $ 943 Bad debt expense 271 Write-offs and adjustments (538) Balance, July 31, 2020 $ 676 In estimating the allowance for doubtful accounts, the Company considers past events, current conditions and reasonable forecasts about the future. The Company's allowance includes a percentage of overall accounts receivable plus a specific reserve for customers in financial distress, such as customers who have declared bankruptcy. The Company's accounts receivable are considered past due when they are outstanding past the due date listed on the invoice to the customer. As of July 31, 2020, 53% of the Company's accounts receivable was aged less than 30 days from the invoice date and 19% of the Company's accounts receivable was aged over 90 days from the invoice date. The Company writes off accounts receivable and removes the associated allowance for doubtful accounts when the Company deems the receivable to be uncollectible. (f) Prepaid and other current assets Prepaid and other current assets as of July 31, 2020 and January 31, 2020 are as follows: July 31, 2020 January 31, 2020 Prepaid software and business systems 1,854 $ 1,611 Prepaid PhreesiaPads 958 645 Prepaid data center expenses 460 751 Prepaid insurance 2,778 1,259 Other prepaid expenses and other current assets 2,328 891 Total prepaid and other current assets $ 8,378 $ 5,157 The Company enters into cloud computing service contracts to support our sales and marketing, product development and administrative activities. Subsequent to the adoption of ASU 2018-15 in May 2020, we capitalize certain implementation costs for cloud computing arrangements that meet the definition of a service contract. We include these capitalized implementation costs within Prepaid software and business systems in the table above. Once placed in service, we amortize these costs over the remaining subscription term to the same expense line as the related cloud subscription. Capitalized implementation costs for cloud computing arrangements accounted for as service contracts were $213 for the three months ended July 31, 2020. Accumulated amortization of capitalized implementation costs for these arrangements was $2 as of July 31, 2020. (g) Other income (expense) Other income for the three and six months ended July 31, 2020 is composed primarily of foreign exchange gains. Other expense for the three months ended July 31, 2019 was composed primarily of foreign exchange losses. Other expense for the six months ended July 31, 2019 was composed primarily of loss on extinguishment of debt of $1,073, partially offset by foreign exchange gains. |
Revenue
Revenue | 6 Months Ended |
Jul. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue The Company generates revenue primarily from providing an integrated SaaS-based software and payment platform for the healthcare industry. The Company derives revenue from subscription fees and related services generated from the Company’s provider customers for access to the Phreesia Platform, payment processing fees based on patient payment volume processed through the Phreesia Platform, and from digital patient engagement revenue from life sciences companies to reach, educate and communicate with patients when they are most receptive and actively seeking care. The amount of subscription and related services revenue recorded pursuant to ASC 842 for the leasing of the Company’s PhreesiaPads and Arrival Stations was $1,585 and $1,506 for the three months ended July 31, 2020 and 2019, respectively. The amount of subscription and related services revenue recorded pursuant to ASC 842 for the leasing of the Company’s PhreesiaPads and Arrival Stations was $3,139 and $2,966 for the six months ended July 31, 2020 and 2019, respectively. Contract balances The following table represents a roll forward of contract assets: Contract assets (unbilled accounts receivable) January 31, 2020 $ 676 Amount transferred to receivables from contract assets (222) Contract asset additions 2,693 July 31, 2020 $ 3,147 The following table represents a roll forward of contract liabilities: Contract liabilities (deferred revenue) January 31, 2020 $ 5,401 Revenue recognized that was included in deferred revenue at the beginning of the period (4,002) Revenue recognized that was not included in deferred revenue at the beginning of the period (679) Increases due to invoicing prior to satisfaction or performance obligations 5,537 July 31, 2020 $ 6,257 Cost to obtain a contract The Company capitalizes certain incremental costs to obtain customer contracts and amortizes these costs over a period of benefit that the Company has estimated to be three years. The Company determined the period of benefit by taking into consideration its customer contracts, its technology and other factors. Amortization expense is included in sales and marketing expenses in the accompanying statements of operations and totaled $1,250 and $489 for the three months ended July 31, 2020 and 2019, respectively. Amortization expense totaled $1,775 and $974 for the six months ended July 31, 2020 and 2019, respectively. The Company periodically reviews these deferred contract acquisition costs to determine whether events or changes in circumstances have occurred that could impact the period of benefit. There were no impairment losses recorded during the periods presented. The following table represents a roll forward of deferred contract acquisition costs: Beginning balance, January 31, 2020 $ 3,314 Additions to deferred contract acquisition costs 1,401 Amortization of deferred contract acquisition costs (1,775) Ending balance, July 31, 2020 2,940 Deferred contract acquisition costs, current (to be amortized in next 12 months) 1,684 Deferred contract acquisition costs, non-current 1,256 Total deferred contract acquisition costs $ 2,940 |
Debt and Finance Lease Liabilit
Debt and Finance Lease Liabilities | 6 Months Ended |
Jul. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt and Finance Lease Liabilities | Debt and Finance Lease Liabilities As of July 31, 2020 and January 31, 2020, the Company had the following outstanding debt and finance lease liabilities: July 31, 2020 January 31, 2020 Revolving credit facility $ 20,663 $ — Term loan — 20,000 Finance leases 5,969 3,612 Other debt 2,797 808 Accrued interest and payments 34 381 Total debt and finance lease liabilities, before original issue discount 29,463 24,801 Less deferred financing costs and original issue discount (1,393) (937) Debt and finance lease liabilities 28,070 23,864 Less - current maturities of debt and finance lease liabilities (4,939) (2,324) Long term debt and finance lease liabilities $ 23,131 $ 21,540 Second Amended and Restated Loan and Security Agreement On May 5, 2020 (the "Second SVB Effective Date"), the Company entered into a Second Amended and Restated Loan and Security Agreement (“the Second SVB Facility”) with Silicon Valley Bank. The Second SVB Facility modified the First Amended and Restated Loan and Security Agreement, dated February 28, 2019 (the "First SVB Facility"). The Second SVB Facility provides for a revolving credit facility with an initial borrowing capacity of $50,000. The borrowing capacity may be increased to $65,000 at the sole discretion of Silicon Valley Bank. Upon entering into the Second SVB Facility, the Company borrowed $20,663 against the revolving credit facility. The Company used the proceeds from its initial revolving credit borrowing to repay all amounts due under the First SVB Facility term loan, including the $20,000 outstanding principal amount plus a prepayment fee of $300 and an accrued final payment fee of $363. Borrowings under the revolving credit facility are payable five years from the Effective Date, which is May 5, 2025 (the "Maturity Date"). Borrowings under the revolving credit facility bear interest, which is payable monthly, at a floating rate equal to the greater of the Wall Street Journal Prime Rate or 4.5%, until such time that adjusted EBITDA as defined in the Second SVB Facility (SVB Facility Adjusted EBITDA) reaches a defined level, after which time the interest rate is reduced to the greater of prime less 0.5%, or 4.0%. For the three months ended July 31, 2020, the interest rate on the Second SVB Facility was 4.5%. In addition to principal and interest due under the revolving credit facility, the Company is required to pay an annual commitment fee of $125 per year. The first facility fee payment of $125 was paid during the three months ended July 31, 2020. The Company has $29,337 of availability as of July 31, 2020 In the event that the Company terminates the Second SVB Facility prior to the Maturity Date, the Company will be required to pay a termination fee equal to (i) $187, reduced by $6 for each calendar month that has elapsed after April 30, 2020, plus (ii) a percent of the total borrowing capacity equal to 1.5% if terminated before the second anniversary of the Second SVB Effective Date, 0.75% if terminated on or after the second and before the third anniversary of the Second SVB Effective Date funding, or 0.5% if terminated on or after the third and before the fourth anniversary of the 2020 Effective Date. The Company will not be required to pay a termination fee if terminated after the fourth anniversary of the 2020 Effective Date. The Company’s obligations under the Second SVB Facility are secured by a first priority security interest in substantially all of its assets, other than intellectual property. The Second SVB Facility includes a financial covenant that requires the Company to achieve specified levels of SVB Facility Adjusted EBITDA. The financial covenant will not be effective if the Company maintains certain levels of liquidity as defined. The Company was in compliance with all covenants related to the Second SVB Facility as of July 31, 2020. The Second SVB Facility contains events of default, including, without limitation, events of default upon: (i) failure to make payment pursuant to the terms of the agreement; (ii) violation of covenants; (iii) material adverse changes to the Company’s business; (iv) attachment or levy on the Company’s assets or judicial restraint on its business; (v) insolvency; (vi) significant judgments, orders or decrees for payments by the Company not covered by insurance; (vii) incorrectness of representations and warranties; (viii) incurrence of subordinated debt; (ix) revocation of governmental approvals necessary for the Company to conduct its business; and (x) failure by the Company to maintain a valid and perfected lien on the collateral securing the borrowing. During the three months ended July 31, 2020, the Company accounted for the settlement of the First SVB Facility term loan and the borrowings under the Second SVB Facility as a modification of the First SVB Facility term loan, because the cash flows under the Second SVB Facility were not substantially different than the cash flows under the First SVB Facility term loan. The Company incurred $531 of fees in connection with the Second SVB Facility, including $406 of fees to terminate the First SVB Facility and $125 of fees to enter into the Second SVB Facility. As the Second SVB Facility was accounted for as a modification, the Company recorded these fees as an additional discount on debt. The Company recorded third party costs as additional discount on debt because the unused borrowing capacity on the revolving credit facility contained in the Second SVB Facility was greater than the borrowing capacity on the revolving credit facility in the Second SVB Facility. The Company is continuing to amortize the existing and newly recorded discount on debt using the effective interest method. First Amended and Restated Loan and Security Agreement On February 28, 2019 (the Effective Date), the Company entered into a First Amended and Restated Loan and Security Agreement (the "First SVB Facility") that provided for a $20,000 term loan (the "2019 Term Loan") and a revolving credit facility with up to $25,000 of availability. Interest on the term loans was payable monthly, at a floating rate equal to the bank’s prime rate plus 1.50% until such time that EBITDA reached a defined level, after which time the interest rate would be reduced to the prime plus 0.75%. Principal payments due under the term loans were due in 36 equal monthly installments beginning in March 2021. In addition to principal and interest payments due under the term loans, the Company was required to make a final payment to the lenders due upon the earlier of prepayment or maturity of the term loan, which was equal to 2.75% of the original principal amount. The Company was accruing the estimated final payment fee using the effective interest method resulting in a charge to interest expense of $257 for the three months ended July 31, 2020. In connection with the First SVB Facility, the Company issued warrants to the lenders to purchase an aggregate of 150,274 shares of common stock at an exercise price of $8.02 per share. The 75,137 common stock warrants that remain outstanding as of July 31, 2020 expire in February 2029. . Borrowings under the prior term loan and loans payable were repaid in full with the proceeds from the First SVB Facility. The First SVB Facility also contained a revolving credit facility with $25,000 of available borrowings. As of January 31, 2020 and as of the date of the Second SVB Facility, the Company had no borrowings outstanding under the revolving credit facility. The Company was required to pay an annual fee of $100 per year during the first three years of the facility and then $75 per year in years four and five. The first two facility fee payments of $100 were paid during the three months ended July 31, 2020 and 2019, respectively. The Company was required to pay a fee of 0.15% per year for any unused availability and a termination fee of 1.50% if the revolving credit agreement was terminated prior to its scheduled maturity. Upon entering into the First SVB Facility, during the six months ended July 31, 2019, the Company accounted for the settlement of the previously outstanding loans payable and the term loan as a debt extinguishment and recorded an expense of $1,073, which was included in other income (expense), and was comprised of the write-off of $773 of deferred financing costs and a $300 prepayment fee related to the loans outstanding under the previous credit agreement. The modification of the previously outstanding revolving line of credit was accounted for as an insubstantial modification. The Company incurred fees of $112 related to the extinguishment and modification. Finance Leases See Note 11 - Leases for more information regarding finance leases. Other Debt (Financing Agreements) On July 21, 2020, the Company entered into an insurance premium financing agreement with IPFS of New York LLC in order to finance its premium payments for Directors' and Officers' insurance. As of July 31, 2020, the outstanding principal amount under the agreement is $2,009. The agreement bears interest of 2.6% per annum. Principal and interest are due in three equal installments of $677, payable in September 2020, December 2020 and March 2021. The total interest to be paid under the arrangement is $22. On April 10, 2020, the Company entered into a vendor financing agreement with a principal amount of $174 to finance the acquisition of certain internal use software licenses. As of July 31, 2020, the outstanding principal balance of the financing agreement is $131. Interest accrues at an annual rate of 2.94%. The Company is required to make equal annual payments of $46 on May 31, 2021, May 31, 2022 and May 31, 2023. On November 2, 2018, the Company entered into a vendor financing agreement with a principal amount of $1,256 to finance the acquisition of certain internal use software licenses. As of July 31, 2020, the outstanding principal balance of the financing agreement is $658. Interest accrues at an annual rate of 8.79%. The Company is required to pay four equal payments of $183 in January and June 2021 and 2022. Maturities of debt, including finance leases, in each of the next five years and thereafter are as follows: Total Debt Finance Leases Fiscal 2021 (remaining six months) $ 2,835 $ 1,500 $ 1,335 Fiscal year ending January 31: 2022 3,193 1,036 2,157 2023 1,649 217 1,432 2024 630 44 586 2025 21,156 20,697 459 Total long-term debt and finance lease maturities $ 29,463 $ 23,494 $ 5,969 During the three and six months ended July 31, 2020, the Company recorded net interest expense of $419 and $739, respectively, including amortization of original issue discount and deferred financing costs of $119 and $245, respectively. For the three months ended July 31, 2020, net interest expense included interest expense of $421, net of interest income of $2. For the six months ended July 31, 2020, net interest expense included interest expense of $833, net of interest income of $94. During the three and six months ended July 31, 2019, the Company recorded net interest expense of $745 and $1,549, respectively, including amortization of original issue discount and deferred financing costs of $157 and $265, respectively For the three months ended July 31, 2019, net interest expense included interest expense of $781, net of interest income of $36. For the six months ended July 31, 2019, net interest expense included interest expense of $1,585, net of interest income of $36. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jul. 31, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity (a) Common stock The Company closed an IPO on July 22, 2019 and filed an Amended and Restated Certificate of Incorporation authorizing the issuance of up to 500,000,000 shares of common stock, par value $0.01 per share. As of July 31, 2020 and January 31, 2020 there were 37,882,837 and 36,610,763 shares issued and outstanding, respectively. (b) Preferred stock In connection with the IPO, the Company's Amended and Restated Certificate of Incorporation also authorized 20,000,000 shares of undesignated preferred stock with a value of $0.01 per share. As of July 31, 2020 and January 31, 2020, no shares of this preferred stock were issued and outstanding. (c) Treasury stock The Company's equity based compensation plan allows for the grant of non-vested stock options, restricted stock units (RSUs), and performance-based RSUs to its employees pursuant to the terms of its stock option and incentive plans (See Note 8). Under the provision of the plans, unless otherwise elected, participants fulfill their related income tax withholding obligation by having shares withheld at the time of vesting. On the date of vesting, the Company divides the participant's income tax obligation in dollars by the closing price of its common stock and withholds the resulting number of vested shares. The shares withheld are then transferred to the Company's treasury stock at cost. |
Equity-based compensation
Equity-based compensation | 6 Months Ended |
Jul. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Equity-based compensation | Equity-based compensation (a) Equity Award Plans In 2006, the Board of Directors adopted the Company’s 2006 Stock Option Plan, which, as amended, provided for the issuance of options to purchase up to 4,424,986 shares of the Company’s common stock to officers, directors, employees, and consultants. The 2006 Stock Option Plan expired in August 2017. In January 2018, the Board of Directors adopted the Company’s 2018 Stock Option Plan (as amended), which currently provides for the issuance of options to purchase up to 3,048,490 shares of the Company’s common stock to officers, directors, employees, and consultants. The option exercise price per share is determined by the Board of Directors based on the estimated fair value of the Company’s common stock. In June 2019, the Board of Directors adopted the Company’s 2019 Stock Option and Incentive Plan, which replaced the 2018 Plan upon the completion of the IPO. The 2019 Plan allows the Compensation Committee to make equity-based incentive awards including stock options and restricted stock units (RSUs) to the Company’s officers, employees, directors, and consultants. The initial reserve for the issuance of awards under this Plan was 2,139,683 shares of common stock. The initial number of shares reserved and available for issuance automatically increased on February 1, 2020 and will automatically increase each February 1 thereafter by 5% of the number of shares of common stock outstanding on the immediately preceding January 31 (or such lesser number of shares determined by the Compensation Committee). ( b) Stock Options Options granted under the plans have a maximum term of ten years and vest over a period determined by the Board of Directors (generally four years from the date of grant or the commencement of the grantee’s employment with the Company). Options generally vest 25% at the one-year anniversary of the grant date, after which point they generally vest pro rata on a monthly basis. Effective July 2019, all available shares from expired, terminated, or forfeited awards that remained under the 2006 or 2018 prior stock compensation plans were made available for grant under the 2019 Plan. In June 2019, the Board of Directors also adopted the Company’s 2019 Employee Stock Purchase Plan (The ESPP), which became effective immediately prior to the effectiveness of the registration statement for the Company’s initial public offering. The total shares of common stock initially reserved under the ESPP is limited to 855,873 shares. Stock option activity for the six months ended July 31, 2020 is as follows: Number of Weighted- Weighted- Aggregate Intrinsic Outstanding — January 31, 2020 5,516,452 $ 3.80 Granted in six months ended July 31, 2020 — $ — Exercised (1,203,593) $ 2.06 Forfeited and expired (40,983) $ 7.22 Outstanding and expected to vest — July 31, 2020 4,271,876 $ 4.26 6.14 $ 110,233 Exercisable — July 31, 2020 2,919,857 $ 2.93 5.18 $ 79,205 Amount vested in six months ended July 31, 2020 347,073 $ 5.87 As of July 31, 2020, there are 4,073,051 shares available for future grant pursuant to the 2019 Plan after factoring in the automatic increase from February 1, 2020, as well as an additional 855,873 shares available for future grant pursuant to the ESPP. The aggregate intrinsic value represents the total pre-tax intrinsic value (the difference between the Company’s estimated stock price at the time of exercise and the exercise price, multiplied by the number of related in-the-money options) that would have been received by the option holders had they exercised their options at the end of the period. This amount changes based on the market value of the Company’s common stock. The total intrinsic value of options exercised for the six months ended July 31, 2020 and 2019 (based on the difference between the Company’s estimated stock price on the exercise date and the respective exercise price, multiplied by the number of options exercised), was $32,060 and $517, respectively. For the three months ended July 31, 2020 and 2019, the Company recorded stock-based compensation expense for stock options of $673 and $653, respectively. For the six months ended July 31, 2020 and 2019, the Company recorded stock-based compensation expense for stock options of $1,258 and $1,242, respectively. As of July 31, 2020, there is $4,673 of total unrecognized compensation cost related to stock options issued to employees that is expected to be recognized over a weighted-average term of 2.32 years. Incremental expense associated with the modification of stock options during the three and six months ended July 31, 2020 was $186 and $224, respectively. The Company has not recognized and does not expect to recognize in the foreseeable future, any tax benefit related to employee stock-based compensation expense. (c) Restricted stock units During fiscal 2020, prior to the IPO, the Company issued stock units to employees and directors that vest based on both a time-based condition and a performance-based condition. Pursuant to the time-based condition, 10% of the restricted stock units vest after one year, 20% vest after two years, 30% vest after three years and 40% vest after four years. The performance-based condition was based on a sale of the Company or an IPO, as defined. The restricted stock units expire seven years from the grant date. Upon completion of the Company’s IPO in July 2019, the Company immediately recognized the fair value of the vested units with the unvested portion recognized over the remaining service period. In addition, in August 2019, the Company approved allowing executive officers the ability to elect to receive all or a portion of the bonus (based on its target bonus opportunity for the last half of the fiscal year) in the form of restricted stock units instead of cash. For such executive officers that elected to receive restricted stock units, such award was granted immediately after such election with a value equal to the portion of the target bonus opportunity that the executive officer elected not to receive in cash, and such award vests based on the achievement of the Company’s pre-defined performance targets. These performance-based awards were released in April 2020, after final approval by the Compensation Committee. The Company issued 59,818 time-based restricted stock units during the three months ended July 31, 2020. The Company issued 575,194 time-based restricted stock units during the six months ended July 31, 2020. These time-based restricted stock units are subject to the same four-year vesting period as the previously granted units. Restricted stock unit activity for the six months ended July 31, 2020 are as follows: Restricted stock units Outstanding, February 1, 2020 1,447,418 Granted in six months ended July 31, 2020 575,194 Vested (76,803) Forfeited and expired (32,559) Outstanding, July 31, 2020 1,913,250 For the three months ended July 31, 2020 and 2019, the Company recognized $2,561 and $804 in restricted stock unit compensation expense, respectively. For the six months ended July 31, 2020 and 2019, the Company recognized $4,801 and $804 in restricted stock unit compensation expense, respectively, with $33,713 remaining of total unrecognized compensation costs related to these awards as of July 31, 2020. The total unrecognized costs are expected to be recognized over a weighted-average term of 3.72 years. During the three and six months ended July 31, 2020, the Company recorded stock-based compensation expense of $8 and $17 related to restricted stock units issued in connection with the Vital Score acquisition in December 2018. During the three and six months ended July 31, 2019, the Company recorded stock-based compensation expense of $10 and $21 related to restricted stock units issued in connection with the Vital Score acquisition. As of July 31, 2020, there is $74 of total unrecognized compensation cost related to these awards. |
Stock warrants
Stock warrants | 6 Months Ended |
Jul. 31, 2020 | |
Warrants and Rights Note Disclosure [Abstract] | |
Stock warrants | Stock warrants As of July 31, 2020 and January 31, 2020, there were 75,137 common stock warrants outstanding. These remaining common stock warrants were issued with an exercise price of $8.02 per share. If unexercised, each of these warrants will expire on February 28, 2029. |
Fair value measurements
Fair value measurements | 6 Months Ended |
Jul. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements | Fair value measurementsCertain assets and liabilities are carried at fair value under generally accepted accounting principles. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable: Level 1—Quoted prices in active markets for identical assets or liabilities. Level 2—Observable inputs (other than Level 1 quoted prices), such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities or other inputs that are observable or can be corroborated by observable market. Level 3—Unobservable inputs which are supported by little or no market activity and that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The following table presents information about the Company's assets and liabilities that are measured at fair value as of July 31, 2020 and indicates the classification of each item within the fair value hierarchy (in thousands): Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Balance as of July 31, 2020 Money market mutual funds $ 62,494 $ — $ — $ 62,494 Total assets $ 62,494 $ — $ — $ 62,494 Foreign currency derivative contracts $ — $ (99) $ — $ (99) Total liabilities $ — $ (99) $ — $ (99) The following table presents information about the Company's assets and liabilities that are measured at fair value as of January 31, 2020 and indicates the classification of each item within the fair value hierarchy (in thousands): Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Balance as of January 31, 2020 Money market mutual funds $ 86,600 $ — $ — $ 86,600 Foreign currency derivative contracts — 58 — 58 Total assets $ 86,600 $ 58 $ — $ 86,658 The carrying value of the Company’s short-term financial instruments, including accounts receivable and accounts payable approximate fair value due to the short-term nature of these instruments. The Company uses certain derivative financial instruments as part of its risk management strategy to reduce its foreign currency risk. The Company does not designate any derivatives as hedges in accordance with ASC 815 Derivatives and Hedging . The Company recognizes all derivatives on the balance sheet at fair value based on quotes obtained from financial institutions. The fair value of its foreign currency contracts as of July 31, 2020 was a liability of $99, which is included in accrued expenses on the accompanying balance sheet. The fair value of its foreign currency contracts as of January 31, 2020 was an asset of $58, which is included in prepaid and other current assets on the accompanying balance sheet. The fair value of the foreign currency contracts are considered Level 2 in the fair value hierarchy as of July 31, 2020 and January 31, 2020, respectively. The Company includes gains and losses on its foreign currency forward contracts within other income (expense). During the three and six months ended July 31, 2020, the Company recognized a gain of $405 and a loss of $308, respectively. During the three and six months ended July 31, 2019, the Company recognized gains of $327 and $256, respectively. As the Company refinanced all of its debt on February 28, 2019 and again on May 5, 2020 (See Note 6), the Company's debt bears interest at floating rates, and there have been no significant changes in the Company's credit risk since the issuance of the debt, the Company believes that the face value of its outstanding debt at July 31, 2020 and January 31, 2020 approximates fair value. The Company did not have any transfers of assets and liabilities between levels of the fair value measurement hierarchy during the three and six months ended July 31, 2020 and 2019. The Company’s cash and cash equivalents includes money market funds of $62,494 which are measured at fair value. The Company classifies these investments within Level 1 of the fair value hierarchy. |
Leases
Leases | 6 Months Ended |
Jul. 31, 2020 | |
Leases [Abstract] | |
Leases | Leases (a) Phreesia as Lessee The Company leases office premises in New York, North Carolina, and Ottawa, and datacenter space in Virginia under operating leases which expire on various dates through August 2023. Certain of these arrangements have escalating rent payment provisions or optional renewal clauses. The table below only considers lease obligations through the renewal date as the Company is not reasonably certain to elect the option to extend its leases beyond the option date. No arrangements contain residual value guarantees or restrictions imposed on the leases. We are also committed to pay a portion of the actual operating expenses under certain of these lease agreements. These operating expenses are not included in the table below. The operating right-of-use assets were calculated as the operating lease liabilities discounted at the present value, less the amount of unamortized tenant improvement allowance and deferred rent. The discount rate used was the Company’s incremental borrowing rate given that the implicit rate to each lease was not readily determinable. For office leases, the Company has elected the practical expedient to not separate lease and non-lease components, and as such, the variable lease cost primarily represents variable payments such as common area maintenance and utilities. The Company also entered into various finance lease arrangements of computer equipment. These agreements are typically for two Supplemental balance sheet information related to operating and finance leases as of July 31, 2020 was as follows: July 31, 2020 Operating leases: Lease right-of-use assets $ 2,406 Lease liabilities $ 1,221 Lease liabilities, noncurrent 1,394 Total operating lease liabilities $ 2,615 Finance leases: Property and equipment, at cost $ 15,940 Accumulated depreciation (9,310) Property and equipment, net $ 6,630 Lease liabilities (included in Current portion of debt and finance leases) $ 2,573 Lease liabilities, noncurrent (included in Long-term debt and finance leases) 3,396 Total finance lease liabilities $ 5,969 As of July 31, 2020, for operating leases, the weighted-average remaining lease term is 2.5 years, and the weighted-average discount rate is 3.5%. As of July 31, 2020, for finance leases, the weighted-average remaining lease term is 2.8 years, and the weighted-average discount rate is 6.1%. The components of lease expense for the six months ended July 31, 2020 were as follows: July 31, 2020 Operating leases: Operating lease cost $ 822 Variable lease cost 126 Total operating lease cost $ 948 Finance leases: Amortization of right-of-use assets $ 1,586 Interest on lease liabilities 151 Total finance lease cost $ 1,737 The following represents a schedule of maturing lease commitments for operating and finance leases as of July 31, 2020: July 31, 2020 Operating Finance Maturity of lease liabilities Fiscal 2021 (remaining six months) $ 868 $ 1,516 Fiscal year ending January 31, 2022 798 2,293 2023 683 1,506 2024 377 1,092 Total future minimum lease payments $ 2,726 $ 6,407 Less: interest (111) (438) Present value of lease liabilities $ 2,615 $ 5,969 Future minimum lease payments under non-cancelable operating leases as of January 31, 2020 under ASC 840 were as follows: January 31, 2020 Operating Fiscal year ending January 31, 2021 $ 1,824 2022 819 2023 464 2024 277 $ 3,384 Other supplemental cash flow information for the six months ended July 31, 2020 was as follows: July 31, 2020 Supplemental cash flow information Cash paid for amounts included in the measurement of lease liabilities: Operating cash used for operating leases $ 800 Operating cash used for finance leases 151 Financing cash used for finance leases 1,301 Total $ 2,252 Right-of-use assets obtained in exchange for lease liabilities: Operating $ 3,183 Finance 3,657 Total $ 6,840 An initial right-of-use asset of $2,741 for operating leases was recognized as a non-cash asset addition in connection with the adoption of ASC 842. Cash paid for amounts included in the present value of operating lease liabilities was $800 during the six months ended July 31, 2020 and is included in cash (used in) provided by operating activities. (b) Phreesia as Lessor In connection with the patient intake and registration process, Phreesia offers its customers the ability to lease PhreesiaPads and Arrival Stations along with their monthly subscription. These rentals fall under the guidance of ASC 842. The Company elected the practical expedient to not separate lease and non-lease components. More specifically, all contractual hardware maintenance is included with the hardware lease components. The leases contain no variable lease payments, no options to extend the lease that are reasonably certain to be exercised, and do not give the lessee an option to purchase the hardware at the end of the lease term. All leased hardware in the SaaS arrangements are classified as operating leases. During the three and six months ended July 31, 2020, the Company recognized $1,585 and $3,139, respectively, in subscription and related services revenue related to the leasing of PhreesiaPads and Arrival Stations. |
Leases | Leases (a) Phreesia as Lessee The Company leases office premises in New York, North Carolina, and Ottawa, and datacenter space in Virginia under operating leases which expire on various dates through August 2023. Certain of these arrangements have escalating rent payment provisions or optional renewal clauses. The table below only considers lease obligations through the renewal date as the Company is not reasonably certain to elect the option to extend its leases beyond the option date. No arrangements contain residual value guarantees or restrictions imposed on the leases. We are also committed to pay a portion of the actual operating expenses under certain of these lease agreements. These operating expenses are not included in the table below. The operating right-of-use assets were calculated as the operating lease liabilities discounted at the present value, less the amount of unamortized tenant improvement allowance and deferred rent. The discount rate used was the Company’s incremental borrowing rate given that the implicit rate to each lease was not readily determinable. For office leases, the Company has elected the practical expedient to not separate lease and non-lease components, and as such, the variable lease cost primarily represents variable payments such as common area maintenance and utilities. The Company also entered into various finance lease arrangements of computer equipment. These agreements are typically for two Supplemental balance sheet information related to operating and finance leases as of July 31, 2020 was as follows: July 31, 2020 Operating leases: Lease right-of-use assets $ 2,406 Lease liabilities $ 1,221 Lease liabilities, noncurrent 1,394 Total operating lease liabilities $ 2,615 Finance leases: Property and equipment, at cost $ 15,940 Accumulated depreciation (9,310) Property and equipment, net $ 6,630 Lease liabilities (included in Current portion of debt and finance leases) $ 2,573 Lease liabilities, noncurrent (included in Long-term debt and finance leases) 3,396 Total finance lease liabilities $ 5,969 As of July 31, 2020, for operating leases, the weighted-average remaining lease term is 2.5 years, and the weighted-average discount rate is 3.5%. As of July 31, 2020, for finance leases, the weighted-average remaining lease term is 2.8 years, and the weighted-average discount rate is 6.1%. The components of lease expense for the six months ended July 31, 2020 were as follows: July 31, 2020 Operating leases: Operating lease cost $ 822 Variable lease cost 126 Total operating lease cost $ 948 Finance leases: Amortization of right-of-use assets $ 1,586 Interest on lease liabilities 151 Total finance lease cost $ 1,737 The following represents a schedule of maturing lease commitments for operating and finance leases as of July 31, 2020: July 31, 2020 Operating Finance Maturity of lease liabilities Fiscal 2021 (remaining six months) $ 868 $ 1,516 Fiscal year ending January 31, 2022 798 2,293 2023 683 1,506 2024 377 1,092 Total future minimum lease payments $ 2,726 $ 6,407 Less: interest (111) (438) Present value of lease liabilities $ 2,615 $ 5,969 Future minimum lease payments under non-cancelable operating leases as of January 31, 2020 under ASC 840 were as follows: January 31, 2020 Operating Fiscal year ending January 31, 2021 $ 1,824 2022 819 2023 464 2024 277 $ 3,384 Other supplemental cash flow information for the six months ended July 31, 2020 was as follows: July 31, 2020 Supplemental cash flow information Cash paid for amounts included in the measurement of lease liabilities: Operating cash used for operating leases $ 800 Operating cash used for finance leases 151 Financing cash used for finance leases 1,301 Total $ 2,252 Right-of-use assets obtained in exchange for lease liabilities: Operating $ 3,183 Finance 3,657 Total $ 6,840 An initial right-of-use asset of $2,741 for operating leases was recognized as a non-cash asset addition in connection with the adoption of ASC 842. Cash paid for amounts included in the present value of operating lease liabilities was $800 during the six months ended July 31, 2020 and is included in cash (used in) provided by operating activities. (b) Phreesia as Lessor In connection with the patient intake and registration process, Phreesia offers its customers the ability to lease PhreesiaPads and Arrival Stations along with their monthly subscription. These rentals fall under the guidance of ASC 842. The Company elected the practical expedient to not separate lease and non-lease components. More specifically, all contractual hardware maintenance is included with the hardware lease components. The leases contain no variable lease payments, no options to extend the lease that are reasonably certain to be exercised, and do not give the lessee an option to purchase the hardware at the end of the lease term. All leased hardware in the SaaS arrangements are classified as operating leases. During the three and six months ended July 31, 2020, the Company recognized $1,585 and $3,139, respectively, in subscription and related services revenue related to the leasing of PhreesiaPads and Arrival Stations. |
Leases | Leases (a) Phreesia as Lessee The Company leases office premises in New York, North Carolina, and Ottawa, and datacenter space in Virginia under operating leases which expire on various dates through August 2023. Certain of these arrangements have escalating rent payment provisions or optional renewal clauses. The table below only considers lease obligations through the renewal date as the Company is not reasonably certain to elect the option to extend its leases beyond the option date. No arrangements contain residual value guarantees or restrictions imposed on the leases. We are also committed to pay a portion of the actual operating expenses under certain of these lease agreements. These operating expenses are not included in the table below. The operating right-of-use assets were calculated as the operating lease liabilities discounted at the present value, less the amount of unamortized tenant improvement allowance and deferred rent. The discount rate used was the Company’s incremental borrowing rate given that the implicit rate to each lease was not readily determinable. For office leases, the Company has elected the practical expedient to not separate lease and non-lease components, and as such, the variable lease cost primarily represents variable payments such as common area maintenance and utilities. The Company also entered into various finance lease arrangements of computer equipment. These agreements are typically for two Supplemental balance sheet information related to operating and finance leases as of July 31, 2020 was as follows: July 31, 2020 Operating leases: Lease right-of-use assets $ 2,406 Lease liabilities $ 1,221 Lease liabilities, noncurrent 1,394 Total operating lease liabilities $ 2,615 Finance leases: Property and equipment, at cost $ 15,940 Accumulated depreciation (9,310) Property and equipment, net $ 6,630 Lease liabilities (included in Current portion of debt and finance leases) $ 2,573 Lease liabilities, noncurrent (included in Long-term debt and finance leases) 3,396 Total finance lease liabilities $ 5,969 As of July 31, 2020, for operating leases, the weighted-average remaining lease term is 2.5 years, and the weighted-average discount rate is 3.5%. As of July 31, 2020, for finance leases, the weighted-average remaining lease term is 2.8 years, and the weighted-average discount rate is 6.1%. The components of lease expense for the six months ended July 31, 2020 were as follows: July 31, 2020 Operating leases: Operating lease cost $ 822 Variable lease cost 126 Total operating lease cost $ 948 Finance leases: Amortization of right-of-use assets $ 1,586 Interest on lease liabilities 151 Total finance lease cost $ 1,737 The following represents a schedule of maturing lease commitments for operating and finance leases as of July 31, 2020: July 31, 2020 Operating Finance Maturity of lease liabilities Fiscal 2021 (remaining six months) $ 868 $ 1,516 Fiscal year ending January 31, 2022 798 2,293 2023 683 1,506 2024 377 1,092 Total future minimum lease payments $ 2,726 $ 6,407 Less: interest (111) (438) Present value of lease liabilities $ 2,615 $ 5,969 Future minimum lease payments under non-cancelable operating leases as of January 31, 2020 under ASC 840 were as follows: January 31, 2020 Operating Fiscal year ending January 31, 2021 $ 1,824 2022 819 2023 464 2024 277 $ 3,384 Other supplemental cash flow information for the six months ended July 31, 2020 was as follows: July 31, 2020 Supplemental cash flow information Cash paid for amounts included in the measurement of lease liabilities: Operating cash used for operating leases $ 800 Operating cash used for finance leases 151 Financing cash used for finance leases 1,301 Total $ 2,252 Right-of-use assets obtained in exchange for lease liabilities: Operating $ 3,183 Finance 3,657 Total $ 6,840 An initial right-of-use asset of $2,741 for operating leases was recognized as a non-cash asset addition in connection with the adoption of ASC 842. Cash paid for amounts included in the present value of operating lease liabilities was $800 during the six months ended July 31, 2020 and is included in cash (used in) provided by operating activities. (b) Phreesia as Lessor In connection with the patient intake and registration process, Phreesia offers its customers the ability to lease PhreesiaPads and Arrival Stations along with their monthly subscription. These rentals fall under the guidance of ASC 842. The Company elected the practical expedient to not separate lease and non-lease components. More specifically, all contractual hardware maintenance is included with the hardware lease components. The leases contain no variable lease payments, no options to extend the lease that are reasonably certain to be exercised, and do not give the lessee an option to purchase the hardware at the end of the lease term. All leased hardware in the SaaS arrangements are classified as operating leases. During the three and six months ended July 31, 2020, the Company recognized $1,585 and $3,139, respectively, in subscription and related services revenue related to the leasing of PhreesiaPads and Arrival Stations. |
Commitments and contingencies
Commitments and contingencies | 6 Months Ended |
Jul. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Commitments and contingenciesIn the ordinary course of business, the Company may be subject from time to time to various proceedings, lawsuits, disputes or claims. Although the Company cannot predict with assurance the outcome of any litigation, the Company does not believe there are currently any such actions that, if resolved unfavorably, would have a material impact on its financial condition, results of operations or cash flows. |
Income taxes
Income taxes | 6 Months Ended |
Jul. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes For the three and six months ended July 31, 2020, the Company recorded a tax provision of $66 and $177, respectively, compared to a tax provision of $51 and $119, respectively, for the corresponding three and six month periods in the prior year. The effective tax rate was negative 1.4% and negative 0.8% for the six months ended July 31, 2020 and 2019, respectively. The Company's effective tax rate differs from the U.S. statutory tax rate of 21% primarily because the Company records a valuation allowance against the majority of its deferred tax assets, and due to foreign income tax expense recorded for the Company's Canada branch. Deferred tax assets and deferred tax liabilities are recognized based on temporary differences between the financial reporting and tax bases of assets and liabilities using statutory rates. Management of the Company has evaluated the positive and negative evidence pertaining to the realizability of its deferred tax assets, including the Company’s history of losses and concluded that it is more likely than not that the Company will not recognize the benefits for the majority of its deferred tax assets. On the basis of this evaluation, the Company has recorded a valuation allowance against its deferred tax assets that are not more likely than not to be realized at July 31, 2020 and January 31, 2020. |
Net loss per share attributable
Net loss per share attributable to common stockholders | 6 Months Ended |
Jul. 31, 2020 | |
Earnings Per Share [Abstract] | |
Net loss per share attributable to common stockholders | Net loss per share attributable to common stockholders Basic and diluted net loss per share attributable to common stockholders was calculated as follows: Three months ended July 31, Six months ended July 31, 2020 2019 2020 2019 Numerator: Net loss $ (6,371) $ (7,493) $ (12,483) $ (14,188) Preferred stock dividend paid — (14,955) — (14,955) Accretion of redeemable convertible preferred stock to redemption value — (48,312) — (56,175) Net loss attributable to common stockholders $ (6,371) $ (70,760) $ (12,483) $ (85,318) Denominator: Weighted-average shares of common stock outstanding, basic and diluted 37,735,155 6,793,363 37,523,966 4,443,155 Net loss per share attributable to common stockholders $ (0.17) $ (10.42) $ (0.33) $ (19.20) The Company’s potential dilutive securities, which include convertible preferred, stock options, restricted stock units and outstanding warrants to purchase shares of common and preferred stock, 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. The following potential common shares, presented based on amounts outstanding at each period end, were excluded from the calculation of diluted net loss per share attributable to common stockholders for the periods indicated because including them would have had an anti-dilutive effect: As of July 31, 2020 2019 Stock options to purchase common stock and restricted stock units 6,185,126 6,649,129 Warrants to purchase common stock 75,137 303,315 6,260,263 6,952,444 |
Related party transactions
Related party transactions | 6 Months Ended |
Jul. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related party transactions | Related party transactionsThe Company recognized revenue totaling approximately $988 and $1,372 from an affiliate of a stockholder of the Company for the three months ended July 31, 2020 and 2019, respectively. The Company recognized revenue totaling approximately $2,425 and $2,876 from an affiliate of a stockholder of the Company for the six months ended July 31, 2020 and 2019, respectively. Accounts receivable from the affiliate totaled approximately $699 and $2,072 as of July 31, 2020 and January 31, 2020, respectively. |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 6 Months Ended |
Jul. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentationThe accompanying financial statements have been prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP) and include the accounts of Phreesia, Inc. and its branch operation in Canada. |
Fiscal year | Fiscal yearThe Company’s fiscal year ends on January 31. References to fiscal 2021 and 2020 refer to the fiscal years ended January 31, 2021 and January 31, 2020, respectively. |
Reclassifications | Reclassifications Certain reclassifications have been made to the prior period presentation to conform to the current period presentation. In the Company's balance sheet as of January 31, 2020, the Company has reclassified $2.3 million from current portion of finance lease liabilities to current portion of debt and finance lease liabilities, and the Company has reclassified $2.1 million from long-term finance leases to long-term debt and finance leases. In the Company's unaudited statement of cash flows for the six months ended July 31, 2019, the Company has reclassified $1.0 million from change in deferred contract acquisition costs to deferred contract acquisition cost amortization. The reclassification had no effect on previously reported net loss or net cash provided by operating activities. |
Use of estimates | Use of estimatesThe preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates and assumptions on historical experience, known trends and events and various other factors that management believes to be reasonable under the circumstances, the results of which form the basis for making judgments. Although management believes its estimates and assumptions are reasonable under the circumstances at the time they are made, they are based upon information available at the time they are made. Management evaluates the estimates and assumptions on an ongoing basis and, if necessary, makes adjustments. Actual results may differ from those estimates made under different assumptions or circumstances. The most significant assumptions and estimates relate to the accounts receivable allowance, capitalized internal-use software, the determination of the useful lives of property and equipment, the fair value of securities underlying stock-based compensation, the fair value of its business acquisitions, and the realization of deferred tax assets. |
Concentrations of credit risk | Concentrations of credit riskFinancial instruments which potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, accounts receivable and settlement assets. The Company’s cash and cash equivalents are held by established financial institutions. The Company does not require collateral from its customers and generally requires payment within 30 to 60 days of billing. Settlement assets are amounts due from well-established payment processing companies and normally take one or two business days to settle which mitigates the associated risk of concentration. The Company has one third-party payment processor.The Company’s customers are primarily physician’s offices located in the United States and pharmaceutical companies. |
New accounting pronouncements | New accounting pronouncements Impact of recently adopted accounting pronouncements On May 1, 2020, the Company adopted ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which is intended to align the requirements for capitalization of implementation costs incurred in a cloud computing arrangement that is a service contract with the existing guidance for internal-use software. The guidance requires capitalized costs to be included within prepaid expenses and the guidance requires amortization of capitalized costs to be included in the same line as the associated cloud subscription costs in the statement of operations. The Company adopted ASU 2018-15 prospectively for implementation costs incurred subsequent to May 1, 2020. See Note 4 - Composition of Certain Financial Statement Captions for additional information. On February 1, 2020, the Company adopted the Financial Accounting Standards Board's (FASB) Accounting Standard Update (ASU) No. 2016-02, Leases (Topic 842) (ASC 842) which requires lessees to record most leases on their balance sheets but to recognize the expenses in their statement of operations in a manner similar to the prior standard. Topic 842 states that a lessee would recognize a lease liability for the obligation to make lease payments and a right-of-use asset for the right to use the underlying asset for the lease term. The Company adopted the new lease guidance using a modified retrospective transition method applied to those leases which were not completed as of February 1, 2020. As a result, the Company was not required to adjust its comparative period financial information for effects of the standard or make the new required lease disclosures for the periods before the date of adoption. The Company elected the ‘package of practical expedients,’ which permits the Company not to reassess under the new standard our prior conclusions about lease identification, lease classification and initial direct costs. The Company did not elect the use-of-hindsight practical expedient. The new standard also provides practical expedients for an entity’s ongoing accounting. The Company elected the short-term lease recognition exemption for all of its leases. This means, for those leases that qualify, the Company will not recognize right-of-use assets or lease liabilities, including existing short-term leases as of the transition date. The Company also elected the practical expedient to not separate lease and non-lease components for its office and computer equipment leases. Upon adoption of Topic 842 the Company recognized operating lease right-of-use assets and operating lease liabilities related to our office leases of $2,741 and $2,928, respectively. The Company’s accounting for lessee finance and all lessor leases remains substantially unchanged from legacy guidance. The standard did not have a significant impact on our statements of operations or statements of cash flows. No adjustment to retained earnings was recorded because the adoption did not change the Company's net assets. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820) : Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (ASU 2018-13). ASU 2018-13 updates the disclosure requirements for fair value measurements and is effective for financial statements issued for fiscal years beginning after December 15, 2019. The Company adopted the new guidance effective February 1, 2020, and it did not have a material effect on its financial statements. On February 1, 2020, the Company adopted ASU 2016-13, Financial Instruments - Credit Losses. The update requires the recognition of all losses expected over the life of a financial instrument upon origination or purchase of the instrument. The Company adopted this update using a modified retrospective method. No adjustment to retained earnings was recorded as a result of the adoption of this standard, which did not have a material impact on the Company's financial statements. Recent accounting pronouncements not yet adopted There are no recently issued accounting pronouncements the Company has not yet adopted that will materially impact the Company's financial statements. |
Composition of certain financ_2
Composition of certain financial statement captions (Tables) | 6 Months Ended |
Jul. 31, 2020 | |
Composition Of Certain Financial Statement [Abstract] | |
Schedule of accrued liabilities | Accrued expenses as of July 31, 2020 and January 31, 2020 are as follows: July 31, 2020 January 31, 2020 Payroll-related expenses and taxes $ 5,522 $ 5,032 Payment processing fees liability 2,418 2,738 Other 1,898 1,473 Total $ 9,838 $ 9,243 |
Schedule of property and equipment | Property and equipment as of July 31, 2020 and January 31, 2020 are as follows: Useful Life (years) July 31, 2020 January 31, 2020 PhreesiaPads and Arrivals Stations 3 $ 28,771 $ 26,389 Computer equipment 3 22,969 18,394 Computer software 3 2,582 2,297 Hardware development 3 1,024 1,024 Furniture and fixtures 7 743 743 Leasehold improvements 2 1,200 1,191 Total property and equipment $ 57,289 $ 50,038 Less accumulated depreciation and amortization (40,219) (35,551) Property and equipment — net $ 17,070 $ 14,487 |
Schedule of intangible assets | The following presents the details of intangible assets as of July 31, 2020 and January 31, 2020: Useful Life (years) July 31, 2020 January 31, 2020 Acquired technology gross carrying value 5 $ 490 $ 490 Customer relationship gross carrying value 7 980 980 Total intangible assets $ 1,470 $ 1,470 Less accumulated amortization (390) (271) Net carrying value $ 1,080 $ 1,199 |
Schedule of estimated amortization expense for intangible assets | The estimated amortization expense for intangible assets for the next five years and thereafter is as follows as of July 31, 2020: July 31, 2020 2021 (Remaining six months) $ 119 Years ending January 31, 2022 238 2023 238 2024 224 2025 - thereafter 261 Total $ 1,080 |
Schedule of accounts receivable | Accounts receivable as of July 31, 2020 and January 31, 2020 are as follows: July 31, 2020 January 31, 2020 Billed $ 20,501 $ 22,245 Unbilled 3,147 676 Total accounts receivable, gross $ 23,648 $ 22,921 Less accounts receivable allowances (676) (943) Total accounts receivable $ 22,972 $ 21,978 |
Schedule of allowance for credit losses | Activity in our allowance for doubtful accounts was as follows for the six months ended July 31, 2020: July 31, 2020 Balance, January 31, 2020 $ 943 Bad debt expense 271 Write-offs and adjustments (538) Balance, July 31, 2020 $ 676 |
Schedule of prepaid and other current assets | Prepaid and other current assets as of July 31, 2020 and January 31, 2020 are as follows: July 31, 2020 January 31, 2020 Prepaid software and business systems 1,854 $ 1,611 Prepaid PhreesiaPads 958 645 Prepaid data center expenses 460 751 Prepaid insurance 2,778 1,259 Other prepaid expenses and other current assets 2,328 891 Total prepaid and other current assets $ 8,378 $ 5,157 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jul. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Rollforward of contract assets and contract liabilities | The following table represents a roll forward of contract assets: Contract assets (unbilled accounts receivable) January 31, 2020 $ 676 Amount transferred to receivables from contract assets (222) Contract asset additions 2,693 July 31, 2020 $ 3,147 The following table represents a roll forward of contract liabilities: Contract liabilities (deferred revenue) January 31, 2020 $ 5,401 Revenue recognized that was included in deferred revenue at the beginning of the period (4,002) Revenue recognized that was not included in deferred revenue at the beginning of the period (679) Increases due to invoicing prior to satisfaction or performance obligations 5,537 July 31, 2020 $ 6,257 |
Deferred contract acquisition costs | The following table represents a roll forward of deferred contract acquisition costs: Beginning balance, January 31, 2020 $ 3,314 Additions to deferred contract acquisition costs 1,401 Amortization of deferred contract acquisition costs (1,775) Ending balance, July 31, 2020 2,940 Deferred contract acquisition costs, current (to be amortized in next 12 months) 1,684 Deferred contract acquisition costs, non-current 1,256 Total deferred contract acquisition costs $ 2,940 |
Debt and Finance Lease Liabil_2
Debt and Finance Lease Liabilities (Tables) | 6 Months Ended |
Jul. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt instruments | As of July 31, 2020 and January 31, 2020, the Company had the following outstanding debt and finance lease liabilities: July 31, 2020 January 31, 2020 Revolving credit facility $ 20,663 $ — Term loan — 20,000 Finance leases 5,969 3,612 Other debt 2,797 808 Accrued interest and payments 34 381 Total debt and finance lease liabilities, before original issue discount 29,463 24,801 Less deferred financing costs and original issue discount (1,393) (937) Debt and finance lease liabilities 28,070 23,864 Less - current maturities of debt and finance lease liabilities (4,939) (2,324) Long term debt and finance lease liabilities $ 23,131 $ 21,540 |
Schedule of maturities of long-term debt | Maturities of debt, including finance leases, in each of the next five years and thereafter are as follows: Total Debt Finance Leases Fiscal 2021 (remaining six months) $ 2,835 $ 1,500 $ 1,335 Fiscal year ending January 31: 2022 3,193 1,036 2,157 2023 1,649 217 1,432 2024 630 44 586 2025 21,156 20,697 459 Total long-term debt and finance lease maturities $ 29,463 $ 23,494 $ 5,969 |
Equity-based compensation (Tabl
Equity-based compensation (Tables) | 6 Months Ended |
Jul. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of stock option activity | Stock option activity for the six months ended July 31, 2020 is as follows: Number of Weighted- Weighted- Aggregate Intrinsic Outstanding — January 31, 2020 5,516,452 $ 3.80 Granted in six months ended July 31, 2020 — $ — Exercised (1,203,593) $ 2.06 Forfeited and expired (40,983) $ 7.22 Outstanding and expected to vest — July 31, 2020 4,271,876 $ 4.26 6.14 $ 110,233 Exercisable — July 31, 2020 2,919,857 $ 2.93 5.18 $ 79,205 Amount vested in six months ended July 31, 2020 347,073 $ 5.87 |
Schedule of restricted stock unit activity | Restricted stock unit activity for the six months ended July 31, 2020 are as follows: Restricted stock units Outstanding, February 1, 2020 1,447,418 Granted in six months ended July 31, 2020 575,194 Vested (76,803) Forfeited and expired (32,559) Outstanding, July 31, 2020 1,913,250 |
Fair value measurements (Tables
Fair value measurements (Tables) | 6 Months Ended |
Jul. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table presents information about the Company's assets and liabilities that are measured at fair value as of July 31, 2020 and indicates the classification of each item within the fair value hierarchy (in thousands): Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Balance as of July 31, 2020 Money market mutual funds $ 62,494 $ — $ — $ 62,494 Total assets $ 62,494 $ — $ — $ 62,494 Foreign currency derivative contracts $ — $ (99) $ — $ (99) Total liabilities $ — $ (99) $ — $ (99) The following table presents information about the Company's assets and liabilities that are measured at fair value as of January 31, 2020 and indicates the classification of each item within the fair value hierarchy (in thousands): Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Balance as of January 31, 2020 Money market mutual funds $ 86,600 $ — $ — $ 86,600 Foreign currency derivative contracts — 58 — 58 Total assets $ 86,600 $ 58 $ — $ 86,658 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jul. 31, 2020 | |
Leases [Abstract] | |
Schedule of supplemental balance sheet information | Supplemental balance sheet information related to operating and finance leases as of July 31, 2020 was as follows: July 31, 2020 Operating leases: Lease right-of-use assets $ 2,406 Lease liabilities $ 1,221 Lease liabilities, noncurrent 1,394 Total operating lease liabilities $ 2,615 Finance leases: Property and equipment, at cost $ 15,940 Accumulated depreciation (9,310) Property and equipment, net $ 6,630 Lease liabilities (included in Current portion of debt and finance leases) $ 2,573 Lease liabilities, noncurrent (included in Long-term debt and finance leases) 3,396 Total finance lease liabilities $ 5,969 |
Schedule of lease expense and cash flow information | The components of lease expense for the six months ended July 31, 2020 were as follows: July 31, 2020 Operating leases: Operating lease cost $ 822 Variable lease cost 126 Total operating lease cost $ 948 Finance leases: Amortization of right-of-use assets $ 1,586 Interest on lease liabilities 151 Total finance lease cost $ 1,737 Other supplemental cash flow information for the six months ended July 31, 2020 was as follows: July 31, 2020 Supplemental cash flow information Cash paid for amounts included in the measurement of lease liabilities: Operating cash used for operating leases $ 800 Operating cash used for finance leases 151 Financing cash used for finance leases 1,301 Total $ 2,252 Right-of-use assets obtained in exchange for lease liabilities: Operating $ 3,183 Finance 3,657 Total $ 6,840 |
Maturities of operating leases | The following represents a schedule of maturing lease commitments for operating and finance leases as of July 31, 2020: July 31, 2020 Operating Finance Maturity of lease liabilities Fiscal 2021 (remaining six months) $ 868 $ 1,516 Fiscal year ending January 31, 2022 798 2,293 2023 683 1,506 2024 377 1,092 Total future minimum lease payments $ 2,726 $ 6,407 Less: interest (111) (438) Present value of lease liabilities $ 2,615 $ 5,969 |
Maturities of finance leases | The following represents a schedule of maturing lease commitments for operating and finance leases as of July 31, 2020: July 31, 2020 Operating Finance Maturity of lease liabilities Fiscal 2021 (remaining six months) $ 868 $ 1,516 Fiscal year ending January 31, 2022 798 2,293 2023 683 1,506 2024 377 1,092 Total future minimum lease payments $ 2,726 $ 6,407 Less: interest (111) (438) Present value of lease liabilities $ 2,615 $ 5,969 |
Schedule of aggregate minimum net rental payments | Future minimum lease payments under non-cancelable operating leases as of January 31, 2020 under ASC 840 were as follows: January 31, 2020 Operating Fiscal year ending January 31, 2021 $ 1,824 2022 819 2023 464 2024 277 $ 3,384 |
Net loss per share attributab_2
Net loss per share attributable to common stockholders (Tables) | 6 Months Ended |
Jul. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share, basic and diluted | Basic and diluted net loss per share attributable to common stockholders was calculated as follows: Three months ended July 31, Six months ended July 31, 2020 2019 2020 2019 Numerator: Net loss $ (6,371) $ (7,493) $ (12,483) $ (14,188) Preferred stock dividend paid — (14,955) — (14,955) Accretion of redeemable convertible preferred stock to redemption value — (48,312) — (56,175) Net loss attributable to common stockholders $ (6,371) $ (70,760) $ (12,483) $ (85,318) Denominator: Weighted-average shares of common stock outstanding, basic and diluted 37,735,155 6,793,363 37,523,966 4,443,155 Net loss per share attributable to common stockholders $ (0.17) $ (10.42) $ (0.33) $ (19.20) |
Schedule of shares excluded from computation of diluted net loss per share | The following potential common shares, presented based on amounts outstanding at each period end, were excluded from the calculation of diluted net loss per share attributable to common stockholders for the periods indicated because including them would have had an anti-dilutive effect: As of July 31, 2020 2019 Stock options to purchase common stock and restricted stock units 6,185,126 6,649,129 Warrants to purchase common stock 75,137 303,315 6,260,263 6,952,444 |
Background and liquidity (Detai
Background and liquidity (Detail) - USD ($) $ / shares in Units, $ in Thousands | Dec. 17, 2019 | Jul. 22, 2019 | Jul. 31, 2019 | Jul. 31, 2020 | Jan. 31, 2020 | Jul. 31, 2019 |
Background And Liquidity [Line Items] | ||||||
Proceeds from initial public offering | $ 0 | $ 130,781 | ||||
Deferred offering costs | $ 0 | $ 3,930 | ||||
Conversion of preferred stock into common stock and cancellation of redeemable preferred stock (in shares) | 757,625 | |||||
Number of months the company have sufficient to fund its operations | 12 months | |||||
Common Stock | ||||||
Background And Liquidity [Line Items] | ||||||
Issuance of common stock in initial public offering, net of issuance costs (in shares) | 7,762,500 | 7,812,500 | ||||
Deferred offering costs | $ 1,047 | |||||
Conversion of preferred stock into common stock and cancellation of redeemable preferred stock (in shares) | 25,311,525 | 25,311,535 | ||||
IPO | ||||||
Background And Liquidity [Line Items] | ||||||
Issuance of common stock in initial public offering, net of issuance costs (in shares) | 7,812,500 | |||||
Issue price per share (in dollars per share) | $ 18 | |||||
Proceeds from initial public offering | $ 130,781 | |||||
Underwriting discounts and commission | 9,844 | |||||
IPO | Common Stock | ||||||
Background And Liquidity [Line Items] | ||||||
Deferred offering costs | $ 6,412 | |||||
IPO | Certain Selling Stockholders | ||||||
Background And Liquidity [Line Items] | ||||||
Issuance of common stock in initial public offering, net of issuance costs (in shares) | 2,868,923 |
Basis of presentation (Details)
Basis of presentation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 31, 2020 | Jul. 31, 2019 | Jul. 31, 2020 | Jul. 31, 2019 | Jan. 31, 2020 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Lease liabilities (included in Current portion of debt and finance leases) | $ (2,573) | $ (2,573) | |||
Current portion of debt and finance lease liabilities | 4,939 | 4,939 | $ 2,324 | ||
Lease liabilities, noncurrent (included in Long-term debt and finance leases) | (3,396) | (3,396) | |||
Long term debt and finance lease liabilities | 23,131 | 23,131 | 21,540 | ||
Deferred contract acquisition costs amortization | $ 1,250 | $ 489 | $ 1,775 | $ 974 | |
Restatement Adjustment | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Lease liabilities (included in Current portion of debt and finance leases) | 2,300 | ||||
Current portion of debt and finance lease liabilities | 2,300 | ||||
Lease liabilities, noncurrent (included in Long-term debt and finance leases) | 2,100 | ||||
Long term debt and finance lease liabilities | $ 2,100 | ||||
Change in deferred contract acquisition costs | 1,000 | ||||
Deferred contract acquisition costs amortization | $ 1,000 |
Summary of significant accoun_3
Summary of significant accounting policies (Details) - USD ($) $ in Thousands | 6 Months Ended | ||||
Jul. 31, 2020 | Feb. 01, 2020 | Jan. 31, 2020 | [1] | ||
Concentration Risk [Line Items] | |||||
Lease right-of-use assets | $ 2,406 | [1] | $ 2,741 | $ 0 | |
Operating lease liabilities | $ 2,615 | $ 2,928 | |||
Largest Customer | Accounts Receivable | Customer Concentration Risk | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 10.80% | ||||
[1] | Figures as of July 31, 2020 reflect the Company's February 1, 2020 adoption of Accounting Standards Update ("ASU") No. 2016-02, Leases . For additional details, see Note 3(c), "Summary of significant accounting policies — Impact of recently adopted accounting pronouncements." |
Composition of certain financ_3
Composition of certain financial statement captions - Schedule of Accrued Liabilities (Detail) - USD ($) $ in Thousands | Jul. 31, 2020 | Jan. 31, 2020 |
Composition Of Certain Financial Statement [Abstract] | ||
Payroll-related expenses and taxes | $ 5,522 | $ 5,032 |
Payment processing fees liability | 2,418 | 2,738 |
Other | 1,898 | 1,473 |
Total | $ 9,838 | $ 9,243 |
Composition of certain financ_4
Composition of certain financial statement captions - Schedule of Property and Equipment (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 31, 2020 | Jan. 31, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 57,289 | $ 50,038 |
Less accumulated depreciation and amortization | (40,219) | (35,551) |
Property and equipment — net | $ 17,070 | 14,487 |
PhreesiaPads and Arrivals Stations | ||
Property, Plant and Equipment [Line Items] | ||
Useful life (years) | 3 years | |
Property and equipment | $ 28,771 | 26,389 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Useful life (years) | 3 years | |
Property and equipment | $ 22,969 | 18,394 |
Computer software | ||
Property, Plant and Equipment [Line Items] | ||
Useful life (years) | 3 years | |
Property and equipment | $ 2,582 | 2,297 |
Hardware development | ||
Property, Plant and Equipment [Line Items] | ||
Useful life (years) | 3 years | |
Property and equipment | $ 1,024 | 1,024 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Useful life (years) | 7 years | |
Property and equipment | $ 743 | 743 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Useful life (years) | 2 years | |
Property and equipment | $ 1,200 | $ 1,191 |
Composition of certain financ_5
Composition of certain financial statement captions - Additional Information (Detail) - USD ($) | Jul. 31, 2020 | Jan. 31, 2020 | Jul. 31, 2020 | Jul. 31, 2019 | Jul. 31, 2020 | Jul. 31, 2019 |
Composition Of Certain Financial Statement [Line Items] | ||||||
Depreciation | $ 2,410,000 | $ 2,136,000 | $ 4,678,000 | $ 4,291,000 | ||
Finance lease, depreciation | 1,586,000 | |||||
Assets under finance lease | $ 6,630,000 | 6,630,000 | 6,630,000 | |||
Assets under finance lease, accumulated amortization | 9,310,000 | 9,310,000 | 9,310,000 | |||
Capitalized cost of computer software | 1,876,000 | 1,467,000 | 3,632,000 | 2,878,000 | ||
Capitalized computed software amortization | 1,573,000 | 1,220,000 | 2,866,000 | 2,379,000 | ||
Capitalized computer software net | 9,501,000 | $ 8,735,000 | 9,501,000 | 9,501,000 | ||
Amortization of intangible assets | 60,000 | 60,000 | 119,000 | 119,000 | ||
Changes in goodwill balance | 0 | |||||
Goodwill, impairment loss | 0 | $ 0 | 0 | 0 | ||
Goodwill | 250,000 | $ 250,000 | 250,000 | 250,000 | ||
Capitalized implementation costs | 213,000 | 213,000 | 213,000 | |||
Capitalized implementation costs, accumulated amortization | $ 2,000 | 2,000 | 2,000 | |||
Loss on extinguishment of debt | $ 0 | $ 1,073,000 | ||||
Credit Concentration Risk | Accounts Receivable | Aged less than 30 days | ||||||
Composition Of Certain Financial Statement [Line Items] | ||||||
Concentration risk, percentage | 53.00% | |||||
Credit Concentration Risk | Accounts Receivable | Aged over 90 days | ||||||
Composition Of Certain Financial Statement [Line Items] | ||||||
Concentration risk, percentage | 19.00% | |||||
Acquired technology | ||||||
Composition Of Certain Financial Statement [Line Items] | ||||||
Finite-lived intangible assets, remaining amortization period | 3 years 4 months 24 days | 3 years 10 months 24 days | ||||
Customer relationships | ||||||
Composition Of Certain Financial Statement [Line Items] | ||||||
Finite-lived intangible assets, remaining amortization period | 5 years 4 months 24 days | 5 years 10 months 24 days | ||||
Computer equipment | ||||||
Composition Of Certain Financial Statement [Line Items] | ||||||
Assets under finance lease | $ 15,940,000 | $ 12,283,000 | 15,940,000 | $ 15,940,000 | ||
Assets under finance lease, accumulated amortization | $ 9,310,000 | $ 7,724,000 | $ 9,310,000 | $ 9,310,000 |
Composition of certain financ_6
Composition of certain financial statement captions - Schedule Of Finite Lived Intangible Assets (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 31, 2020 | Jan. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangibles | $ 1,470 | $ 1,470 |
Less accumulated amortization | (390) | (271) |
Net carrying value | $ 1,080 | 1,199 |
Acquired technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life (years) | 5 years | |
Finite-lived intangibles | $ 490 | 490 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life (years) | 7 years | |
Finite-lived intangibles | $ 980 | $ 980 |
Composition of certain financ_7
Composition of certain financial statement captions - Schedule of Finite Lived Intangible Assets Future Amortization Expense (Detail) - USD ($) $ in Thousands | Jul. 31, 2020 | Jan. 31, 2020 |
Composition Of Certain Financial Statement [Abstract] | ||
2021 (Remaining six months) | $ 119 | |
2022 | 238 | |
2023 | 238 | |
2024 | 224 | |
2025 - thereafter | 261 | |
Net carrying value | $ 1,080 | $ 1,199 |
Composition of certain financ_8
Composition of certain financial statement captions - Schedule Of Accounts Notes Loans And Financing Receivable (Detail) - USD ($) $ in Thousands | Jul. 31, 2020 | Jan. 31, 2020 |
Composition Of Certain Financial Statement [Abstract] | ||
Billed | $ 20,501 | $ 22,245 |
Unbilled | 3,147 | 676 |
Total accounts receivable, gross | 23,648 | 22,921 |
Less accounts receivable allowances | (676) | (943) |
Total accounts receivable | $ 22,972 | $ 21,978 |
Composition of certain financ_9
Composition of certain financial statement captions - Schedule of Allowance for Credit Losses (Details) $ in Thousands | 6 Months Ended |
Jul. 31, 2020USD ($) | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Balance, January 31, 2020 | $ 943 |
Bad debt expense | 271 |
Write-offs and adjustments | (538) |
Balance, July 31, 2020 | $ 676 |
Composition of certain finan_10
Composition of certain financial statement captions - Schedule of Prepaids and Other Current Assets (Details) - USD ($) $ in Thousands | Jul. 31, 2020 | Jan. 31, 2020 |
Composition Of Certain Financial Statement [Abstract] | ||
Prepaid software and business systems | $ 1,854 | $ 1,611 |
Prepaid PhreesiaPads | 958 | 645 |
Prepaid data center expenses | 460 | 751 |
Prepaid insurance | 2,778 | 1,259 |
Other prepaid expenses and other current assets | 2,328 | 891 |
Total prepaid and other current assets | $ 8,378 | $ 5,157 |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2020 | Jul. 31, 2019 | Jul. 31, 2020 | Jul. 31, 2019 | |
Revenue From Contract With Customer [Line Items] | ||||
Capitalized contract cost, amortization period | 3 years | 3 years | ||
Capitalized contract cost, amortization | $ 1,250,000 | $ 489,000 | $ 1,775,000 | $ 974,000 |
Capitalized contract cost, impairment loss | 0 | 0 | 0 | 0 |
Subscription and Related Services | ||||
Revenue From Contract With Customer [Line Items] | ||||
Lease income | $ 1,585,000 | $ 1,506,000 | $ 3,139,000 | $ 2,966,000 |
Revenue - Schedule Of Rollforwa
Revenue - Schedule Of Rollforward of contract assets and contract liabilities (Detail) $ in Thousands | 6 Months Ended |
Jul. 31, 2020USD ($) | |
Contract With Customer Asset [Roll Forward] | |
Beginning balance - Contract assets (unbilled accounts receivable) | $ 676 |
Amount transferred to receivables from contract assets | (222) |
Contract asset additions | 2,693 |
Ending balance - Contract assets (unbilled accounts receivable) | 3,147 |
Contract With Customer Liability [Roll Forward] | |
Beginning balance - Contract liabilities (deferred revenue) | 5,401 |
Revenue recognized that was included in deferred revenue at the beginning of the period | (4,002) |
Revenue recognized that was not included in deferred revenue at the beginning of the period | (679) |
Increases due to invoicing prior to satisfaction or performance obligations | 5,537 |
Ending balance - Contract liabilities (deferred revenue) | $ 6,257 |
Revenue - Schedule Of Deferred
Revenue - Schedule Of Deferred contract acquisition costs (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jul. 31, 2020 | Jul. 31, 2019 | Jul. 31, 2020 | Jul. 31, 2019 | Jul. 31, 2020 | Jan. 31, 2020 | |
Capitalized Contract Cost [Roll Forward] | ||||||
Beginning balance, January 31, 2020 | $ 3,314 | |||||
Additions to deferred contract acquisition costs | 1,401 | |||||
Amortization of deferred contract acquisition costs | $ (1,250) | $ (489) | (1,775) | $ (974) | ||
Ending balance, July 31, 2020 | 2,940 | 2,940 | ||||
Deferred contract acquisition costs, current (to be amortized in next 12 months) | $ 1,684 | $ 1,720 | ||||
Deferred contract acquisition costs, non-current | 1,256 | 1,594 | ||||
Total deferred contract acquisition costs | $ 2,940 | $ 2,940 | $ 2,940 | $ 3,314 |
Debt and Finance Lease Liabil_3
Debt and Finance Lease Liabilities - Schedule Of Outstanding loan balances (Detail) - USD ($) $ in Thousands | Jul. 31, 2020 | Jan. 31, 2020 |
Debt Instrument [Line Items] | ||
Finance leases | $ 5,969 | $ 3,612 |
Other debt | 2,797 | 808 |
Accrued interest and payments | 34 | 381 |
Total debt and finance lease liabilities, before original issue discount | 29,463 | 24,801 |
Less deferred financing costs and original issue discount | (1,393) | (937) |
Long-term Debt and Lease Obligation, Including Current Maturities, Total | 28,070 | 23,864 |
Less - current maturities of debt and finance lease liabilities | (4,939) | (2,324) |
Long term debt and finance lease liabilities | 23,131 | 21,540 |
Revolving credit facility | ||
Debt Instrument [Line Items] | ||
Long term debt | 20,663 | 0 |
Term loan | ||
Debt Instrument [Line Items] | ||
Long term debt | $ 0 | $ 20,000 |
Debt and Finance Lease Liabil_4
Debt and Finance Lease Liabilities - Second Amended and Restated Loan and Security Agreement (Details) - USD ($) | May 05, 2020 | Feb. 28, 2019 | Jul. 31, 2020 | Jul. 31, 2019 | Jul. 31, 2020 | Jul. 31, 2019 | Jan. 31, 2020 |
Debt Instrument [Line Items] | |||||||
Debt prepayment fee | $ 0 | $ 300,000 | |||||
Payment of accrued final payment fee | 225,000 | 0 | |||||
Revolving credit facility | |||||||
Debt Instrument [Line Items] | |||||||
Long term debt | $ 20,663,000 | 20,663,000 | $ 0 | ||||
Second Amended And Restated Loan And Security Agreement | |||||||
Debt Instrument [Line Items] | |||||||
Effective interest rate | 4.50% | ||||||
Remaining borrowing capacity | $ 29,337,000 | $ 29,337,000 | |||||
Second Amended And Restated Loan And Security Agreement | Revolving credit facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 50,000,000 | ||||||
Long term debt | 20,663,000 | ||||||
Debt instrument, term | 5 years | ||||||
Annual fee amount | 125,000 | ||||||
Payment of debt fees | 125,000 | ||||||
Termination fee | 187,000 | ||||||
Monthly termination fee decrease | $ 6,000 | ||||||
Termination fee percentage before year two | 0.015 | ||||||
Termination fee percentage before year three | 0.0075 | ||||||
Termination fee percentage before year four | 0.005 | ||||||
Debt issuance costs | 531,000 | ||||||
Entrance fee | $ 125,000 | ||||||
Second Amended And Restated Loan And Security Agreement | Revolving credit facility | Before EBITDA Benchmark | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 4.50% | ||||||
Second Amended And Restated Loan And Security Agreement | Revolving credit facility | After EBITDA Benchmark | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 4.00% | 4.00% | |||||
Second Amended And Restated Loan And Security Agreement | Revolving credit facility | Prime Rate | After EBITDA Benchmark | |||||||
Debt Instrument [Line Items] | |||||||
Variable interest rate | (0.50%) | ||||||
Second Amended And Restated Loan And Security Agreement, Optional Capacity Increase | Revolving credit facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 65,000,000 | ||||||
Term loan | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, term | 36 months | ||||||
Term loan | Revolving credit facility | |||||||
Debt Instrument [Line Items] | |||||||
Repayments of debt | 20,000,000 | ||||||
Debt prepayment fee | $ 300,000 | ||||||
Payment of accrued final payment fee | $ 363,000 | ||||||
Amended And Restated Loan And Security Agreement | Prime Rate | Before EBITDA Benchmark | |||||||
Debt Instrument [Line Items] | |||||||
Variable interest rate | 1.50% | ||||||
Amended And Restated Loan And Security Agreement | Prime Rate | After EBITDA Benchmark | |||||||
Debt Instrument [Line Items] | |||||||
Variable interest rate | 0.75% | ||||||
Amended And Restated Loan And Security Agreement | Revolving credit facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 25,000,000 | ||||||
Long term debt | $ 0 | $ 0 | |||||
Debt prepayment fee | $ 406,000 | ||||||
Payment of debt fees | $ 100,000 | $ 100,000 |
Debt and Finance Lease Liabil_5
Debt and Finance Lease Liabilities - First Amended and Restated Loan and Security Agreement (Details) - USD ($) | Feb. 28, 2019 | Jul. 31, 2020 | Jul. 31, 2019 | Jul. 31, 2020 | Jul. 31, 2019 | Jan. 31, 2020 |
Debt Instrument [Line Items] | ||||||
Loss on extinguishment of debt | $ 0 | $ 1,073,000 | ||||
Common Stock | ||||||
Debt Instrument [Line Items] | ||||||
Exercise price (in dollars per share) | $ 8.02 | $ 8.02 | $ 8.02 | |||
Warrants outstanding (in shares) | 75,137 | 75,137 | 75,137 | |||
Loans Payable | ||||||
Debt Instrument [Line Items] | ||||||
Loss on extinguishment of debt | 1,073,000 | |||||
Write off of deferred debt issuance cost | 773,000 | |||||
Debt prepayment cost | 300,000 | |||||
Debt extinguishment and modification fee | $ 112,000 | |||||
Term loan | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | $ 20,000,000 | |||||
Debt instrument, term | 36 months | |||||
Amended And Restated Loan And Security Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, fee percentage | 2.75% | |||||
Final payment accrual charged to interest expense | $ 257,000 | |||||
Number of securities called by warrants (in shares) | 150,274 | |||||
Exercise price (in dollars per share) | $ 8.02 | |||||
Amended And Restated Loan And Security Agreement | Before EBITDA Benchmark | Prime Rate | ||||||
Debt Instrument [Line Items] | ||||||
Variable interest rate | 1.50% | |||||
Amended And Restated Loan And Security Agreement | After EBITDA Benchmark | Prime Rate | ||||||
Debt Instrument [Line Items] | ||||||
Variable interest rate | 0.75% | |||||
Amended And Restated Loan And Security Agreement | Revolving credit facility | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 25,000,000 | |||||
Debt instrument, fee percentage | 0.15% | |||||
Line of credit, facility annual fee for first three years | $ 100,000 | |||||
Line of credit, facility annual fee for fourth and fifth years | $ 75,000 | |||||
Payment of debt fees | $ 100,000 | $ 100,000 | ||||
Line of credit facility termination fee percentage | 1.50% |
Debt and Finance Lease Liabil_6
Debt and Finance Lease Liabilities - Other Debt (Details) | Jul. 21, 2020USD ($)installment | Apr. 10, 2020USD ($) | Nov. 02, 2018USD ($)installment | Jul. 31, 2020USD ($) |
Debt Instrument [Line Items] | ||||
Number of installment payments | installment | 3 | 4 | ||
Insurance Premium Financing Agreement | ||||
Debt Instrument [Line Items] | ||||
Long term debt | $ 2,009,000 | |||
Stated interest rate | 2.60% | |||
Installment payment, amount | $ 677,000 | |||
Total interest cost | $ 22,000 | |||
Vendor Financing Agreement Maturing May 2023 | ||||
Debt Instrument [Line Items] | ||||
Long term debt | 131,000 | |||
Stated interest rate | 2.94% | |||
Installment payment, amount | $ 46,000 | |||
Debt instrument, face amount | $ 174,000 | |||
Vendor Financing Agreement Maturing June 2022 | ||||
Debt Instrument [Line Items] | ||||
Long term debt | $ 658,000 | |||
Stated interest rate | 8.79% | |||
Installment payment, amount | $ 183,000 | |||
Debt instrument, face amount | $ 1,256,000 |
Debt and Finance Lease Liabil_7
Debt and Finance Lease Liabilities - Schedule of long-term debt maturities (Detail) - USD ($) $ in Thousands | Jul. 31, 2020 | Jan. 31, 2020 |
Total | ||
Fiscal 2021 (remaining six months) | $ 2,835 | |
2022 | 3,193 | |
2023 | 1,649 | |
2024 | 630 | |
2025 | 21,156 | |
Total debt and finance lease liabilities, before original issue discount | 29,463 | $ 24,801 |
Debt | ||
Fiscal 2021 (remaining six months) | 1,500 | |
2022 | 1,036 | |
2023 | 217 | |
2024 | 44 | |
2025 | 20,697 | |
Total Long-Term Debt Maturities | 23,494 | |
Finance Leases | ||
Fiscal 2021 (remaining six months) | 1,335 | |
2022 | 2,157 | |
2023 | 1,432 | |
2024 | 586 | |
2025 | 459 | |
Total finance lease liabilities | $ 5,969 | $ 3,612 |
Debt and Finance Lease Liabil_8
Debt and Finance Lease Liabilities - Additional information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2020 | Jul. 31, 2019 | Jul. 31, 2020 | Jul. 31, 2019 | |
Debt Disclosure [Abstract] | ||||
Interest expense, net | $ 419 | $ 745 | $ 739 | $ 1,549 |
Amortization of debt discount | 119 | 157 | 245 | 265 |
Interest expense | 421 | 781 | 833 | 1,585 |
Interest income | $ (2) | $ (36) | $ (94) | $ (36) |
Stockholders' Equity (Detail)
Stockholders' Equity (Detail) - $ / shares | Jul. 31, 2020 | Jan. 31, 2020 | Jul. 22, 2019 |
Equity [Abstract] | |||
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 | 500,000,000 |
Common stock, par value per share (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, shares issued (in shares) | 37,882,837 | 36,610,763 | |
Common stock, shares outstanding (in shares) | 37,882,837 | 36,610,763 | |
Preferred stock, shares authorized (in shares) | 20,000,000 | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | ||
Preferred stock, shares issued (in shares) | 0 | 0 | |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Equity-based compensation - Add
Equity-based compensation - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jul. 31, 2020 | Jul. 31, 2019 | Jul. 31, 2020 | Jul. 31, 2019 | Jun. 30, 2019 | Jan. 31, 2018 | Dec. 31, 2006 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Intrinsic value | $ 32,060 | $ 517 | |||||
Unrecognized compensation cost, stock options | 4,673 | $ 4,673 | |||||
Stock Options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock-based compensation expense | 673 | 653 | $ 1,258 | $ 1,242 | |||
Weighted average remaining expense term | 2 years 3 months 25 days | ||||||
Incremental expense | $ 186 | $ 224 | |||||
Employee Stock Purchase Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares available for grant (in shares) | 855,873 | 855,873 | |||||
Restricted Stock Units (RSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Maximum term | 7 years | ||||||
Vesting term | 4 years | ||||||
Stock-based compensation expense | $ 2,561 | 804 | $ 4,801 | 804 | |||
Weighted average remaining expense term | 3 years 8 months 19 days | ||||||
RSU's granted (in shares) | 59,818 | 575,194 | |||||
Unrecognised compensation costs | $ 33,713 | $ 33,713 | |||||
Restricted Stock Units (RSUs) | Vital Score Inc | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock-based compensation expense | 8 | $ 10 | 17 | $ 21 | |||
Unrecognised compensation costs | $ 74 | $ 74 | |||||
Restricted Stock Units (RSUs) | Share-based Payment Arrangement, Year 1 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Percentage of vest option | 10.00% | ||||||
Restricted Stock Units (RSUs) | Share-based Payment Arrangement, Year 2 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Percentage of vest option | 20.00% | ||||||
Restricted Stock Units (RSUs) | Share-based Payment Arrangement, Year 3 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Percentage of vest option | 30.00% | ||||||
Restricted Stock Units (RSUs) | Share-based Payment Arrangement, Year 4 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Percentage of vest option | 40.00% | ||||||
2006 Stock Option Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares available for issuance (in shares) | 4,424,986 | ||||||
2018 Stock Option Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares available for issuance (in shares) | 3,048,490 | ||||||
2019 Stock Option and Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common stock reserve for future issuance (in shares) | 2,139,683 | ||||||
Percentage increase in number of shares reserved | 5.00% | ||||||
Number of shares available for grant (in shares) | 4,073,051 | 4,073,051 | |||||
2019 Stock Option and Incentive Plan | Stock Options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Maximum term | 10 years | ||||||
Vesting term | 4 years | ||||||
Percentage of vest option | 25.00% |
Equity-based compensation - Sto
Equity-based compensation - Stock Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended |
Jul. 31, 2020 | |
Number of options | |
Number of options outstanding, beginning (in shares) | 5,516,452 |
Granted (in shares) | 0 |
Exercised (in shares) | (1,203,593) |
Forfeited and expired (in shares) | (40,983) |
Number of options outstanding, ending (in shares) | 4,271,876 |
Exercisable (in shares) | 2,919,857 |
Amount vested at the beginning of the period (in shares) | 347,073 |
Weighted- average exercise price | |
Weighted- average exercise price outstanding, beginning balance (in dollars per share) | $ 3.80 |
Granted (in dollars per share) | 0 |
Exercised (in dollars per share) | 2.06 |
Forfeited and expired (in dollars per share) | 7.22 |
Weighted- average exercise price outstanding, ending balance (in dollars per share) | 4.26 |
Exercisable (in dollars per share) | 2.93 |
Amount vested at the end of the period (in dollars per share) | $ 5.87 |
Outstanding and expected to vest- end of the period | 6 years 1 month 20 days |
Exercisable- end of period | 5 years 2 months 4 days |
Aggregate intrinsic value outstanding and expected to vest | $ 110,233 |
Aggregate intrinsic value exercisable | $ 79,205 |
Equity-based compensation - Res
Equity-based compensation - Restricted stock Units (Detail) - Restricted Stock Units (RSUs) - shares | 3 Months Ended | 6 Months Ended |
Jul. 31, 2020 | Jul. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Beginning balance (in shares) | 1,447,418 | |
Granted (in shares) | 59,818 | 575,194 |
Vested (in shares) | (76,803) | |
Forfeited (in shares) | (32,559) | |
Ending balance (in shares) | 1,913,250 | 1,913,250 |
Stock warrants (Details)
Stock warrants (Details) - Common Stock - $ / shares | Jul. 31, 2020 | Jan. 31, 2020 |
Class of Warrant or Right [Line Items] | ||
Warrants outstanding (in shares) | 75,137 | 75,137 |
Exercise price (in dollars per share) | $ 8.02 | $ 8.02 |
Fair value measurements - Summa
Fair value measurements - Summary of Fair Value Hierarchy (Details) - USD ($) $ in Thousands | Jul. 31, 2020 | Jan. 31, 2020 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Money market mutual funds | $ 86,600 | |
Foreign currency derivative contracts | 58 | |
Total assets | 86,658 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Money market mutual funds | 86,600 | |
Foreign currency derivative contracts | 0 | |
Total assets | 86,600 | |
Significant Other Observable Inputs (Level 2) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Money market mutual funds | 0 | |
Foreign currency derivative contracts | 58 | |
Total assets | 58 | |
Significant Unobservable Inputs (Level 3) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Money market mutual funds | 0 | |
Foreign currency derivative contracts | 0 | |
Total assets | $ 0 | |
Fair Value, Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Money market mutual funds | $ 62,494 | |
Total assets | 62,494 | |
Foreign currency derivative contracts | (99) | |
Total liabilities | (99) | |
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Money market mutual funds | 62,494 | |
Total assets | 62,494 | |
Foreign currency derivative contracts | 0 | |
Total liabilities | 0 | |
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Money market mutual funds | 0 | |
Total assets | 0 | |
Foreign currency derivative contracts | (99) | |
Total liabilities | (99) | |
Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Money market mutual funds | 0 | |
Total assets | 0 | |
Foreign currency derivative contracts | 0 | |
Total liabilities | $ 0 |
Fair value measurements - Narra
Fair value measurements - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 31, 2020 | Jul. 31, 2019 | Jul. 31, 2020 | Jul. 31, 2019 | Jan. 31, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Foreign currency derivative contracts | $ 58 | ||||
Gain (loss) on foreign currency derivative instruments not designated as hedging instruments | $ 405 | $ 327 | $ (308) | $ 256 | |
Money market mutual funds | 86,600 | ||||
Significant Other Observable Inputs (Level 2) | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Foreign currency derivative contracts | 58 | ||||
Money market mutual funds | 0 | ||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Foreign currency derivative contracts | 0 | ||||
Money market mutual funds | $ 86,600 | ||||
Money market funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Money market mutual funds | $ 62,494 | $ 62,494 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||||
Jul. 31, 2020 | Jul. 31, 2019 | Jul. 31, 2020 | Jul. 31, 2019 | Feb. 01, 2020 | Jan. 31, 2020 | [1] | |||
Lessee, Lease, Description [Line Items] | |||||||||
Operating lease, weighted average remaining lease term | 2 years 6 months | 2 years 6 months | |||||||
Operating lease, weighted average discount rate | 3.50% | 3.50% | |||||||
Finance lease, weighted average remaining lease term | 2 years 9 months 18 days | 2 years 9 months 18 days | |||||||
Finance lease, weighted average discount rate | 6.10% | 6.10% | |||||||
Lease right-of-use assets | $ 2,406 | [1] | $ 2,406 | [1] | $ 2,741 | $ 0 | |||
Operating cash used for operating leases | 800 | ||||||||
Subscription and Related Services | |||||||||
Lessee, Lease, Description [Line Items] | |||||||||
Lease income | $ 1,585 | $ 1,506 | $ 3,139 | $ 2,966 | |||||
Minimum | Computer equipment | |||||||||
Lessee, Lease, Description [Line Items] | |||||||||
Finance lease, term of contract | 2 years | 2 years | |||||||
Maximum | Computer equipment | |||||||||
Lessee, Lease, Description [Line Items] | |||||||||
Finance lease, term of contract | 3 years | 3 years | |||||||
[1] | Figures as of July 31, 2020 reflect the Company's February 1, 2020 adoption of Accounting Standards Update ("ASU") No. 2016-02, Leases . For additional details, see Note 3(c), "Summary of significant accounting policies — Impact of recently adopted accounting pronouncements." |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Jul. 31, 2020 | Feb. 01, 2020 | Jan. 31, 2020 | |||
Leases [Abstract] | ||||||
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:PropertyPlantAndEquipmentNet | |||||
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:LongTermDebtAndCapitalLeaseObligationsCurrent | |||||
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:LongTermDebtAndCapitalLeaseObligations | |||||
Operating leases: | ||||||
Lease right-of-use assets | $ 2,406 | [1] | $ 2,741 | $ 0 | [1] | |
Lease liabilities | [1] | 1,221 | 0 | |||
Lease liabilities, noncurrent | [1] | 1,394 | 0 | |||
Total operating lease liabilities | 2,615 | $ 2,928 | ||||
Finance leases: | ||||||
Property and equipment, at cost | 15,940 | |||||
Accumulated depreciation | (9,310) | |||||
Property and equipment, net | 6,630 | |||||
Lease liabilities (included in Current portion of debt and finance leases) | 2,573 | |||||
Lease liabilities, noncurrent (included in Long-term debt and finance leases) | 3,396 | |||||
Total finance lease liabilities | $ 5,969 | $ 3,612 | ||||
[1] | Figures as of July 31, 2020 reflect the Company's February 1, 2020 adoption of Accounting Standards Update ("ASU") No. 2016-02, Leases . For additional details, see Note 3(c), "Summary of significant accounting policies — Impact of recently adopted accounting pronouncements." |
Leases - Lease Expense (Details
Leases - Lease Expense (Details) $ in Thousands | 6 Months Ended |
Jul. 31, 2020USD ($) | |
Operating leases: | |
Operating lease cost | $ 822 |
Variable lease cost | 126 |
Total operating lease cost | 948 |
Finance leases: | |
Amortization of right-of-use assets | 1,586 |
Interest on lease liabilities | 151 |
Total finance lease cost | $ 1,737 |
Leases - Lease Liability Maturi
Leases - Lease Liability Maturity Schedule (Details) - USD ($) $ in Thousands | Jul. 31, 2020 | Feb. 01, 2020 | Jan. 31, 2020 |
Operating | |||
Fiscal 2021 (remaining six months) | $ 868 | ||
2022 | 798 | ||
2023 | 683 | ||
2024 | 377 | ||
Total future minimum lease payments | 2,726 | ||
Less: interest | (111) | ||
Present value of lease liabilities | 2,615 | $ 2,928 | |
Finance Leases | |||
Fiscal 2021 (remaining six months) | 1,516 | ||
2022 | 2,293 | ||
2023 | 1,506 | ||
2024 | 1,092 | ||
Total Finance Lease Maturities | 6,407 | ||
Less: interest | (438) | ||
Present value of lease liabilities | $ 5,969 | $ 3,612 |
Leases - Maturity Under Previou
Leases - Maturity Under Previous Guidance (Details) $ in Thousands | Jan. 31, 2020USD ($) |
Leases [Abstract] | |
2021 | $ 1,824 |
2022 | 819 |
2023 | 464 |
2024 | 277 |
Total | $ 3,384 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jul. 31, 2020 | Jul. 31, 2019 | ||
Leases [Abstract] | |||
Operating cash used for operating leases | $ 800 | ||
Operating cash used for finance leases | 151 | ||
Financing cash used for finance leases | 1,301 | $ 1,164 | |
Lease, Payments | 2,252 | ||
Right-of-use assets recorded in exchange for lease liabilities | [1] | 3,183 | $ 0 |
Right-of-use asset obtained in exchange for finance lease liabilities | 3,657 | ||
Right-of-use asset obtained in exchange for lease liabilities | $ 6,840 | ||
[1] | Includes $2,741 initial right of use asset recorded upon adoption of ASC 842. |
Income taxes (Detail)
Income taxes (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2020 | Jul. 31, 2019 | Jul. 31, 2020 | Jul. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Income tax provision | $ 66,000 | $ 51,000 | $ 177,000 | $ 119,000 |
Effective tax rate | (1.40%) | (0.80%) |
Net loss per share attributab_3
Net loss per share attributable to common stockholders - Schedule of earnings per share basic and diluted (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jul. 31, 2020 | Apr. 30, 2020 | Jul. 31, 2019 | Apr. 30, 2019 | Jul. 31, 2020 | Jul. 31, 2019 | |
Numerator: | ||||||
Net loss | $ (6,371) | $ (6,112) | $ (7,493) | $ (6,695) | $ (12,483) | $ (14,188) |
Preferred stock dividend paid | 0 | (14,955) | 0 | (14,955) | ||
Accretion of redeemable convertible preferred stock to redemption value | 0 | (48,312) | 0 | (56,175) | ||
Net loss attributable to common stockholders | $ (6,371) | $ (70,760) | $ (12,483) | $ (85,318) | ||
Denominator: | ||||||
Weighted-average shares of common stock outstanding, basic and diluted (in shares) | 37,735,155 | 6,793,363 | 37,523,966 | 4,443,155 | ||
Net loss per share attributable to common stockholders, basic and diluted (in dollars per share) | $ (0.17) | $ (10.42) | $ (0.33) | $ (19.20) |
Net loss per share attributab_4
Net loss per share attributable to common stockholders - Schedule of antidilutive securities excluded from computation of earnings per share (Detail) - shares | 6 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 6,260,263 | 6,952,444 |
Stock options to purchase common stock and restricted stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 6,185,126 | 6,649,129 |
Warrants to purchase common stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 75,137 | 303,315 |
Related party transactions (Det
Related party transactions (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 31, 2020 | Jul. 31, 2019 | Jul. 31, 2020 | Jul. 31, 2019 | Jan. 31, 2020 | |
Related Party Transaction [Line Items] | |||||
Accounts receivable | $ 2,072 | ||||
Affiliated Entity | |||||
Related Party Transaction [Line Items] | |||||
Recognized revenue | $ 988 | $ 1,372 | $ 2,425 | $ 2,876 | |
Accounts receivable | $ 699 | $ 699 |