Phreesia (PHR) 9 Dec 212022 Q3 Earnings call transcript

Company Profile

Participants

Balaji Gandhi	SVP, IR
Chaim Indig	CEO and Co-Founder
Randy Rasmussen	CFO
John Ransom	Raymond James
Anne Samuel	JPMorgan
Richard Close	Canaccord Genuity
Glen Santangelo	Jefferies
Ryan MacDonald	Needham
Donald Hooker	KeyBanc
Scott Schoenhaus	Stephens
Daniel Grosslight	Citi

Call transcript

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Operator

Good morning, ladies and gentlemen, and welcome to the Phreesia Fiscal Third Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode.

We will provide instructions for the question-and-answer session to follow.

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

Balaji Gandhi

Good the welcome XXXX, fiscal XX, on operator. Conference which Phreesia’s Call October for third XXXX. morning, you, to and Earnings ended Thank quarter of

available today’s Financial Officer, release Rasmussen. Officer on Joining can Chief our disclosure Randy are our be Indig; Chief letter. the well Chaim the found A are Executive in yesterday our to me our in and section as Relations and call our on submission as at of Co-Founder, SEC, evening, These results complete Phreesia’s press quarterly of stakeholder issued X-K related including ir.phreesia.com. earnings documents Investor website

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

meaning XXE XXA and During Securities Act the the of of Section today’s will within call, we Section of Exchange make Securities Act. forward-looking the statements

differ involve may that any we limitation, to forward-looking that financial future or from these the variety industry; results, healthcare and our retain, our Although, future ability COVID-XX growth; or relate our attract, revenue report and in future will achievements statements SEC, our cause results, revenues, may the XX-Q performance, or flows, to quarterly our of described statements anticipated without These to factors our in expressed including realize the uncertainties, our by operating our performance, with to those SEC of cross-sell forward-looking that more be that and described our and expenses; affected statements actual our may materially risks be from are including fully and including our and and expectation in about statements. the by or business; also to later the these actual statements our forward-looking clients and other acquisitions. events subject known to pandemic or impact of including risks financial results provider achievements ability intended cash benefits believe of future statements operational on these in filings Furthermore, factors about other our beyond be with and today. unknown our control risks, uncertainties, reflected reasonable, different implied on predictions cost performance materially are Form a those the are performance filed the

circumstances statements of required by the date which to the Forward-looking update only statements new undertake this of events, are date disclaim obligation to or the forward-looking obligation call statements or expressly made. of this the made on to or call update except to any as after speak no and reflect unanticipated as We the events reflect on occurrence law. information

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

Chaim think As if and based the and today’s the now moderate reminder, streamlined the over call your CEO, I will efficient will different on on a our Indig. are locations more we turn three to from I be call participating Q&A. call we feedback,

Chaim Indig

milestone. this would work by million and the the thank I and as contributed – on hard current patient years, joining this of team everyone, reaching latest morning, platform in Phreesia the of us. an is celebrated We members. accomplishments Good visits through This during celebrated Every former XX achievement, dedication has to over like you member Balaji. would for our enabled months. surpassed our XX we important September milestone the long I previous achieved over to just XXX Thanks, in them past the of and line a like and congratulate team

We also to up call hope health clients better, think can Operator, us earnings has I our a create for to everyone a and stakeholder experience. review letter. our Hello. Q&A. for care we entrusting the engaging more had release chance open press

Operator

here. I'm Yes,

Chaim Indig

the Can Q&A. for call up we open

Operator

James. [Operator Instructions] And John question Please go your Raymond from Ransom ahead. first comes from

John Ransom

morning the story we how you returns higher – and to to nothing, has the the timing raised about a and understand figured top that think maybe and Thanks. line changed – on money that obviously investment? from for help a how outside the market you higher line, Hey, story but Good top spending XX% a could looking

Chaim Indig

Hey, John. Yeah.

John Ransom

Hello.

Randy Rasmussen

John. Hey,

think technical I’m got off I with Did question, difficulties. hear the cut the you Chaim?

Chaim Indig

at Not No. all.

John Ransom

really it think myself, I again. It talk was eloquent. don't so was it really – I I'll try can to

from changed negative growing. in top XX% line that margins and stepped of of to EBITDA double kind with story, So but something line top growth, spending sight obviously, story EBITDA and a has with the up

market So and spending kind of then that expectation this kind maybe narrative? in and the led shift what the your on help understand of returns you could Thanks. to timing on the

Chaim Indig

Thanks, John.

make repeat to Sorry you it.

And so we're…

John Ransom

okay. It’s

Chaim Indig

for a team have decade. to fortunate we're that's a together leadership over and …yeah worked

a very back even significantly to our we've made decisions XXXX. us increasing And that scary. around similar. having been it's investment, way this of Each little longer Some going time is

the a than our Sometimes smaller more and out on balance were decisions with based revenue or at for have much cash always frankly, been But investments our our year time. a data.

have you -- Now, this you have all data. of

back. XX further we’ve quarters. even been – You public It's for public stretching could

returns decisions how discussion we're extremely is getting pleased get years decisions not and invest years built and for and built we excited a it's we're call, it and discussion hard about either. Before our for back we point. how lot it get been reveals investments, the we back. accelerating it each and know the which over passing an on We for inflection us and made trust when We're confidence either. the easy of us them. about why over this trust on We internally you hasn't easy with an We made internally hard

it a that these lot you us make with the of and real-time decisions data to investors were we directionally decisions in And us small not too. as we're of been us March lot weekly look data now XXXX, at this our has decisions, on in we we For those all trusted saw of the The correct you with we failed Balaji data. and then the April for with basis a trust data and and of based in correct. a the And set do have and confidence called us never on is just team. of course news continuously great of making a a lot

a lot to two us decision-making and have has lot Randy years especially now more answer I for firepower, who process. part I a more let of We been a with And rest that that. of over on And speak Randy's a data team. little has big Randy will thought

Randy Rasmussen

at view sustainable investments At continuously we're we our think Yeah. I Chaim. And as said Thanks we performing focused our times our grows example Chaim really can SDR growth. a monthly we're pump going, that that precious is a profitable cash for effective investments. capital are engine revenue in and efficiencies that on program look at where the and we where so good and weekly, this as how cost look that of in we The top-line. we way leads bring

future carefully So about years. and in results spend very growth we in sure think how sustainable money make and this profitable we that that

John Ransom

time up follow a market at I your as that's $XXX maybe oversimplified, about at way I think is the say that just this? some So let's about out, gross know to but a sort average think $XXX $XXX incremental a generates zero think to year it quantitative you kind look of of of public needs spend simple margin, revenue

Chaim Indig

the of Yes, year investments a future is are I think now numbers those putting quarter The see on this is, you growth. we are for from based spending ago. that we that made the that revenue up perspective

type spend term two, spend frame we spend. provide depending solutions the think, sooner, products as our to range comes but of longer customers. time so, R&D build has some bit a our sales and time one, The in I the as excellent And from, years on little out frames, three a of the can

John Ransom

Thank the you. get queue. in back I'll

Operator

Your from Anne comes next from question Samuel JPMorgan. go ahead. Please

Anne Samuel

I year, the Just and in investments maybe could Hi, hoping up of taking you into question. the went tailwinds you was put that you're performance XX% the guide, us year understand for you're that some guys. the making? the XX% of the Thanks considering? headwinds and light for this help inputs that that to next

Chaim Indig

our XX% long-term look the I guidance at we way XX% think for to Yes, outlook. is future years, the that

for to important But long that’s, higher We grow where in periods from game quarters we I be us focus, there time that level. of that and XX%. the could what's will think periods this and than faster that’s to business that time that, be XX% declines where also of are will there playing

So and we're sustainable profitable growth. are for long-term, playing game long and the that really looking here

Anne Samuel

you really a and That's on nice the in provider had your helpful, then, know, you – growth clients.

that could quarter are is some a year as you know, that well? considering, you labor –you This playing that as I shortage tailwind of was know next into for you the are maybe and maybe talk factors hoping about

Chaim Indig

massive the is people things have in – So and seen Anne of one I of for a and our gotten think ton shortage labor a land-and-expand. seen issue think we've of front clients – our prospects I that that we've

of think R&D in of increased those lot a played also back increased that's offerings clients lot a have and the been I winning of our investment. part a

continuously up. ROI good them what a lot get build Randy’s feel to pretty get like of being in then has So name huge of a for trust, – we you solution, Randy, team them their and show clients, it, I front mess always about able which do a a expand. out

Randy Rasmussen

sell into refer I we to that we more as Yes, the density. think client, solutions

and a they product within or providers want already that us. licensed location. then intensity the our the client clients of solution locations important. we their across from of our levels expand We want high We in more have as use to want even a density to So adopts the

base. So strategy you that key in and growth and know, customer and footprint to density existing are our drivers our our real expanding intensity

Anne Samuel

increasing as of density clients. Maybe adding follow XX% just year. is XX% your that, the versus think about new we on revenue much that for How growth next up to a like

Chaim Indig

both. It's

I think success our they've this seen of doing are are that group the both really success lot a that the on they're a focused last ones focused We've primarily and lot on invested year, and that. we we’ve Expanse with well. in customer equally been

business. new us gives digital more as and our really opportunity new also provider from that's network attach our life clients, engagements the that science and we add because are logos to important, deliver So important also increases payments but

equally as both them important. view we So

Anne Samuel

Great, so much, thanks guys.

Operator

from Your comes next Please question from go Ryan ahead. Blair. William Daniels

Unidentified Analyst

XXXX. sort of fair on be and guidance good of this would forward fiscal Is on the taking of run then any Good the similarly, terms but implied thanks a that ask just is annualized just at that kind the number similar know as wanted for outlook around understanding that adjusted giving the line yet any exit year? loss share million $XX cadence a year next to Thanks. sort Ryan, you're formal a you I we'd Joe here, very hosting ramp much focusing going basis more morning, the rate for with of color for the point next think on questions. expected the around to if curious for there And EBITDA or of to of context for can framework? of OpEx XXXX, look it but I missing a not magnitude around QX in that just be question there is to

Balaji Gandhi

is Yes, Balaji. Jared, thanks. This

Let talk here. maybe we reasons careful me again to in for But and don't starting did sort because want providing And We're three and pick of up, set it obviously, framework to it the to format. as December you probably months in for wait fiscal you guidance replay not reasons, Randy we're last can and point fiscal XXXX we know, XXXX. is that providing we there's up. And we the then of one of, some to one be four kind of all this that sort long. want of before what, year,

we're of the sort So the So thought revenue of especially quarter provide ramp of based and, in certainly we I accelerating as mean terms back. so as last but revenue some maybe say the you're And accelerating, up important of comments in the we And that's accelerating to of the wait, EBITDA terms it that don't a in And it's the that's to we just the pulling when to sort we, going for amount. we suggests a just have was I fourth from guidance. did be think think going letter just mean clear when EBITDA, quarter. the guidance. spending we dollar to guidance And feedback not percentage, on

wanted Randy, add to anything to Go And so if you maybe ahead. that.

Randy Rasmussen

agree. I Balaji yeah, But

I think mean, to we’ve EBITDA prepared us that guidance we're But to isn't timing a levels talked well, sustainable guess about get had we've about I for before, XXXX. to adjusted conscious of and profitability talk as not to a investment the I growth. for fiscal history decision made increase our right

hiring some near I to was the start as we've that of did quarter. think done of end see the the we QX hired, in you also

when increase. in the the that's So comes QX where numbers guidance for

this continue said, So as to with is cycle. investment the Balaji plan

Unidentified Analyst

And And a enough. here. different of to turn follow-up, sort wanted quick appreciate fair just there. theme comments to Okay, to the wanted I

acquisition of company You little the like it here Would you to in with. had announced from that familiarity this Health. a love sounds some remarks background, an Insignia get of just was the a color prepared bit

of talk you of So little just sort genesis could bit, deal. a that just curious if the

you're a embedded announced exactly Thanks. curious just to of market seeing in and clients, made that's lot capability. want your this Just add in that that you the what

Chaim Indig

lead really, Balaji I’ll two bring excited let now, so All clients. I off our right. end, at think, the to had but I’ll this something really we're

lot but clients our tremendous prospects. score and organization overlap of a own this and we're with practices programs. think relevant for in works our Measure. She's government based government, the outcomes are to this to incredible of add We value the excited. excited Phreesia, Patient We've improve a had and Kingdom, we're mission think author some want research. outcomes. And to clients, value it really rooted looking able most we have, increasingly and is United and we The people of have about known It's that It's the believe some oriented. advisor in its academic PAM decades an Hibbard our Dr. the our joined have that? Activation We her our is lead tools to is [indiscernible] to as clinical to and to this that it, so measure core organizations, we excited outputs gold part really of arsenal. be continuously and to really, the you as at have standard, Balaji, change of patients, we're pretty for including and helps activity the the about that years.

Balaji Gandhi

it, patients. participate it's rates mark. and experts in $XXX commitment their majority is care high really doing own about covered to hands And I that putting a in at of to patients million and think, think when vast lot of just patients, driving the in self-utilization. made we of very We good believe we're hit of opportunity strengths, because tools the you we Chaim our core a Phreesia’s us all know, want I think the saw you reaching

So driving we're and company we strength has attractive mission like that and patient experience, a a for think Phreesia better think home when of TAM we're, our about very a that the core measure. those Insignia you

– And were they agreed. so we thrilled were we that

Unidentified Analyst

it Got sense, again the and thanks color. for makes

Operator

And your Please Genuity. from from Richard next comes go Close Canaccord question ahead.

Richard Close

Can dive you the question the up. obviously outsized for follow driving it provide base there know on Or business? congratulations. pharma that great, shift on you versus related the growth? several with growth over initiatives But or is first, in in the Is just One I client outperforming to the to momentum question, that's last the years? thanks Yeah marketing simply something here sciences life want division with a and some the expectations.

Chaim Indig

I made we double now stakeholders. you in more bringing saw this which using in of data of Richard, because investment we – this than our all appreciate proactively continuously ourselves our is a is can science, trusting data, to good you investments IPO-ied. for see we example of up, this know, our since better monetize us think And able we Right. everyone were I information that volume, and team, the

we the of that has kind that those It's data to that make that on think off. to available continue we and of we million capture thought we make, we'll investment gather really interpret huge this market. clear – billion right paid it's that $XXX And so And more And have and could based started TAM. we been we've how information TAM. on $XXX the on based a think knowledge investments And I make investments the to pretty decisions… and the

Richard Close

Okay. That's helpful.

Chaim Indig

cycles. a of think very team. many seasoned We’ve having benefit I the seen

Richard Close

back And maybe to details bit where like front? little helpful. you to that details workflow? acquisition, are the patients a into Okay, offering? go then post-visit something where more go it fits pre-visit, Is little Is a with on the in continuously the bit that's the just engaging can that more that

Randy Rasmussen

you Chaim yeah. start on Oh, Sure. me want that? to

Chaim Indig

sure. Yeah,

Randy Rasmussen

Richard. Yeah.

the the the space the I Insignia So space. care in life customer space the mean, payer in company delivery set is and sciences in currently

delivery you today in but reported So answer when those questions those Insignia different they completed those But today, a patient so the patient, sort obviously week. ultimately, you as the transaction platforms about the how that how work different systems we get them it. of But they with. might that way there's the And think more patient patients. figure directly. integrate interacts integrate with with And we're ways that's think pushes settings, measures, very management PM of, different with a last we'll that they intersect EHR, out mean, sort questions Phreesia obviously to to closely, are about, questions. just three asked to I orientations if outcome have And to out, with that's, care

lot a of out It's patient. then, used way is information get answered think to the Phreesia, sort and drive with So Those there's pushed commonalities that's outcomes. of to to to questions but about help that's, it. the a

Richard Close

helpful. that's Okay, you. Thank

Operator

go comes question next Santangelo ahead. Please Jefferies. from Glen Your from

Glen Santangelo

questions. where I lot and a It over sales was it, than want like and on to number hate we to spending has XX headcount Randy, do taking more seems Yeah. Chaim months. follow of investment marketing came Thanks And the for of I in past spending. the did of R&D. versus doubled my incremental up on the the but employees more company, when at look the this

have look much how are it out next And company guess trying in really of think for incremental to dollars. particular guidance the the at what dollars so you and year? you I I that is when are investors invest is fewer do more in revenue figure nervous to chase kind to spending feels investors like

think question And from where care how perspective, think today what and had follow you more people I you so up a maybe maybe about, a of sense for go? on the much a help you the is company give then need there us could is headcount else kind market. And to acute

Chaim Indig

Yeah, with fourth tell comments Randy At given I think of Glen, the end quarter start the answer obviously that October I X,XXX our can think you we about headcount. – we and people the to I answer. just one had can hire. to continue

we're of of cover other the X,XXX but today, So questions. maybe some Randy can north Glen's

Randy Rasmussen

Yeah.

rates. do count do at make the when generation is basis team does our I provider adjustments. SDR producing, weekly we their what we We and of close needs lead look sales and weekly We at think data how look what seat on on a this teams, at what basis our about are that think a growth. are what kind head how look

and continue to period, – I as we is grow, the provide it to continues I investment of that would we we to – think sustainable enough, think as – growth would future from a as long invest. profitable in continue to the when when perspective

year. dollars clip precious very is perspective in in and And very that I think last at want look the company. they next hiring we the about I to coming and make to we understand capital. quarter thoughtful headcount. the coming us, about next a don't throughout are on in basis large and we're decisions think this investor we was to us And think that an grow month, as use a about increase weekly this from the those plans what that Capital data

Glen Santangelo

the side? All acute relationship on of going. sort right. the Maybe the into the transition on my to more physician that are question, generation just care the sort segues we've how acute with been questions disclosed lead Because on they about, you're it's that care talking the side acute a of care past, or some market, you've getting In our one. follow-up around

And coming just you so that and can generations where lead – maybe from, transition that Thanks. where the sort would comment of helpful? how is be are if going

Chaim Indig

Yeah.

hospitals then So know that always ambulatory I’ll to think and acute I try this past, reputation continues pick how Really execute we to one after the with for The land and ambulatory don't expand quarters that the strategy. I to and we part commented on we the continues it that strategy of up. the – lead many pick side the side up we've have sort the be well. we built of the very very, and

good always We of very, it, providing system. solution with much first the services of market as we most good feel solution spectrum about all market, but and long-term outlook lead a are holistic into system. very – surrounding spectrum complementary, announce they're ambulatory entire And client. a continue continuously continuing health the but across really – health and we entire the returns the getting deals, we the we're the at tend the investing across hospital the think providing to we to of investing in ambulatory very as at don't ancillary the we the holistic are

Glen Santangelo

And okay, thank you.

Chaim Indig

got …we question -- you … a did RX

Glen Santangelo

update of as bit just a it's as so was doing I like concerned. as past That – provide seems any the relationship and because you're disclosed an – I disclosed yeah, particular – have you then question early that's in XXXX. a they've and competitive little far you've what sort RX with wondering in in made Yeah, that did right, if like because could you acquisition

Randy Rasmussen

relationship. and that that and and that I we're what a partner, It's use to also – huge a and client other partners we market with they're of think I and forward we look to when their we well really so product. our tend – solution rX. strong and do – do relationship or we gain our appreciate customers really the partnership to really do vision think that, continuing they need the valued we that. a lead tend have We're full thing, And product have and still competitive clients lots with well. we comfortable with and And – of No, and

Glen Santangelo

you. thank Okay.

Operator

Please your next from comes And question [indiscernible]. go ahead.

UnidentifiedAnalyst

Just embarking bit Great. new back a the sales might Hi, the to imagine younger everyone. and discuss maybe and the tenure. had the strategy? the Yeah of compares how larger, you quite expectation cohort in but investments, I have investment team Obviously, the SCR going when also productivity accelerated can you on is this hire to

So to sales productivity hires there new ramp? still better go we is a efficiency a through come can as these regular and expect

Chaim Indig

of productivity, know, comfortable fairly with at organization productivity the that we're at we're where gotten to we've that that had. always, and And are success how and and always they the really think the don't improved continuously as we're business. looking for look team. team happy success and the we maintain to that's and work where how cause frankly has I we I Kharen being grown we’re where that But able and it's are the have and better phenomenal done always standpoint, productivity they with more a From just improve continuously

UnidentifiedAnalyst

of growth back framework, your spending. to kind growth long-term following then framework? course And track is great. accelerated of above typically it going is Okay, think company's to Should the Phreesia just investment executing year with fair one that

Chaim Indig

followed one? I that not sure repeat you Can I'm it.

Unidentified Analyst

and appreciate your and year. seeing framework. midst I it a growth this to we're into XX% that long-term to growth with kind investment next marker the XX% The But that's of going in continue aligns also of accelerated year,

opposed suppose with you targets following long-term above fair do typically growth a that line else it's of track of in a as think long-term think expectation I targets. type all should that So equal, investment kind to environment, to

Chaim Indig

speaking I next necessarily year, investments directly. I think, think without it's specifically next to this impacting not are year's year

probably it's we an it's earlier around think topic growth. question worth this I maybe repeating longer about on term how I Randy, think think

Randy Rasmussen

I as there that's XX% think, where the to we I yeah And – we will said, are be sustainable, growth periods there want, long-term and profitable goal. Yeah, outperform XX% that we the think I what of long-term, will right. think

to grow. we think like I

it's good it's growth, growth. think profitable I

So think can yes, really I think what we invest rules. we that that next is mind. fine get guidance growth year, But for continue but don't into the to that's I strong in perspective, from by with

Unidentified Analyst

Great. much. very Thank you

Operator

next Ryan go ahead. question from Please MacDonald from Needham. Your comes

Ryan MacDonald

an on taking really for questions. measure. additional my activation there Thanks Hi. acquisition Chaim, question with just a Insignia, interesting patient the technology in

value-based obviously about a potential for sort and of on how about benefit go information life thinking in – thinking your the you're a cases side the practices. color have strategy patient additional sciences I Just models to we’d and like on more to care that There's little how utilization. market there. There's, sort on of think, use interesting

you sort prioritizing of you're the the Just as about how integrate curious thinking that there acquisition? go-to-market

Chaim Indig

and won't don’t into But change. as product our become it going do, changed and about talk available, what to offering sure noticeable. moving we start it making will it generally We hasn't that we're I’m

organization are We excited founder and about sort to of really having this here, I’m refer back led to thesis. going

poor there's you it. from lot is a potentially we measure, But think on can think long the I this unpack a term.

Ryan MacDonald

it. got it, Got

sort be a might materially just of impact to just Okay, share at digital business? to Continuing there, seeing rates Can follow we're the of a obviously, that's as over the of sciences more of look you and life shift shift spend obviously see in you – of that Thanks. the and life and generally now sciences And over opportunity. starting to up about you to growth able right sort to that magnitude sort on capture on time. then having the is from of curious, that you growth spend the companies. how terms then about your of digital customers percent talk talk

Chaim Indig

based that a knew knew to team we’ve capture of way we able very our is, those needed and those a the started on we tenured and to we And up on investments. running investments our and data senior where Well, been we extensively information ramping ago. couple having and grow make years

And I on And and or us, understanding happening available. as making on an resourcing, happening grow shift articulating there's a, being around to executed competitive ourselves all to fortunate shift, there's that product invest it's and spending that investment, will that decisions usually And see understanding we think around us that way information continue the and around have data. have sciences, have we life think able see for to what's just in organization, we experience your the we that the is pride happening so data market. and a team the in we've to could in we're before area, and brilliantly advantage based continued they the opportunity on you we to in been

Operator

Hooker your KeyBanc. And Please go from question Donald next from comes ahead.

Donald Hooker

in from Great, just more and this of the landing then And of expect that Obviously, that. you And is dynamic clients it revenues adding pattern added solutions I'm as similar you and is follow from the think provider expanding? Or just guys, gate, we land expand and that thank and way terms of quarter. and adopting clients in adding a not that well. past always number from out of prior you. that, of changed any or wondering out of clients of may should if sort out the questions but fills some dovetails the great I clients be gate?

Chaim Indig

Randy, want you do it? want to take to, you

Randy Rasmussen

Yeah.

Chaim Indig

it. Go for

Randy Rasmussen

us important still our It's the and across so I the to very to We thesis grow with no, think answer your base. expand changed. strategy. successful customer Yes, are for question, land hasn't

provider it in gives networks basically have, digital lots provider I also, we that it think that that customer switch do products. so, in. more the we payment take engagements. while the our to and down can of with first new typically volumes more to deliver payment away, a for think there over clients and sometimes interest we see revenue solution may about our dollar takes right a And comes provider, us is certain adopted but that But their our that payments opportunity their are get previous burn of to for things

think know, the in highlighted solution quarterly texting letter. that stakeholder is interesting You I the we

high levels additional adoption we of see do products. So of

Donald Hooker

and Great, then follow-up. quick a

in of how us clients How You count quarter. – any are terms terms update remotely clients feel you I mean know, Can there? successfully on you. you a about your how like changes update of do us versus many kind – client onsite? in sort there and that? ad implemented terms Is adding provider Thank strong of on of of again, being capacity the your

Randy Rasmussen

Chaim do do want to about want you you talk to that. –

Chaim Indig

Yeah.

our that a to seen. us. the has ability take lot based on investments at made we've information to using of reasons through – be And the that feel live transactions paying of we first already client running is why about one us think able them clients, remotely like mostly they're I – us, we've pretty comfortable often off, not their these ads been of live than the more because

to far and So we've able as possible on as ahead being tried to get support. staff

we and lot continue of of is to see. a phenomenal we the have based implementation, and levels speed have support of on information that So just that

up and So have ramped a sales implementation clients. job those those we've done really just to teams and at continuously being success, support new able phenomenal customer and expanding the in teams

Operator

from question ahead. next Please Stephens. comes go Your from Scott Schoenhaus

Scott Schoenhaus

the for on some in question. and follow-up really just expand to land and guys density taking had wanted past. that I and just you offered get the here the strategy into statistics my Thanks

average to at you you I XX provide half sure the can about revenue that it's modules. stat? had if one think or that point there mentioned has since think I any that that the there on more Is you color modules. opportunity increased update the expand of to and client. I'm provider per client then XX on

Randy Rasmussen

Hey, Scott.

of in slide just letter in and is our update One can platform to to things we quarter every the the the you slide. refer presentation tend

think see and things obviously, do cetera. So And et we and as I evolving, changed what's releases, over how been we new you can and that's are time as – – – added.

on would going don't organization. point know to of you been terms that, follow-up can you you our what's Chaim, on product – we anything but in talk what's about So, there. if with I in want I there's

Chaim Indig

a but we investments clients not more able our pleased them the remained we've hands and and add it only support making some value standpoint, more our products been channel have the on as of the paying get And we're to off that phenomenal – amount product happy, And tremendously, a They and From to the people. their Yeah. in to right to provide have in do the more their clients get add grown value to of checks. right product them you we try of journey happier the And at they are. patients. more continuously been think times. the we product we've I value continue clients,

very providers support. investment in patients, product good we to that them in their the feel we get continued in the hands our of our of hands and our about So patient’s

Scott Schoenhaus

the months market labor wanted to the – drive And could kind seeing to transitory from seeing you the challenged lead additional part that's any sales follow-up, given less deeper would it in to employees there in tight Thanks. a team. on of anything Just believe helpful. XX color elevated the as changes? hate these in Are you Great. the Thanks. now I and could are expenses labor the now be more that anything – use be that when market be hiring just of and would you but I happening word new marketing transitory, and

Chaim Indig

individuals organization what where Well, multiple a for we to have led [indiscernible] XX seen I to worth we’ve of phenomenal their we retain weight our phenomenal and we've competitive our has been maintained talked here seen really internally has that in a competition faster have found that is, organization. years than found attract would cycles can in lot environment I HR we think who’s front it's the continuously of we and are so make about we gold. at group that And great our that been we’ve at in – predicted future we team are package to it’s Phreesia. that that examining rate are think continuously two And But people generally frankly to that choice probably make and employer just years we growing sure of continuously and our And a people of sort current a front aspect members. really have out of sure for ago. both get [ph] and entire has

Operator

go And your Please next Daniel Citi. question from from Grosslight ahead. comes

Daniel Grosslight

from XQ coming R&D about proportional in making as see followed about of you're as Hi, and into asked we marketing the and which marketing the looks dig of million R&D up I sales in to in guide line, of and we the Or should $XX most little – terms a XQ but XQ is expenses R&D? by line? beyond. of sales like less the think we'll investments and think guys, that taking think increase a sequential little for question. if catch around my it you and same implies in in thanks have it already the and S&M maybe answered, questions spend, we deeper EBITDA do some can at Most the operating If sequentially. and been increase acceleration look kind a Thanks.

Chaim Indig

will think you I Yeah, the grow. know, directionally, lines all

one focus there is areas the investment. R&D a know, where on is of You

we line. see that really things that think on growth increased are areas you I contribute those the focus that because So really the investment sustainable continue there. two to It's those to on will top

from about, similar when you quarter-to-quarter. I You to know, it's revenue talk think I know,

too look the hiring as our think company. I best add also can for to we talent to have patterns,

bit Sometimes the engineering to little right some talent in longer it find area. of the a takes

will teams. you are we see building some quarter in those So variability the as

Daniel Grosslight

say marketing increase be going – dollar from in in ? that to than increase XQ R&D basis, in Okay. XQ But the and a greater would spend it the spending right XQ be on is to to in sales

Chaim Indig

Yeah, in are, really, provide on respect, being invested I level. don't both, the in. we They that item guidance detailed directionally line think

So go both they out. will

Daniel Grosslight

Yeah. Balaji but follow-up the used interesting by a also you market made it's Got it. providers new you as life in an not would on then of for comment be kind which just guys. And a payers, Insignia transaction, sciences, that

HS. a relationship the very So I'm with they obviously, strong curious. And have than CMS

market. you, And So curious for may and payer this there further? this I'm expand concerted of to is have i.e. the a how even TAM there up via a if on new beachhead your kind open markets strategy

Chaim Indig

been that blurred complement we I think we really to market making we're the relationship investments Insignia the, to been providers been this years and bring us about that team be for life of for excited payers, think to sort the thinking it's excited. to, thinking we've very we lot between are capabilities that's and and we've believe we're and the we've we something going years, and with about and continues like sciences help a have the of

Daniel Grosslight

guys. Got it. Thanks,

Balaji Gandhi

Thanks, you should a want Daniel. up call so And operator, the wrap couple we're I remarks beyond of do think we minutes you closing here, and probably have X:XX any make? Chaim, to

Chaim Indig

about over very to to this lies it's but we and what healthcare And doing down as pumped improve trusting what excited we just everyone, I the investors, are is do that, really we're here, we're for – thank ahead. clients, want we continue for we, more about sure. I we're haven't us system. employees to been think as our excited our amazing, our headed

Operator

now you call, concludes you. may this today's conference disconnect. And and Thank

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