Phreesia (PHR) 3 Jun 222023 Q1 Earnings call transcript

Company Profile

Participants

Balaji Gandhi	Senior Vice President, Investor Relations
Chaim Indig	Chief Executive Officer and Co-Founder
Randy Rasmussen	Chief Financial Officer
Anne Samuel	JPMorgan
Ryan Daniels	William Blair
Jessica Tassan	Piper Sandler
John Ransom	Raymond James
Joe Vruwink	Robert W. Baird
Glen Santangelo	Jefferies
Richard Close	Canaccord Genuity
Ryan MacDonald	Needham
Stephanie Davis	SVB Leerink
Joe Goodwin	JMP Securities
Jack Wallace	Guggenheim

Call transcript

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Operator

Good afternoon. My name is Emma, and I will be your conference operator today. At this time, I would like to welcome everyone to the Phreesia Fiscal First Quarter 2023 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer. you. Thank Instructions] [Operator may conference. you begin Gandhi, your Balaji

Balaji Gandhi

Thank for XXXX, the Welcome to which conference call Phreesia’s earnings fiscal XXXX. on XXth you, April operator. ended of first quarter of

the Indig, me earnings and our and Joining press Rasmussen, Financial our release discussion Chief A closed SEC, our issued our These call including quarterly found submission related in results today's on are can Randy both Chief markets Officer Form stakeholder be section website and available after are on to the Relations of Executive today. Co-Founder complete X-K of Officer. documents letter, Investor Chaim at our in the our ir.phreesia.com. our

Relations reminder, recorded the is being following today's will conclusion and of a the be call at our website call. ir.phreesia.com. replay As Investor a available on

outlook call, performance today's growth, anticipated and strategies, During including statements, may our forward-looking of trends, business, future the we statements our our regarding our predictions regarding industry anticipated financial about results. our make including

statements have accordance considered should may refer after a obligation of expectations views the no to which or the made non-GAAP reflect tomorrow. date or with our stakeholder differ statements results. in Principles speak The to are found the to be SEC the actual with [Technical chance provide achievements on hit of and described Such fully current from undertake not and made. on as of to Form after to me and or measures as to are or other are reflect on release We certain press new letter, at forward-looking and the furnished to earnings filed were a including earnings events which in review forward-looking order described performance results, cause be on in update Generally uncertainties also addition these to information call We couple the X-K to quarterly may that obligation case financial market expressly and with overlay, in that risks statements additional risks, with of be found ir.phreesia.com. from Relations be may results this Accounting of XX-Q the Difficulty] will had Investor or report in that circumstances on from occurrence the highlights to our date SEC in measures you GAAP reconciliation for our quarter factors isolation statements release A non-GAAP SEC not our may Form call closed and the and forward-looking our the our the GAAP those only more in earnings unanticipated update our our statements. today Forward-looking also substitute With release events. website filings, in not let Accepted letter. a our to materially various this subject in to quarterly information will the in These disclaim be on based investors.

the average continue growth strong quarter clients First, and healthcare our investments our to XX% network up drive in were services year-over-year. first

of to the experience. of year-over-year. the were the revenue our year revenue million, maintaining remainder patient which our the that main this this $XXX growth outlook on reflected trends payment we're in our We $XXX persist implies XX% quarter expectations slightly Second, below for reason XX% could million range based the processing utilization trend prior year, in at is to think

historical QX. growth periods is to QX, Third, XXX,XXX QX up flat seasonality. down strong consistent year-over-year see slight XX% a down you from to trend due This with life and where sciences to was was a revenue sequential sequentially

it, taken expected team's let see to strong million, adjusted range outlook our with and million to our past all Chaim last overall $XXX into we why performance year to Indig. up the negative began And of we've our team's over Q&A growth it we the this in $XXX year, our $XXX the outlook operating We continue pleased up across the to hand over a is ‘XX. to negative to be highlight fiscal to which is in which CEO, for negative of And prior continued EBITDA leverage the performance jumping million. from our contribute to area $XXX negative million before of session, this investments me

Chaim Indig

across earnings as participating to an Thank the all operators, amazing million of that. patient for you, our engineering think committed very impacts XXX able quarter this, proud and a visits say ourselves year of who product we over ecosystem. to fiscal healthcare mission, Balaji, of We're in I thank want of and to good experience our you to first Thanks And our and and their for for provide clients entire I'm our thanks team that commitment call. evening, because outstanding organization. everyone. Internally, their do

clients months and over over well a out add, be But other up that we great teams For great in we they open the it's will to and wonderful person forward few that produce on, opportunity the you great in clients. product have return see as Operator, build strongly the if the been Balaji XX-years, we hands follow. now. look It's of a put felt Q&A been will touched of and in tools the our if we our the it engineering remain clients, happy could dividends come. for I'm our shareholders many summer let person stakeholders really to net deeper sure to years and to get future again, topics. about We know with continue difference. the and our working go seeing a months the me pay meeting we there for into will market in we'll effect as and of product does to of highlights make colleagues, and all and to with past

Operator

today Samuel Your of Thank from question Anne you. comes first JPMorgan. line [Operator with the Instructions]

Your line is open. now

Anne Samuel

guys. you some and could revenue maybe and local I strong provider Hi, there? on was decline of caused congrats question around hoping the for the on per dynamics touch client what growth Thanks quarter. the the this

Chaim Indig

historically talking about and care revenue? total health services So you're

Anne Samuel

Yes.

Randy Rasmussen

So client XX.X? you're the about the talking revenue per

Anne Samuel

client? the revenue per so Yes, provider

Randy Rasmussen

Yes.

I other doing would in I in, dollar you year-over-year. Yes, and the as additional the revenue So past, said about they get perspective know, often think big we the you talked come the and, we're areas. first and into expand clients from expand land in this we maybe know, comes of where, a

consistent per there XX,XXX, think look expansion know, for client. client, we it table, in subscription think, I at look nice but at I was showed the too the quarters at several you you if know, it's If quarter-over-quarter, also also And the provider now. you on revenue per been you

higher you level into quarters. know, see continuing go, we the So, we that future or as at know, move to that you

Anne Samuel

Okay.

Chaim Indig

was I going to think, those I think, I is, Randy good Anne two know, a people And lines we just lot have, independently. about talked brought up which of to you point,

sort you at that payments about if talked and So see better. you actually little look a Randy subscription of client per story that per client,

Anne Samuel

your those you touch profitability some better EBITDA on you've could expected? in an Okay. know, maybe you could improved it's raised are you you for maybe you now than today, know, EBITDA, I Very talk beat than about of something levers was timeline got what you profitability. outlook coming And, by you more hoping helpful.

Randy Rasmussen

Yes.

last and I really on months some expectation system also, went significant there. think more a made some think, in we ERP about you a providers ago, I I year seeing year. new think benefits there's still clarity with is investments leverage questions of we know, think is. fiscal some this Ukraine investments I did we I We those we year, couple ‘XX, example, and versus G&A the what we're made for when live some and our that have where is good accelerated investments. guidance the a the our of think third-party And and there's And

that's year. for So, our expectations the know, you us helped also revise

Anne Samuel

you then question, just have didn't could And I in provide I letter. SDRs now? was housekeeping hoping see one how you it Great. many the

Randy Rasmussen

as same at It's Thanks Anne Great. guys. was end, - year Q that’s very much the it XXX. Samuel

Operator

from the next line Ryan of with Blair. comes William Your question Daniels

now line Your open. is

Ryan Daniels

the on questions. dynamic than a more regards your healthcare to Curious, in client or productivity that utilization the know patients in you're trends, retaining you Congrats was I coming is workers? to it in strong guys. COVID-related maintaining seeing start Is patient mentioned issues just for Or in? lower of what the Yes, of of seeing workforce it and anticipated. the with Thanks fiscal year. your base comments challenges the some prepared is

Chaim Indig

think I don't but I Hey, the seeing is levels. any and of care mixture there's hearing staff obviously one throughout, like staffing And -- I we're This seen Chaim, a fluctuates combination I COVID as health staff that their hitting and patients, entire ecosystem. it think it's answer, just also their Ryan. a we've think think throughout we're

Ryan Daniels

helpful. that's -- then Okay, And

Chaim Indig

then make And our the needs will them they so tools, they providers. treat -- We're that the just offs they to -- switch could all sure trying to patients for it we're providing they that treated. could

Ryan Daniels

help. Yes, offering update determinants absolutely. on And social an of for then I your love I'd guess my to follow-up, get

You focused think are that and a a on it’s some regulators letter, I of payers specifically we your late. and all stakeholder it. called topic in And out focused in lot detail providers on

or growth you're traction what outlook seeing Thank that offering specific there curious investments and is? what I'm for So future of you. maybe kind product

Chaim Indig

treated. Yes, that's address, that help health us, they often health, are benefit determinants doing know organization. sure wellness a what do. brought up help who get monetizing out, do a just I we help. we know the non-judgmental to well, I safe social thing. have up. they are will of social having that and important is you part to not people making in also But healthcare insecurity figure doing but really the bringing violence to but and found go impacting an determinants on things The the aligned, to the focused are time empowering providers right in Then of thing, And right and and working know, we there need just for an as determinants their scale what not place food with keep just they’re hard And, that I sleep. that it people And want way. how or of to people's right the how needs don't it's Ryan, or a thing social we know, And of just domestic they it's economic do to you our whether

Ryan Daniels

that. places work. And congrats I important you, your to know the Thanks. on that. so kudos announcements Chaim culture for Appreciate on is best on Okay.

Chaim Indig

company, committed. to only people really of group we is amazing this are work the It is. proud This with that them. reason I'm because this got amazing And

Operator

Jessica Tassan Piper of line Your the question with Sander. next comes from

Your line open. is now

Jessica Tassan

so you thank question taking Hi, the the congrats strong on EBITDA. and much for

So I a questions had of just couple offering. the Connects on

intake primarily think, admin off, a but context are scheduling, or provider, self in and we practice sit it? curious practice know provider of, kind Connect. patient if Connect, with First I interface interfacing the Is with patients it management, who's engaging the EHR the just it's the the just interface management and where Phreesia provider's And the then themselves? does the of typically

Chaim Indig

like I very was that I think Jess, it. Well, got question, long a

So that's right.

Jessica Tassan

with you. bear I'll

Chaim Indig

so Alright, I see me can. let if

think heard. Connect okay, do, of like is we what you that’s So awesome sort I've

Jessica Tassan

yes. That’s mean, right, I

Chaim Indig

the Because to you're if of time tied Connect. their a Connect connections the the envision long we but does between -- the with -- out And patient, that themselves. do they the and answered -- majority who period question Connect provider provider the book so beating right, trying the provider vast really of very actual uses right? and and All are it's now, other rarely how us staff, right staff very to for appointment, we they figure you

Jessica Tassan

Got it.

through vision the or interface. patient might scheduling that But that able -- so be eventually to is intake And management the self access though the

Chaim Indig

[Multiple we are still but You focused Speakers] company. a

Jessica Tassan

the and included And who at Or Okay, just in are the Connect order Phreesia exclusively network potentially count? clients total management have the scheduling got provider have access? the customer be provider are to in it. referral then provider to does in intake participating

Chaim Indig

be pay to got client you've counted, money. to a For us

if so a a And client, they're they're client.

Randy Rasmussen

we count first soon Yes, them in. Speakers] [Multiple dollar as as comes

Jessica Tassan

expenses volumes, revenue of where That's of want to terms true? then to would that, Connect sequential the imagine And that correlated recognized? I and payment revenue offering, in just recovery helpful. And the in seasonality then that's confirm but just finally, is recognition

Chaim Indig

between correlation perspective, a right Yes. I volume it's [indiscernible] think It's don't the now. there's the adding in number. subscription payment in

Jessica Tassan

Got it. That's Alright, thanks. helpful.

Operator

question James. comes with Your from of next John the line Ransom Raymond

Your line is now open.

John Ransom

a but This [indiscernible]. team. XXX, analyst afternoon sort of good couple Hey, is of

I out fiscal call And larger growth seasonal, revenue how to we we all, year-over-year? your to then or sort of the smaller three there you there about is of is think know components, in if the the secondly, but Life about Thanks. the of -- First anything versus the rest is same in of in said different should interplay clients of anything components, how there anything think terms Science think is about the customer three rhythm year, clients format?

Chaim Indig

what our think then in the I we'll been to care we you think as part, about historically big is as think have which [indiscernible]. was -- we've say outside of We I and you. said you growth happen times, but think plethora the across be I'll answer it know, need And, help, the this first a network. question? I you our the making And long client, still seen couple And again. clients there small. I other all We of I've appreciate help that me

John Ransom

Time and revenue.

Chaim Indig

that's I how don't going know be. to

Randy Rasmussen

in to typically I QX mean, in is then Life I advertising know, builds slightly you during the or year. budgets roll Science of because flat that typically letter, the from think, that the think I mean, and down QX mentioned I way the moving year-over-year, business, the

some I we've our to earlier think also you patterns seasonality which responsibility, the other it in in think year. similar what the I the had are years. know, patient But on, typically is based you paid seen know, payments to

Balaji Gandhi

we I March, the back only know, you is reason the is, what we're year, to I saw of is communicated of John, XX-days ago. we end think this. the of what because keeping saw quarter, trends the that the first And think the where consider The otherwise but it for guidance in thing different that just payments in nothing terms we at from

John Ransom

like out to between the asking could apologize. that question, that the reset I who's just mix had, customer larger of call didn't anything important see? I change. smaller wasn't adds [Multiple was there I ask I you first clients that in If that versus said like, to I Speakers]

Chaim Indig

I seeing mix. Good, John, shift answer you the right. to than the we're other, thought one the is any trying okay. Yes, internal no, more are in keep like But not

John Ransom

you. Thank Okay.

Chaim Indig

answer The second you. Thank is the thing?

John Ransom

Much better.

Chaim Indig

Three -- I'm three Okay. I'm maybe [indiscernible] looking there hard. this in, like, is, really years one almost

John Ransom

are. you nobody you. questions know I That that. Thank

Operator

line the Joe Vruwink question next Your of with from comes Baird.

open. now is line Your

Joe Vruwink

we updated there, stable that how per some sense expect customer it's this been retention the provided, years is that's think mature maybe to a think maybe Yes, where A kind to but figures new looking makes five and magnitude expect everyone. on Any about, we were of cohort. expansions should client going base look given of out I dollar-based reach I follows since Hi, couple start back that guidance? grow? on Great. that question as the boarded of, that point should been a kind of net a to you past subscription over revenue trend it guess sequentially the it also trend. really we'll the quarters now of

Randy Rasmussen

think talked levels churn about sticky. low we of last customer quarter very our that base I mean, is the I

cross think in have I to continue up we and success sell. sell

you us. revenue that given, retention numbers for feel, our very the still and haven't expand that's you net since and is IPO. We But, know, well know, we in strategy you still going know,

Balaji Gandhi

we to terms average client meaningfully, it. of clients. subscription and think opportunity, where it’s XXX,XXX that at thing, went all and types And still at revenue were we is other ago look sort we just could of look quarter, Joe, TAM in you function at you got of I this aspect grown know, that's on the public is think, three it's where years per on client we when are per step the the And

you to that's so, it's we that. I And know, the close of times still opportunity think feel X in about terms good

Joe Vruwink

kind timing Obviously, helps. That me, with to up for annualizing there in quarterly it, still right XQ, where sequentially, of Thanks. there's maybe the with you lower is for a the cost so of, of the just way of a know, bit XQ entails sales? things a XQ? the last the is go? of Okay. one think sequencing EBITDA, to anything kind of year. at stable in And guy of remainder XQ step related Or then maybe here stable OpEx And the bit or investments terms of

Balaji Gandhi

Yes.

You know, maybe Randy, maybe you talk aspect? the think want we about do about How to that gross margins?

Randy Rasmussen

internally And Yes, such in the I so quarter-to-quarter. from then are think year. corporate you half if gross the you there that fluctuates that of look events sometimes know, do expand have think I timing, margins, or have we certain the expect those we as capitalized marketing. expenditures to Also, at software, second

those timing. things all So affect the

Joe Vruwink

Thank Thanks you. Okay. guys.

Operator

of next Jefferies. comes question Your Glen Santangelo from the with line

is Your now line open.

Glen Santangelo

should from to revenue on lot. that - think A about let there's guess Indig Hi, you revenue two update going if that of, about update on that previously. Alright, follow-up the in on some basis relative how largely want on so that. the maybe hiring It an It a through and take try of of back the needs is yes, us Chaim were If expansion to sounds a just to that get Alright, we growth? I we phase of thanks business. guidance, the could three I here talking that evening And the remaining operating growth year. OpEx the to if faster is grow I investment was sort time half assumption I implies Hey than kind on the here guys. expenses phase? sequential sequential the want your was EBITDA And the to about we and unpack three calls. me question like sequential X%, just understanding my good for investment or about we gross margin quarters? previous even annual talked you're your it wondering

investing the see So don't just we've amazing to of the the expect the ramp no. they're I doing good had, number and the onboard, invest, same like, on in organization leverage at are in pace near-term in now people clients. them the that we're we brought answer continuing -- we starting and of we We're bring through plan. our the and of the continuously And investment is see these we amazing we that's really work. that people But next that think will phase, the to we're

question? answer did I think, I the

Glen Santangelo

I did a kind of you mean, $XX as $XXX the year. right, right, implied, about million looking is EBITDA, Yes. but, guess a question million know, previous I I right. mean, in this you we're guiding what of basically at, you're And quarter loss right? for

So that three EBITDA speaking. in negative roughly million in each would $XX quarters, a imply the next

are of line in it essentially So that kind suggests with expenses revenue. growing

make You about sure know, and want just the sort have that it, I details. we're we to right? get of don't all I thinking

Chaim Indig

Yes.

Balaji Gandhi

Yes, like talked and certain about timing Randy things. quite I think of

helpful So expect maybe as we a we could this. in of as pretty the And terms is. obviously better cadence it try to to it's time But get tight following on. range in up of be goes

Randy Rasmussen

Yes.

EBITDA And is you in it so and operating capitalized is location can I the number. investing like that it or just, of is cash example, know, for mean, but, affect software flows,

on. know, you on know, the working teams So thoughtful are I the it’s and investments just, engineering think what based we how do we're that? forecast Because about, somewhat you

Glen Santangelo

in short of the people it's kind you're the a $XXX right, Yes, specific but call guidance ‘XX, think, cash business that call the revenue sort don't needs it's cash, of let's lot cash if it I based should your you’re out it, in three this laid cash. business. I guidance, call fiscal at the asking and of your And Thanks. on you sheet half minus ’XX your fiscal fiscal one quarter half EBITDA we balance cash ‘XX? fiscal $XXX ‘XX? it -- The of the And at And almost of year question, point, -- that right? of, rough about will think the taking perfect. the look the implying numbers, million needs it, in are that's at And and always you fiscal I profitability in profitability of balance you've I'll last about how of call relative so terms think plan reach is to million,

Randy Rasmussen

in you and finance less we That’s that good a confident And, know, or XXXX plan feel targets. look to sufficient a then of that's, that you current XXXX, line to if of to to achieve implies and somewhere credit our the know, revenues you achieve And, will question. grow profitability. at profitable the you expenses balance is XX% our know, the that successful that CAGR at grow XX% XX% being goal and cash

Glen Santangelo

Very Thank you. helpful. Okay.

Operator

from Richard Genuity. comes next Your with question the Close line of Canaccord

is line Your now open.

Richard Close

a you congratulations. to think an it need front when questions, go Just And important then was I for just products? enhancing said going staffed -- market, there there, much like guys was there? any they fill and maybe is thanks forward? how do is sorry. something don't Yes, productivity, have HFMA But it whose scheduling Maybe you -- I systems on when XX% freezers, vacancies driving whatnot. thoughts how forget for those demand it showing -- survey to your taking the follow-up was that that to curious was, vacancies health and question registers and think the out of

Chaim Indig

don't All a following you're give, know right. don't question like, up like, on. random But I Richard, statistics, I why whose shot.

who our think marketing Kharen runs me I organization. told

X organizations. into made calls phone million Our year SCRs last healthcare

changes, do value. Evan I group in because you I the proposition, nature clients demand think we healthcare a to know an got is amount we very ecosystem, front aren't had often we of amazing of and people. think a way, whether need, But we you where we a that phenomenal like, fish. just a in of but think, it's great it's, you changing product we're know, know, you is the we uptick We we get great with a our them don't know, the had saw product jumping because But fish provided doing well not and and whether says, a have reason of it boat, in right? know, and of in reason thoughtful prospects I efficient it the in got front they

Richard Close

maybe reach I'm then And helpful. to if I levers That's could targets. there and respect dive ‘XX, deeper multiple the there? to in Okay. with specifically a bit Randy, wondering you you think you you're said, fiscal just what meaning have little

Randy Rasmussen

Yes, I I the I think about we mean, talked made. that investments

think where, is I know, know, we level as become you and we benefit grew you to we a example that. organization that realize more I G&A at we're good think, And to support public that company productive, continue now. of the

remote I think haven't like know, you multi-year perspective, from, -- a it's we also we're invested a organization.

in invested corporate haven't We headquarters. the

haven't really know, large done transformation, you acquisition. We

you have flexible that, cost structure. costs huge be not that So, in and us know, to enables fixed our

know, us, towards you that of profitability So, know, all levered you helps in XXXX.

Richard Close

the quarters Is that just clients that Just terms go that come little in have then would Okay. over last several we be how you of Can that just that ticked question think And a that rest year? helpful. on new about final up? facilitation that mix up number of would bit. over that around payment drove on the thoughts of the basically should be the

Randy Rasmussen

about you're then the the talking percentage, pay And fac XX%.

Richard Close

Yes, correct.

Randy Rasmussen

couple look been the of I think if at last quarters, fairly I actually stable. you mean, it's And

you but we're new not, you know, of functions have client with every you unlikely treasury health may to business, on and I been win depends client try we the it or mix know, if course, where, some know, of payments that our win systems they to larger that think, it's stable. and business, fairly take

next expect number of whole couple don't I move a the in know, you to that lot, So quarters.

Richard Close

Thanks. Okay.

Operator

the from with next MacDonald comes Needham. Your question of Ryan line

is open. now line Your

Ryan MacDonald

think thanks And maybe taking research in want questions letter, the of you're doing misalignment scheduling. great stakeholder and sort around my you what examples Hi, one between congrats report patients the the currently have. vendors focusing quarter. really self one Chaim in the on talked class of what on for about the I for and and the first the you, was

existing as maybe scheduling you that go that of self curious, drive those gap reporting kind you of penetration misalignment? the modules to share customers, additional close sort Just those to customers do kind expand, of have to of try how or with wallet adoption and greater around of, your out

Chaim Indig

Yes.

talk I think I'm on it's hope we really, the roadmap what worked this last very XX-years that what and really them what them. clients, report, were over has I've like, into able so building I about, this, here. what very, needs our I of organizations by I could -- versus continue at people fit a It’s I important lens want vendors data and and into our that, we And, investments like, know, you was, is a patients really their the how them and the you powerful product paper sorry, moving are was how us being and having that found shuffling, about great around think for we telling heard were the been very And telling are And the is what represent we to product. which push way. make This long-term. them, they we a the a pretty about look telling excited on well right? is are is are based about talking, we investments where explaining when we and think patients in in there lens what with sometimes -- in them we how their of telling to is sort we to and think also best think to what in to so report, invest pull we

Ryan MacDonald

stakeholder of terms as I understand quarter digital Maybe budgets business, year. down marketing letter sort mark customers on some of my And quarter. this sequential seeing about a like increased your to your in you Are think normal first pandemic helpful. post you for maybe this what think any you the around, really and and trends Life the with That's fourth campaigns. used sort you're think we I you of sort Sciences -- of, marketing, about that in or sort that follow-up efficacy seasonality refine customers? campaigns Thanks. return a comeback of Are the of, normal the scrutiny conversations year? with the campaign seeing any pursuing to before as to look continue But a your you term changes of

Chaim Indig

a promising. using and paper more in the that, I closely. we we say that analysis, their back almost lot we and provide you many I you regular why is a clients you now provide. all reporting real them ROI they know, to and there effects I I return Because that tonnage speak that be and a think you at want rush is, that’s we and you most to of know, everyone's we've so know, Yes, we've our results, them been it's why I'm, see -- with questioning always And should know, clients of And people do things think ads and I aren't so scale, network there have know, value we're clients, of very assume these don't could on, behavior starting just I seen [indiscernible] seen we TV. work net I you us pamphlets seeing gotten third-party for all to the a to a think do how think change our and streaming, of put to don't why them think would we've

Operator

comes question with line the SVB. Stephanie from next of Davis Your

now is line Your open.

Stephanie Davis

That more be Difficulty] medical volume taking Do impacted Thank the dermal, or on think you exposure have the How guys. client potential guys areas exposure should questions. overall dental? you my as Congrats ads. recession to we market? pressures? patient visit your by discretionary could a for in inflationary such about to [Technical Hey,

Chaim Indig

have too that if elective most I say we investors. our clients point. groups probably data, I'd say this they is have I on some than almost our that are we'll of outside that discretionary, much things think derm non-existing we to our cosmetic. don't most don't in in -- changes, large something footprint focused health medical much practices. of, like, have dental -- are QHCs derm that are But say are communicate And systems, we nominally dental more our I'd really And at that focused larger I'd on large that of that

Stephanie Davis

marketing you. how touched to Could build that bit was an your margin the out? I sales us that outlook. surprised and sales Helpful, a force how much was Or on that you little flattish adjusted to the And was help this of guys see efficiencies? you tease of on out quarter-over-quarter. was end thank But much

Chaim Indig

out. I don’t think it communicating just efficiencies, think don't like salesforce of I filled we're of our was know like, end the -- most I

are along I have of, think group phenomenal you and pay lines they the to of know, operators, shareholders money. we it's who where spend a more attention

how spend amazing you I look at to allocate where what and you money so you you they do it's it and trust things. for they place the best you the and, know, return. have And right know, trust would we it people know, them happens them spend and, when and And,

Stephanie Davis

the for flat we assume lined the rest of to wrong member it that is So year?

Chaim Indig

saying, we revenue guidance. guidance with we're whether think we're not, -- -- fairly think comfortable our and think flat or EBITDA our we're I but I it don't line I

eventually, something so is And to got guess.

You like, many only can't a pie we ways. and a it so can just make, pie try and

Balaji Gandhi

you Randy's expense think Yes, around, coming I is growing. know,

Randy Rasmussen

grow Yes, I know, they right, -- XX% XX% so longer range, term, have you in, to think to

Stephanie Davis

guys. that’s Okay, helpful. Thank you,

Chaim Indig

you. Thank

Operator

from Securities. JMP the Joe line Your Goodwin comes question with of next

now is line Your open.

Joe Goodwin

been for so health enterprise you've these adjustments taking motion or to you go Can questions. Thank market pipeline if clients making for customers? about for systems? Great. just you talk your your much larger my any the larger And to

Chaim Indig

on to pipeline. don't the We comment tend

families. they and we should all our clients that which think treated, care our small of our the I over show land, it think enterprise consistent, build amazing some fairly then has is and you that small enterprise And never know, of a take value, stopped. be all way again clients. all Joe, they that's continuously do the ever the you quite clients do our and value, land and -- unbelievably clients because for which product, account, the And it time, add of over the again been way large to and treat is fairly grow and more wild, market when for works, motion for with our them, for then of think I go add ones and about

Joe Goodwin

Got it.

from Okay, are then, with you go clients solutions get solutions the you landing and And guess, seeing these are with? clients I what into actually land thank for seeing that. more Chaim new any you are changes

Chaim Indig

Yes.

that's with So and successes comfortable what has opposed I products things especially great am had gotten like, hearing right? getting we're has different accounts And more that a different and lot just more intake, as product clients. offerings. as So, from with our team, see, is and more to reference our sales organization our landing we're different clients to landing more with

known doing that know, and long. still you seeing what generally because we’re for we've I for intake, you been like, yes, So, so think, flat know, we're always that's throughout

-- So the a majority And it's great so still anyone. vast will be product, it’s

Joe Goodwin

Great. Thank you.

Operator

Jack question with next Your Guggenheim. of the comes Wallace from line

now Your line open. is

Jack Wallace

job for the in and thanks questions my Hey, taking quarter. great

and stocked fishing, are had less analogy the there any, regions? Thanks. the know, more but areas of size, you you specialty from some client others the further or earlier, are than more know, you've Just not well success in or that that ponds geographic necessarily where

Chaim Indig

could sure I Yes. sent to not it had just patients can and, don't make you work, we're busy, down Like, say think try their and, just I’d right? they're -- necessarily calls add that that lot to to that their we And trying lot you of it's that who they're out that people looking a what just been you tremendous we it's we're, emails what solutions. No, solutions And is in think for so been and I of solve. deliver find any you value phone people stat run -- like is we comes a area, and and problems front take know, of of and are help has need, know, continuously know, know, care them, really getting there we ERs find working.

quarter usually you it's for know, years, is past many another had testament, we've as this like, So, just hard work.

Jack Wallace

that still Got would of a, now travel, level a and baseline hired be, that expense front, Is know, you year? of last it, the and we know, say that's level the more know, potentially a team. or that some carryover forward? a the line it. incremental there the know, people of per go going to pullback required That's a obviously, ton of level, on you seeing sale, over going the is the add a the in Are of in bit entertainment call we're And of on there that half let's of little you level sales efficiency as helpful. some efficiencies year rep pre-COVID so And coming in teeny make back plus. lower to seeing we basis you the back marketing

Chaim Indig

Yes.

people I what -- the big say travel, our know, think we're best you we are on entertainment decide front.

one So that's just a idea. it's fair --

Randy Rasmussen

a Yes lot the spend entertainment. [indiscernible] of

Chaim Indig

making if And No, and person make empower like so get know, hire in it's, it's But, well our earlier, to is other, we mostly you to all said travel travel decisions you of has is you know, decisions. you which can, cost smart works and you good is sure make to because where team mostly it make think empower do think out that after see I for think just to we question, together I Stephanie’s to just to we it and, as know, or we us. it we're, as people reasonable. with, smart much that and I try you them very like, important, not, that each effective I don't sure as

Jack Wallace

That's you. you. helpful. Thank Got

Chaim Indig

Cheers.

Operator

are Indig. no turn back to call questions this would time. further at the There over Chaim to I like

Chaim Indig

share really to nice All up large say you call. that things right. The wrap to the

a you questions reach couple And to a it's great us. investors@phreesia.com, place thank participating, any if we forward So you talking have look comments and months. or for to everyone to everyone in

You don't note. know Balaji's

Balaji Gandhi

Alright. Have everyone. great one, a

Operator

concludes This you today's for Thank attending. call. conference

disconnect. may You now

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