Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Jan. 31, 2021 | Mar. 26, 2021 | Jul. 31, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jan. 31, 2021 | ||
Current Fiscal Year End Date | --01-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-38977 | ||
Entity Registrant Name | PHREESIA, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 20-2275479 | ||
Entity Address, Address Line One | 434 Fayetteville St | ||
Entity Address, Address Line Two | Suite 1400 | ||
Entity Address, City or Town | Raleigh | ||
Entity Address, State or Province | NC | ||
Entity Address, Postal Zip Code | 27601 | ||
City Area Code | 888 | ||
Local Phone Number | 654-7473 | ||
Title of 12(b) Security | Common stock, $0.01 par value per share | ||
Trading Symbol | PHR | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,138,758,080 | ||
Entity Common Stock, Shares Outstanding (in shares) | 44,900,069 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the registrant’s Definitive Proxy Statement relating to its 2021 Annual Meeting of Stockholders to be filed hereafter are incorporated by reference into Part III of this Annual Report on Form 10-K where indicated. | ||
Amendment Flag | false | ||
Entity Central Index Key | 0001412408 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 31, 2021 | Jan. 31, 2020 | |
Current: | |||
Cash and cash equivalents | $ 218,781 | $ 90,315 | |
Settlement assets | 15,488 | 12,368 | |
Accounts receivable, net of allowances | 29,052 | 21,978 | |
Deferred contract acquisition costs | 1,693 | 1,720 | |
Prepaid expenses and other current assets | 7,254 | 5,157 | |
Total current assets | 272,268 | 131,538 | |
Property and equipment, net of accumulated depreciation and amortization of $40,148 and $35,551 | 26,660 | 14,487 | |
Capitalized internal-use software, net of accumulated amortization of $25,476 and $19,554 | 10,476 | 8,735 | |
Operating lease right of use assets | [1] | 2,654 | 0 |
Deferred contract acquisition costs | 1,248 | 1,594 | |
Intangible assets, net of accumulated amortization of $525 and $271 | 2,725 | 1,199 | |
Long-term deferred tax assets | 658 | 775 | |
Goodwill | 8,307 | 250 | |
Other assets | 1,670 | 180 | |
Total Assets | 326,666 | 158,758 | |
Current: | |||
Settlement obligations | 15,488 | 12,368 | |
Short-term debt and finance lease liabilities | 4,864 | 2,324 | |
Current portion of operating lease liabilities (1) | [1] | 1,087 | 0 |
Accounts payable | 4,389 | 6,017 | |
Accrued expenses | 18,324 | 9,243 | |
Deferred revenue | 10,838 | 5,401 | |
Total current liabilities | 54,990 | 35,353 | |
Long term debt and finance lease liabilities | 6,471 | 21,540 | |
Operating lease liabilities, noncurrent | [1] | 1,899 | 0 |
Total liabilities | 63,360 | 56,893 | |
Commitments and contingencies (Note 12) | |||
Stockholders’ Equity: | |||
Common stock, $0.01 par value—500,000,000 shares authorized as of January 31, 2021 and January 31, 2020, respectively; 44,880,883 and 36,610,763 shares issued and outstanding at January 31, 2021 and 2020, respectively; | 449 | 366 | |
Additional paid-in capital | 579,599 | 386,383 | |
Accumulated deficit | (311,777) | (284,485) | |
Treasury stock, at cost, 99,520 and 13,078 shares at January 31, 2021 and 2020, respectively | (4,965) | (399) | |
Total Stockholders’ Equity | 263,306 | 101,865 | |
Total Liabilities and Stockholders’ Equity | $ 326,666 | $ 158,758 | |
[1] | Figures as of January 31, 2021 reflect the Company's February 1, 2020 adoption of Accounting Standards Codification No. 842, Leases (ASC 842) . For additional details, see Note 3(ac), "Summary of significant accounting policies — Impact of recently adopted accounting pronouncements." |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jan. 31, 2021 | Jan. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Accumulated depreciation and amortization of property and equipment | $ 40,148 | $ 35,551 |
Accumulated amortization of capitalized internal-use software | 25,476 | 19,554 |
Accumulated amortization of intangible assets | $ 525 | $ 271 |
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 44,880,883 | 36,610,763 |
Common stock, shares outstanding (in shares) | 44,880,883 | 36,610,763 |
Treasury stock (shares) | 99,520 | 13,078 |
Consolidated Statements of oper
Consolidated Statements of operations - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Revenue: | |||
Revenues | $ 148,677 | $ 124,784 | $ 99,889 |
Expenses: | |||
Cost of revenue (excluding depreciation and amortization) | 23,461 | 16,831 | 15,105 |
Payment processing expense | 28,925 | 27,889 | 21,892 |
Sales and marketing | 42,972 | 32,357 | 26,367 |
Research and development | 22,622 | 18,623 | 14,349 |
General and administrative | 40,460 | 30,458 | 20,076 |
Depreciation | 9,770 | 8,753 | 7,552 |
Amortization | 6,138 | 5,171 | 4,042 |
Total expenses | 174,348 | 140,082 | 109,382 |
Operating loss | (25,671) | (15,298) | (9,494) |
Other income (expense), net | 1 | (1,023) | (7) |
Change in fair value of warrant liability | 0 | (3,307) | (2,058) |
Interest (expense) income, net | (1,573) | (2,445) | (3,504) |
Total other expense, net | (1,572) | (6,775) | (5,568) |
Loss before (provision for) benefit from income taxes | (27,243) | (22,073) | (15,062) |
(Provision for) benefit from income taxes | (49) | 1,780 | 0 |
Net loss | (27,292) | (20,293) | (15,062) |
Preferred stock dividends paid | 0 | (14,955) | 0 |
Accretion of redeemable preferred stock | 0 | (56,175) | (30,199) |
Net loss attributable to common stockholders, basic and diluted | $ (27,292) | $ (91,423) | $ (45,261) |
Net loss per share attributable to common stockholders, basic and diluted (in USD per share) | $ (0.69) | $ (4.50) | $ (24.53) |
Weighted-average common shares outstanding, basic and diluted (in shares) | 39,519,640 | 20,301,189 | 1,844,929 |
Subscription and related services | |||
Revenue: | |||
Revenues | $ 69,042 | $ 56,357 | $ 43,928 |
Payment processing fees | |||
Revenue: | |||
Revenues | 49,900 | 46,500 | 36,881 |
Life sciences | |||
Revenue: | |||
Revenues | $ 29,735 | $ 21,927 | $ 19,080 |
Consolidated Statements of Rede
Consolidated Statements of Redeemable Preferred Stock and Stockholders' Equity (Deficit) - USD ($) $ in Thousands | Total | Common stock | Additional paid-in capital | Accumulated deficit | Treasury stock | Senior A | Senior B | Junior | Redeemable |
Beginning balance, redeemable preferred stock (in shares) at Jan. 31, 2018 | 13,674,365 | 9,197,142 | 32,746,041 | 42,560,530 | |||||
Beginning balance, redeemable preferred stock at Jan. 31, 2018 | $ 176,291 | $ 57,022 | $ 43,962 | $ 32,746 | $ 42,561 | ||||
Redeemable preferred stock | |||||||||
Accretion of redeemable preferred stock | 30,199 | $ 22,289 | $ 7,910 | ||||||
Ending balance, redeemable preferred stock (in shares) at Jan. 31, 2019 | 13,674,365 | 9,197,142 | 32,746,041 | 42,560,530 | |||||
Ending balance, redeemable preferred stock at Jan. 31, 2019 | 206,490 | $ 79,311 | $ 51,872 | $ 32,746 | $ 42,561 | ||||
Beginning balance, stockholders' equity (in shares) at Jan. 31, 2018 | 1,638,331 | ||||||||
Beginning balance, stockholders' equity (deficit) at Jan. 31, 2018 | (167,683) | $ 16 | $ 0 | $ (167,700) | $ 0 | ||||
Stockholders’ equity (deficit) | |||||||||
Net loss | (15,062) | (15,062) | |||||||
Stock-based compensation expense | 1,447 | 1,447 | |||||||
Exercise of stock options and vesting of restricted stock units (in shares) | 316,063 | ||||||||
Exercise of stock options and vesting of restricted stock units | 361 | $ 3 | 358 | ||||||
Issuance of common stock in connection with acquisition (in shares) | 40,327 | ||||||||
Issuance of common stock in connection with acquisition | 163 | $ 1 | 162 | ||||||
Issuance of common stock warrants | 0 | ||||||||
Accretion of redeemable preferred stock | (30,199) | (1,967) | (28,232) | ||||||
Ending balance, stockholders' equity (in shares) at Jan. 31, 2019 | 1,994,721 | ||||||||
Ending balance, stockholders' equity (deficit) at Jan. 31, 2019 | (210,974) | $ 20 | 0 | (210,994) | |||||
Redeemable preferred stock | |||||||||
Accretion of redeemable preferred stock | 56,175 | $ 32,706 | $ 23,469 | ||||||
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) | $ (112,018) | $ (75,341) | $ (32,746) | $ (42,561) | ||||
Ending balance, redeemable preferred stock (in shares) at Jan. 31, 2020 | 0 | 0 | 0 | 0 | |||||
Ending balance, redeemable preferred stock at Jan. 31, 2020 | 0 | $ 0 | $ 0 | $ 0 | $ 0 | ||||
Stockholders’ equity (deficit) | |||||||||
Net loss | (20,293) | (20,293) | |||||||
Stock-based compensation expense | $ 6,177 | 6,177 | |||||||
Exercise of stock options and vesting of restricted stock units (in shares) | 691,371 | 734,382 | |||||||
Exercise of stock options and vesting of restricted stock units | $ 1,809 | $ 7 | 1,802 | ||||||
Issuance of common stock warrants | 833 | 833 | |||||||
Accretion of redeemable preferred stock | (56,175) | (2,977) | (53,198) | ||||||
Payment of preferred stock dividends | (14,955) | (14,955) | |||||||
Issuance of common stock, net of issuance costs (in shares) | 7,812,500 | ||||||||
Issuance of common stock, net of issuance costs | 124,370 | $ 78 | 124,292 | ||||||
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 | ||||||
Cashless exercise of common stock warrants (in shares) | 168,862 | ||||||||
Cashless exercise of common stock warrants | 2 | $ 2 | |||||||
Conversion and exercise of preferred stock warrants into common stock (in shares) | 588,763 | ||||||||
Conversion and exercise of preferred stock warrants into common stock | 8,805 | $ 6 | 8,799 | ||||||
Treasury stock from vesting of restricted stock units | (399) | (399) | |||||||
Ending balance, stockholders' equity (in shares) at Jan. 31, 2020 | 36,610,763 | ||||||||
Ending balance, stockholders' equity (deficit) at Jan. 31, 2020 | 101,865 | $ 366 | 386,383 | (284,485) | (399) | ||||
Ending balance, redeemable preferred stock (in shares) at Jan. 31, 2021 | 0 | 0 | 0 | 0 | |||||
Ending balance, redeemable preferred stock at Jan. 31, 2021 | 0 | $ 0 | $ 0 | $ 0 | $ 0 | ||||
Stockholders’ equity (deficit) | |||||||||
Net loss | (27,292) | (27,292) | |||||||
Stock-based compensation expense | $ 13,489 | 13,489 | |||||||
Exercise of stock options and vesting of restricted stock units (in shares) | 2,216,368 | 2,459,782 | |||||||
Exercise of stock options and vesting of restricted stock units | $ 5,300 | $ 25 | 5,275 | ||||||
Issuance of common stock, net of issuance costs (in shares) | 5,750,000 | ||||||||
Issuance of common stock, net of issuance costs | 174,510 | $ 57 | 174,453 | ||||||
Cashless exercise of common stock warrants (in shares) | 60,338 | ||||||||
Cashless exercise of common stock warrants | 0 | $ 1 | (1) | ||||||
Treasury stock from vesting of restricted stock units | (4,566) | (4,566) | |||||||
Ending balance, stockholders' equity (in shares) at Jan. 31, 2021 | 44,880,883 | ||||||||
Ending balance, stockholders' equity (deficit) at Jan. 31, 2021 | $ 263,306 | $ 449 | $ 579,599 | $ (311,777) | $ (4,965) |
Consolidated Statements of Re_2
Consolidated Statements of Redeemable Preferred Stock and Stockholders' Equity (Deficit) (Parenthetical) - USD ($) $ in Thousands | Oct. 23, 2020 | Jan. 31, 2020 |
Statement of Stockholders' Equity [Abstract] | ||
Issuance costs | $ 290 | $ 6,412 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | ||
Cash flows from operating activities: | ||||
Net loss | $ (27,292) | $ (20,293) | $ (15,062) | |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||
Depreciation and amortization | 15,908 | 13,924 | 11,594 | |
Stock compensation expense | 13,489 | 6,177 | 1,447 | |
Change in fair value of warrants liability | 0 | 3,307 | 2,058 | |
Amortization of debt discount | 389 | 445 | 798 | |
Loss on extinguishment of debt | 0 | 1,073 | 0 | |
Cost of Phreesia hardware purchased by customers | 762 | 741 | 585 | |
Deferred contract acquisition cost amortization | 2,025 | 1,977 | 1,640 | |
Non-cash operating lease expense | 1,766 | 0 | 0 | |
Deferred tax asset | (65) | (775) | 0 | |
Changes in operating assets and liabilities, net of acquisitions: | ||||
Accounts receivable | (6,619) | (5,905) | (3,765) | |
Prepaid expenses and other assets | (1,600) | (312) | (576) | |
Deferred contract acquisition costs | (1,652) | (2,097) | (2,500) | |
Accounts payable | (3,821) | (30) | 2,367 | |
Accrued expenses and other liabilities | 6,004 | 3,681 | (2,317) | |
Lease liability | (1,786) | 0 | 0 | |
Deferred revenue | 5,382 | (1,087) | 1,601 | |
Net cash provided by (used in) operating activities | 2,890 | 826 | (2,130) | |
Cash flows used in investing activities: | ||||
Acquisitions, net of cash acquired | (6,510) | 0 | (1,190) | |
Capitalized internal-use software | (7,334) | (5,305) | (5,109) | |
Purchases of property and equipment | (11,241) | (7,015) | (4,724) | |
Net cash used in investing activities | (25,085) | (12,320) | (11,023) | |
Cash flows from financing activities: | ||||
Net proceeds after discounts and offering expenses | 174,800 | 130,781 | 0 | |
Payment of preferred stock dividends | 0 | (14,955) | 0 | |
Proceeds from issuance of common stock upon exercise of stock options | 4,385 | 1,809 | 361 | |
Tax withholdings on stock compensation awards | (4,965) | 0 | 0 | |
Payment of offering costs | (290) | (6,217) | (195) | |
Proceeds from revolving line of credit | 0 | 9,876 | 14,800 | |
Payments of revolving line of credit | (20,663) | (17,676) | (7,000) | |
Proceeds from term loan | 0 | 20,000 | 0 | |
Repayment of term loan and loan payable | 0 | (21,042) | (1,167) | |
Insurance financing arrangement | (2,009) | 0 | 0 | |
Principal portion of finance lease payments | (2,630) | (1,898) | (2,470) | |
Principal payments on financing arrangements | (1,691) | 0 | 0 | |
Debt extinguishment costs | 0 | (300) | 0 | |
Debt issuance costs | (69) | (112) | (136) | |
Loan facility fee payment | (225) | 0 | ||
Net cash provided by financing activities | 150,661 | 100,266 | 4,193 | |
Net increase (decrease) in cash and cash equivalents | 128,466 | 88,772 | (8,960) | |
Cash and cash equivalents—beginning of year | 90,315 | 1,543 | 10,503 | |
Cash and cash equivalents—end of year | 218,781 | 90,315 | 1,543 | |
Supplemental information: | ||||
Right-of-use assets recorded in exchange for operating lease liabilities | [1] | 4,359 | 0 | 0 |
Property and equipment acquisitions through finance leases | 8,885 | 2,047 | 4,425 | |
Capitalized software acquired through financings | 174 | 0 | 0 | |
Purchase of property and equipment and capitalized software included in accounts payable | 3,359 | 1,253 | 0 | |
Cashless transfer of term loan and related accrued fees into increase in debt balance | 20,257 | 0 | 0 | |
Cashless transfer of lender fees through increase in debt balance | 406 | 0 | 0 | |
Deferred issuance costs included in accounts payable and accrued expenses | 0 | 0 | 344 | |
Issuance of warrants related to debt | 0 | 833 | 0 | |
Receivables for cash in-transit on stock option exercises | 915 | 0 | 0 | |
Cashless exercise of common stock warrants | 3,060 | 3,530 | 0 | |
Shares issued in connection with acquisition | 0 | 0 | 162 | |
Cash paid for: | ||||
Interest | 1,465 | 2,310 | 2,799 | |
Income taxes | $ 64 | $ 0 | $ 0 | |
[1] | Includes $2,741 initial right of use asset recorded upon adoption of ASC 842. |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | Jan. 31, 2021 | Feb. 01, 2020 | Jan. 31, 2020 | ||
Statement of Cash Flows [Abstract] | |||||
Lease right-of-use assets | $ 2,654 | [1] | $ 2,741 | $ 0 | [1] |
[1] | Figures as of January 31, 2021 reflect the Company's February 1, 2020 adoption of Accounting Standards Codification No. 842, Leases (ASC 842) . For additional details, see Note 3(ac), "Summary of significant accounting policies — Impact of recently adopted accounting pronouncements." |
Background and liquidity
Background and liquidity | 12 Months Ended |
Jan. 31, 2021 | |
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 software 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 and safety. Through the SaaS-based Phreesia Platform (the Phreesia Platform or 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 (Arrivals Kiosks) along with their monthly subscription. The Company was formed in May 2005, and has offices in Raleigh, North Carolina and Ottawa, Canada. The Company did not renew its New York lease at the end of the lease term in January 2021. On December 9, 2020, the Company changed its headquarters from New York, New York to Raleigh, North Carolina. (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 2,868,923 shares of common stock as part of the IPO. (c) Follow-on offerings 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. On October 23, 2020, the Company closed an additional public offering in which the Company issued and sold 5,750,000 shares of its common stock at a public offering price of $32.00 per share, resulting in net proceeds of $174,510 after deducting underwriting discounts and offering expenses. (d) 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 common stock, debt and preferred stock 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 January 31, 2021, along with cash generated in the normal course of business, and available borrowing capacity under its Second Amended and |
Basis of presentation
Basis of presentation | 12 Months Ended |
Jan. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of presentation | Basis of presentation (a) Consolidated Financial Statements The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP) and regulations of the Securities and Exchange Commission (SEC) regarding annual financial reporting and include the accounts of Phreesia, Inc; its branch operation in Canada and its subsidiary QueueDr Inc. (collectively, the Company). (b) Fiscal year The Company’s fiscal year ends on January 31. References to fiscal 2021, 2020 and 2019, refer to the fiscal years ended January 31, 2021, 2020 and 2019, respectively. (c) Reclassifications Certain reclassifications have been made to the prior period presentation to conform to the current period presentation. On the Company's balance sheet as of January 31, 2020, the Company has reclassified $2.3 million from the current portion of finance lease liabilities to the 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. |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Jan. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of significant accounting policies | Summary of significant accounting policies(a) Use of estimates The preparation of the consolidated financial statements in conformity with U.S. 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 consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The most significant assumptions and estimates relate to the allowance for doubtful accounts, 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 identifiable assets and liabilities in a business acquisition, and the realization of deferred tax assets. (b) Revenue recognition The Company evaluates its contractual arrangements to determine the performance obligations and transaction prices. Revenue is allocated to each performance obligation and recognized when the related performance obligations are satisfied. See Note 5 for additional information about the adoption of ASC 606, Revenue from Contracts with Customers , as well as for additional details about the Company's products and service lines. (c) Concentrations of credit risk Financial instruments that 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 two 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 years ended January 31, 2021 and January 31, 2020. As of January 31, 2021, the Company had receivables from an entity that accounted for 10% of total accounts receivable. (d) Risks and uncertainties Risks Related to the COVID-19 Pandemic In March 2020, the World Health Organization declared the ongoing outbreak of a novel strain of coronavirus (COVID-19) a pandemic and the United States declared a national emergency with respect to COVID-19. There continues to be uncertainty as to the extent to which the global COVID-19 pandemic may adversely impact our business operations, financial performance, and results of operations at this time. Other Risks and Uncertainties The Company is subject to a variety of risk factors, including the economy, data privacy and security laws, government regulations, and other risks associated with the markets in which we operate including reliance on third party vendors, partners, and service providers. As with any business, operation of the Company involves risk, including the risk of service interruption impacting the operations of our business and our customer’s facilities below expected levels of operation, shut downs due to the breakdown or failure of information technology and communications systems, changes in laws or regulations, or catastrophic events such as fires, earthquakes, floods, explosions, global health concerns such as pandemics or other similar occurrences affecting the delivery of our productions and services. The occurrence of any of these events could significantly reduce or eliminate revenues generated, or significantly increase the expenses of our operations, adversely impacting the Company’s operating results and our ability to meet our obligations and commitments. See Note 6 - Debt and Finance Lease Liabilities, for a summary of our contractual commitments as of January 31, 2021. (e) Cost of revenue (excluding depreciation and amortization) Cost of revenue (excluding depreciation and amortization) primarily consists of personnel expenses for implementation and technical support, costs to verify insurance eligibility and benefits, infrastructure costs for operation of our SaaS-based Platform such as hosting fees and certain fees paid to various third party partners for the use of their technology. Personnel expenses consist of salaries, benefits, bonuses and stock-based compensation. (f) Payment processing expense Payment processing expense consists primarily of interchange fees set by payment card networks and that are ultimately paid to the card-issuing financial institution, assessment fees paid to payment card networks that are ultimately paid to third-party payment processors and gateways. (g) Sales and marketing Sales and marketing expense consists primarily of personnel costs, including salaries, benefits, bonuses, stock-based compensation and commission costs for our sales and marketing personnel. Sales and marketing expense also include costs for advertising, promotional and other marketing activities, as well as certain fees paid to various third-party partners for sales lead generation. Advertising is expensed as incurred. Advertising expense was $558, $251 and $134 for the fiscal years ended 2021, 2020 and 2019, respectively. (h) Research and development Research and development expense consists of costs for the design, development, testing and enhancement of the Company’s products and services and are generally expensed as incurred. These costs consist primarily of personnel costs, including salaries, benefits, bonuses, and stock-based compensation for our development personnel. Research and development expense also includes product management, life sciences analytics costs, third-party partner fees and third-party consulting fees, offset by any internal-use software development cost capitalized during the same period. (i) General and administrative General and administrative expense consists primarily of personnel costs, including salaries, benefits, bonuses, and stock-based compensation for our executive, finance, legal, human resources, information technology, and other administrative personnel. General and administrative expense also includes consulting, legal, security, accounting services and allocated overhead. (j) Depreciation Depreciation represents depreciation expense for PhreesiaPads and Arrivals Kiosks (collectively, Phreesia hardware), data center and other computer hardware, purchased computer software, furniture and fixtures and leasehold improvements. (k) Amortization Amortization primarily represents amortization of our capitalized internal-use software related to the Phreesia Platform as well as amortization of acquired intangible assets. (l) Cash and cash equivalents The Company considers all highly liquid investments with an original maturity of three months or less at the time of purchase to be cash equivalents. The Company's money market account meets the definition of cash equivalents. (m) Settlement assets Settlement assets represent amounts due from the Company’s payment processor for customer electronic processing transactions. Settlement assets are typically settled within one two (n) Settlement obligations Settlement obligations represent amounts due to customers for electronic processing transactions that have not been funded by the Company due to timing of settlement from the Company’s payment processor. (o) Accounts receivable Accounts receivable represent trade receivables, net of allowances for doubtful accounts. The Company estimates the allowance for doubtful accounts as its current estimate of expected credit loss over the life of the instrument. The Company determines the allowance based on historical trends of accounts receivable balances that have been written off and specific account analysis of at-risk customers, as well as expected future changes in credit losses. The Company determines its allowance for doubtful accounts by considering a number of factors, including the length of time accounts are past due, a customer’s current ability to pay its obligations to the Company, the condition of the industry as a whole, as well as expected future changes in credit losses. Accounts receivable are written off at the point that internal collections efforts have been exhausted. As of January 31, 2021 and 2020, the Company has reserved $699 and $943, respectively, for the allowance for doubtful accounts. Account receivable also includes unbilled accounts receivable (see Contract Balances in Note 5). (p) Property and equipment Property and equipment, including PhreesiaPads and Arrivals Kiosks, are stated at cost less accumulated depreciation. Depreciation of property and equipment is computed using the straight-line method over the estimated useful lives of the related assets. The estimated useful lives of the Company’s property and equipment have been estimated to be between three Upon sale or disposition of property and equipment, the cost and related accumulated depreciation are removed from their respective accounts and any gain or loss is reflected in the statements of operations. (q) Capitalized internal-use software The Company capitalizes certain costs incurred for the development of computer software for internal use pursuant to ASC Topic 350-40, Intangibles—Goodwill and Other—Internal use software . These costs relate to the development of its Phreesia Platform. The Company capitalizes the costs during the development of the project, when it is determined that it is probable that the project will be completed, and the software will be used as intended. Costs related to preliminary project activities, post-implementation activities, training and maintenance are expensed as incurred. Internal-use software is amortized on a straight-line basis over its estimated useful life, which is generally three years. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. The Company exercises judgment in determining the point at which various projects may be capitalized, in assessing the ongoing value of the capitalized costs and in determining the estimated useful lives over which the costs are amortized. To the extent that the Company changes the manner in which it develops and tests new features and functionalities related to its solutions, assesses the ongoing value of capitalized assets or determines the estimated useful lives over which the costs are amortized, the amount of internal-use software development costs the Company capitalizes and amortizes could change in future periods. Refer to Note 4(c) for further detail on internal-use software costs capitalized during the period. (r) Business combinations The Company uses its best estimates and assumptions to accurately assign fair value to the tangible and intangible assets acquired and liabilities assumed at the acquisition date. The Company’s estimates are inherently uncertain and subject to refinement. During the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed, with the corresponding offset to goodwill. The Company continues to collect information and reevaluate these estimates and assumptions quarterly and records any adjustments to its preliminary estimates to goodwill provided that the Company is within the measurement period. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the statement of operations. The consideration transferred for business combinations includes the acquisition-date fair value of contingent consideration. Changes in the fair value of contingent consideration liabilities are included in general and administrative expense in the accompanying consolidated statements of operations. (s) Goodwill and intangible assets Goodwill represents the excess of the consideration transferred over the fair value of the underlying net tangible and intangible assets acquired and liabilities assumed in connection with business combinations accounted for using the acquisition method of accounting. Goodwill is not amortized, but instead goodwill is required to be tested for impairment annually and under certain circumstances. We perform such testing of goodwill in the fourth quarter of each fiscal year, or as events occur or circumstances change that would more likely than not reduce the fair value below its carrying amount. The testing of goodwill is performed at the reporting unit level. The Company’s reporting unit is the same as its operating segment. The test begins with a qualitative assessment to determine whether it is “more likely than not” that the fair value of the reporting unit is less than its carrying amount. If it is concluded that it is “more likely than not” that the fair value of a reporting unit is less than its carrying amount, the Company performs a quantitative goodwill impairment test by calculating the fair value of the reporting unit and comparing that fair value to the carrying value of the reporting unit. If the estimated fair value of the reporting unit is less than its carrying amount, the Company records a goodwill impairment to reduce the carrying amount of goodwill by the amount by which the fair value of the reporting unit is less than its carrying amount. All other intangible assets associated with purchased intangibles, consisting of customer relationships and acquired technology, are stated at cost less accumulated amortization and are amortized on a straight-line basis over their estimated remaining economic lives. (t) Long-lived assets Long-lived assets, such as property and equipment and intangible assets, including capitalized internal-use software, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for possible impairment, the Company first compares the undiscounted cash flows expected to be generated by that asset or asset group to its carrying value. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. There were no impairment charges recognized during any of the periods presented. (u) Income taxes An asset and liability approach is used for financial accounting and reporting of current and deferred income taxes. Deferred income tax assets and liabilities are computed for temporary differences between the financial statement and tax basis of assets and liabilities that will result in taxable or deductible amounts in the future. Such deferred income tax asset and liability computations are based on enacted tax laws and rates applicable to periods in which the differences are expected to affect taxable income or loss. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized. The Company follows the guidance in ASC 740, Accounting for Uncertainty in Income Taxes . ASC 740 clarifies the accounting for uncertainty in income taxes recognized in a Company’s financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC 740 also provides guidance on de-recognition, classification, interest and penalties, accounting in the interim periods, disclosure, and transition. The Company reviews and evaluates tax positions in its major jurisdictions and determines whether or not there are uncertain tax positions that require financial statement recognition and the recording of a tax liability. The Company would recognize tax related interest and penalties, if applicable, as a component of its provision (benefit) from income taxes. (v) Segment information Operating segments are defined as components of an enterprise about which separate financial information is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and assessing performance. The Company defines the term “chief operating decision maker” to be its Chief Executive Officer. The Company’s Chief Executive Officer reviews the financial information presented on an entire company basis for purposes of allocating resources and evaluating our financial performance. Accordingly, we have determined that we operate in a single reportable operating segment. Since we operate in one operating segment, all required financial segment information can be found in the consolidated financial statements. (w) Stock-based compensation The Company has stock-based compensation plans under which various types of equity-based awards are granted, including stock options, restricted stock units (RSUs), performance-based RSUs, and market-based performance stock units (PSUs). The compensation for the stock-based awards is recognized in accordance with ASC 718, Compensation — Stock Compensation , which requires that compensation cost be recognized for awards based on the grant-date fair value of the award. That cost is recognized on a straight-line basis over the requisite service period, which is generally the vesting period of the award. For performance-based RSUs, the number of shares expected to vest is estimated at each reporting date based on management's expectations regarding the relevant performance criteria. The fair value of stock options is estimated at the time of grant using the Black-Scholes option pricing model, which requires the use of inputs and assumptions such as the exercise price of the option, expected term, risk-free interest rate, expected volatility and dividend yield, and the value of the Company's common stock (which is estimated for awards granted prior to our IPO). The Company does not estimate forfeitures in recognizing stock-based compensation expense. The fair value of the RSUs is equal to the fair value of the Company's common stock on the grant date of the award. The fair value of market-based PSUs is estimated at the time of grant using a Monte-Carlo simulation which compares Phreesia's projected total shareholder return (TSR) to the projected TSR of the Russell 3000 Index and estimates the value of shares to be issued based on the vesting conditions of the PSUs. The Monte Carlo simulation requires the use of inputs and assumptions such as the valuation-date stock price, simulation, expected volatility, correlation coefficient to the Russell 3000 Index, risk-free interest rate and dividend yield. See Note 8 - Equity Based Compensation, for additional information on stock-based compensation. (x) Fair value of financial instruments Certain 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. (y) Equity offering costs The Company capitalizes certain legal, accounting and other third-party fees that are directly associated with in-process equity financings as deferred offering costs until such financings are consummated. After consummation of the equity financing, these costs will be recorded in stockholders’ deficit as a reduction of additional paid-in capital generated as a result of the offering. Should the equity financing no longer be considered probable of being consummated, all deferred offering costs would be charged to operating expenses in the statement of operations. During October 2020, the Company completed a follow-on offering of its Common Stock. In connection with the follow-on offering, the Company issued and sold 5,750,000 shares of common stock at an issuance price of $32.00 per share resulting in net proceeds of $174,800, after deducting underwriting discounts and commissions. (z) Foreign currency The Company has a branch office in Canada that provides operational support. The functional currency of the Company’s foreign branch is the U.S. dollar. Accordingly, assets and liabilities of the Company’s foreign branch are re-measured into U.S. dollars at the exchange rates in effect at the reporting date with differences recorded as transaction gains and losses within other income (expense). (aa) New accounting pronouncements Impact of recently adopted accounting pronouncements On May 1, 2020, the Company adopted the Financial Accounting Standards Board's (FASB) Accounting Standard Update (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 ASU No. 2016-02, Leases (Topic 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 its 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 accumulated deficit was recorded because the adoption did not change the Company's net assets. 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 accumulated deficit was recorded as a result of the adoption of this standard, which did not have a material impact on the Company's consolidated financial statements. 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 the consolidated 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 consolidated 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 consolidated financial statements. |
Composition of certain financia
Composition of certain financial statement captions | 12 Months Ended |
Jan. 31, 2021 | |
Composition of Certain Financial Statement Captions [Abstract] | |
Composition of certain financial statement captions | Composition of certain financial statement captions (a) Accrued expenses Accrued expenses at January 31, 2021 and 2020 are as follows: January 31, 2021 2020 Payroll-related expenses and taxes $ 8,946 $ 5,033 Payment processing fees liability 2,853 2,738 Other 6,525 1,472 Total $ 18,324 $ 9,243 (b) Property and equipment Property and equipment at January 31, 2021 and 2020 are as follows: Useful life January 31, 2021 2020 PhreesiaPads and Arrivals Kiosks 3 $ 25,837 $ 26,389 Computer equipment 3 33,558 18,394 Computer software 3 5,105 2,297 Hardware development 3 1,024 1,024 Furniture and fixtures 7 539 743 Leasehold improvements 2 745 1,191 Total property and equipment $ 66,808 $ 50,038 Less accumulated depreciation (40,148) (35,551) Property and equipment — net $ 26,660 $ 14,487 Depreciation expense related to property and equipment amounted to $9,770, $8,753 and $7,552 for the fiscal years ended January 31, 2021, 2020 and 2019, respectively. Assets acquired under finance leases included in computer equipment were $19,933 and $12,283 at January 31, 2021 and 2020, respectively. Accumulated amortization of assets under finance lease was $10,389 and $7,724 at January 31, 2021 and 2020, respectively. (c) Capitalized internal-use software For the fiscal years ended January 31, 2021, 2020 and 2019, the Company capitalized $7,663, $5,852 and $5,109 of costs related to the Phreesia Platform, respectively. During the fiscal years ended January 31, 2021, 2020 and 2019 amortization expense of capitalized internal-use software was $5,884, $4,933 and $4,009, respectively. As of January 31, 2021 and 2020, the net book value of the Phreesia Platform was $10,476 and $8,735, respectively. (d) Intangible assets and goodwill The following presents the details of intangible assets as of January 31, 2021 and January 31, 2020. Useful Life January 31, (years) 2021 2020 Acquired technology 5 $ 1,410 $ 490 Customer relationship 10 1,840 980 Total intangible assets, gross carrying value $ 3,250 $ 1,470 Less accumulated amortization (525) (271) Net carrying value $ 2,725 $ 1,199 Amortization expense associated with intangible assets for the fiscal years ended January 31, 2021, 2020 and 2019 was $254, $238 and $33, respectively. The estimated amortization expense for intangible assets for the next five years and thereafter is as follows as of January 31, 2021: January 31, 2021 2022 $ 508 2023 508 2024 494 2025 410 2026-Thereafter 805 Total $ 2,725 The following table presents a roll-forward of goodwill for the years ended January 31, 2020 and 2021: Balance at January 31, 2019 $ 250 Balance at January 31, 2020 250 Goodwill acquired during the year ended January 31, 2021 8,057 Balance at January 31, 2021 $ 8,307 The Company did not record any impairments of goodwill during the years ended January 31, 2021, 2020 or 2019. (f) Accounts receivable Accounts Receivable as of January 31, 2021 and 2020 are as follows: January 31, 2021 2020 Billed $ 28,464 $ 22,245 Unbilled 1,287 676 Total accounts receivable, gross 29,751 22,921 Less accounts receivable allowances (699) (943) Total accounts receivable $ 29,052 $ 21,978 Activity in our allowance for doubtful accounts was as follows for the year ended January 31, 2021: January 31, 2021 Balance, January 31, 2020 $ 943 Bad debt expense 454 Write-offs and adjustments (698) Balance, January 31, 2021 $ 699 The Company’s allowance for doubtful accounts represents the current estimate of expected future losses based on prior bad debt experience as well as considerations for specific customers as applicable. The Company's accounts receivable are considered past due when they are outstanding past the due date listed on the invoice to the customer.The Company writes off accounts receivable and removes the associated allowance for doubtful accounts when the Company deems the receivables to be uncollectible. (g) Prepaid and other current assets Prepaid and other current assets as of January 31, 2021 and 2020 are as follows: January 31, 2021 2020 Prepaid software and business systems $ 2,322 $ 1,611 Prepaid PhreesiaPads 18 645 Prepaid data center expenses 1,211 751 Prepaid insurance 1,311 1,259 Other prepaid expenses and other current assets 2,392 891 Total prepaid and other current assets $ 7,254 $ 5,157 The Company enters into cloud computing service contracts to support its sales and marketing, product development and administrative activities. Subsequent to the adoption of ASU 2018-15 in May 2020, the Company capitalizes certain implementation costs for cloud computing arrangements that meet the definition of a service contract. The Company includes these capitalized implementation costs within Prepaid expenses and other current assets in the table above. Once placed in service, the Company amortizes 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 $893 for the year ended January 31, 2021. Accumulated amortization of capitalized implementation costs for these arrangements was $23 as of January 31, 2021. (h) Other income (expense), net Other income, net for the year ended January 31, 2021 was $1 and was composed primarily of miscellaneous other income of $61, almost entirely offset by foreign exchange losses of $60. Other expense, net for the year ended January 31, 2020 was $1,023 and was composed primarily of loss on extinguishment of debt of $1,073, partially offset by foreign exchange gains of $49. Other expense, net for the year ended January 31, 2019 was primarily foreign exchange losses. |
Revenue and Contract Costs
Revenue and Contract Costs | 12 Months Ended |
Jan. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue and Contract Costs | Revenue and Contract Costs 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, and 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 Company accounts for revenue from contracts with customers by applying the requirements of ASC 606. Accordingly, the Company determines revenue recognition through the following steps: • identification of the contract, or contracts, with a customer; • identification of the performance obligations in the contract; • determination of the transaction price; • allocation of the transaction price to the performance obligations in the contract; and • recognition of revenue when, or as, the Company satisfies a performance obligation. Revenues are recognized when control of these services is transferred to the Company’s customers, in an amount that reflects the consideration it expects to be entitled to in exchange for those services. The majority of the Company’s contracts with customers contain multiple performance obligations. For these contracts, the Company accounts for individual performance obligations separately when they are distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. The Company determines the standalone selling prices based on our overall pricing objectives, taking into consideration market conditions and other factors, including other groupings such as customer type. (a) Subscription and related services In most cases, the Company generates subscription fees from clients based on the number of healthcare provider organizations that utilize the Phreesia Platform and subscription fees for the Company’s self-service intake tablets (PhreesiaPads), on-site kiosks (Arrivals Kiosks) and any other applications. The Company’s provider clients are typically billed monthly in arrears, though in some instances provider clients may opt to be billed quarterly or annually in advance. Subscription fees are typically auto-debited from client’s accounts every month. Revenue for provider subscriptions is recognized over the term of the respective provider contract. The Company’s subscription arrangements are considered service contracts, and the customer does not have the right to take possession of the software. Revenue for related services is recognized as it is delivered if the services are distinct from the subscription service and is recognized over the remaining non-cancelable subscription term if it is not distinct from the subscription service. In certain arrangements, the Company leases its PhreesiaPads and Arrivals Kiosks through operating leases to its customers. Accordingly, these revenue transactions are accounted for using ASC 842, Leases . The amount of subscription and related services revenues recorded pursuant to ASC 842 for the leasing of the Company’s PhreesiaPads and Arrivals Kiosks was $6,312, $5,985 and $4,749 for the years ended January 31, 2021, 2020 and 2019, respectively. In addition, subscription and related services includes certain fees from clients for professional services associated with implementation services as well as travel and expense reimbursements, shipping and handling fees, sales of hardware (PhreesiaPads and Arrivals Kiosks), on-site support and training. Certain professional services for implementation are not distinct from Phreesia’s Platform and are therefore recognized over the term of the contract. Revenue from sales of Phreesia hardware and training are recognized in the period they are delivered to clients. (b) Payment processing fees The Company generates revenue from payment processing fees based on the levels of patient payment volume resulting from credit and debit card transactions (dollar value and number of card transactions) processed through Phreesia’s payment facilitator model. Payment processing fees are generally calculated as a percentage of the total transaction dollar value processed and/or a fee per transaction. The remainder of patient payment volume is composed of credit and debit card transactions for which Phreesia acts as a gateway to payment processors, and cash and check transactions. The Company recognizes the payment processing fees when the transaction occurs (i.e., when the processing services are completed). The transaction amount is collected from the cardholder’s bank via the Company’s third party payment processing partner and the card networks. The transaction amount is then remitted to its customers approximately two business days after the transaction occurs. At the end of each month, the Company bills its customers for any payment processing fees owed per its customer contractual agreements. Similarly, at the end of each month, the Company remits payments to third-party payment processors and financial institutions for interchange and assessment fees, processing fees, and bank settlement fees. The Company acts as the merchant of record for its customers and works with payment card networks and banks so that its customers do not need to manage the complex systems, rules, and requirements of the payment industry. The Company satisfies its performance obligations and therefore recognizes the transaction fees as revenue upon completion of a transaction. Revenue is recognized net of refunds, which arise from reversals of transactions initiated by the Company’s customers. The payment processing fees collected from customers are recognized as revenue on a gross basis as the Company is the principal in the delivery of the managed payment solutions to the customer. The Company has concluded it is the principal because as the merchant of record, it controls the services before delivery to the customer, it is primarily responsible for the delivery of the services to its customers, it has latitude in establishing pricing with respect to the customer and other terms of service, it has sole discretion in selecting the third party to perform the settlement, and it assumes the credit risk for the transaction processed. The Company also has the unilateral ability to accept or reject a transaction based on criteria established by the Company. As the merchant of record, the Company is liable for settlement of the transactions processed and, accordingly, such costs are included in payment processing fees expense on the accompanying statements of operations. (c) Life sciences The Company generates revenue from sales of digital marketing solutions to life sciences companies which is based largely on the delivery of messages at a contracted price per message to targeted patients. Messaging campaigns are sold for a specified number of messages delivered to qualified patients over an expected time frame. Revenue is recognized as the messages are delivered. (d) Disaggregation of revenue Revenue from the Company’s contracts with its customers are disaggregated by revenue source on the accompanying statements of operations. The Company’s core service offerings are subscription and related services, payment processing fees and digital marketing solutions sold to life sciences companies. In addition, all of the Company’s revenue is derived from customers in the United States. (e) Remaining performance obligations The Company does not disclose the value of unsatisfied performance obligations as the majority of its contracts relate to either contracts with an original term of one year or less or contracts with variable consideration (i.e., the Company’s payment processing fees revenue). (f) Contract balances Deferred revenue is a contract liability primarily related to billings in advance of revenue recognition from the Company's subscription and life sciences services and, to a lesser extent, professional services and other revenues described above. Deferred revenue is recognized as the Company satisfies its performance obligations. The Company generally invoices its customers in monthly or quarterly installments for subscription services. Accordingly, the deferred revenue balance does not generally represent the total contract value of a subscription arrangement. Deferred revenue that will be recognized during the succeeding 12-month period is recorded as current deferred revenue on the accompanying balance sheet. Unbilled accounts receivable is a contract asset related to the delivery of the Company’s subscription and related services and for its life sciences revenue for which the related billings will occur in a future period. The following table represents a roll-forward of contract assets: January 31, 2021 2020 Beginning Balance $ 676 $ 636 Amount transferred to receivables from beginning balance of contract assets (676) (631) Contract asset additions, net of reclassification to receivables 1,287 671 Ending Balance $ 1,287 $ 676 The following table represents a roll-forward of deferred revenue: January 31, 2021 2020 Beginning Balance $ 5,401 $ 6,488 Revenue recognized that was included in deferred revenue at the beginning of the period (5,097) (5,252) Revenue recognized that was not included in deferred revenue at the beginning of the period (1,512) (7,485) Increases in deferred revenue due to acquisition 55 — Increases due to invoicing prior to satisfaction of performance obligations 11,991 11,650 Ending Balance $ 10,838 $ 5,401 (g) 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 $2,025 and $1,977 for the years ended January 31, 2021 and 2020, 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: January 31, 2021 2020 Beginning balance $ 3,314 $ 3,194 Additions to deferred contract acquisition costs 1,652 2,097 Amortization of deferred contract acquisition costs (2,025) (1,977) Ending balance 2,941 3,314 Deferred contract acquisition costs, current (to be amortized in next 12 months) 1,693 1,720 Deferred contract acquisition costs, non-current 1,248 1,594 Total deferred contract acquisition costs $ 2,941 $ 3,314 |
Debt and Finance Lease Liabilit
Debt and Finance Lease Liabilities | 12 Months Ended |
Jan. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt and Finance Lease Liabilities | Debt and Finance Lease Liabilities As of January 31, 2021 and 2020, the Company had the following outstanding debt and finance balances: January 31, 2021 2020 Term loan and revolving credit facility (1) $ — $ 20,000 Finance leases 9,702 3,612 Other debt 1,533 808 Accrued interest and payments 100 381 Total debt and finance lease liabilities, before original issue discount 11,335 24,801 Less deferred financing costs and original issue discount — (937) Debt and finance lease liabilities $ 11,335 $ 23,864 Less - current portion of debt and finance lease liabilities (4,864) (2,324) Long term debt and finance lease liabilities $ 6,471 $ 21,540 (1) Revolving credit facility as of January 31, 2021. Term loan as of January 31, 2020. (a) 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. Borrowings under the Second SVB Facility are payable five years from the Effective Date, which is May 5, 2025 (the "Maturity Date"). Borrowings under the Second SVB 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 year ended January 31, 2021, 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 Second SVB Facility was paid off in late December 2020. The Company has $50,000 of availability as of January 31, 2021. 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 Second SVB Effective Date. The Company will not be required to pay a termination fee if terminated after the fourth anniversary of the Second SVB Effective Date. (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 year ended January 31, 2021, 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. As of January 31, 2021, there is no debt outstanding related to the Second SVB Facility. As a result, the Company presented all unamortized deferred costs within other assets as of January 31, 2021. The Company is amortizing the remaining unamortized costs over the remaining term of the Second SVB Facility. (b) 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"). Interest on the term loan was payable monthly, at a floating rate equal to the bank’s prime rate plus 1.50%, subject to reduction based on achievement of defined EBITDA levels. 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. See Note 9 for additional information on stock warrants. During the year ended January 31, 2020, the Company recorded a $1,073 loss on extinguishment of debt within other income (expense), net for the settlement of the previously outstanding loans payable. (c) Finance Leases See Note 11 - Leases for more information regarding finance leases. (d) Other Debt (Financing Agreements) On July 21, 2020, the Company entered into an insurance premium financing agreement in order to finance its premium payments for directors' and officers' insurance. As of January 31, 2021, the outstanding principal amount under the agreement was $673. The agreement bears interest of 2.6% per annum. Principal and interest are due and were paid in March 2021. 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 January 31, 2021, the outstanding principal balance of the financing agreement is $133. Interest accrues at an annual rate of 2.94%. The Company is required to make equal annual payments of $46 in May 2021, May 2022 and May 2023, which includes principal and interest. 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 January 31, 2021, the outstanding principal balance of the financing agreement is $504. Interest accrues at an annual rate of 9.83%. The Company is required to pay three equal payments of $183 in May 2021, November 2021 and June 2022, which includes principal and interest. Maturities of debt, including finance leases, in each of the next five years and thereafter are as follows: Total Debt Finance Leases Fiscal year ending January 31: 2022 $ 4,965 $ 1,145 $ 3,820 2023 3,629 439 3,190 2024 2,284 49 2,235 2025 302 — 302 2026 155 — 155 Total long-term debt and finance lease maturities $ 11,335 $ 1,633 $ 9,702 The following table presents the components of interest (expense) income, net: Year ended January 31, 2021 2020 2019 Interest expense (1) $ (1,695) $ (3,043) $ (3,510) Interest income 122 598 6 Interest (expense) income, net $ (1,573) $ (2,445) $ (3,504) (1) Includes amortization of deferred financing costs and original issue discount |
Stockholder's Equity
Stockholder's Equity | 12 Months Ended |
Jan. 31, 2021 | |
Equity [Abstract] | |
Stockholder's Equity | Stockholder's Equity (a) Common stock The Company closed an IPO on July 22, 2019 and filed an amended and restated certification of incorporation authorizing the issuance of up to 500,000,000 shares of common stock, par value $0.01 per share. On October 23, 2020, the Company completed a follow-on offering of its Common Stock. In connection with the follow-on offering, the Company issued and sold 5,750,000 shares of common stock at an issuance price of $32.00 per share resulting in net proceeds of $174,800, after deducting underwriting discounts and commissions. The Company also incurred $290 of net third party offering costs. (b) Treasury stock The Company's equity based compensation plan allows for the grant of non-vested stock options, RSUs, performance-based RSUs and PSUs to its employees pursuant to the terms of its stock option and incentive plans (See Note 8). Under the provision of the plans, for RSU and PSU awards, 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 of the RSU or PSU, 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 | 12 Months Ended |
Jan. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Equity-based compensation | Equity-based compensation (a) Equity Award Plans In January 2018, the Board of Directors adopted the Company’s 2018 Stock Option Plan (as amended), which provided 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 Stock Option Plan upon the completion of the IPO. The 2019 Plan allows the Compensation Committee to make equity-based incentive awards including stock options, RSUs and PSUs 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). As of January 31, 2021, there were 2,256,810 shares available for future grant pursuant to 2019 Plan as well as an additional 855,873 shares available for grant pursuant to the newly adopted ESPP. (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. 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. The fair value of stock options is estimated on the date of the grant using the Black-Scholes option pricing model for each of the stock option awards granted. The assumptions are provided below. Expected volatility was based on the stock volatility for comparable publicly traded companies. The Company uses the simplified method as described in SEC Staff Accounting Bulletin (SAB) 107 to estimate the expected life of stock options. Forfeitures are recorded when they occur. The risk-free rate was based on the U.S. Treasury yield curve at the time of the grant over the expected term of the stock option grants. The Company did not grant any options during the year ended January 31, 2021. Year ended January 31, 2020 2019 Risk-free interest rate 2.18 % 2.81 % Expected dividends none none Expected term (in years) 6.25 6.25 Volatility 45.15 % 40.00 % Weighted average fair value of grants $ 4.99 $ 3.47 Stock option activity for the years ended January 31, 2020 and January 31, 2021 is as follows: Number of Weighted- Weighted- Aggregate Intrinsic Outstanding—February 1, 2019 5,055,505 $ 2.45 Granted during the year 1,230,382 $ 8.78 Exercised (691,371) $ 2.62 Forfeited (78,064) $ 5.20 Outstanding and expected to vest — January 31, 2020 5,516,452 $ 3.80 6.22 $ 150,152 Exercisable — January 31, 2020 3,824,259 $ 2.41 5.16 $ 109,351 Amount vested during year ended January 31, 2020 978,170 $ 5.31 Outstanding — January 31, 2020 5,516,452 $ 3.80 Granted — $ — Exercised (2,216,368) $ 2.39 Forfeited and expired (88,730) $ 7.45 Outstanding and expected to vest — January 31, 2021 3,211,354 $ 4.67 5.99 $ 194,676 Exercisable — January 31, 2021 2,315,820 $ 3.62 5.30 $ 142,824 Amount vested during year ended January 31, 2021 709,435 $ 6.31 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 years ended January 31, 2021, 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 $33,575, $13,960 and $1,355, respectively. For the years ended January 31, 2021, 2020 and 2019, the Company recorded stock-based compensation expense for stock options of $2,703, $2,780 and $1,447, respectively. As of January 31, 2021, there is $3,972 of total unrecognized compensation cost related to stock options issued to employees that is expected to be recognized over a weighted-average term of 1.82 years. For the year ended January 31, 2021, stock-based compensation expense for stock options includes $385 related to the modification of stock options. 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 predefined performance targets. These performance-based awards were released in April 2020, after final approval by the Compensation Committee. No awards of this type were granted during the year ended January 31, 2021. The Company issued 972,271 time-based restricted stock units during the year ended January 31, 2021. 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 years ended January 31, 2020 and 2021 are as follows: Restricted stock units Outstanding, February 1, 2019 20,164 Granted during year 1,493,678 Vested (43,011) Forfeited and expired (23,413) Outstanding, February 1, 2020 1,447,418 Granted during year 972,271 Vested (242,049) Forfeited and expired (124,602) Outstanding, January 31, 2021 2,053,038 For the years ended January 31, 2021 and 2020, the Company recognized $10,693 and $3,356 in restricted stock unit compensation expense, respectively, with $48,588 remaining of total unrecognized compensation costs related to these awards as of January 31, 2021. The total unrecognized costs are expected to be recognized over a weighted-average term of 3.3 years. For the year ended January 31, 2021, stock-based compensation expense for restricted stock units includes $33 related to restricted stock units issued in connection with the Vital Score acquisition in December 2018. For the year ended January 31, 2020, stock-based compensation expense includes $40 related to restricted stock units issued in connection with the Vital Score acquisition. As of January 31, 2021, there is $58 of total unrecognized compensation cost related to these awards. For the years ended January 31, 2021 and 2020, the weighted average grant date fair value of restricted stock units granted was $32.78 and $21.31 respectively. No restricted stock units were granted during the year ended January 31, 2019. (d) Market-based restricted stock units (PSUs) In the fourth quarter of fiscal 2021, the Company granted 70,806 PSUs to certain members of our senior management team. The PSUs vest on January 15, 2024 upon satisfaction of both time-based requirements and market targets based on Phreesia's TSR relative to the TSR of each member of the Russell 3000 Index (the "Peer Group"). Depending on the percentage level at which the market-based condition is satisfied, the number of shares vesting could be between 0% and 200% of the number of PSUs originally granted. To earn the target number of PSUs (which represents 100% of the number of PSUs granted), the Company must perform at the 60th percentile, with the maximum number of PSUs earned if the Company performed at least at the 90th percentile. If Phreesia's TSR for the performance period is negative, the maximum number of PSUs that can be earned will be capped at 100%. The maximum number of shares that could vest under for the PSUs is 141,612 shares. The Company estimated the fair value of the PSUs using a Monte Carlo Simulation model which projected TSR for Phreesia and each member of the Peer Group over the three year performance period. The following table summarizes the weighted average assumptions used in the Monte Carlo Simulation to estimate the grant-date fair value of the PSUs. January 31, 2021 Correlation coefficient 0.4230 Valuation date stock price $ 62.96 Simulation term 3.00 Years Volatility 43.71 % Risk-free rate 0.20 % Dividend yield — % Weighted average fair value of grants $ 84.38 During the year ended January 31, 2021, the Company recorded $93 of stock-based compensation expense for the PSUs. As of January 31, 2021, unrecognized compensation cost for the PSUs was $5,882, to be recognized on a straight-line basis over 3.0 years, subject to the participants' continued employment with the Company. |
Stock warrants
Stock warrants | 12 Months Ended |
Jan. 31, 2021 | |
Warrants and Rights Note Disclosure [Abstract] | |
Stock warrants | Stock warrants As of 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. On November 6, 2020, the warrants were exercised through a net share settlement. The Company issued 60,338 shares in the net share exercise transaction. As of January 31, 2021, there are no common stock warrants outstanding. |
Fair value measurements
Fair value measurements | 12 Months Ended |
Jan. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following table presents information about the Company's assets and liabilities that are measured at fair value as of January 31, 2021 and indicates the classification of each item within the fair value hierarchy: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Balance as of January 31, 2021 Money market mutual funds $ 197,522 $ — $ — $ 197,522 Foreign currency derivative contracts — 148 — 148 Total assets $ 197,522 $ 148 $ — $ 197,670 Acquisition related contingent consideration liabilities $ — $ — $ (1,286) $ (1,286) Total liabilities $ — $ — $ (1,286) $ (1,286) 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: 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 January 31, 2021 was an asset of $148, which is included in prepaid expenses and other current assets 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 January 31, 2021 and January 31, 2020, respectively. The Company includes gains and losses on its foreign currency forward contracts within other income (expense), net. During the years ended January 31, 2021 and 2020, the Company recognized a foreign exchange loss of $60 and a foreign exchange gain of $49, respectively. The Company believes that the fair value of its outstanding debt approximates fair value. As of January 31, 2021, the Company's outstanding debt includes financing agreements with standard payment schedules and relatively short terms. As of January 31, 2020, the Company's outstanding debt includes the balance of the First SVB Facility. As the Company refinanced all of its debt on February 28, 2019 (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 January 31, 2021 and 2020 approximates fair value. In connection with the QueueDr acquisition, the Company recorded contingent consideration liabilities within accrued expenses for amounts payable to the selling shareholders based on collections from QueueDr customers. The Company is required to pay the selling shareholders a multiple of the amount collected on certain customer contracts through November 2022. Certain payments are reduced to the amount of customer collections if the customer contract is canceled. The fair value of the Company's contingent consideration liabilities are determined using a Monte-Carlo simulation which uses estimated cash flows and likelihoods of contract cancellation to estimate the expected payout based on collections and active status of the underlying customer contracts. The fair value of the Company's contingent consideration liabilities is determined based on inputs which are not readily available in public markets. Therefore, we have categorized the liabilities as Level 3 in the fair value hierarchy. As of January 31, 2021, the maximum remaining amount payable for the contingent consideration liabilities is $1,549. The following table presents a roll-forward of our contingent consideration liabilities: Balance at acquisition date $ 2,240 Change in fair value recognized in earnings 71 Settlements (1,025) Balance at January 31, 2021 $ 1,286 The Company did not have any transfers of assets and liabilities between levels of the fair value measurement hierarchy during the years ended January 31, 2021 and 2020. |
Leases
Leases | 12 Months Ended |
Jan. 31, 2021 | |
Leases [Abstract] | |
Leases | Leases (a) Phreesia as Lessee The Company leases office premises in North Carolina and Ottawa, and data center space in Virginia under operating leases which expire on various dates through March 2024. 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 lease right-of-use assets were calculated as the present value of operating lease liabilities, 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. 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 January 31, 2021 was as follows: January 31, 2021 Operating leases: Lease right-of-use assets $ 2,654 Lease liabilities, current 1,087 Lease liabilities, noncurrent 1,899 Total operating lease liabilities $ 2,986 Finance leases: Property and equipment, at cost $ 19,933 Accumulated depreciation (10,389) Property and equipment, net $ 9,544 Lease liabilities (included in Current portion of debt and finance leases) 3,820 Lease liabilities, noncurrent (included in Long-term debt and finance leases) 5,882 Total finance lease liabilities $ 9,702 For office leases and leased equipment, 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, utilities and equipment maintenance. As of January 31, 2021, for operating leases, the weighted-average remaining lease term is 2.6 years and the weighted-average discount rate is 3.5%. As of January 31, 2021, for finance leases, the weighted-average remaining lease term is 2.7 years, and the weighted-average discount rate is 4.4%. The components of lease expense for the year ended January 31, 2021 were as follows: January 31, 2021 Operating leases: Operating lease cost $ 1,766 Variable lease cost 257 Total operating lease cost $ 2,023 Finance leases: Amortization of right-of-use assets $ 2,876 Interest on lease liabilities 326 Total finance lease cost $ 3,202 The following represents a schedule of maturing lease commitments for operating and finance leases as of January 31, 2021: January 31, 2021 Operating Finance Maturity of lease liabilities Fiscal year ending January 31, 2022 1,171 4,142 2023 1,142 3,356 2024 760 2,294 2025 52 316 2026 — 158 Total future minimum lease payments $ 3,125 $ 10,266 Less: interest (139) (564) Present value of lease liabilities $ 2,986 $ 9,702 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 year ended January 31, 2021 was as follows: January 31, 2021 Supplemental cash flow information Cash paid for amounts included in the measurement of lease liabilities: Operating cash used for operating leases $ 1,629 Operating cash used for finance leases 326 Financing cash used for finance leases 2,630 Total $ 4,585 Right-of-use assets obtained in exchange for lease liabilities: Operating $ 4,359 Finance 8,885 Total $ 13,244 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 $1,629 during the year ended January 31, 2021 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 Arrivals Kiosks 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. Additionally, the lease term does not represent a major part of the remaining economic life of the assets, and the present value of the lease payments does not equal or exceed substantially all of the fair value of the assets. As a result, all leased hardware in the SaaS arrangements are classified as operating leases. During the year ended January 31, 2021, the Company recognized $6,312 in subscription and related services revenue related to the leasing of PhreesiaPads and Arrivals Kiosks. |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Jan. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Commitments and contingencies (a) Indemnifications The Company’s agreements with certain customers include certain provisions for indemnifying customers against liabilities if its services infringe a third party’s intellectual property rights. It is not possible to determine the maximum potential amount under these indemnification obligations due to the limited history of prior indemnification claims and the unique facts and circumstances that may be involved in each particular agreement. To date, the Company has not incurred any material costs as a result of such provisions and have not accrued a ny liabilities related to such obligations in our consolidated financial statements. In addition, the Company has indemnification agreements with its directors and its executive officers that require us, among other things, to indemnify its directors and executive officers for costs associated with any fees, expenses, judgments, fines and settlement amounts incurred by any of those persons in any action or proceedi n g to which any of those persons is, or is threatened to be, made a party by reason of the person’s service as a director or officer, including any action by us, arising out of that person’s services as a director or officer or that person’s services provided to any other company or enterprise at the Company’s request. The Company maintains director and officer insurance coverage that may enable it to recover a portion of any future indemnification amounts paid. To date, there have been no claims under any of its directors and executive officers indemnification provisions. (b) Legal proceedings In 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. (c) Contingent consideration for acquisitions |
Income taxes
Income taxes | 12 Months Ended |
Jan. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes For the year ended January 31, 2021, the Company recorded a tax provision of $49, compared to a tax benefit of $1,780, for the corresponding period in the prior year. Our provision and benefit for income taxes was 0% and 8% of loss before income taxes for the year ended January 31, 2021 and 2020, 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 basis 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 both January 31, 2021 and January 31, 2020. The Company’s loss before income taxes was primarily generated in the United States for fiscal 2021, fiscal 2020 and fiscal 2019. The effective tax rate is 0% for fiscal 2019. The difference between the U.S. statutory rate of 21.0% and the effective tax rate is primarily due to the change in valuation allowance in fiscal 2019. The Company's income tax provision (benefit) consisted of the following for fiscal 2021 and fiscal 2020: Year ended January 31, 2021 2020 Current tax Federal $ — $ — State 114 Foreign — (1,005) Deferred tax Federal (116) — State (65) Foreign 116 (775) Total income tax expense (benefit) $ 49 $ (1,780) A reconciliation of income tax benefit computed at the statutory federal income tax rate to income taxes as reflected in the Company's consolidated financial statements is as follows: January 31, January 31, 2021 2020 Federal income tax benefit at statutory rate 21 % 21 % State and local tax, net of federal benefit 10 % 3 % Permanent differences — % (2) % Equity compensation 44 % 7 % Foreign taxes — % 8 % Other (4) % (4) % Change in valuation allowance (71) % (25) % Effective income tax rate — % 8 % Deferred taxes are recognized for temporary differences between the basis of assets and liabilities for the Company's consolidated financial statements and for income tax purposes. The significant components of the Company's deferred tax assets and liabilities as of January 31, 2021 and 2020 are as follows: January 31, Deferred tax assets (liabilities) 2021 2020 Net operating loss carryforwards $ 51,973 $ 33,641 Stock based compensation 1,162 1,340 Accruals, reserves, and other expenses 2,823 329 Reserve for bad debts 443 251 Disallowed interest expense 1,586 1,358 Depreciation and amortization — 106 Total deferred tax assets 57,987 37,025 Less valuation allowance (54,563) (35,369) Net deferred tax assets 3,424 1,656 Depreciation and amortization (1,568) — Intangible assets (440) — Deferred contract acquisition costs (758) (881) Total deferred tax liabilities (2,766) (881) Deferred taxes, net $ 658 $ 775 The Company has accumulated a Federal net operating loss carryforward of approximately $199,079, $124,512 and $100,000 as of January 31, 2021, 2020, and 2019, respectively. This carryforward may be available to offset future income tax liabilities and will expire beginning in 2025. As of January 31, 2021, the Company's foreign branch had net operating loss carryforwards of approximately $2,485, which may be available to offset future income in Canada and will expire beginning in 2030. Due to the uncertainty regarding the ability to realize the benefit of the U.S. deferred tax assets primarily relating to net operating loss carryforwards, valuation allowances have been established to reduce the U.S. deferred tax assets to an amount that is more likely than not to be realized. On the basis of this evaluation, as of January 31, 2021 and 2020, the Company recorded a valuation allowance of $54,563 and $35,369, respectively, to recognize only the portion of the deferred tax asset that is more likely than not to be realized. The amount of the deferred tax asset considered realizable, however, could be adjusted if estimates of future taxable foreign income during the carryforward period are reduced. Under the Tax Reform Act of 1986, or the Act, the net operating loss carryforwards are subject to review and possible adjustment by the Internal Revenue Service and state tax authorities. Net operating loss carryforwards could become subject to an annual limitation as the result of certain cumulative changes in the ownership interest of significant shareholders over a three-year period in excess of 50% as defined under Sections 382 and 383 of the Internal Revenue Code, respectively, as well as similar state provisions. This could limit the amount of tax attributes that can be utilized on a yearly basis to offset future taxable income. The amount of the annual limitation is determined based on the value of the Company immediately prior to the ownership change. Subsequent ownership changes may further affect the limitation in future years. The Company has completed multiple financings since its inception which may have resulted in an ownership change as defined by Sections 382 of the Internal Revenue Code, or could result in a change in control in the future. The Company has not done an analysis to determine whether or not ownership changes, as defined by the Act, have occurred since inception. The Company files tax returns as prescribed by the tax laws of the jurisdictions in which it operates. In the normal course of business, the Company is subject to examination by federal, state, and foreign jurisdictions, where applicable. The Company’s tax years are still open from 2017 to present and, to the extent utilized in future years' tax returns, net operating loss carryforwards at January 31, 2021 will remain subject to examination until the respective tax year is closed. The Company records unrecognized tax benefits as liabilities related to its operations in accordance with ASC 740 and adjusts these liabilities when its judgement changes a s a result of the evaluation of new information previously not available. The Company recognized interest and penalties related to uncertain tax positions in income tax expense. As of January 31, 2021, the Company had no accrued interest or penalties related to uncertain tax positions. The following is a roll forward of the Company's total gross unrecognized tax benefits: January 31, 2021 2020 Unrecognized income tax benefits, opening balance $ — $ 1,000 Increase for income tax positions of prior years — — Lapse of statute of limitations — (1,000) Unrecognized income tax benefits, ending balance $ — $ — |
Net loss per share attributable
Net loss per share attributable to common stockholders | 12 Months Ended |
Jan. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net loss per share attributable to common stockholders | Net loss per share attributable to common stockholders (a) Net loss per share attributable to common stockholders Basic and diluted net loss per share attributable to common stockholders was calculated as follows: Year ended January 31, 2021 2020 2019 Numerator: Net loss $ (27,292) $ (20,293) $ (15,062) Preferred stock dividend paid — (14,955) — Accretion of redeemable convertible preferred stock to redemption value — (56,175) (30,199) Net loss attributable to common stockholders $ (27,292) $ (91,423) $ (45,261) Denominator: Weighted-average shares of common stock outstanding, basic and diluted 39,519,640 20,301,189 1,844,929 Net loss per share attributable to common stockholders $ (0.69) $ (4.50) $ (24.53) (b) Potential dilutive securities The Company’s potential dilutive securities, which include stock options, restricted stock units, performance units, outstanding warrants to purchase shares of common stock, convertible preferred stock and warrants to purchase convertible 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: Year ended January 31, 2021 2020 2019 Convertible preferred (as converted to common stock) — — 25,311,535 Stock options to purchase common stock, restricted stock units and performance stock units 5,406,004 6,963,870 5,055,505 Warrants to purchase convertible preferred stock — — 581,798 Warrants to purchase common stock — 75,137 256,411 Total 5,406,004 7,039,007 31,205,249 |
Retirement savings plan
Retirement savings plan | 12 Months Ended |
Jan. 31, 2021 | |
Retirement Benefits [Abstract] | |
Retirement savings plan | Retirement savings planOn February 20, 2008, the Company established a retirement savings plan under Section 401(k) of the Internal Revenue Code (the “Plan”). The Plan covers substantially all U.S. full-time employees who meet minimum age and service requirements and allows participants to defer a portion of their annual compensation on a pre-tax and post-tax basis. Company contributions to the Plan may be made at the discretion of the Board of Directors of the Company. The Company did not make any contributions in years ended January 31, 2021, 2020 or 2019 |
Related party transactions
Related party transactions | 12 Months Ended |
Jan. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related party transactions | Related party transactionsThe Company recognized revenue totaling approximately $2,425, $5,318, and $5,181 from an affiliate of a stockholder of the Company for the years ended January 31, 2021, 2020 and 2019 respectively. Accounts receivable from the affiliate totaled approximately $2,072 as of January 31, 2020. The revenue presented above includes revenue earned while the entity was a related party. The entity was a related party for a portion of the year ended January 31, 2021 and was no longer a related party as of January 31, 2021. |
Acquisitions
Acquisitions | 12 Months Ended |
Jan. 31, 2021 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Acquisition of QueueDr On January 8, 2021, the Company entered into a stock purchase agreement with QueueDr Inc. (QueueDr) to acquire 100% of the outstanding equity of QueueDr, an early-stage software company that automates the process of rescheduling cancellations and no-shows. We acquired QueueDr to enhance our appointments solution. The total consideration transferred for the acquisition consists of $5.8 million in cash, $2.1 million of liabilities incurred and $2.2 million in performance-related contingent payments. The acquisition of QueueDr was accounted for as a business combination. The following table summarizes the purchase price consideration based on the estimated acquisition-date fair value of the acquisition consideration: Cash consideration paid on acquisition date $ 5,773 Liabilities incurred 2,111 Contingent consideration 2,240 Total fair value of acquisition consideration $ 10,124 The following table summarizes the calculation of cash paid for the acquisition of QueueDr, net of cash acquired per the Company's Consolidated Statement of Cash Flows for the year ended January 31, 2021: Cash consideration paid on acquisition date $ 5,773 Payments of acquisition date fair value of contingent consideration 954 Less cash acquired (217) Cash paid for acquisition of QueueDr, net of cash acquired per statement of cash flows $ 6,510 Liabilities incurred are primarily related to hold-backs for general representations and warranties. The maximum amount payable for contingent consideration was $2,574, based upon the performance of certain customer contracts. The purchase price was allocated to the tangible assets and identifiable intangible assets acquired and liabilities assumed based on their acquisition-date estimated fair values. The following table summarizes the final allocation of the purchase price based on the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition: Cash $ 217 Accounts receivable 455 Other current assets 192 Identified intangible assets acquired 1,780 Deferred tax asset 262 Goodwill 8,057 Other assets 223 Total assets acquired 11,186 Accounts payable (86) Accrued liabilities (254) Deferred revenue (55) Long-term debt (223) Deferred tax liability (444) Total purchase price $ 10,124 The components of intangible assets acquired were as follows: Estimated Useful Life Fair Value Acquired technology 5 920 Customer relationships 10 860 Total identifiable intangible assets acquired $ 1,780 The weighted average amortization period for acquired intangible assets as of the date of acquisition is 7.4 years. The Company, with the assistance of a third-party appraiser, assessed the fair value of the assets of QueueDr. The fair value of the acquired technology was estimated using the relief from royalty method. The fair value of customer relationships was estimated using a multi period excess earnings method. To calculate fair value, the Company used cash flows discounted at a rate considered appropriate given the inherent risks associated with each client grouping. The useful lives of the intangible assets were estimated based on the expected future economic benefit of the assets and are being amortized over the estimated useful life in proportion to the economic benefits consumed using the straight-line method. The amortization of intangible assets is not deductible for income tax purposes. The goodwill recognized in the acquisition of QueueDr is primarily attributable to expected synergies of the combined businesses and the acquisition of an assembled workforce. The goodwill is not expected to be deductible for tax purposes. During the fiscal year ended January 31, 2021, the Company incurred $282 of acquisition related costs for the acquisition of QueueDr. These costs are included within General and Administrative Expenses in our Statement of Operations. Acquisition of Vital Score On December 4, 2018, the Company entered into an asset purchase agreement with Vital Score, Inc. (Vital Score) to acquire all of the assets, and assumed certain of the liabilities, of Vital Score. The acquisition of Vital Score expanded the Company’s clinical and patient activation offerings and deepened its capabilities in motivational science. The acquisition consideration was comprised of cash consideration consisting of (i) $1,540 with $1,190 payable upon the closing of the acquisition and $350 payable on the first anniversary; and (ii) 40,327 shares of common stock issued to the two principals of Vital Score which vest 50% at closing and 50% in 4 equal annual installments beginning on the one-year anniversary of closing provided that the principals are still employed at the Company. These shares were valued at $8.03 per share. In addition, the principals can receive up to $750 in contingent consideration based upon the achievement of certain sales goals. Since 50% of the shares of common stock and the contingent consideration are contingent upon the principals continued service with the Company, these amounts will be recorded as compensation expense and not included in the purchase price. The following table summarizes the purchase price consideration based on the estimated acquisition-date fair value of the acquisition consideration: Cash consideration $ 1,540 Common stock issued (20,164 shares at $8.03 per share) 162 Total fair value of acquisition consideration $ 1,702 The following table summarizes the final allocation of the purchase price based on the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition: Property and equipment $ 5 Acquired technology 490 Customer relationships 980 Goodwill 250 Total assets acquired $ 1,725 Accounts payable (23) Total purchase price $ 1,702 The purchase price was allocated to the tangible assets and identifiable intangible assets acquired and liabilities assumed based on their acquisition-date estimated fair values. The identifiable intangible assets principally included acquired technology and customer relationships, both of which are subject to amortization on a straight-line basis and are being amortized over five years and seven years, respectively. The weighted average amortization period for acquired intangible assets as of the date of acquisition is 5.8 years. The Company, with the assistance of a third-party appraiser, assessed the fair value of the assets of Vital Score. The fair value of the acquired technology was estimated using the cost to replace method. The fair value of customer relationships was estimated using a multi period excess earnings method. To calculate fair value, the Company used cash flows discounted at a rate considered appropriate given the inherent risks associated with each client grouping. The useful lives of the intangible assets were estimated based on the expected future economic benefit of the assets and are being amortized over the estimated useful life in proportion to the economic benefits consumed using the straight-line method. The amortization of intangible assets is deductible for income tax purposes. The Company believes the goodwill related to the acquisition was a result of providing the Company a complementary service offering that will enable the Company to leverage its services with existing and new clients. The goodwill is deductible for income tax purposes. |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 12 Months Ended |
Jan. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of presentation | Consolidated Financial StatementsThe accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP) and regulations of the Securities and Exchange Commission (SEC) regarding annual financial reporting and include the accounts of Phreesia, Inc; its branch operation in Canada and its subsidiary QueueDr Inc. (collectively, the Company). |
Fiscal year | Fiscal yearThe Company’s fiscal year ends on January 31. References to fiscal 2021, 2020 and 2019, refer to the fiscal years ended January 31, 2021, 2020 and 2019, respectively. |
Reclassifications | ReclassificationsCertain reclassifications have been made to the prior period presentation to conform to the current period presentation. On the Company's balance sheet as of January 31, 2020, the Company has reclassified $2.3 million from the current portion of finance lease liabilities to the 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. |
Use of estimates | Use of estimatesThe preparation of the consolidated financial statements in conformity with U.S. 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 consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The most significant assumptions and estimates relate to the allowance for doubtful accounts, 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 identifiable assets and liabilities in a business acquisition, and the realization of deferred tax assets. |
Revenue recognition | Revenue recognition The Company evaluates its contractual arrangements to determine the performance obligations and transaction prices. Revenue is allocated to each performance obligation and recognized when the related performance obligations are satisfied. See Note 5 for additional information about the adoption of ASC 606, Revenue from Contracts with Customers , as well as for additional details about the Company's products and service lines. |
Concentrations of credit risk and risks and uncertainties | Concentrations of credit risk Financial instruments that 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 two 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 years ended January 31, 2021 and January 31, 2020. As of January 31, 2021, the Company had receivables from an entity that accounted for 10% of total accounts receivable. Risks Related to the COVID-19 Pandemic In March 2020, the World Health Organization declared the ongoing outbreak of a novel strain of coronavirus (COVID-19) a pandemic and the United States declared a national emergency with respect to COVID-19. There continues to be uncertainty as to the extent to which the global COVID-19 pandemic may adversely impact our business operations, financial performance, and results of operations at this time. Other Risks and Uncertainties The Company is subject to a variety of risk factors, including the economy, data privacy and security laws, government regulations, and other risks associated with the markets in which we operate including reliance on third party vendors, partners, and service providers. As with any business, operation of the Company involves risk, including the risk of service interruption impacting the operations of our business and our customer’s facilities below expected levels of operation, shut downs due to the breakdown or failure of information technology and communications systems, changes in laws or regulations, or catastrophic events such as fires, earthquakes, floods, explosions, global health concerns such as pandemics or other similar occurrences affecting the delivery of our productions and services. The occurrence of any of these events could significantly reduce or eliminate revenues generated, or significantly increase the expenses of our operations, adversely impacting the Company’s operating results and our ability to meet our obligations and commitments. See Note 6 - Debt and Finance Lease Liabilities, for a summary of our contractual commitments as of January 31, 2021. |
Cost of revenue (excluding depreciation and amortization) | Cost of revenue (excluding depreciation and amortization)Cost of revenue (excluding depreciation and amortization) primarily consists of personnel expenses for implementation and technical support, costs to verify insurance eligibility and benefits, infrastructure costs for operation of our SaaS-based Platform such as hosting fees and certain fees paid to various third party partners for the use of their technology. Personnel expenses consist of salaries, benefits, bonuses and stock-based compensation. |
Payment processing expense | Payment processing expensePayment processing expense consists primarily of interchange fees set by payment card networks and that are ultimately paid to the card-issuing financial institution, assessment fees paid to payment card networks that are ultimately paid to third-party payment processors and gateways. |
Sales and marketing | Sales and marketingSales and marketing expense consists primarily of personnel costs, including salaries, benefits, bonuses, stock-based compensation and commission costs for our sales and marketing personnel. Sales and marketing expense also include costs for advertising, promotional and other marketing activities, as well as certain fees paid to various third-party partners for sales lead generation. Advertising is expensed as incurred. Advertising expense was $558, $251 and $134 for the fiscal years ended 2021, 2020 and 2019, respectively. |
Research and development | Research and developmentResearch and development expense consists of costs for the design, development, testing and enhancement of the Company’s products and services and are generally expensed as incurred. These costs consist primarily of personnel costs, including salaries, benefits, bonuses, and stock-based compensation for our development personnel. Research and development expense also includes product management, life sciences analytics costs, third-party partner fees and third-party consulting fees, offset by any internal-use software development cost capitalized during the same period. |
General and administrative | General and administrativeGeneral and administrative expense consists primarily of personnel costs, including salaries, benefits, bonuses, and stock-based compensation for our executive, finance, legal, human resources, information technology, and other administrative personnel. General and administrative expense also includes consulting, legal, security, accounting services and allocated overhead. |
Depreciation and amortization | DepreciationDepreciation represents depreciation expense for PhreesiaPads and Arrivals Kiosks (collectively, Phreesia hardware), data center and other computer hardware, purchased computer software, furniture and fixtures and leasehold improvements.AmortizationAmortization primarily represents amortization of our capitalized internal-use software related to the Phreesia Platform as well as amortization of acquired intangible assets. |
Cash and cash equivalents | Cash and cash equivalentsThe Company considers all highly liquid investments with an original maturity of three months or less at the time of purchase to be cash equivalents. The Company's money market account meets the definition of cash equivalents. |
Settlement assets | Settlement assetsSettlement assets represent amounts due from the Company’s payment processor for customer electronic processing transactions. Settlement assets are typically settled within one two |
Settlement obligations | Settlement obligationsSettlement obligations represent amounts due to customers for electronic processing transactions that have not been funded by the Company due to timing of settlement from the Company’s payment processor. |
Accounts receivable | Accounts receivable Accounts receivable represent trade receivables, net of allowances for doubtful accounts. The Company estimates the allowance for doubtful accounts as its current estimate of expected credit loss over the life of the instrument. The Company determines the allowance based on historical trends of accounts receivable balances that have been written off and specific account analysis of at-risk customers, as well as expected future changes in credit losses. The Company determines its allowance for doubtful accounts by considering a number of factors, including the length of time accounts are past due, a customer’s current ability to pay its obligations to the Company, the condition of the industry as a whole, as well as expected future changes in credit losses. Accounts receivable are written off at the point that internal collections efforts have been exhausted. As of January 31, 2021 and 2020, the Company has reserved $699 and $943, respectively, for the allowance for doubtful accounts. Account receivable also includes unbilled accounts receivable (see Contract Balances in Note 5). |
Property and equipment | Property and equipment Property and equipment, including PhreesiaPads and Arrivals Kiosks, are stated at cost less accumulated depreciation. Depreciation of property and equipment is computed using the straight-line method over the estimated useful lives of the related assets. The estimated useful lives of the Company’s property and equipment have been estimated to be between three Upon sale or disposition of property and equipment, the cost and related accumulated depreciation are removed from their respective accounts and any gain or loss is reflected in the statements of operations. |
Capitalized internal-use software | Capitalized internal-use software The Company capitalizes certain costs incurred for the development of computer software for internal use pursuant to ASC Topic 350-40, Intangibles—Goodwill and Other—Internal use software . These costs relate to the development of its Phreesia Platform. The Company capitalizes the costs during the development of the project, when it is determined that it is probable that the project will be completed, and the software will be used as intended. Costs related to preliminary project activities, post-implementation activities, training and maintenance are expensed as incurred. Internal-use software is amortized on a straight-line basis over its estimated useful life, which is generally three years. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. The Company exercises judgment in determining the point at which various projects may be capitalized, in |
Business combinations | Business combinations The Company uses its best estimates and assumptions to accurately assign fair value to the tangible and intangible assets acquired and liabilities assumed at the acquisition date. The Company’s estimates are inherently uncertain and subject to refinement. During the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed, with the corresponding offset to goodwill. The Company continues to collect information and reevaluate these estimates and assumptions quarterly and records any adjustments to its preliminary estimates to goodwill provided that the Company is within the measurement period. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the statement of operations. The consideration transferred for business combinations includes the acquisition-date fair value of contingent consideration. Changes in the fair value of contingent consideration liabilities are included in general and administrative expense in the accompanying consolidated statements of operations. |
Goodwill and intangible assets | Goodwill and intangible assets Goodwill represents the excess of the consideration transferred over the fair value of the underlying net tangible and intangible assets acquired and liabilities assumed in connection with business combinations accounted for using the acquisition method of accounting. Goodwill is not amortized, but instead goodwill is required to be tested for impairment annually and under certain circumstances. We perform such testing of goodwill in the fourth quarter of each fiscal year, or as events occur or circumstances change that would more likely than not reduce the fair value below its carrying amount. The testing of goodwill is performed at the reporting unit level. The Company’s reporting unit is the same as its operating segment. The test begins with a qualitative assessment to determine whether it is “more likely than not” that the fair value of the reporting unit is less than its carrying amount. If it is concluded that it is “more likely than not” that the fair value of a reporting unit is less than its carrying amount, the Company performs a quantitative goodwill impairment test by calculating the fair value of the reporting unit and comparing that fair value to the carrying value of the reporting unit. If the estimated fair value of the reporting unit is less than its carrying amount, the Company records a goodwill impairment to reduce the carrying amount of goodwill by the amount by which the fair value of the reporting unit is less than its carrying amount. All other intangible assets associated with purchased intangibles, consisting of customer relationships and acquired technology, are stated at cost less accumulated amortization and are amortized on a straight-line basis over their estimated remaining economic lives. |
Long-lived assets | Long-lived assetsLong-lived assets, such as property and equipment and intangible assets, including capitalized internal-use software, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for possible impairment, the Company first compares the undiscounted cash flows expected to be generated by that asset or asset group to its carrying value. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. There were no impairment charges recognized during any of the periods presented. |
Income taxes | Income taxesAn asset and liability approach is used for financial accounting and reporting of current and deferred income taxes. Deferred income tax assets and liabilities are computed for temporary differences between the financial statement and tax basis of assets and liabilities that will result in taxable or deductible amounts in the future. Such deferred income tax asset and liability computations are based on enacted tax laws and rates applicable to periods in which the differences are expected to affect taxable income or loss. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized. The Company follows the guidance in ASC 740, Accounting for Uncertainty in Income Taxes . ASC 740 clarifies the accounting for uncertainty in income taxes recognized in a Company’s financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC 740 also provides guidance on de-recognition, classification, interest and penalties, accounting in the interim periods, disclosure, and transition. The Company reviews and evaluates tax positions in its major jurisdictions and determines whether or not there are uncertain tax positions that require financial statement recognition and the recording of a tax liability. The Company would recognize tax related interest and penalties, if applicable, as a component of its provision (benefit) from income taxes. |
Segment information | Segment informationOperating segments are defined as components of an enterprise about which separate financial information is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and assessing performance. The Company defines the term “chief operating decision maker” to be its Chief Executive Officer. The Company’s Chief Executive Officer reviews the financial information presented on an entire company basis for purposes of allocating resources and evaluating our financial performance. Accordingly, we have determined that we operate in a single reportable operating segment. Since we operate in one operating segment, all required financial segment information can be found in the consolidated financial statements. |
Stock-based compensation | Stock-based compensation The Company has stock-based compensation plans under which various types of equity-based awards are granted, including stock options, restricted stock units (RSUs), performance-based RSUs, and market-based performance stock units (PSUs). The compensation for the stock-based awards is recognized in accordance with ASC 718, Compensation — Stock Compensation , which requires that compensation cost be recognized for awards based on the grant-date fair value of the award. That cost is recognized on a straight-line basis over the requisite service period, which is generally the vesting period of the award. For performance-based RSUs, the number of shares expected to vest is estimated at each reporting date based on management's expectations regarding the relevant performance criteria. The fair value of stock options is estimated at the time of grant using the Black-Scholes option pricing model, which requires the use of inputs and assumptions such as the exercise price of the option, expected term, risk-free interest rate, expected volatility and dividend yield, and the value of the Company's common stock (which is estimated for awards granted prior to our IPO). The Company does not estimate forfeitures in recognizing stock-based compensation expense. The fair value of the RSUs is equal to the fair value of the Company's common stock on the grant date of the award. The fair value of market-based PSUs is estimated at the time of grant using a Monte-Carlo simulation which compares Phreesia's projected total shareholder return (TSR) to the projected TSR of the Russell 3000 Index and estimates the value of shares to be issued based on the vesting conditions of the PSUs. The Monte Carlo simulation requires the use of inputs and assumptions such as the valuation-date stock price, simulation, expected volatility, correlation coefficient to the Russell 3000 Index, risk-free interest rate and dividend yield. |
Fair value of financial instruments | Fair value of financial instruments Certain 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. |
Equity offering costs | Equity offering costsThe Company capitalizes certain legal, accounting and other third-party fees that are directly associated with in-process equity financings as deferred offering costs until such financings are consummated. After consummation of the equity financing, these costs will be recorded in stockholders’ deficit as a reduction of additional paid-in capital generated as a result of the offering. Should the equity financing no longer be considered probable of being consummated, all deferred offering costs would be charged to operating expenses in the statement of operations. During October 2020, the Company completed a follow-on offering of its Common Stock. In connection with the follow-on offering, the Company issued and sold 5,750,000 shares of common stock at an issuance price of $32.00 per share resulting in net proceeds of $174,800, after deducting underwriting discounts and commissions. |
Foreign currency | Foreign currencyThe Company has a branch office in Canada that provides operational support. The functional currency of the Company’s foreign branch is the U.S. dollar. Accordingly, assets and liabilities of the Company’s foreign branch are re-measured into U.S. dollars at the exchange rates in effect at the reporting date with differences recorded as transaction gains and losses within other income (expense). |
New accounting pronouncements | New accounting pronouncements Impact of recently adopted accounting pronouncements On May 1, 2020, the Company adopted the Financial Accounting Standards Board's (FASB) Accounting Standard Update (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 ASU No. 2016-02, Leases (Topic 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 its 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 accumulated deficit was recorded because the adoption did not change the Company's net assets. 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 accumulated deficit was recorded as a result of the adoption of this standard, which did not have a material impact on the Company's consolidated financial statements. 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 the consolidated 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 consolidated 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 consolidated financial statements. |
Composition of certain financ_2
Composition of certain financial statement captions (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Composition of Certain Financial Statement Captions [Abstract] | |
Schedule of accrued expenses | Accrued expenses at January 31, 2021 and 2020 are as follows: January 31, 2021 2020 Payroll-related expenses and taxes $ 8,946 $ 5,033 Payment processing fees liability 2,853 2,738 Other 6,525 1,472 Total $ 18,324 $ 9,243 |
Schedule of property and equipment | Property and equipment at January 31, 2021 and 2020 are as follows: Useful life January 31, 2021 2020 PhreesiaPads and Arrivals Kiosks 3 $ 25,837 $ 26,389 Computer equipment 3 33,558 18,394 Computer software 3 5,105 2,297 Hardware development 3 1,024 1,024 Furniture and fixtures 7 539 743 Leasehold improvements 2 745 1,191 Total property and equipment $ 66,808 $ 50,038 Less accumulated depreciation (40,148) (35,551) Property and equipment — net $ 26,660 $ 14,487 |
Schedule of intangible assets | The following presents the details of intangible assets as of January 31, 2021 and January 31, 2020. Useful Life January 31, (years) 2021 2020 Acquired technology 5 $ 1,410 $ 490 Customer relationship 10 1,840 980 Total intangible assets, gross carrying value $ 3,250 $ 1,470 Less accumulated amortization (525) (271) Net carrying value $ 2,725 $ 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 January 31, 2021: January 31, 2021 2022 $ 508 2023 508 2024 494 2025 410 2026-Thereafter 805 Total $ 2,725 |
Schedule of goodwill | The following table presents a roll-forward of goodwill for the years ended January 31, 2020 and 2021: Balance at January 31, 2019 $ 250 Balance at January 31, 2020 250 Goodwill acquired during the year ended January 31, 2021 8,057 Balance at January 31, 2021 $ 8,307 |
Schedule of accounts receivable | Accounts Receivable as of January 31, 2021 and 2020 are as follows: January 31, 2021 2020 Billed $ 28,464 $ 22,245 Unbilled 1,287 676 Total accounts receivable, gross 29,751 22,921 Less accounts receivable allowances (699) (943) Total accounts receivable $ 29,052 $ 21,978 |
Schedule of allowance for doubtful accounts | Activity in our allowance for doubtful accounts was as follows for the year ended January 31, 2021: January 31, 2021 Balance, January 31, 2020 $ 943 Bad debt expense 454 Write-offs and adjustments (698) Balance, January 31, 2021 $ 699 |
Schedule of prepaid and other current assets | Prepaid and other current assets as of January 31, 2021 and 2020 are as follows: January 31, 2021 2020 Prepaid software and business systems $ 2,322 $ 1,611 Prepaid PhreesiaPads 18 645 Prepaid data center expenses 1,211 751 Prepaid insurance 1,311 1,259 Other prepaid expenses and other current assets 2,392 891 Total prepaid and other current assets $ 7,254 $ 5,157 |
Revenue and Contract Costs (Tab
Revenue and Contract Costs (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Rollforward of contract assets and contract liabilities | The following table represents a roll-forward of contract assets: January 31, 2021 2020 Beginning Balance $ 676 $ 636 Amount transferred to receivables from beginning balance of contract assets (676) (631) Contract asset additions, net of reclassification to receivables 1,287 671 Ending Balance $ 1,287 $ 676 The following table represents a roll-forward of deferred revenue: January 31, 2021 2020 Beginning Balance $ 5,401 $ 6,488 Revenue recognized that was included in deferred revenue at the beginning of the period (5,097) (5,252) Revenue recognized that was not included in deferred revenue at the beginning of the period (1,512) (7,485) Increases in deferred revenue due to acquisition 55 — Increases due to invoicing prior to satisfaction of performance obligations 11,991 11,650 Ending Balance $ 10,838 $ 5,401 |
Deferred contract acquisition costs | The following table represents a roll-forward of deferred contract acquisition costs: January 31, 2021 2020 Beginning balance $ 3,314 $ 3,194 Additions to deferred contract acquisition costs 1,652 2,097 Amortization of deferred contract acquisition costs (2,025) (1,977) Ending balance 2,941 3,314 Deferred contract acquisition costs, current (to be amortized in next 12 months) 1,693 1,720 Deferred contract acquisition costs, non-current 1,248 1,594 Total deferred contract acquisition costs $ 2,941 $ 3,314 |
Debt and Finance Lease Liabil_2
Debt and Finance Lease Liabilities (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt instruments | As of January 31, 2021 and 2020, the Company had the following outstanding debt and finance balances: January 31, 2021 2020 Term loan and revolving credit facility (1) $ — $ 20,000 Finance leases 9,702 3,612 Other debt 1,533 808 Accrued interest and payments 100 381 Total debt and finance lease liabilities, before original issue discount 11,335 24,801 Less deferred financing costs and original issue discount — (937) Debt and finance lease liabilities $ 11,335 $ 23,864 Less - current portion of debt and finance lease liabilities (4,864) (2,324) Long term debt and finance lease liabilities $ 6,471 $ 21,540 (1) Revolving credit facility as of January 31, 2021. Term loan as of January 31, 2020. |
Schedule of long-term debt and finance lease maturities | Maturities of debt, including finance leases, in each of the next five years and thereafter are as follows: Total Debt Finance Leases Fiscal year ending January 31: 2022 $ 4,965 $ 1,145 $ 3,820 2023 3,629 439 3,190 2024 2,284 49 2,235 2025 302 — 302 2026 155 — 155 Total long-term debt and finance lease maturities $ 11,335 $ 1,633 $ 9,702 |
Schedule of components of interest income (expense) | The following table presents the components of interest (expense) income, net: Year ended January 31, 2021 2020 2019 Interest expense (1) $ (1,695) $ (3,043) $ (3,510) Interest income 122 598 6 Interest (expense) income, net $ (1,573) $ (2,445) $ (3,504) (1) Includes amortization of deferred financing costs and original issue discount |
Equity-based compensation (Tabl
Equity-based compensation (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of weighted average assumptions | Year ended January 31, 2020 2019 Risk-free interest rate 2.18 % 2.81 % Expected dividends none none Expected term (in years) 6.25 6.25 Volatility 45.15 % 40.00 % Weighted average fair value of grants $ 4.99 $ 3.47 |
Schedule of stock option activity | Stock option activity for the years ended January 31, 2020 and January 31, 2021 is as follows: Number of Weighted- Weighted- Aggregate Intrinsic Outstanding—February 1, 2019 5,055,505 $ 2.45 Granted during the year 1,230,382 $ 8.78 Exercised (691,371) $ 2.62 Forfeited (78,064) $ 5.20 Outstanding and expected to vest — January 31, 2020 5,516,452 $ 3.80 6.22 $ 150,152 Exercisable — January 31, 2020 3,824,259 $ 2.41 5.16 $ 109,351 Amount vested during year ended January 31, 2020 978,170 $ 5.31 Outstanding — January 31, 2020 5,516,452 $ 3.80 Granted — $ — Exercised (2,216,368) $ 2.39 Forfeited and expired (88,730) $ 7.45 Outstanding and expected to vest — January 31, 2021 3,211,354 $ 4.67 5.99 $ 194,676 Exercisable — January 31, 2021 2,315,820 $ 3.62 5.30 $ 142,824 Amount vested during year ended January 31, 2021 709,435 $ 6.31 |
Schedule of restricted stock unit activity | Restricted stock unit activity for the years ended January 31, 2020 and 2021 are as follows: Restricted stock units Outstanding, February 1, 2019 20,164 Granted during year 1,493,678 Vested (43,011) Forfeited and expired (23,413) Outstanding, February 1, 2020 1,447,418 Granted during year 972,271 Vested (242,049) Forfeited and expired (124,602) Outstanding, January 31, 2021 2,053,038 |
Schedule of performance share assumptions | January 31, 2021 Correlation coefficient 0.4230 Valuation date stock price $ 62.96 Simulation term 3.00 Years Volatility 43.71 % Risk-free rate 0.20 % Dividend yield — % Weighted average fair value of grants $ 84.38 |
Fair value measurements (Tables
Fair value measurements (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
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 January 31, 2021 and indicates the classification of each item within the fair value hierarchy: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Balance as of January 31, 2021 Money market mutual funds $ 197,522 $ — $ — $ 197,522 Foreign currency derivative contracts — 148 — 148 Total assets $ 197,522 $ 148 $ — $ 197,670 Acquisition related contingent consideration liabilities $ — $ — $ (1,286) $ (1,286) Total liabilities $ — $ — $ (1,286) $ (1,286) 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: 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 |
Schedule of Loss Contingencies by Contingency | The following table presents a roll-forward of our contingent consideration liabilities: Balance at acquisition date $ 2,240 Change in fair value recognized in earnings 71 Settlements (1,025) Balance at January 31, 2021 $ 1,286 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Leases [Abstract] | |
Schedule of operating and finance leases | Supplemental balance sheet information related to operating and finance leases as of January 31, 2021 was as follows: January 31, 2021 Operating leases: Lease right-of-use assets $ 2,654 Lease liabilities, current 1,087 Lease liabilities, noncurrent 1,899 Total operating lease liabilities $ 2,986 Finance leases: Property and equipment, at cost $ 19,933 Accumulated depreciation (10,389) Property and equipment, net $ 9,544 Lease liabilities (included in Current portion of debt and finance leases) 3,820 Lease liabilities, noncurrent (included in Long-term debt and finance leases) 5,882 Total finance lease liabilities $ 9,702 |
Schedule of lease expense | The components of lease expense for the year ended January 31, 2021 were as follows: January 31, 2021 Operating leases: Operating lease cost $ 1,766 Variable lease cost 257 Total operating lease cost $ 2,023 Finance leases: Amortization of right-of-use assets $ 2,876 Interest on lease liabilities 326 Total finance lease cost $ 3,202 Other supplemental cash flow information for the year ended January 31, 2021 was as follows: January 31, 2021 Supplemental cash flow information Cash paid for amounts included in the measurement of lease liabilities: Operating cash used for operating leases $ 1,629 Operating cash used for finance leases 326 Financing cash used for finance leases 2,630 Total $ 4,585 Right-of-use assets obtained in exchange for lease liabilities: Operating $ 4,359 Finance 8,885 Total $ 13,244 |
Schedule of maturing lease commitments of operating leases | The following represents a schedule of maturing lease commitments for operating and finance leases as of January 31, 2021: January 31, 2021 Operating Finance Maturity of lease liabilities Fiscal year ending January 31, 2022 1,171 4,142 2023 1,142 3,356 2024 760 2,294 2025 52 316 2026 — 158 Total future minimum lease payments $ 3,125 $ 10,266 Less: interest (139) (564) Present value of lease liabilities $ 2,986 $ 9,702 |
Schedule of maturing lease commitments of finance leases | The following represents a schedule of maturing lease commitments for operating and finance leases as of January 31, 2021: January 31, 2021 Operating Finance Maturity of lease liabilities Fiscal year ending January 31, 2022 1,171 4,142 2023 1,142 3,356 2024 760 2,294 2025 52 316 2026 — 158 Total future minimum lease payments $ 3,125 $ 10,266 Less: interest (139) (564) Present value of lease liabilities $ 2,986 $ 9,702 |
Schedule of future minimum lease payments under non-cancelable operating leases | 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 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of income tax (benefit) | The Company's income tax provision (benefit) consisted of the following for fiscal 2021 and fiscal 2020: Year ended January 31, 2021 2020 Current tax Federal $ — $ — State 114 Foreign — (1,005) Deferred tax Federal (116) — State (65) Foreign 116 (775) Total income tax expense (benefit) $ 49 $ (1,780) |
Schedule of effective tax rate | A reconciliation of income tax benefit computed at the statutory federal income tax rate to income taxes as reflected in the Company's consolidated financial statements is as follows: January 31, January 31, 2021 2020 Federal income tax benefit at statutory rate 21 % 21 % State and local tax, net of federal benefit 10 % 3 % Permanent differences — % (2) % Equity compensation 44 % 7 % Foreign taxes — % 8 % Other (4) % (4) % Change in valuation allowance (71) % (25) % Effective income tax rate — % 8 % |
Schedule of deferred tax assets and liabilities | The significant components of the Company's deferred tax assets and liabilities as of January 31, 2021 and 2020 are as follows: January 31, Deferred tax assets (liabilities) 2021 2020 Net operating loss carryforwards $ 51,973 $ 33,641 Stock based compensation 1,162 1,340 Accruals, reserves, and other expenses 2,823 329 Reserve for bad debts 443 251 Disallowed interest expense 1,586 1,358 Depreciation and amortization — 106 Total deferred tax assets 57,987 37,025 Less valuation allowance (54,563) (35,369) Net deferred tax assets 3,424 1,656 Depreciation and amortization (1,568) — Intangible assets (440) — Deferred contract acquisition costs (758) (881) Total deferred tax liabilities (2,766) (881) Deferred taxes, net $ 658 $ 775 |
Schedule of unrecognized tax benefits | The following is a roll forward of the Company's total gross unrecognized tax benefits: January 31, 2021 2020 Unrecognized income tax benefits, opening balance $ — $ 1,000 Increase for income tax positions of prior years — — Lapse of statute of limitations — (1,000) Unrecognized income tax benefits, ending balance $ — $ — |
Net loss per share attributab_2
Net loss per share attributable to common stockholders (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
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: Year ended January 31, 2021 2020 2019 Numerator: Net loss $ (27,292) $ (20,293) $ (15,062) Preferred stock dividend paid — (14,955) — Accretion of redeemable convertible preferred stock to redemption value — (56,175) (30,199) Net loss attributable to common stockholders $ (27,292) $ (91,423) $ (45,261) Denominator: Weighted-average shares of common stock outstanding, basic and diluted 39,519,640 20,301,189 1,844,929 Net loss per share attributable to common stockholders $ (0.69) $ (4.50) $ (24.53) |
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: Year ended January 31, 2021 2020 2019 Convertible preferred (as converted to common stock) — — 25,311,535 Stock options to purchase common stock, restricted stock units and performance stock units 5,406,004 6,963,870 5,055,505 Warrants to purchase convertible preferred stock — — 581,798 Warrants to purchase common stock — 75,137 256,411 Total 5,406,004 7,039,007 31,205,249 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Business Combinations [Abstract] | |
Schedule of purchase price considerations at acquisition date | The following table summarizes the purchase price consideration based on the estimated acquisition-date fair value of the acquisition consideration: Cash consideration paid on acquisition date $ 5,773 Liabilities incurred 2,111 Contingent consideration 2,240 Total fair value of acquisition consideration $ 10,124 The following table summarizes the calculation of cash paid for the acquisition of QueueDr, net of cash acquired per the Company's Consolidated Statement of Cash Flows for the year ended January 31, 2021: Cash consideration paid on acquisition date $ 5,773 Payments of acquisition date fair value of contingent consideration 954 Less cash acquired (217) Cash paid for acquisition of QueueDr, net of cash acquired per statement of cash flows $ 6,510 The following table summarizes the purchase price consideration based on the estimated acquisition-date fair value of the acquisition consideration: Cash consideration $ 1,540 Common stock issued (20,164 shares at $8.03 per share) 162 Total fair value of acquisition consideration $ 1,702 |
Schedule of allocation of purchase price of assets acquired and liabilities assumed | The following table summarizes the final allocation of the purchase price based on the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition: Cash $ 217 Accounts receivable 455 Other current assets 192 Identified intangible assets acquired 1,780 Deferred tax asset 262 Goodwill 8,057 Other assets 223 Total assets acquired 11,186 Accounts payable (86) Accrued liabilities (254) Deferred revenue (55) Long-term debt (223) Deferred tax liability (444) Total purchase price $ 10,124 The following table summarizes the final allocation of the purchase price based on the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition: Property and equipment $ 5 Acquired technology 490 Customer relationships 980 Goodwill 250 Total assets acquired $ 1,725 Accounts payable (23) Total purchase price $ 1,702 |
Schedule of intangible assets acquired | The components of intangible assets acquired were as follows: Estimated Useful Life Fair Value Acquired technology 5 920 Customer relationships 10 860 Total identifiable intangible assets acquired $ 1,780 |
Background and liquidity (Detai
Background and liquidity (Detail) - USD ($) $ / shares in Units, $ in Thousands | Oct. 23, 2020 | Dec. 17, 2019 | Jul. 22, 2019 | Oct. 31, 2020 | Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 |
Subsidiary, Sale of Stock [Line Items] | |||||||
Issuance of common stock, net of issuance costs (in shares) | 5,750,000 | 5,750,000 | |||||
Issue price per share (in USD per share) | $ 32 | $ 32 | |||||
Payment of offering costs | $ 290 | $ 6,217 | $ 195 | ||||
Dividend paid | 0 | 14,955 | 0 | ||||
Net proceeds after discounts and offering expenses | $ 174,510 | $ 174,800 | $ 174,800 | $ 130,781 | $ 0 | ||
Number of months with sufficient funds to operate | 12 months | ||||||
Common stock | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Issuance of common stock, net of issuance costs (in shares) | 7,762,500 | 5,750,000 | 7,812,500 | ||||
Payment of offering costs | $ 1,047 | ||||||
Conversion of preferred stock into common stock and cancellation of redeemable preferred stock (in shares) | 25,311,535 | ||||||
IPO | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Conversion of preferred stock into common stock and cancellation of redeemable preferred stock (in shares) | 588,763 | ||||||
Dividend paid | $ 14,955 | ||||||
IPO | Common stock | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Issuance of common stock, net of issuance costs (in shares) | 7,812,500 | ||||||
Issue price per share (in USD per share) | $ 18 | ||||||
Proceeds from issuance of common stock in equity offerings, net of underwriters' discounts and commissions | $ 130,781 | ||||||
Underwriting discounts and commission | 9,844 | ||||||
Payment of offering costs | $ 6,412 | ||||||
IPO | Common stock | Certain Selling Stockholders | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Issuance of common stock, net of issuance costs (in shares) | 2,868,923 |
Basis of presentation (Details)
Basis of presentation (Details) - USD ($) $ in Thousands | Jan. 31, 2021 | Jan. 31, 2020 |
Reclassifications [Line Items] | ||
Long-term debt and finance lease liabilities | $ 4,864 | $ 2,324 |
Reclassification from current finance lease liabilities | (3,820) | |
Long term debt and finance lease liabilities | 6,471 | 21,540 |
Reclassification of long-term finance leases | (5,882) | |
Revision of Prior Period, Adjustment | ||
Reclassifications [Line Items] | ||
Long-term debt and finance lease liabilities | 2,300 | |
Reclassification from current finance lease liabilities | 2,300 | |
Long term debt and finance lease liabilities | $ 2,100 | |
Reclassification of long-term finance leases | $ 2,100 |
Summary of significant accoun_3
Summary of significant accounting policies (Detail) | Oct. 23, 2020USD ($)$ / sharesshares | Oct. 31, 2020USD ($)$ / sharesshares | Apr. 30, 2020 | Jan. 31, 2021USD ($)processorssegment | Jan. 31, 2020USD ($) | Jan. 31, 2019USD ($) | Feb. 01, 2020USD ($) | ||
Accounting Policies [Line Items] | |||||||||
Number of third party payment processors | processors | 1 | ||||||||
Advertising expense | $ 558,000 | $ 251,000 | $ 134,000 | ||||||
Allowance for doubtful accounts | 699,000 | 943,000 | |||||||
Asset impairment charges | $ 0 | 0 | 0 | ||||||
Number of operating segment | segment | 1 | ||||||||
Issuance of common stock, net of issuance costs (in shares) | shares | 5,750,000 | 5,750,000 | |||||||
Issue price per share (in USD per share) | $ / shares | $ 32 | $ 32 | |||||||
Net proceeds after discounts and offering expenses | $ 174,510,000 | $ 174,800,000 | $ 174,800,000 | 130,781,000 | $ 0 | ||||
Lease right-of-use assets | 2,654,000 | [1] | $ 0 | [1] | $ 2,741,000 | ||||
Total operating lease liabilities | $ 2,986,000 | ||||||||
Customer Concentration Risk | Accounts Receivable | One entity | |||||||||
Accounting Policies [Line Items] | |||||||||
Accounts receivable concentration percentage | 10.00% | ||||||||
Topic 842 | |||||||||
Accounting Policies [Line Items] | |||||||||
Lease right-of-use assets | 2,741,000 | ||||||||
Total operating lease liabilities | $ 2,928,000 | ||||||||
Internal-use software | |||||||||
Accounting Policies [Line Items] | |||||||||
Estimated useful life (in years) | 3 years | ||||||||
Minimum | |||||||||
Accounting Policies [Line Items] | |||||||||
Settlement period (in days) | 1 day | ||||||||
Useful life (years) | 3 years | ||||||||
Maximum | |||||||||
Accounting Policies [Line Items] | |||||||||
Settlement period (in days) | 2 days | ||||||||
Useful life (years) | 7 years | ||||||||
[1] | Figures as of January 31, 2021 reflect the Company's February 1, 2020 adoption of Accounting Standards Codification No. 842, Leases (ASC 842) . For additional details, see Note 3(ac), "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 expenses (Detail) - USD ($) $ in Thousands | Jan. 31, 2021 | Jan. 31, 2020 |
Composition of Certain Financial Statement Captions [Abstract] | ||
Payroll-related expenses and taxes | $ 8,946 | $ 5,033 |
Payroll-related expenses and taxes | 2,853 | 2,738 |
Other | 6,525 | 1,472 |
Total | $ 18,324 | $ 9,243 |
Composition of certain financ_4
Composition of certain financial statement captions - Schedule of property and equipment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 66,808 | $ 50,038 |
Less accumulated depreciation | (40,148) | (35,551) |
Property and equipment — net | $ 26,660 | 14,487 |
PhreesiaPads and Arrivals Kiosks | ||
Property, Plant and Equipment [Line Items] | ||
Useful life (years) | 3 years | |
Total property and equipment | $ 25,837 | 26,389 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Useful life (years) | 3 years | |
Total property and equipment | $ 33,558 | 18,394 |
Computer software | ||
Property, Plant and Equipment [Line Items] | ||
Useful life (years) | 3 years | |
Total property and equipment | $ 5,105 | 2,297 |
Hardware development | ||
Property, Plant and Equipment [Line Items] | ||
Useful life (years) | 3 years | |
Total property and equipment | $ 1,024 | 1,024 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Useful life (years) | 7 years | |
Total property and equipment | $ 539 | 743 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Useful life (years) | 2 years | |
Total property and equipment | $ 745 | $ 1,191 |
Composition of certain financ_5
Composition of certain financial statement captions - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||
Depreciation | $ 9,770 | $ 8,753 | $ 7,552 |
Finance lease, right of use assets, gross | 19,933 | 12,283 | |
Accumulated amortization of capital lease assets | 10,389 | 7,724 | |
Capitalized cost of computer software | 7,663 | 5,852 | 5,109 |
Capitalized computed software amortization | 5,884 | 4,933 | 4,009 |
Capitalized computer software net | 10,476 | 8,735 | |
Amortization expense | 254 | 238 | 33 |
Impairment of goodwill | 0 | 0 | 0 |
Capitalized implementation costs | 893 | ||
Accumulated amortization | 23 | ||
Other income (expense), net | 1 | (1,023) | (7) |
Other miscellaneous income (expense) | (61) | ||
Gain (loss) on foreign currency forward contracts | 60 | (49) | |
Gain (loss) on extinguishment of debt | $ 0 | $ 1,073 | $ 0 |
Acquired technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization period | 4 years 4 months 24 days | 3 years 10 months 24 days | |
Customer relationship | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization period | 7 years 8 months 12 days | 5 years 10 months 24 days |
Composition of certain financ_6
Composition of certain financial statement captions - Schedule of intangible assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, grossing carrying value | $ 3,250 | $ 1,470 |
Less accumulated amortization | (525) | (271) |
Net carrying value | $ 2,725 | 1,199 |
Acquired technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life (in years) | 5 years | |
Intangible assets, grossing carrying value | $ 1,410 | 490 |
Customer relationship | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life (in years) | 10 years | |
Intangible assets, grossing carrying value | $ 1,840 | $ 980 |
Composition of certain financ_7
Composition of certain financial statement captions - Schedule of future amortization expense (Detail) - USD ($) $ in Thousands | Jan. 31, 2021 | Jan. 31, 2020 |
Composition of Certain Financial Statement Captions [Abstract] | ||
2022 | $ 508 | |
2023 | 508 | |
2024 | 494 | |
2025 | 410 | |
2026-Thereafter | 805 | |
Net carrying value | $ 2,725 | $ 1,199 |
Composition of certain financ_8
Composition of certain financial statement captions - Schedule of goodwill roll-forward (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2019 | |
Receivables [Abstract] | ||
Goodwill | $ 250 | $ 250 |
Goodwill [Roll Forward] | ||
Goodwill balance at beginning of period | 250 | |
Goodwill acquired during the year ended January 31, 2021 | 8,057 | |
Goodwill balance at end of period | $ 8,307 |
Composition of certain financ_9
Composition of certain financial statement captions - Schedule of accounts receivable (Detail) - USD ($) $ in Thousands | Jan. 31, 2021 | Jan. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, gross | $ 29,751 | $ 22,921 |
Less accounts receivable allowances | (699) | (943) |
Total accounts receivable | 29,052 | 21,978 |
Billed | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, gross | 28,464 | 22,245 |
Unbilled | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, gross | $ 1,287 | $ 676 |
Composition of certain finan_10
Composition of certain financial statement captions - Schedule of allowance for doubtful accounts (Details) $ in Thousands | 12 Months Ended |
Jan. 31, 2021USD ($) | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Allowance for doubtful accounts at beginning of period | $ 943 |
Bad debt expense | 454 |
Write-offs and adjustments | (698) |
Allowance for doubtful accounts at end of period | $ 699 |
Composition of certain finan_11
Composition of certain financial statement captions - Schedule of prepaid and other current assets (Detail) - USD ($) $ in Thousands | Jan. 31, 2021 | Jan. 31, 2020 |
Composition of Certain Financial Statement Captions [Abstract] | ||
Prepaid software and business systems | $ 2,322 | $ 1,611 |
Prepaid PhreesiaPads | 18 | 645 |
Prepaid data center expenses | 1,211 | 751 |
Prepaid insurance | 1,311 | 1,259 |
Other prepaid expenses and other current assets | 2,392 | 891 |
Total prepaid and other current assets | $ 7,254 | $ 5,157 |
Revenue and Contract Costs - Ad
Revenue and Contract Costs - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Subscription and related service revenues amortization period (in years) | 3 years | ||
Amortization expense | $ 2,025,000 | $ 1,977,000 | $ 1,640,000 |
Impairment loss | 0 | 0 | 0 |
Subscription and related services | |||
Disaggregation of Revenue [Line Items] | |||
Revenues recorded pursuant to ASC 842 | $ 6,312,000 | $ 5,985,000 | $ 4,749,000 |
Revenue and Contract Costs - Ro
Revenue and Contract Costs - Rollforward of contract assets and contract liabilities (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Contract With Customer Asset [Roll Forward] | ||
Contract assets at beginning of period | $ 676 | $ 636 |
Amount transferred to receivables from beginning balance of contract assets | (676) | (631) |
Contract asset additions, net of reclassification to receivables | 1,287 | 671 |
Contract assets at end of period | 1,287 | 676 |
Contract With Customer Liability [Roll Forward] | ||
Deferred revenue at beginning of period | 5,401 | 6,488 |
Revenue recognized that was included in deferred revenue at the beginning of the period | (5,097) | (5,252) |
Revenue recognized that was not included in deferred revenue at the beginning of the period | (1,512) | (7,485) |
Increases in deferred revenue due to acquisition | 55 | 0 |
Increases due to invoicing prior to satisfaction of performance obligations | 11,991 | 11,650 |
Deferred revenue at end of period | $ 10,838 | $ 5,401 |
Revenue and Contract Costs - Sc
Revenue and Contract Costs - Schedule of Deferred contract acquisition costs (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2021 | Jan. 31, 2020 | |
Capitalized Contract Cost [Roll Forward] | |||||
Capitalized contract costs at beginning of period | $ 3,314 | $ 3,194 | |||
Additions to deferred contract acquisition costs | 1,652 | 2,097 | |||
Amortization of deferred contract acquisition costs | (2,025) | (1,977) | $ (1,640) | ||
Capitalized contract costs at end of period | 2,941 | 3,314 | 3,194 | ||
Deferred contract acquisition costs, current (to be amortized in next 12 months) | $ 1,693 | $ 1,720 | |||
Deferred contract acquisition costs, non-current | 1,248 | 1,594 | |||
Total deferred contract acquisition costs | $ 2,941 | $ 3,314 | $ 3,194 | $ 2,941 | $ 3,314 |
Debt and Finance Lease Liabil_3
Debt and Finance Lease Liabilities - Schedule Of Outstanding loan balances (Detail) - USD ($) $ in Thousands | Jan. 31, 2021 | Jan. 31, 2020 |
Debt Disclosure [Abstract] | ||
Term loan and revolving credit facility | $ 0 | $ 20,000 |
Finance leases | 9,702 | 3,612 |
Other debt | 1,533 | 808 |
Accrued interest and payments | 100 | 381 |
Total debt and finance lease liabilities, before original issue discount | 11,335 | 24,801 |
Less deferred financing costs and original issue discount | 0 | (937) |
Debt and finance lease liabilities | 11,335 | 23,864 |
Less - current portion of debt and finance lease liabilities | (4,864) | (2,324) |
Long term debt and finance lease liabilities | $ 6,471 | $ 21,540 |
Debt and Finance Lease Liabil_4
Debt and Finance Lease Liabilities - Additional Information (Detail) $ / shares in Units, $ in Thousands | Apr. 10, 2020USD ($) | Feb. 28, 2019USD ($)$ / sharesshares | Nov. 02, 2018USD ($)installment | Jan. 31, 2021USD ($) | Jan. 31, 2020USD ($) | Jan. 31, 2019USD ($) | Jul. 21, 2020 | May 05, 2020USD ($) |
Debt Instrument [Line Items] | ||||||||
Term loan and revolving credit facility | $ 0 | $ 20,000 | ||||||
Debt prepayment fee | 0 | 300 | $ 0 | |||||
Debt extinguishment cost | $ 0 | (1,073) | $ 0 | |||||
Second Amended And Restated Loan And Security Agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 4.50% | |||||||
Remaining borrowing capacity | $ 50,000 | |||||||
Second Amended And Restated Loan And Security Agreement | Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit borrowing capacity | $ 50,000 | |||||||
Term loan and revolving credit facility | 20,663 | |||||||
Debt expiration period (in years) | 5 years | |||||||
Annual commitment fee | 125 | |||||||
Early termination penalty | 187 | |||||||
Monthly decrease in contract | $ 6 | |||||||
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 related fees incurred | $ 531 | |||||||
Debt prepayment fee | 406 | |||||||
Line of credit entrance fee | $ 125 | |||||||
Second Amended And Restated Loan And Security Agreement | Revolving Credit Facility | Before EBITDA Benchmark | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest percentage | 4.50% | |||||||
Second Amended And Restated Loan And Security Agreement | Revolving Credit Facility | After EBITDA Benchmark | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest percentage | 4.00% | |||||||
Second Amended And Restated Loan And Security Agreement | Revolving Credit Facility | Prime Rate | After EBITDA Benchmark | ||||||||
Debt Instrument [Line Items] | ||||||||
Variable rate | 0.50% | |||||||
Second Amended And Restated Loan And Security Agreement Optional Capacity Increase | Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit borrowing capacity | $ 65,000 | |||||||
Term Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Borrowing capacity | $ 20,000 | |||||||
Number of warrants (in shares) | shares | 150,274 | |||||||
Exercise price (in USD per share) | $ / shares | $ 8.02 | |||||||
Debt extinguishment cost | $ 1,073 | |||||||
Term Loan | Prime Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Variable rate | 1.50% | |||||||
Insurance Premium Financing Agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Term loan and revolving credit facility | $ 673 | |||||||
Stated interest percentage | 2.60% | |||||||
Vendor Financing Agreement Maturing May 2023 | ||||||||
Debt Instrument [Line Items] | ||||||||
Term loan and revolving credit facility | 133 | |||||||
Stated interest percentage | 2.94% | |||||||
Borrowing capacity | $ 174 | |||||||
Periodic debt payments | $ 46 | |||||||
Vendor Financing Agreement Maturing June 2022 | ||||||||
Debt Instrument [Line Items] | ||||||||
Term loan and revolving credit facility | $ 504 | |||||||
Stated interest percentage | 9.83% | |||||||
Borrowing capacity | $ 1,256 | |||||||
Periodic debt payments | $ 183 | |||||||
Number of debt payments | installment | 3 |
Debt and Finance Lease Liabil_5
Debt and Finance Lease Liabilities - Schedule of long-term debt maturities (Detail) - USD ($) $ in Thousands | Jan. 31, 2021 | Jan. 31, 2020 |
Total | ||
2022 | $ 4,965 | |
2023 | 3,629 | |
2024 | 2,284 | |
2025 | 302 | |
2026 | 155 | |
Total debt and finance lease liabilities, before original issue discount | 11,335 | $ 24,801 |
Debt | ||
2022 | 1,145 | |
2023 | 439 | |
2024 | 49 | |
2025 | 0 | |
2026 | 0 | |
Total long-term debt payments | 1,633 | |
Finance Leases | ||
2022 | 3,820 | |
2023 | 3,190 | |
2024 | 2,235 | |
2025 | 302 | |
2026 | 155 | |
Total finance lease liabilities | $ 9,702 | $ 3,612 |
Debt and Finance Lease Liabil_6
Debt and Finance Lease Liabilities - Schedule of interest income (expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Debt Disclosure [Abstract] | |||
Interest expense | $ (1,695) | $ (3,043) | $ (3,510) |
Interest income | 122 | 598 | 6 |
Interest (expense) income, net | $ (1,573) | $ (2,445) | $ (3,504) |
Stockholder's Equity - Common S
Stockholder's Equity - Common Stock, Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Oct. 23, 2020 | Oct. 31, 2020 | Jan. 31, 2021 | Jan. 31, 2020 | Jul. 22, 2019 |
Equity [Abstract] | |||||
Common stock authorized (in shares) | 500,000,000 | 500,000,000 | 500,000,000 | ||
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 | $ 0.01 | ||
Stock issued during period (in shares) | 5,750,000 | 5,750,000 | |||
Share price (in USD per share) | $ 32 | $ 32 | |||
Net proceeds of stock issuance | $ 174,800 | $ 174,510 | $ 124,370 | ||
Issuance costs | $ 290 | $ 6,412 |
Equity-based compensation - Add
Equity-based compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | Jun. 30, 2019 | Jan. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Granted (in shares) | 0 | 1,230,382 | |||||
Intrinsic value | $ 33,575 | $ 13,960 | $ 1,355 | ||||
Unrecognized compensation cost to stock option | $ 3,972 | $ 3,972 | |||||
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% | ||||||
Stock-based compensation expense | $ 2,703 | $ 2,780 | $ 1,447 | ||||
Weighted average term for recognition (in years) | 1 year 9 months 25 days | ||||||
Incremental expense associated with the modification of stock options | $ 385 | ||||||
Weighted average fair market value of grants (in USD per share) | $ 4.99 | $ 3.47 | |||||
ESPP | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares available for future 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 | $ 10,693 | $ 3,356 | |||||
Weighted average term for recognition (in years) | 3 years 3 months 18 days | ||||||
Shares granted (in shares) | 972,271 | 1,493,678 | 0 | ||||
Unrecognized compensation costs | $ 48,588 | $ 48,588 | |||||
Shares available to vest (in shares) | 2,053,038 | 1,447,418 | 2,053,038 | 1,447,418 | 20,164 | ||
Restricted Stock Units (RSUs) | Executive Officer | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares granted (in shares) | 0 | ||||||
Restricted Stock Units (RSUs) | Vital Score | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock-based compensation expense | $ 33 | $ 40 | |||||
Unrecognized compensation costs | $ 58 | $ 58 | |||||
Weighted average fair market value of grants (in USD per share) | $ 32.78 | $ 21.31 | |||||
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% | ||||||
Performance based restricted stock units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Percentage of vest option | 100.00% | ||||||
Stock-based compensation expense | $ 93 | ||||||
Weighted average term for recognition (in years) | 3 years | ||||||
Shares granted (in shares) | 70,806 | ||||||
Unrecognized compensation costs | $ 5,882 | $ 5,882 | |||||
Weighted average fair market value of grants (in USD per share) | $ 84.38 | ||||||
Shares available to vest (in shares) | 141,612 | 141,612 | |||||
Performance based restricted stock units | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Percentage of vest option | 0.00% | ||||||
Performance based restricted stock units | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Percentage of vest option | 200.00% | ||||||
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 shares reserved for future issuance | 5.00% | ||||||
Shares available for future grant (in shares) | 2,256,810 | 2,256,810 | |||||
Employee Stock Purchase Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares available for future grant (in shares) | 855,873 | 855,873 |
Equity-based compensation - Wei
Equity-based compensation - Weighted Average Assumptions (Detail) - Stock Options - $ / shares | 12 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 2.18% | 2.81% |
Expected dividends | 0.00% | 0.00% |
Expected term (in years) | 6 years 3 months | 6 years 3 months |
Volatility | 45.15% | 40.00% |
Weighted average fair value of grants (in USD per share) | $ 4.99 | $ 3.47 |
Equity-based compensation - Sto
Equity-based compensation - Stock Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Number of options | ||
Number of options outstanding at beginning of period (in shares) | 5,516,452 | 5,055,505 |
Granted (in shares) | 0 | 1,230,382 |
Exercised (in shares) | (2,216,368) | (691,371) |
Forfeited and expired (in shares) | (88,730) | (78,064) |
Number of options outstanding at end of period (in shares) | 3,211,354 | 5,516,452 |
Exercisable (in shares) | 2,315,820 | 3,824,259 |
Amount vested at the end of the period (in shares) | 709,435 | 978,170 |
Weighted- average exercise price | ||
Weighted- average exercise price outstanding at beginning of period (in USD per share) | $ 3.80 | $ 2.45 |
Granted (in USD per share) | 0 | 8.78 |
Exercised (in USD per share) | 2.39 | 2.62 |
Forfeited and expired (in USD per share) | 7.45 | 5.20 |
Weighted- average exercise price outstanding at end of period (in USD per share) | 4.67 | 3.80 |
Exercisable (in USD per share) | 3.62 | 2.41 |
Amount vested at the end of the period (in USD per share) | $ 6.31 | $ 5.31 |
Weighted-average remaining contractual life of options outstanding and expected to vest | 5 years 11 months 26 days | 6 years 2 months 19 days |
Weighted-average remaining contractual life of options exercisable | 5 years 3 months 18 days | 5 years 1 month 28 days |
Aggregate intrinsic value of options outstanding and expected to vest | $ 194,676 | $ 150,152 |
Aggregate intrinsic value of options exercisable | $ 142,824 | $ 109,351 |
Equity-Based Compensation - Sch
Equity-Based Compensation - Schedule of Restricted Stock Units (Detail) - Restricted Stock Units (RSUs) - shares | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Restricted Stock Unit Activity: | |||
Beginning balance (in shares) | 1,447,418 | 20,164 | |
Granted (in shares) | 972,271 | 1,493,678 | 0 |
Vested (in shares) | (242,049) | (43,011) | |
Forfeited and expired (in shares) | (124,602) | (23,413) | |
Ending balance (in shares) | 2,053,038 | 1,447,418 | 20,164 |
Equity-Based Compensation - S_2
Equity-Based Compensation - Schedule of Performance Stock Units (Details) - Performance based restricted stock units | 12 Months Ended |
Jan. 31, 2021$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Correlation coefficient | 0.4230 |
Valuation date stock price (in USD per share) | $ 62.96 |
Expected term (in years) | 3 years |
Volatility | 43.71% |
Risk-free interest rate | 0.20% |
Dividend yield | 0.00% |
Weighted average fair market value of grants (in USD per share) | $ 84.38 |
Stock warrants - Additional Inf
Stock warrants - Additional Information (Details) - Common stock - $ / shares | Nov. 06, 2020 | Jan. 31, 2021 | Jan. 31, 2020 |
Class of Warrant or Right [Line Items] | |||
Number of warrants (in shares) | 0 | 75,137 | |
Exercise price (in USD per share) | $ 8.02 | ||
Common stock issued upon the exercise of warrants (in shares) | 60,338 |
Fair value measurements - Sched
Fair value measurements - Schedule of assets and liabilities measured at fair value (Detail) - Fair Value, Recurring - USD ($) | Jan. 31, 2021 | Jan. 31, 2020 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Money market mutual funds | $ 197,522,000 | $ 86,600,000 |
Foreign currency derivative contracts | 148,000 | 58,000 |
Total assets | 197,670,000 | 86,658,000 |
Acquisition related contingent consideration liabilities | (1,286,000) | |
Total liabilities | (1,286,000) | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Money market mutual funds | 197,522,000 | 86,600,000 |
Foreign currency derivative contracts | 0 | 0 |
Total assets | 197,522,000 | 86,600,000 |
Acquisition related contingent consideration liabilities | 0 | |
Total liabilities | 0 | |
Significant Other Observable Inputs (Level 2) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Money market mutual funds | 0 | 0 |
Foreign currency derivative contracts | 148,000 | 58,000 |
Total assets | 148,000 | 58,000 |
Acquisition related contingent consideration liabilities | 0 | |
Total liabilities | 0 | |
Significant Unobservable Inputs (Level 3) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Money market mutual funds | 0 | 0 |
Foreign currency derivative contracts | 0 | 0 |
Total assets | 0 | $ 0 |
Acquisition related contingent consideration liabilities | (1,286,000) | |
Total liabilities | $ (1,286,000) |
Fair value measurements - Addit
Fair value measurements - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gain (loss) on foreign currency forward contracts | $ 60,000 | $ (49,000) |
Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency derivative contracts | 148,000 | 58,000 |
Significant Other Observable Inputs (Level 2) | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency derivative contracts | 148,000 | 58,000 |
Significant Unobservable Inputs (Level 3) | QueueDr | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration liabilities payable | 1,549,000 | |
Significant Unobservable Inputs (Level 3) | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency derivative contracts | $ 0 | $ 0 |
Fair value measurements - Sch_2
Fair value measurements - Schedule of Contingent Consideration Liabilities (Details) - QueueDr $ in Thousands | 1 Months Ended |
Jan. 31, 2021USD ($) | |
Business Combination, Contingent Consideration Liability [Roll Forward] | |
Change in fair value recognized in earnings | $ 71 |
Settlements | (1,025) |
Balance at January 31, 2021 | $ 1,286 |
Leases - Narrative (Detail)
Leases - Narrative (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Jan. 31, 2021 | Feb. 01, 2020 | Jan. 31, 2020 | [1] | ||
Lessee, Lease, Description [Line Items] | |||||
Weighted average remaining lease term of operating leases | 2 years 7 months 6 days | ||||
Weighted average discount rate of operating leases | 3.50% | ||||
Weighted average remaining lease term of finance leases | 2 years 8 months 12 days | ||||
Weighted average discount rate of finance leases | 4.40% | ||||
Lease right-of-use assets | $ 2,654 | [1] | $ 2,741 | $ 0 | |
Operating cash used for operating leases | 1,629 | ||||
Subscription And Related Services | |||||
Lessee, Lease, Description [Line Items] | |||||
Subscription and related services revenue | $ 6,312 | ||||
Computer equipment | Minimum | |||||
Lessee, Lease, Description [Line Items] | |||||
Lease period | 2 years | ||||
Computer equipment | Maximum | |||||
Lessee, Lease, Description [Line Items] | |||||
Lease period | 3 years | ||||
[1] | Figures as of January 31, 2021 reflect the Company's February 1, 2020 adoption of Accounting Standards Codification No. 842, Leases (ASC 842) . For additional details, see Note 3(ac), "Summary of significant accounting policies — Impact of recently adopted accounting pronouncements." |
Leases - Schedule of operating
Leases - Schedule of operating and finance leases (Details) - USD ($) $ in Thousands | Jan. 31, 2021 | Feb. 01, 2020 | Jan. 31, 2020 | |||
Leases [Abstract] | ||||||
Operating Lease, Liability, Statement of Financial Position [Extensible List] | us-gaap:Liabilities | |||||
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property and equipment, net of accumulated depreciation and amortization of $40,148 and $35,551 | |||||
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Long-term debt and finance lease liabilities | |||||
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Long term debt and finance lease liabilities | |||||
Lease right-of-use assets | $ 2,654 | [1] | $ 2,741 | $ 0 | [1] | |
Lease liabilities, current | [1] | 1,087 | 0 | |||
Lease liabilities, noncurrent | [1] | 1,899 | 0 | |||
Total operating lease liabilities | 2,986 | |||||
Property and equipment, at cost | 19,933 | |||||
Accumulated depreciation | (10,389) | (7,724) | ||||
Property and equipment, net | 9,544 | |||||
Lease liabilities (included in Current portion of debt and finance leases) | 3,820 | |||||
Lease liabilities, noncurrent (included in Long-term debt and finance leases) | 5,882 | |||||
Total finance lease liabilities | $ 9,702 | $ 3,612 | ||||
[1] | Figures as of January 31, 2021 reflect the Company's February 1, 2020 adoption of Accounting Standards Codification No. 842, Leases (ASC 842) . For additional details, see Note 3(ac), "Summary of significant accounting policies — Impact of recently adopted accounting pronouncements." |
Leases - Schedule of lease expe
Leases - Schedule of lease expenses (Details) $ in Thousands | 12 Months Ended |
Jan. 31, 2021USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 1,766 |
Variable lease cost | 257 |
Total operating lease cost | 2,023 |
Amortization of right-of-use assets | 2,876 |
Interest on lease liabilities | 326 |
Total finance lease cost | $ 3,202 |
Leases - Schedule of maturing l
Leases - Schedule of maturing lease payments (Details) - USD ($) $ in Thousands | Jan. 31, 2021 | Jan. 31, 2020 |
Operating | ||
2022 | $ 1,171 | |
2023 | 1,142 | |
2024 | 760 | |
2025 | 52 | |
2026 | 0 | |
Total future minimum lease payments | 3,125 | |
Less: interest | (139) | |
Total operating lease liabilities | 2,986 | |
Finance | ||
2022 | 4,142 | |
2023 | 3,356 | |
2024 | 2,294 | |
2025 | 316 | |
2026 | 158 | |
Total future minimum lease payments | 10,266 | |
Less: interest | (564) | |
Finance leases | $ 9,702 | $ 3,612 |
Leases - Schedule of future min
Leases - Schedule of future minimum lease payments (Details) $ in Thousands | Jan. 31, 2020USD ($) |
Leases [Abstract] | |
2021 | $ 1,824 |
2022 | 819 |
2023 | 464 |
2024 | 277 |
Total operating lease payments | $ 3,384 |
Leases - Schedule of supplement
Leases - Schedule of supplemental cash flow information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | ||
Leases [Abstract] | ||||
Operating cash used for operating leases | $ 1,629 | |||
Operating cash used for finance leases | 326 | |||
Financing cash used for finance leases | 2,630 | $ 1,898 | $ 2,470 | |
Total cash paid in measurement of lease liabilities | 4,585 | |||
Operating | [1] | 4,359 | $ 0 | $ 0 |
Finance | 8,885 | |||
Total right-of-use assets in exchange for lease liabilities | $ 13,244 | |||
[1] | Includes $2,741 initial right of use asset recorded upon adoption of ASC 842. |
Income taxes - Additional Infor
Income taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Operating Loss Carryforwards [Line Items] | |||
(Provision for) benefit from income taxes | $ (49,000) | $ 1,780,000 | $ 0 |
Effective tax rate | 0.00% | 8.00% | 0.00% |
Valuation allowance | $ (54,563,000) | $ (35,369,000) | |
Tax examination, penalties and interest accrued | 0 | ||
Domestic Tax Authority | |||
Operating Loss Carryforwards [Line Items] | |||
Accumulated federal net operating loss carryforward | 199,079,000 | $ 124,512,000 | $ 100,000,000 |
Foreign Tax Authority | |||
Operating Loss Carryforwards [Line Items] | |||
Accumulated federal net operating loss carryforward | $ 2,485,000 |
Income taxes - Components of ta
Income taxes - Components of tax (benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Current tax | |||
Federal | $ 0 | $ 0 | |
State | 114 | ||
Foreign | 0 | (1,005) | |
Deferred tax | |||
Federal | (116) | 0 | |
State | (65) | ||
Foreign | 116 | (775) | |
Total income tax expense (benefit) | $ 49 | $ (1,780) | $ 0 |
Income taxes - Effective tax ra
Income taxes - Effective tax rate reconciliation (Details) | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Federal income tax benefit at statutory rate | 21.00% | 21.00% | |
State and local tax, net of federal benefit | 10.00% | 3.00% | |
Permanent differences | 0.00% | (2.00%) | |
Equity compensation | 44.00% | 7.00% | |
Foreign taxes | 0.00% | 8.00% | |
Other | (4.00%) | (4.00%) | |
Change in valuation allowance | (71.00%) | (25.00%) | |
Effective income tax rate | 0.00% | 8.00% | 0.00% |
Income taxes - Company's Deferr
Income taxes - Company's Deferred Tax Assets and Deferred Tax Liabilities (Detail) - USD ($) $ in Thousands | Jan. 31, 2021 | Jan. 31, 2020 |
Deferred tax assets | ||
Net operating loss carryforwards | $ 51,973 | $ 33,641 |
Stock based compensation | 1,162 | 1,340 |
Accruals, reserves, and other expenses | 2,823 | 329 |
Reserve for bad debts | 443 | 251 |
Disallowed interest expense | 1,586 | 1,358 |
Depreciation and amortization | 0 | 106 |
Total deferred tax assets | 57,987 | 37,025 |
Less valuation allowance | (54,563) | (35,369) |
Net deferred tax assets | 3,424 | 1,656 |
Depreciation and amortization | (1,568) | 0 |
Intangible assets | (440) | 0 |
Deferred contract acquisition costs | (758) | (881) |
Total deferred tax liabilities | (2,766) | (881) |
Deferred taxes, net | $ 658 | $ 775 |
Income taxes - Unrecognized tax
Income taxes - Unrecognized tax benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Unrecognized income tax benefits, opening balance | $ 0 | $ 1,000 |
Increase for income tax positions of prior years | 0 | 0 |
Lapse of statute of limitations | 0 | (1,000) |
Unrecognized income tax benefits, ending balance | $ 0 | $ 0 |
Net loss per share attributab_3
Net loss per share attributable to common stockholders - Schedule of computation (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Numerator: | |||
Net loss | $ (27,292) | $ (20,293) | $ (15,062) |
Preferred stock dividends paid | 0 | (14,955) | 0 |
Accretion of redeemable convertible preferred stock to redemption value | 0 | (56,175) | (30,199) |
Net loss attributable to common stockholders, basic and diluted | $ (27,292) | $ (91,423) | $ (45,261) |
Denominator: | |||
Weighted-average shares of common stock outstanding, basic and diluted (in shares) | 39,519,640 | 20,301,189 | 1,844,929 |
Net loss attributable to common stockholders (in USD per share) | $ (0.69) | $ (4.50) | $ (24.53) |
Net loss per share attributab_4
Net loss per share attributable to common stockholders - Schedule of antidilutive securities (Detail) - shares | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 5,406,004 | 7,039,007 | 31,205,249 |
Convertible preferred (as converted to common stock) | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 0 | 25,311,535 |
Stock options to purchase common stock, restricted stock units and performance stock units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 5,406,004 | 6,963,870 | 5,055,505 |
Warrants | Preferred stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 0 | 581,798 |
Warrants | Common stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 75,137 | 256,411 |
Retirement savings plan (Detail
Retirement savings plan (Detail) - USD ($) | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Retirement Benefits [Abstract] | |||
Company contributions | $ 0 | $ 0 | $ 0 |
Related party transactions (Det
Related party transactions (Detail) - Affiliated Entity - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Related Party Transaction [Line Items] | |||
Recognized revenue | $ 2,425 | $ 5,318 | $ 5,181 |
Accounts receivable | $ 2,072 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) | Jan. 08, 2021USD ($) | Dec. 04, 2018USD ($)installment$ / sharesshares | Jan. 31, 2021USD ($) |
QueueDr | |||
Business Acquisition [Line Items] | |||
Percentage of equity acquired | 100.00% | ||
Cash consideration | $ 5,773,000 | ||
Liabilities incurred | 2,111,000 | ||
Contingent consideration | $ 2,240,000 | ||
Weighted average amortization period | 7 years 4 months 24 days | ||
Acquisition related costs | $ 282,000 | ||
QueueDr | Maximum | |||
Business Acquisition [Line Items] | |||
Contingent consideration liability | $ 2,574,000 | ||
Vital Score | |||
Business Acquisition [Line Items] | |||
Cash consideration | $ 1,540,000 | ||
Weighted average amortization period | 5 years 9 months 18 days | ||
Common stock issued (in shares) | shares | 40,327 | ||
Common stock and contingent consideration vesting percentage at closing | 50.00% | ||
Common stock and contingent consideration vesting percentage after first year | 50.00% | ||
Number of common stock vesting installments | installment | 4 | ||
Business acquisition shares value (in USD per share) | $ / shares | $ 8.03 | ||
Contingent consideration, up to | $ 750,000 | ||
Vital Score | Maximum | |||
Business Acquisition [Line Items] | |||
Estimated useful life (in years) | 7 years | ||
Vital Score | Minimum | |||
Business Acquisition [Line Items] | |||
Estimated useful life (in years) | 5 years | ||
Vital Score | Payable upon the closing of the acquisition | |||
Business Acquisition [Line Items] | |||
Cash consideration | $ 1,190,000 | ||
Common stock issued (in shares) | shares | 20,164 | ||
Business acquisition shares value (in USD per share) | $ / shares | $ 8.03 | ||
Vital Score | Payable on the first anniversary | |||
Business Acquisition [Line Items] | |||
Cash consideration | $ 350,000 |
Acquisitions - Summary of Queue
Acquisitions - Summary of QueueDr Purchase Price Consideration (Detail) - QueueDr $ in Thousands | Jan. 08, 2021USD ($) |
Business Acquisition [Line Items] | |
Cash consideration | $ 5,773 |
Liabilities incurred | 2,111 |
Contingent consideration | 2,240 |
Total fair value of acquisition consideration | $ 10,124 |
Acquisitions - Summary of Que_2
Acquisitions - Summary of QueueDr Net Purchase Price Consideration (Details) - USD ($) $ in Thousands | Jan. 08, 2021 | Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 |
Business Acquisition [Line Items] | ||||
Cash paid for acquisition of QueueDr, net of cash acquired per statement of cash flows | $ 6,510 | $ 0 | $ 1,190 | |
QueueDr | ||||
Business Acquisition [Line Items] | ||||
Cash consideration | $ 5,773 | |||
Payments of acquisition date fair value of contingent consideration | 954 | |||
Cash Acquired from Acquisition | (217) | |||
Cash paid for acquisition of QueueDr, net of cash acquired per statement of cash flows | $ 6,510 |
Acquisitions - Schedule of Fina
Acquisitions - Schedule of Final Allocation of QueueDr Purchase Price (Detail) - USD ($) $ in Thousands | Jan. 31, 2021 | Jan. 08, 2021 | Jan. 31, 2020 | Jan. 31, 2019 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 8,307 | $ 250 | $ 250 | |
QueueDr | ||||
Business Acquisition [Line Items] | ||||
Cash | $ 217 | |||
Accounts receivable | 455 | |||
Other prepaid expenses and other current assets | 192 | |||
Intangible assets | 1,780 | |||
Deferred tax asset | 262 | |||
Goodwill | 8,057 | |||
Other assets | 223 | |||
Total assets acquired | 11,186 | |||
Accounts payable | (86) | |||
Accrued liabilities | (254) | |||
Deferred revenue | (55) | |||
Total long-term debt and finance lease maturities | (223) | |||
Deferred tax liability | (444) | |||
Total purchase price | $ 10,124 |
Acquisitions - Schedule of Inta
Acquisitions - Schedule of Intangible Asset Acquired Related to QueueDr Acquisition (Detail) - USD ($) $ in Thousands | Jan. 08, 2021 | Jan. 31, 2021 |
Acquired technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Useful life (in years) | 5 years | |
Customer relationship | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Useful life (in years) | 10 years | |
QueueDr | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Identifiable intangible assets acquired | $ 1,780 | |
QueueDr | Acquired technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Identifiable intangible assets acquired | $ 920 | |
Useful life (in years) | 5 years | |
QueueDr | Customer relationship | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Identifiable intangible assets acquired | $ 860 | |
Useful life (in years) | 10 years |
Acquisitions - Summary of Initi
Acquisitions - Summary of Initial Purchase Price Consideration (Detail) - Vital Score $ / shares in Units, $ in Thousands | Dec. 04, 2018USD ($)$ / sharesshares |
Business Acquisition [Line Items] | |
Common stock issued (in shares) | shares | 40,327 |
Business acquisition shares value (in USD per share) | $ / shares | $ 8.03 |
Cash consideration | $ 1,540 |
Common stock issued (20,164 shares at $8.03 per share) | 162 |
Total fair value of acquisition consideration | $ 1,702 |
Payable upon the closing of the acquisition | |
Business Acquisition [Line Items] | |
Common stock issued (in shares) | shares | 20,164 |
Business acquisition shares value (in USD per share) | $ / shares | $ 8.03 |
Cash consideration | $ 1,190 |
Acquisitions - Schedule of Fi_2
Acquisitions - Schedule of Final Allocation of Purchase Price (Detail) - USD ($) $ in Thousands | Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | Dec. 04, 2018 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 8,307 | $ 250 | $ 250 | |
Vital Score | ||||
Business Acquisition [Line Items] | ||||
Property and equipment | $ 5 | |||
Goodwill | 250 | |||
Total assets acquired | 1,725 | |||
Accounts payable | (23) | |||
Total purchase price | 1,702 | |||
Vital Score | Acquired technology | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | 490 | |||
Vital Score | Customer relationships | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | $ 980 |
Uncategorized Items - phr-20210
Label | Element | Value |
QueueDr [Member] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationsRecurringBasisLiabilityValue | $ 2,240,000 |