PHR - Earnings call transcript Q4 2020

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Operator

Good morning, ladies and gentlemen, and welcome to the Phreesia Fiscal Fourth Quarter and Full Year 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session, and instructions will follow at that time.

I would now like to introduce Balaji Gandhi, Vice President Investor Relations, for Phreesia. Mr. begin. may you Gandhi,

Balaji Gandhi

Good the welcome fiscal fourth on which operator. conference year Phreesia’s call ended XXXX. XX, for quarter January morning you, to and earnings XXXX, Thank and full

Chief are: today’s on Officer Chaim Altier; Sciences, President call Senior Phreesia David Financial Participating Chief Linetsky. Tom Officer, from and Executive Co-Founder, Vice Life and Indig;

Following from Chaim a session. prepared and conduct remarks Q&A Tom, we will

our earnings related of the results our X-K are well can press our release our in as which issued at disclosure website the Complete as Investor to found in Form submission of of SEC, evening, yesterday be ir.phreesia.com. Relations both section on available

today’s will is the the following a recorded and of call be reminder, available a replay conclusion As being call.

forward-looking provisions future our Safe to statements Section growth Act, partnerships, long-term expected make statements relating Section launches contained Act in Exchange the During pursuant for of our prospects. and of statements of expected today’s products Harbor future business, services, the Securities strategy, and XXE including overall of our financial to XXA results, and we the forward-looking Securities call, the will performance

or to These materially uncertainties, that with SEC included in results risks, which be statements from XX-K, known will and those subject cause later call, filed actual the those our are unknown could in this Risk Factors to and implied today. projected particular in during differ described our Form

obligation of except as today, applicable on You of assumptions events. should undertake beliefs this on not them based as law. predictions forward-looking we future are and statements and update by rely statements forward-looking we no call our All required that make on to as

in in supplemental isolation results. XX the and on to Relations in be measures to furnished refer should our found materials, a also in Accounting Generally the financial A April found be addition results may non-GAAP Form website measures additional investors. from with information release to We and in and after considered our as provide reconciliation or X-K substitute Accepted our to ir.phreesia.com. not with earnings will to may not for SEC accordance non-GAAP order Investor at on filed with which of These also our certain Principles GAAP GAAP be were closed markets

now I Chaim to will our call the Indig. turn over CEO,

Chaim Indig

Balaji. you, different a And appreciate this everyone. in. for we your challenging today’s we listening all we to morning, patience that out Thank on hope managing Want are locations, you Good as so We this is know are everyone through as participating X with from very us. possible. point call well time

to like dedication. healthcare their provider We’d acknowledge of the COVID-XX for and all professionals of organizations frontline the pandemic the medical and on bravery

by Our Tom? CFO, Altier, our fiscal year XXXX today’s reviewing will Tom full and results. begin quarter fourth call

Tom Altier

Thank you, Chaim.

results. XX% quarter revenue, the million, was fiscal with our growth. with $XX.X Provider contributing subscription factors which combines our million, year-over-year. XXXX $XX.X following fourth to up year-over-year, up start Let’s revenue, was Revenue and payments XX%

was and adjusted and an The million, average provider $X.X XX% up per clients revenue Life provider $XX,XXX, $XXX,XXX million, our over EBITDA client up year-over-year, average year-over-year. even was year-over-year, X% number of XXXX, year-over-year. was was up our Sciences XX% revenue $X up

to $XXX.X $XXX.X full the the million, XX% was And to turn Revenue revenue provider XX% growth. million, factors contributing up year. following year-over-year. Let’s fiscal with was year-over-year, up

client up X% $X.X million average up and adjusted XX% million, up year-over-year $XX.X per The average $XX,XXX, revenue was clients XX%, was year-over-year. of provider up year-over-year, was EBITDA $X.X Life provider year-over-year. the number revenue million, and Sciences was X,XXX

our with million XXXX Cash And operations. cash the credit, We credit sheet. $XX in positive operations $XX undrawn. $XX borrowings cash we We flow a first over representing our year fiscal just of from on was line under ended and which have million is had $X from $XXX,XXX, million year-over-year balance improvement revolving facility. with ever flow a of million outstanding

entire delivering of and year. and extremely into of for life their end team would our we for and our sales these implementation proud strong acknowledge like results teams sciences push team We’re our the the to provider fiscal particularly

is There questions. release over with and our to quarter Form to will year call and back turn we in I detail and XX-K, additional our XXXX in review earnings fiscal them results full you press fourth the now follow-up and Chaim. encourage any

Chaim Indig

Tom. you, Thank

light away how in the with come that Now, turning solid guidelines federal, to for related call and and you the state clients; a current growth. understanding would affecting for are our of current including health, Phreesia’s and like operations, pandemic team’s the near-term of we following and are state second, all local safety are from the state of uncertainty us, today’s ongoing engagement; we to Phreesia the of we engaging how preparing long-term X of third, topics: currently the our and overall first,

and non-essential X, The all of team. restricted the March start state operations our travel. Let’s week we current with of

soon in offices York New City, Ontario North working Carolina, Ottawa And and employees after Raleigh that, remotely. our began

during the had which adapt to significant undertaking proud a a very took this organization. access our is of We ensure challenging to required associated professional time. I transition, to steps am with and resources our team’s to such team personal across challenges resilience our

our and the possible for human services transition entire to team resources IT making acknowledge as like soon I’d team. as for our

on our are team amazing more clients entire for we in been mission how watch our to has Phreesia’s mobilizing to better, clients. a mission is to experience. of pandemic. our wake embody healthcare our responding in the Moving It to engaging create the

Screening at-risk at patient February, began office into we specific few COVID-XX their patients in order Let the to bring to their automation same clients process intake me provider to triage our putting infection. avoid share process in risk Phreesia their asking of bring a and Back examples. staff

arrival CDC upon organization. at the quickly or patients factors on and based COVID-XX and change patients we Screening their X.X updating providers before module our for our visit their week We’ve COVID-XX patients screened patient our The the to been module. In module COVID-XX with module take on staffs screener Screening identify We’ve per on guidelines deployed CDC allows arrive to times alerts been February, based guideline. appointment as risk they million appropriate client multiple have to change able across responses. actions and

to platform an for to patient virtual in our also provider automation seamlessly and bringing practice virtual for with us about visit to visit systems. processes and of payments electronic information, our clients A management talk integrates to began in records to visits. visits need health the Many platform patients is deliveries Phreesia’s collects similar check in-person virtual visit, in-person most

visit Phreesia education about includes ahead the mobile, the we In which March, visit introduced using pre-register Phreesia Intake Telehealth. for work. how will Patients of

waiting Just We before including information to work vendors session, such Doxy.me. Teams, many telehealth for receive Amwell, as alongside patients appointment, the specific link the Zoom, InTouch and and virtual a enter Microsoft instructions Health room. the

base the include no of is telehealth offering our registration decision to cost We for additional to clients. part intake made have at

preparing for are We physical reliant a the room. future less is on waiting that

weeks. You clients marketing product like engineering can our the COVID-XX sign-up management initiatives offerings to on their find to our in Phreesia our website. bring of and and these product and response important effort just teams to and for I’d acknowledge for matter information all of additional a offerings updates on

November West Health highlight of our with health moment Virginia. Memorial Let went in into non-profit me its a XXXX live Memorial new Ohio a We system locations. clients. take X to and System, serving

will months Memorial past pandemic, the across through outpatient of the rollout the site, clinics Over be half we’ve virtually our COVID-XX the rest of Approximately Memorial’s several of provide rollout Phreesia by our the team. hospitals. our accelerated of platform service and completed

Memorial in discreet with from time, generally they health The Phreesia’s can staff Meditech intake. the roughly patients integration Memorial module is individual patients. Health payment system factors sent bidirectional patients and so Phreesia’s COVID-XX exposure. demographic is automatically symptoms more for is leveraging patient’s To and self-reported understand The to status. System capture has screened to fully using including available to now data XX,XXX screen risk during currently Screening real date, information

Intake, care is X solution in-patient or To mobile in waiting is how visit, department supports check-in good Memorial is room intake from workflows, clinic in That environment. using deliver no Memorial’s clients using work for Memorial patients clinic also telehealth. with of cars. to challenging a COVID-XX. urgent and during emergency continued one Memorial Phreesia’s more homes live is for Zero-Contact which exposure locations, Phreesia’s patient’s this minimize example Phreesia including for

do pandemic’s the address and for long-term our the thing now how are we clients, and our for our a the on employees right me Phreesia taking preparing investors. are for to near-term of impact believe steps we’re Let for and growth. uncertainty lot We

number of reduce our sciences revenues client life by our SEC related with we visits filed business the locations our clients, driven revenue to As growth our X-K subscription payment it in certain on will in If relies streams. X, patient our engagement. and the April processing on services, decline, are disclosed and of success part and provider patient the

For as a impact impact Phreesia’s XXXX, processing pandemic. patient are week COVID-XX clients’ shift increasingly providers in the visits could XXXX. we XX, patient visits in visits but week away visit April fiscal XXXX, canceled were or Despite in-person predict, the in-patient quarter to of telehealth to we decline March ending of the March difficult slow increase just nonessential the The The ending our visit, provide significant virtual to for the clients and reschedule. will future visits believe patient during on XX, XX% ending as care. and decline the patient elective compared experiencing visits is experience revenue X, continue decline from trends our total towards provider directly life payment sciences

offering with our visit. non-urgent, helping for is oriented telehealth intake believe patients engaged our certain non-procedure virtually We for clients the

the would sales And and disruptions office our be client loss restrictions. subscription Our implementations wake processes, services and of provider travel by of revenue to the impacted COVID-XX, of closures negatively current clients. in related because

economic we we even Many for business which has more remains cycles as his have have asked I through ourselves the course will cycles. CFO this how Phreesia seen situation our Evan At flux. impact COVID-XX the years negatively XX led extent of Tom the the investors us career. of several to for over are in as positioning a time, predict long-term. cannot our and

are the support priorities comfortable we Making and health our for our position, a welfare third, widely it’s important value in of current best for current we are how focused our first, clients. rapidly sheet; and maintain Intake balance our maintain are critical abilities; clients. of on: value we and examples liquidity available Here Zero-Contact the our solid take we our delivering navigating team, coronavirus to employees’ are environment care of screener, are with second, Telehealth Intake the to believe our

related restrictions to to do XX, federal, January the how move will ending questions, we place. and XXXX fiscal local for guidelines current address on and long XXXX. guidance I’d like know on to our Before We view not pandemic in stay state

from we to Once the Our and treatments, will pace patients are visits elective has guidelines currently restrictions clients seeing from elective do loosen restricted recovery be extended removed, begin for new but treatment. impact know of not what the be. beyond on

For for these reasons, fiscal XXXX. providing be not will guidance we

Operator, call now can That open-up concludes remarks. we pre-prepared the questions. our for

Operator

Thank Morgan. open. Anne, your you. our session. Instructions] At line be from comes [Operator Samuel question the question-and-answer line conducting will is we time, J.P. of first Anne this Your with

Anne Samuel

software Hi, decisions in all environment, are in hoping selling, what’s to you’re there? guys. the differently you having are Thanks was going on color. made, much maybe being still so really speak business could this to the you I of what helpful sell for seeing around

Chaim Indig

question. the for Thanks Anne. Hey,

I able impacted convert to must current market of been But prospects. the to our sales have selling. That been It’s been have able our has clients. impacted being to of we do some said, We sales say It’s some opportunities. impacted. those entire

is we believe, the asset and comes will we’ve huge team is and workflow a sales in once sales organization clients is remain though term near COVID-XX on And our our Intake what educating asset. that, focused for is a and out really we’ve applications. our strategic our country and screener really Telehealth, the strategic frankly, around seen That helping continue this. What to them of zero-contact

Anne Samuel

going predict what That’s pent-up maybe And and within difficult pent-up really to your basis? providers how they regional to recovery really expecting is for preparing see this practices And to you that see to obviously, are the it? expecting a then, look maybe at if once like. your start they’re But are kind demand expect of it’s helpful. – reopening, demand point on rolling some

Chaim Indig

that, like So Anne, can let – sitting mind that do just – don’t to repeating down. was all get right have questions, that X Balaji next I was me I so you me. them

Anne Samuel

yeah, I really Sure, it’s mean, just…

Chaim Indig

me it To write what out all to and say. tell

Anne Samuel

providers procedures preparing how that are deferred from pent-up that? address demand your to are expecting and you Are being

Chaim Indig

go But a I’m So, their who to get so I did, is – doctors, to cancers and answer probably a question treated. doing need their first, have their I after non-epidemiologist crystal wellness David ball. think visits. will lot I’d that, say, nor on lesion so to a weird defer and there with do I I’d I the to the to, They visit that doctor’s Linetsky, on better is people going be they things I’m they need ball, line I – their think the right, and a is I if say crystal that need because – skin. office need They to understand growing have why quickly what they

And to to. do; go these doctor’s want don’t go office And society is, to it’s we thing their a treat because doctors because a as so, general need fun patients. we my to belief we

been their offices, in back a could keeping their closely patients so and we’ve so them, on themselves, their And turn zero-contact with while staff working they safe workflow.

wait. have. to the the we’ve change it be and physicians believe is even their of contact the can’t to and going those happen, do amount today, And allow with workflow to their staff, partner patients building that patients been And seeing to deploying unnecessary to them. within of product proud they’re able practice limit I’m near- want long-term, people I that really because because to and the that

visit-data night, it’s with And or think a visit April. to is released I we Harvard University, lead patient the that last and it’s used what tonight right at paper the paper we we before, Phreesia midnight Commonwealth our from platform. trends coauthored. on – And is we did that, website and I did available And includes going we midnight Fund now do think through detailed it and –

our advocate the is paper. to publish to and And wanted Harvard I contribute he the today’s SVP order call, to and his publication teams Fund the Sciences, our and research join with Phreesia’s of Commonwealth clients for to David in coauthor Linetsky, really to introduce team closely Life data network paper. patients. of because support We the the And our wanted to work

David that questions trends we’re of So provider that in any sort I’ll point. and defer around to seeing practices

Anne Samuel

Thanks Great. very much.

Chaim Indig

answer I Did question? your

Anne Samuel

You you. did. Thank

Chaim Indig

Anne. doing I hope you’re and Thanks, hope I healthy you’re – safe. Great.

Anne Samuel

Thank you. am. I

You as well.

Operator

with Ryan, is William comes your line of from the question Ryan Your next Daniels line Blair. open.

Ryan Daniels

and Chaim, those on to like-for-like the all the well. you a revenue if capture for business, question Yeah. versus details visit? are Thanks think of for one hope you the we core guys a typical doing about visits office the move telehealth, for what’s

Chaim Indig

It’s Ryan. Thanks, a great question.

an office-based in of what and [even thinking offices. for educated payers, right right especially non-ex] allowed about, forward get and like-for-like the most most [ph] the our has now is to today, and team still, think educated what plans now, a visit with us for I providers our reimbursed lot about of So are providers, me have Medicare on a

of most portion revenue those large and done procedures especially or of over other Obviously, comes from cannot space, ancillary a provided the providers, specialty be said, services. being telehealth. That services in the

to at a often comparable. see impacted are able I But that services, impacted the will Visit level. you’re in the – be visit ancillary telehealth. So near certain volumes that will with be think charges

Ryan Daniels

sitting see some and And about what to environment helpful. But think challenges question, reopen seems offices a go I focus come consumers it X maybe a are say, the people before travel bunch and know sales in offering think wait want car is to with to there room into going sick philosophical product going about as That’s waiting-room, you very COVID-XX. hey, and ability of room in they’re Okay. forward, comfortable your preparing waiting your be more then, with as immediately in, will to the a to the restrictions in like in versus virtual going check-in attractive. on

growth term in curious, think client internally, I’m for you. So and is could Thank the do lining you longer silver potential what a your additions. business this

Chaim Indig

be everyone I the having making bringing and pandemic to because country hopefully workers silver any careful, that our don’t together know other on there really want that lining society healthcare our to impact think than are closer I known say a some I they room going room with don’t would how for as are. exist and want other not in people that time. we’ve necessary waiting people. I it waiting traditional to a is sick potentially to is the think sit

don’t exposure. that think at I risk I And want want and providers staff unnecessary think that to put also their don’t with they

we resources. we a our be where was to patients doctors all in that to position solutions able staff that treat to safe. patients provide that their prioritize us be to environment? and we to to think providers do How of that are we I make allow keep unique And staff employed continue in and sure to

doing And it’s will thing if excited and keep continue over everyone and right importantly, be that else. a the company we the me of, lot again, over could to people think and I most part to be of

to nice been understanding just we’re with where do could whether on So that it’s that’s always able part talking and our product improve, really that’s the implementation. continuously we’ve providers how we or and on whether our possible,

Operator

is Sandler. comes the question next your open. Wieland line of Sean with Piper from Your line Sean,

Sean Wieland

you. morning. Thank Good

many view the most receptive client-base what of will this it? us percentage a your On what you telehealth? adopt for sense has transitioning to can of And of in so Intake specialties Telehealth, give to adopted far? adoption your How are

Chaim Indig

I a don’t so, I So great that’s Sean, think think we’re question. –

what telehealth, we is which that’s looking? of correct, in is the are sort what’s I what’s that think you’re type understood, – seeing I of adoption

Sean Wieland

pockets the to seem be mean, I receptive specialties telehealth. within to quite sense your to transitioning of to trying are your intake, where business of but specifically a I’m yeah, Well, get that

Chaim Indig

do to to So I’m that pass David. is going I’ll over what

which I on some want some And give seeing think color you But, provide it broadly based broadly. adopted. he’ll published, should answer? to What say the I are a we seeing that’s we will think is and – we’re I data to think jump visibility that. in it do David, I

David Linetsky

report Fund highlight – does published question. of the Sure, with Commonwealth Sean, along good rapid we We Harvard and the really uptake telehealth.

We’re XX% specialties, are been on telehealth, to within follow-up volume doing a of that. we did now has on specifically really not over We all about uptake planning certain visit although impressive. report which transition about report seeing

a different certainly between I to think say variability lot it’s see safe of that do we specialties.

have Some transitioning. easy very had a time

an ways to be natural just are was model done but virtual specialties example, many business that a other have obviously can’t were transition procedures health to behavioral transitioning that tougher They in going their do – over. way. consultations, As able to whereas that procedure-based time a

Sean Wieland

All published of report night. report? a key can late was to you are maybe that have the I And right. chance not But that out had through call in findings go some that that last

David Linetsky

but weeks for drops about stopped. starting rapid week on last March through in declines XX really have saw the have visits. those Yeah. the that visit stayed and we about Absolutely. week, in nationally were since, in Overall, a cancel was few by declaration all the think those the talking our to And appointments network. following those of over started weeks what XX%. practices But drop or in saw We volume. next X volumes of March practices And declines low, national visit really rapid Immediately experienced non-essential say, we I see volumes XX about the last the practices emergency, visit all mid-March. all we

finding. those So the the main That weeks was really for of levels. last they can relatively X stable lower

declines states, in the in regions the will New anybody. in surprising England same to greater We found don’t I country the pattern visits in and – think Mid-Atlantic that were although that across be all mirrored declines was those

adoption about number disclosed saw there overall delta more really Nearly to brought XX% visits also of as XX% which in-office made down a decline. we nearly visits steeply. – that telehealth, the had ago. up of dropped down in We down the they to got even weeks That couple was for of

a saw rapid very, telehealth. we again And of very uptake

were about via X those telehealth were generally look March of through XX% and steep And those beginning volume, visit visit declines in now various volume in and declines you on primary the ophthalmology, less weeks, incredibly Again our and over across impacted care we procedural but And and platform. about visits there. the virtually at we’re very and rapid specialties OB-GYN the among saw next saw other March, than [ph] [utterly] specialties, we of surgical dermatology, visit larger oncology none behavioral specialties telehealth that severely that the some also of our back really we reported volume. X%. were and oncology sort smaller If health, running and happening XX, like growth starting of at declines some on

Sean Wieland

Super helpful. Thanks for that…

David Linetsky

[indiscernible] no problem.

Sean Wieland

you. Thank Yeah.

Operator

next Jamie, Jamie line of your comes from open. Your question is Fargo. with the line Stockton Wells

Jamie Stockton

risk want doctor’s month who states to some there, start I But someone people’s might a they maybe so. go wanting will infected or result way hold at that more we as completely maybe COVID-XX? I elective of have Good Sean the to office, how are first this XX% that that visits won’t decline guess, of to to Thanks. Is bit a happening not number should say, visits, to that green is a to been asking. because there in some morning. to is a a to a else happen bucket just be higher guess a their because about put including XX%? around for procedures think us back telehealth start visits. of bucket start and point way little was that I discretionary procedures to about versus don’t follow-up next, elective once what change let’s have people think there up that light if again elective from my they visits, question, sense getting that benefit But behavior between in not procedures by an to on

Chaim Indig

can. we sort David let of I’ll answer that of some on color where the

David Linetsky

Jamie, question. really that’s good a

that also visits, right for those practices. stay to. We to sure I both of apart by saw Non-essential are to are think contributing. mass tease know necessarily we trying factors it’s those go are many that don’t not wanting doctor’s office, We to to distance, if need visits and they difficult the social patients to trying cancellation know are now. very home,

that combination would think of analysis, certainly a I type in one that both certainly not do this will So we there’s quantitatively. published. and take It’s that a be We that of difficult a report did to as follow-up. due something

we Dr. hearing from primary done do practices, of very But anecdotally, our patients to many I patients. have many care from treating Hilary specialty that what clients, again. with they I from to look are amount has heard to our practices treating closely of care been they about here, They practices. we and Hatch and worked And has know their and she both be that tremendous she and to as as really, want forward able that really serious being is possible, really outreach

And how so as quickly schedules thinking they as possible. will they about their fill are

skipping during that patients to that in need outreach pandemic ill patients elective have that as as care active people care of defer procedures. been chronically do can the are that they How well

as So come as of how they allow really when conditions ground to this thinking for. the are out quickly about on possible

Jamie Stockton

campaign. business. say, encounters the conduct of Okay. And used just my let’s intake Historically, the life on other maybe you guys as understanding question, to then my haven’t, sciences all your

by think campaign? an life Should sort some dynamic? visit Can talk is about that single encounter maybe seen just do is as the you’ve business directly to number mitigating great. huge haven’t percentage of some least using you there about my campaign be the while so That’d sense. And volume? of sciences decline being every or decline that you we Or which at impacted opportunity historically could of encounters, that that’s in involved factor a potentially increasing in the as a be encounters been the

David Linetsky

Yeah. Excellent question.

Chaim Indig

David Yeah. I’ll to let answer.

David Linetsky

great a That’s question. Yeah.

think, We of a answer visits. certainly is by decreased impacted are the yes. I number

to We sure a about so always to with positive outcome. us the are make important content very and impactful delivering how patients, the that most most we a very, thoughtful be are to engaged thing patient relevant for driving we

We focus to on continue that.

over really of One well incredible these ways of has that platform been how new to working things these adapted our weeks the to few is watch engagement has patient to the new workflows. last

visit. advance or as mentioned, in-person of all those visit So have visit virtual is engage the – are that either whether that for type to of tasks happen of patients same, is And the a it our in ability visit the is to same. telemedicine Chaim visit all whether via an

we’ve So has in effective been really been which that environment, nice.

criteria, to of terms percentage the patients patients, single think those we some higher And a are that the of – campaign for and criteria are the to adjust right not to relevant accordingly. every In instances, our stick using where using of we what continue we deliver need able most and we’re patients. all to in available pacing

Jamie Stockton

Okay. Thank you.

Operator

is Matthew, Your next question Baird. your comes with open. from the line Gillmor of Matthew line

Matthew Gillmor

have backlog ask about I you like quarter, sounds had in and I have hold. the guess, been selling that wanted good the Hey, implementation for created whatever It and to season may processes by been question. on thanks pandemic. implementations put the fourth I a presume

in So fourth and on the of implemented versus what’s implemented hold got sense get quarter you us some give for later will hopefully year? what sort can this

Chaim Indig

question, a That’s great Matt.

not our I say would on implementations And been have so put hold.

– virtual had have, implementations work implementations just team done our have people at implementation ground. place other at than on it more Memorial of actually certain Memorial the furlough point. without to of broadly remotely. example a can’t team and they But get the either that, to has we’ve with in the half think the And hand-in-hand this we it I they’ve to sped also the implementation dealing those of where is of the because have because where of available, pandemic was the some we faster. great up lot accelerate or in this And done practice a And resources. resources the the implementations, more be with is middle don’t done they

So and seen we’ve I some some both slowdown. we’ve seen think acceleration

it’s and them, that the into done – of to job live, would able some just say, to wildly our they get just that teams implementation them overnights being has our know to of they just but team were were practice organization I I fit available. clients schedules, sure support supports everyone our does the to readily Net-net, a pulling phenomenal their just and safe. make is

just and And I’m to really amazing thankful. so been watch, it’s

Matthew Gillmor

Got then in understand differentiated was environment. sort be on – it. just this for to Telehealth. Intake I’m of And would I trying that follow-up how

And in-person not process those So the cumbersome a versus doing? would intake Phreesia what intake if traditional telehealth, be process? is using you’re practices that for of more sort

Chaim Indig

in just I cumbersome. think, isn’t what we’re – seeing

We’re seeing That’s hearing they don’t on pretty we’re their anecdotal, on higher rates no-show to tied quick is it. because us turnaround use when obviously early it what telehealth.

We’re a lot seeing frankly, captured. and and patient and at manual a level, we’re a less work responsibility information, data significant lot more seeing

of typing So in is it. short-term just the it’s just the being in, transferred buckets. lot also board of have of a it across sort the providers, to just work And who they lot a all the the are in didn’t because

in-person seeing things to right. happen to still happen out have is that what So of have all office, we’re those the that

still consents. need You

need still your You information updated.

collected. You still need your co-pays

do give people tell done, need them show to to your up. still they instructions and up to still when them do histories remain and what show clinical need – you You

at X.X people generally gives them that and providers with, We helpful. the it, so And bodies and really seen or it’s And been also, know it way so… throw either got are choice million That’s in it. doing our scale Phreesia. doing a it automation. platform And is it, skip comfortable it’s we’ve use the

Matthew Gillmor

Thanks Great. a lot. Okay.

Operator

open. next line Your from KeyBanc. Hooker comes line with Donald, is of your Donald question the

Donald Hooker

everyone Great. is Thank hope I you. well. Good morning.

of sense what don’t have, things guess, you P&L some sort cost? get what you everything’s kind if of the have have things P&L taken of actions kind can items, a and liquidity, your about terms us course. when the sheet spending, you In flex not? worse and balance you or a of of as much plenty think take different capital to line? a of But discretionary? what’s you of I sort give I worse get across What’s of – lot can your variable line or at CapEx How actions level, But kind

Chaim Indig

let in I’ll So talk jump and that. Tom about

Tom Altier

here. P&L, the Yeah. revenue, directly the in of expenses flexibility processing directly flex tied significant processing some can development, – statement our CapEx payment and payment side implementation, much with up amount processing down We’ve the is got to and payment income pretty sales possibly the situation the a there tied also pads, as exception we’ve which got marketing, with And all of revenue. develops on as But flexibility well.

Chaim Indig

let me… And

Tom Altier

of And as said, plenty you capital.

Chaim Indig

through me than have [ph] been one has [with for many cycles. let and his I multiple cycles. definitely And running lived through Tom cycle. I’ve Tom we clear. CFO, is And been And as them] through years. time XX more be Phreesia many, been

a hiring, So we’re taking we’ve what necessary from really And we’ve just around hard all think necessary frozen started near-term. noncritical the our actions appropriate standpoint, where near-term. already in we taking the on expenditures stance roles the in are the

Donald Hooker

some physician pretty discussion. larger among looking of concessions? practices for on point? substantial your of by press closing of systems? of Is maybe acquired there groups? of country. Thanks to or price Are physician be other I sort certainly a the pressure –what are terms Or seeing all you hardships And financial that any maybe temporary hearing how in lot of the different the physician are one that anecdotes for in managing health struggles Are you of needs sort that you sort maybe around I’m Super. then by some practices seeing question. your about hear

Chaim Indig

systems and foremost, And So to type I any struggling. think or are the groups region. country size one across health it’s do first and or limited not physician

all seeing materially and to we right work off, are deferral – offer through do. our to with we’re thing so speaking, trying way health systems And And we of more program, serves impacted broadly that that’s [board across doc] all a underserved that, [ph] We’re large them possible the frankly, first the practice communities. the just important and base. think client to being

which priority. is having throwing forgiveness talking the about they’re think talking don’t a But able I where And towel. we’re in is we’re necessary, sure to to do that seeing to patients, that just anyone to keep make

that their the are hey, this they serve saying, also environment. don’t don’t patients how think that is I we’re really health number what doing priority one And either. systems think I think – do challenging I great their in

So this is board. broadly the across

Donald Hooker

for you that. fair. That’s Yeah. Thank

Chaim Indig

Okay.

Operator

is the from comes question line next with line Ransom Your John of open. John, Raymond your James.

John Ransom

well. probably at on type see doesn’t if a out that, site hope and to are this? all subscription you per-visit Do model, more any I add? morning, better, have versus able the what My little care look some is question Or good everyone a concierge really subscription they’re of your who think to is a of in risk base guys moving and the you at Hi, everybody. you you primary doctors that physicians. pricing cutting do thinking change model with holding in mostly least side, base, I’m user

Chaim Indig

interesting anyone about John, question. model, really business changing talking right their don’t now. see that’s I a

I their don’t business not to I’m their get those I with as economic working patients in economic large way. What was meaningful just to longer-term do a happen. the what interested probably – – impact, scalable, still that we is And concierge working. generally think worried just scale are least really which aren’t that saying in the But are model. at about they’re doing could – unemployment, want is I changing think, anyone, back treating before they hearing

John Ransom

couple permanently normalize guess A things okay, other would have okay sometime to normalized. XXXX your said, office? percent returning and of to to in this to when pass. Nostradamus, and situation an to is I you head you guess? and somebody a if What shift versus And gun you a play the ones. it’s put type a are a Do telehealth take visits would things of worst But where if Right. – ask and you of

Chaim Indig

gun don’t to going me control want to make there. advocate You’re I for [indiscernible].

think in from visit and it’s I But just are terms volume provider. know each going like So is I the broadly in telehealth? – don’t much to answer what see know what – are speaking, not stay, to we that I material the here what how of

what post-crisis? to from flow what seeing patient way. – going of is like the and outside type hearing going Will to portion going regulations we’re and I visits be, of are can license look think what be question allowed what stay seen telehealth are big of providers is license are is, what state with to will now I levels a crisis, served post-crisis this better levels here But are reimbursement they think marks what this this be our – is to and be not. now versus

does a finding do check-up work we’re because can massive about work you not be a hopefully So will a do large we’re people I I getting up basically and really which you going this effective way? Can well of can cost a at able in And society what’s of visit? it lot or says, is benefit scale? that effective wellness And lot whole health more think a screen end where this, interesting visit out data – pre-surgical information it, way at a this as a to to this care – or do need provide our public manner. of is think you this

that – people put help them more is see. effectively. it what will the it’s wonderful that quickly, opening are. and providers – amazing to as rings up very tell embrace it patients. years, telehealth of believe very what embrace don’t their most just Harvard shown strongly to and right, to And will if help they think Commonwealth I help technology their Fund things that, I just – for with patients But embrace treat patients, so it’s used out they this that it When it’s them I is that And that study – me really true. technology providers location serve will satellite a is that believe Providers is we

John Ransom

Sure.

the we if toward payment, payment is, software software theory, of your the stream. revenue have for economics model question are think and the the current thinking perfect you to the license something will last the in revenue little tilt a do my world, guys versus the a resilient about? license more bit structure a you more future innovative built, Or Maybe was survive so XXX% you’ve maybe this Is permanent payment? a you And you’d intact? in less little

Chaim Indig

subscription learn change of to prepared just because not they’re the that I businesses and of receive lot also doesn’t because just them a people you sell you better to restaurant a where that always we model – this. SaaS dollars, to like the prepare business through subscription that I broadly getting would I’m industry are hope that not mean there had seeing But it pandemic. manage as a is say paid. it’s our and nation

aligns clients. some having And flexibility with thing. think also I our important so, an of well Right, that’s level us

John Ransom

Right.

Okay. Thanks so much.

Chaim Indig

so… And payment stable, is frankly very

John Ransom

is – something nobody’s just not volume, pro-forma contemplated XX% obviously, has to Well, in mean, like it’s not the describe something I even to beginning this declines black – interesting. XX% saw the level so it’s nobody ever ever word swan coming.

just of the So getting standpoint, key just the is really side chasm other the from survivability our the question. to and

So…

Chaim Indig

lake to Yeah, but a in lake, right we’re a as black not about like black think black I this swan, now. a

John Ransom

This is interesting to – thanks sounds a much. lot bigger. All so right,

Chaim Indig

Cheers.

Operator

of is the line with SVB. open. comes Demko line from next your Stephanie Davis Stephanie, Your question

Stephanie Davis Demko

taking question. for you Thank guys. my Hey,

your have should in we product how revenue given for payment different platforms Amwell embedded And like the Just many streams telehealth the in any model core the tech, about their revenue solution? the of own think is comparison? telehealth

Chaim Indig

and have it. a of fair number to integrated conjunction running us We clients in Amwell with

we not more about often So payment similarly, very them, payments like just it business lot a have EMRs still integrations for to win than think the often we of that. often –

just generally border. consistent been fairly But, just level the I across think So it’s of this as of some as overlap. speaking,

Stephanie Davis Demko

marginal Telehealth? April for volume mind that of light that patient of Got be in with that shift telehealth and down Intake recovery would your of to as Commonwealth the from usage all publication, in And that XX% Fund then, reflecting visit greater in it. trend upside is

Chaim Indig

that’s hey, so, question. Right, a great

to it, to a recovery. and X% call or weeks over towards early think point I it’s a move X% the couple of single that little changes last

some think be noise. statistical of I that could

We have stable. seen relatively be those

which the will telehealth – happens, I think office to they’ll and both say and when ultimately be contribute. hard both visits will driving first. when factor in recovery It’s if advance

than really significantly overall gap. much that, more have would bridge dropped offices in seen that have visits that telehealth helped certainly, But we has

Stephanie Davis Demko

Understood. you, Thank guys.

Operator

Sean, your Your next the RBC comes Dodge of line question with Sean is from open. line Markets. Capital

Sean Dodge

the to processes, you Thanks. a to Good and with Is rollout Memorial there their implementation the just other constraining about and willingness back it there being over or it you or, other allowed mechanically it clients virtual accelerate is the using else rollouts to the what Maybe the Chaim, this? going more kind practices able know, for sites something to of physically mentioned others? do that not the morning. or Memorial continue of up accelerate there to moment, don’t specific – is I resources of course was

Chaim Indig

It’s the tied question. and the to a great willingness needs client of themselves. and general That’s capacity mostly

going We be also that any were to receiving prioritize organizations patients. frontline COVID

Northern the with We we our providers so that’s patients, of screenings whole prioritize and anyone other in the if you types screening screening above always car And any of do else. the is, thesis ride sort the and of right implementation prioritize the their sites staff and care, COVID take above Star.

through about how that. tier that’s we supported we that and through. priority how making a and this a that’s thought made continue we’ll So to X But Memorial of point think them

clients Memorial is talk just and will what our wanting did a with to to support of example they reached all us they about good other we help out that And organizations.

Sean Dodge

all you from inventory is how at disruption has of kiosks helpful. that and put your the it’d chains Okay. the I’d of affected be pads And then, hand, imagine, have the much components our concerned That’s any supply by go in reason all to some any into chain, source geographies this, for you there been all? be on that, hardware, on the there the clinics, there into supply some

Chaim Indig

the In of of manufacturing watching minimum. keep were couple a facility of We it. at our going we to say also U.S. at months of I pretty year. of use at levels work pretty feel try with we did the see our beginning But buffer to We comfortable some components of right. frankly the use but we all those have hardware down, that today the closely grounds, some

would accelerating this have a faster rate even even of the We – we predicted. use move would at hardware we is much diminishing even think mobile so. time than is to over have more And the

an – on that’s supply less So driven I the of think also for chain. issue

Sean Dodge

you thank Okay. again. And

Operator

At time one this question. time, we have last for

final Your Sean, of comes line Sean with the Wieland your line Sandler. Piper open. from is question

Sean Wieland

Hi, follow-up. thanks in the for squeezing

the us uncertain we’re be and estimates? the the week I of makes quarter, QX on – guidance to full to with left precise year you But bit that can a is us tell about So get in our the anything sense. lack understand there a more

Chaim Indig

didn’t Balaji tell with me I’m to fast [ph] I in – trying don’t think room, I me, Balaji, can solve] you have enough. awesome. [you I think the Sean. do, you’re

Balaji Gandhi

result I did un-mute quarter is news first corner, myself. our is And, Sean, report, the we around so. right good the

Sean Wieland

tuned, stay got for So, it. the… Thanks

Chaim Indig

that, aggressively will so us try providers information to impact could the also say much and at we you for stakeholders advocate our and that’s Sean, when while to patients. visibility their I looking data, us of also give why publish all it the sort we just our can to started of see

Sean Wieland

Okay. Thank much. you very

Chaim Indig

Cheers.

be Now, safe.

Operator

concludes… This

Chaim Indig

Thank and And very to possible. for their to Cheers. period you and and healthy as stays hope about time note, best I I’d family thinking on that of everyone everyone thank their this support and get tries much everyone. as through like

Operator

concludes gentlemen, and you this call. Ladies On today’s thank Phreesia, participating. for conference behalf of

disconnect. now may You

Phreesia (PHR) 23 Apr 202020 Q4 Earnings call transcript