Phreesia (PHR) 8 Sep 222023 Q2 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
Glen Santangelo	Jefferies
Ryan Daniels	William Blair
Richard Close	Canaccord Genuity
Matt Shea	Needham
Stephanie Davis	SVB Securities
Daniel Grosslight	Citi
Jessica Tassan	Piper Sandler
Jack Wallace	Guggenheim
Joe Vruwink	Baird
Joe Goodwin	JMP Securities
John Ransom	Raymond James

Call transcript

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Operator

Good morning, ladies and gentlemen, and welcome to the Phreesia Fiscal Second Quarter 2023 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 July for second XXXX. morning, you, to and earnings ended Thank quarter of

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

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

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

to subject described in and performance risks differ those from are our other materially or forward-looking achievements statements statements. results, more cause may various are earnings stakeholder our Such actual our Forward-looking factors that to included factors the SEC letter in uncertainties release, in risk XX-Q filings, press report described in our be and SEC on quarterly filed with fully included our Form our will the that tomorrow. risks,

letter, Accepted of unanticipated financial Principles reflect information reflect in to obligation and expectations statements may refer only to the undertake events. made events call or the in on update Generally be of A considered earnings found not in for obligation or We and speak non-GAAP results isolation X-K the results. this be measures will current order non-GAAP a Accounting also certain release information date this on or market statements call and on to Relations these I of SEC to to new found Form no not expressly our substitute views forward-looking of based with to the on our the made. CEO, Our in website investors. the the furnished which to our should be forward-looking as or filed with We also will update today stakeholder are which accordance occurrence reconciliation may measures be at date disclaim circumstances to closed as our after statements the call and GAAP Investor addition our and and turn were GAAP additional Chaim now over to provide These with in may to our Indig. from ir.phreesia.com. after

Chaim Indig

the average and health second quarter. clients services basis, was combination quarter additional Thank and and patient year-over-year more during Balaji, case services day, $XX impacts We become Payment the subscription States the a in than the cover, the patients team pandemic. reading the processing average establishing one all putting XX% year-over-year good more in strong our let quarter key year-over-year, Phreesia growth fuel highlights for outcomes. in team stakeholder quarter. health is services revenue, quarter you, sixth million, up out the fourth in to $XX,XXX of care In care revenue of up you revenue revenue the and which growth. In now me revenue, This quarter. sequentially, services In care up client services Health the XX% we of X,XXX. health our The record of grown growth. which the of material in last in was last visits achieving straight you and attributed and clients share land health activated size year-over-year second year-over-year expand XX% year-over-year services growth our in second Thank XX% spend the and their related the call. XX% was cover thank second XX Phreesia care processing the the services the number helping United letter, reopening new I execution remained every second up year-over-year. last helped year's the some from network in subscription and year's year's on XX% On second the was last revenue payment consecutive for second after quarter, XX% Revenue XX% XX didn't growth go-to-market of evening, Life second of quarter. commentary. quarter Sciences earnings having of XX% the clients. our XXX the growth over per catch motion earnings in average quarter utilization in both want the our top to by to minutes in added better our and grew for range significant related health in participating health reflecting represents our quarter, care average everyone. a

We the Moving fiscal million for rest of of now range on year. for the fiscal $XXX revenue million. $XXX to million, $XXX $XXX XXXX to range our our to to expect previous million the tightening outlook of be in

our a negative the the fuel the $XXX negative our million previous from expect to continue we as EBITDA began taken range in on the leverage range the we've our growth. of expect We in best-in-class, million clients quarter, for investments profitable are and to our believe couple last to Based least return sets expect financial strategy XXXX momentum relationship quarter see year and XXXX investments end quarter amazing million expand network in our adjusted We to our million. ability at XXXX. adjusted second of million us plan more average first $XXX over million the remain year clients. cash third operating beyond. our EBITDA the and equivalents. targets The our of up cash with $XXX by our in products, negative for gained to new Services to us existing fiscal increase couple allocation to product build helping from fiscal outlook we XXXX fiscal our to years on $XXX with up fiscal and strong to of our capital years Healthcare finance our performance, deliver comfortable negative clients growth We to with XXX to We fiscal $XXX $XXX and last grow in with fiscal new keep to believe

value. can open to we We driving on now. continue I focus Operator, shareholder Q&A up to think it

Operator

of JPMorgan. comes question line Samuel with the Anne Your first from

open. is line Your

Anne Samuel

maybe strong incremental little the a Congrats a quite Was half? raise. on was you EBITDA wondering, bit color the the on finding guidance bit of second more provide you're local in And are the growth. could so, efficiencies those? any back outperformance. hoping if what just there quarter I It's are than

Randy Rasmussen

I of on the the focusing team think question. money mean we're for for I really smartly. spending proud Thanks

software have dollar has think We hire as the think services that on we a And that in about we that I done the great person that important. spend as each every culture. carefully, past, job think the when we watching we stated every in team continues you very and spend about think our dollar expenses. just I

And what spend we us making pull spend sure continued where on don't on to that business and money, value to adds it's money we the back. So just we grow. focus need that helps

Anne Samuel

another one. hear. great Maybe That's to just

business again and that Sciences companies really to we're Life strong, customers. Your once bucking Life hearing be other was Science the seems and really, that from trend with

in of seeing there Sciences Life So little there's a on if what was you're shift marketplace? bit just hoping color you been any could the provide and in

Richard Close

its in grow First, the networks time.

we've value investments been footprint, second. add the network messages in really to being paid more more patients to have expand able our more the in So, off growing making that just deliver

in team the with amazing. everyone. I'm job. great I'm so And the be through Life we think or, They've a hadn't by we with frankly, But way if all the based don't been this just Second, is question. products where in and Sciences execution on calling just the I are our And out people. we impressed doing would it been investing

Anne Samuel

quarter. great a on Congrats great. That's

Operator

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

Your line is open.

Glen Santangelo

you curious is when much I maybe of have balance in balance type want also the what and to digital kind half mean, the how win I'm follow year. contracted to of quarter sort on the year Sciences of for on you with for third to us look the have at that sense just how the advertising much the kind just you growth about could give over, a I maybe you of just quarter-by-quarter Because of basis? maybe already that question. Life up as I'm curious a of of visibility

Chaim Indig

Glen, because bullet we done year. visibility around like fiscal of visibility to then us, bit we've for in, fiscal fiscal make one sort fair way clients real couple year, have if that to our it in next of are often bogey. Because the a is things, that that bogey a month -- have our much year's comes contracts. don't really still of sense? got there's Does a you year, the year, We the just fiscal January next those we have in always but as the come

Glen Santangelo

Right.

suggesting that December, into falls fiscal pretty year a up what visibility the theoretically, your saying? clients. right, decent final of you're through you have Is QX So month for you're of kind different but

Chaim Indig

we say I'd Yes, visibility. have decent

Glen Santangelo

And look of sort number, of end this that the you're guidance you balance the 'XX through wanted feel low also to in very at that by for just that EBITDA profitability with I Randy there sheet, be And fact goals out cash of this kind the you the thinking specific mean the think EBITDA balance adjusted sort guidance to million And of EBITDA, fiscal seen fiscal in implication time concert I -- I being forecasting currently to $XXX we at with that and the sort the sheet? cash the the is the I'm it with should about? access I've first then balance watermark any comfortable on is making of curious, that that Okay. kind up also $XXX of take and million have your flow cash you sort follow 'XX give there of I year that guys is capacity any other if Randy. your have of on year. calling as you

Chaim Indig

think it that the going answer I'm print to a lot. we there Glen, Randy I But put No, out let reason just it, question. it's and decided like to

is right? way answer stumble don't him So think answer we then really that we the let it. around important there's just with no confusion, I'll this important And to a Because question.

Randy Rasmussen

you're and XXXX our on we plan. are. We borrowings on confident where We're of any right. line to have exactly our cash execute have cash don't Glen, our credit, balances adequate

good So about feeling we're really our cash.

Glen Santangelo

of big line really, And us? credit, is how remind that just

Randy Rasmussen

$XXX It's million.

Operator

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

Your line is open.

Ryan Daniels

quarter. Nice

on the one think net I Another don't you've client the offered past, on guidance new in guidance outlook. additions.

expecting strong least there at quarter of XXX. You're another

to that turn what's into So helping have those all trial visibility people end to allowing the high are conversion feel Is clients the you're related with you the there the quarter? good packages that going of some of and by such pretty there? paying that seeing a at

Chaim Indig

Well quarter be -- to and pretty for to Balaji to wanted we model, everyone the visibility yes, so do easy have good fair. it to make

You took and Balaji's little visibility. we just -- so bit a just giving advice more

to model. easier was it So

Balaji Gandhi

you, But Ryan, I it's it's visibility our a in that. with more think disclosed don't change

Chaim Indig

Yes.

Ryan Daniels

client And tenfold then longer up push down, per comment of you maybe increase. for they services there versus it bolus in slow services system the how client the purchased? comments, where have a is so how algorithm value Can additions new by to little about the the can appreciate expanding at from XXX,XXX the that them a that I figure today, growth just into you about a talk to that. to prepared term more subscription-related the potential get drive after bit Balaji. you to will Thanks revenue starts maybe your

Randy Rasmussen

bigger Ryan, I'm I going just answer the But to of want part the clarify. question. to

you we annual about be math about would opportunity because I might on math think think be the think quarterly doing Xx. some I to

revenue subscription XX,XXX. annualize we be of sort per the that. client of and about X/X You did quarterly the took It'd

Ryan Daniels

XXX referring just I'm so No, and comment to current subs about release services, that in $X.X from you subscription-related saying created the levels Yes. level. TAM up the to the the getting of when billion, XX,XXX

Randy Rasmussen

of answer. Chaim the maybe part And question, it. your Got can second

Chaim Indig

products -- no, So you going think buy do years started It's get how that a how started to It's our I I to people the years ago of we are I and when simple philosophy more right. every expand. Company. remember and more and pretty

change your provide you what value as you First, do, to you you're clients. going you as do say possibly much

then and that do products then treat more You you is value really one next them they're it they a really and say really, you really another amazing going more the a you do you where it and ton expand And the then ROI people build them then because and you try they right, to that go well well, them buy becomes then expand implement one. you you hire great to And cycle, when well, and provide and virtuous and able to to the your you're footprint. to treat of you're provides And do. you and to and then well footprint it pay them then what willing successful. and products, phenomenal product you

just well You we and that. treat try do to people

Operator

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

line Your open. is

Richard Close

guess, client that year, line management question the But item? significant client are a that timing and, And the but of adds when quarters, you also average the several per the last by somewhat revenue client over about schedule, of and Ryan, offerings reaccelerates last how last few. you've obviously, Maybe to referral name on had average I over introduced to new per a revenue growth maybe thinking declined. auto Congratulations. follow-up new

Randy Rasmussen

that. So can take I

we also our when the So revenue it business. payments look per at client, average includes

talking So where payments when our where fact up XX%. it we're growing about growing to growth of is down, payments about going we client really talk is XX%, the

main the that's So driver.

But the look was actually at how it quarters, that, if for The at we've XXX. six -- subscription been adding you it's clients over many three average consistent If we've you over the around per very quarters. look the three last adding the last revenue quarters client, three before been XXX. been

the So happy a that we're we've constant very in we're clients that though having. number huge has per uptick even of subscription fairly had actually the client remained

clients it our it's from so pretty So you're I think healthy, every think when hard adding perspective, increase many we statistic to and is that quarter.

Richard Close

just terms then bit little there seeing there. a anything in utilization, to of the in you utilization maybe And provide more stating else environment. the Okay. some context incorporates add comments half expectations utilization made you're was just year? if I of from curious you in current or outlook our on expecting And revenue back for Is could what this

Randy Rasmussen

outlook I look regularly in mean patient about it's at in think the I our sort mean think we for are utilization ambulatory you asking embedded setting. how the it we and year. of about

Chaim Indig

Or a the all sort of acute, in we it see on daily basis.

Richard Close

in Are any Yes, guidance? maybe quo? of a is terms your little what into bit for looking improvement? more it status you is context Or the baked just

Chaim Indig

say philosophy. to been Richard, a right, pragmatist like look I think I'm utilization pretty strategy, not for we generally half. don't a and is the and my used -- Randy this, I'd I'm pop second not in hope to on

that's that -- think see I and it. don't we

providers our we're ready about -- that's telling getting bolus hearing come. us big to not the for and So they're

Operator

with MacDonald Ryan comes question from next Needham. Your

is open. line Your

Matt Shea

Thanks This to on quarter. question the congrats touch is and solid Matt I taking Shea wanted for on on a payments. for Ryan.

been some if And hearing about seeing are the outlook? balances provider if rising rising which, So, in debt. cases, turning self-pay on to what payments some balances with at have this we've patient might impact practices, Curious, you're clients? your bad so, patient

Chaim Indig

we haven't I of of heard up. I we the manage in thousands any heard? would of change haven't we that also those general see any payment And seen and have that if of across our of seen country. did And that, see generally haven't I trend don't any active bubble you numbers. any plans in hundreds Randy, -- --

Randy Rasmussen

we're that our in anything think data don't I what would we've talking yet. about Yes, indicate seen

Chaim Indig

we'll there's now we call pretty listening can case. but is right I it, our hear it much out that's this to to in Phreesia guarantee, if going Yes, someone seen sure try if at haven't about it, do that figure but the But talk numbers. we I'm

Matt Shea

scheduling intake user so and and Okay. unify to would their Epic patient be, also sign-on desire held group good in a one conference some That's solutions. single develop August to in text-based and the mentioned and then. other deploy One to announced portals hear

patient moving be getting So offerings. it sounds and text-based into HR like better vendors may in interested in portals are

competition have your if a what that intake So your Epic could you existing relationship? complements patient impact create. the EHR curious solution and on And vendor just then launching comment text-based partners on might

Chaim Indig

better. running I we competition pretty products for can't products, for hard. but do comment see been just Phreesia. as reason the think making all why future settings competition patients is it on have any doing are not more that's can I'd faster at health variety but our we've in But we've What And hard, specific we does people about and different investment improve I the it live it And feel different products had say we sure And work long company, like as of can lot at our comfortable -- if to America it, do use scale there's with I in And I and to we a a a And but pretty what scale. also do that of current think clients we data it's at good we makes outlook. that that, in right? because complex have getting our our thing. that's that things frankly, in innovating, everything love do great. care amazing

Operator

from comes SVB Your next Securities. Davis question with Stephanie

Your line open. is

Stephanie Davis

revenue client be sign until should to processing continues give about run just per when for refresh quarter. payment you what rate? your lag brand you outsized. think Congrats on on a acre optical And the the sort can growth first up How up drag us you're we I was the hoping good given of client?

Chaim Indig

a were for choppy us. bit So, little Stephanie, you

Okay.

any mind you don't Do the of processing question heard credit. payment ramp, super repeating heard I but us So it? think I

Stephanie Davis

and All how was at to you're that so processing for the trying I revenue right. look lag client conference, No that until I in I'm going ramp run when at I any metric a because to on apologize us walk the through full at noise. could the asking optical drag But term. sign if rate you're worries. a payment near for am your per have up first could you background you

Chaim Indig

Yes.

then have So I'll and -- think it, part. of some answer might Randy the will answer to answer I other

in And I add and we into then when land up -- the we payments, to deductible. like there's and of couple a payments. on -- more more right? up just But if just tends it organization, picking has on payment just And locations, we're add other to file, seasonality thing stress expand want of plans. is as with about do as our that that think cards a one, there's tied payments, So, simply ramp we a becomes some add it drags I to the which as way nature ramp, in annual points our how Payments to some we do payment up of it. we It's frankly, we we think payments. pick And also to more the not probably seasonality we best But numbers. grow. also up do building has pick the the about

Stephanie Davis

Is a there any follow-up... --

Randy Rasmussen

first in. the revenue when customer the count dollar We comes of

provider period there's they're as start we an a they us to usually incumbent as them because as So payment place. transitioning in client. there's Chaim will said, our where ramp-up And count using soon a payment solution, as always

may payment four be months So, solution. onto take three for them to it to fully our

Chaim Indig

more... Or

Randy Rasmussen

complex of terms In there.

Stephanie Davis

it up? out a is last suggest discounting on because shift really the us away there that another increase transaction processing there anything to payment a from quarter-over-quarter was to that else step yield? call So given was healthy side there helpful. just one in Or quarter's given safe Is the

Randy Rasmussen

go different I of like mean that card-not-present, cards, affect mean it's lot I the the paying can affect what a things that if effectively. they're that's that. into there's with that and there's things also Mastercard, can of mix that Amex card-present,

Chaim Indig

And there changes the were some from carriers. fee

Operator

Daniel with from question comes Grosslight next Citi. Your

Your line is open.

Daniel Grosslight

depressed. on you Thanks if you and to of going markets mentioned on happening like the public if But into Richard's a non-COVID the many kind my and where questions think your Can you And of one utilization. they in question not to season congrats to the half now? how your around is guys. making Hemisphere less on on I hope should in at utilization? that remains the of look here. follow XQ providers going how pre-COVID the you're a of then into is said know put kind year? for think half. utilization speaking up is taking you're listen the in going quarter, of clients flu second utilization about have ambulatory on at that right than point second Southern finer And now to kind utilization still doctors Are kind we estimates of go you the just I'd

Randy Rasmussen

are look down. week that I some are every mean, are weeks up some we and that to be at weeks it there there then honest, are and

So it we a feel we and generally effect data COVID like think don't a COVID effect. I that to not conclude enough is have there's

in think it some said, -- of model come we Chaim we're to sense expecting back. each I not like the

then -- more the that off middle I think, and the the generally newer on when in where revenues pretty kind of and come at quarter-to-quarter quarter-to-quarter. year flat our towards and you clients there year, year of during payments the trails the There's of the seasonality it's look earlier that's from there's consistent typically, throughout end year.

Chaim Indig

right? we big the we We time, we we data do had to utilization used real have -- But see time. when in could real offices, screens of have have

Balaji Gandhi

we last that unusual that. look was that And sort letter every think client you analysts lot look on I commentary I it's and that, XX and year, trying utilization look our through least from of many a per that of this that something still working thing at overall on clear pretty if to for way, report modeling. the public at with The the some it quarters you in think at going of payment one I catch-up would basis, do Daniel, we're a at and help people quarter, comments, now say Chaim's if who volume opening

that's think pretty evident. I

Daniel Grosslight

your into selling And Good. Okay. cetera. the seeing into had have direct then say, tech health provider-focused market, but cycles, I'd they're not provider some other, peers, provider some the health issues market, tech et elongated folks sales selling companies

great. just seeing the that more curious, most conservative kind folks not in I'm degradation market upsells And seeing provider in a some the what's is being resonating which market. price the starting in are suggest now? little you the and would that are of that You're any module given some pressures

Chaim Indig

So, our I'm our get foremost. team, -- marketing go-to-market is on a every -- I'm phenomenal point. the that's I going our excited a it and team, just just to so to provider just our weekly give calls they just are first to and we're -- shout doing in, success organization a that first like doing huge question I take and reason client this opportunity time demand our gen I listened sales team, team, our sales is well, organization, The without

calling sort they'll I'm and to on all call hear right the so now later. And you, company although of it saying, thank

And way should that trust. account. to net better, the build that's the to the then and We how footprint our way trust continue believe away privilege grow The experience. grow and that's understand, of that provide us want amazing visibility money. in value invest everyone selling that for products Phreesia build think been we we amount think land is on we of and we that payback, expensive It's believe, important part a the our motion. significantly our and get we We gives right at we in provide better And of our we that's Next, a we and to phenomenal selling is client And table we pounding the quarters, that's value. worked it that, but we've expect. account. sort more better it's we've I is XX onset, wildly and and And function. on and the

Daniel Grosslight

Yes.

folks conservatism buying degradation modules? additional price seen no of or up no starting So, in that kind in

Chaim Indig

it No. No, haven't we seen yet.

Operator

Your next Piper question Jessica Tassan from comes with Sandler.

is open. line Your

Jessica Tassan

sort I Congrats specialists. Life squeezing then us on was your the thank just secondarily, detail I of and but revenue for historically give able offering to that not Sciences know without kind whether of about thought grow Sciences And to growth is guys your was a can provider curious utilization mix is because you to would revenue the kind per in. maybe quarter, bit changed driven, just you that's know do of Life to little being how commensurate love at all. with of Sciences me of or has impression Life of anything we've hoping if

Chaim Indig

problem. no No, Yes.

first going second to I've I ask I'm first the So sort of question mostly because question. forgotten probably the -- already

And reask it. I'll so

it, patient want do growing after clear, usage it, right? network I in but like we be to And all model, as of the to consent-driven grown, the has So So patients it -- yes, network a is deliver -- our is of for grown. most very of the tremendously. message revenue monetization has most Life the Sciences, targeted but not is we it overall the of our

amount play so, doubled, quarters, you out So network out just public, the than And it network. is every volume just had tremendous we're of just XX since we XX visits right of one now seeing we've more been if in right? growth, our

that So It's help view helped of that to has It's and been of expand being and patients to know that's very content us just having And to which for valuable we -- right right for yes, them -- the to don't the volume care see them I one the sheer us. that specialists. question. has number answer the I of not drive significantly and and our allowed longitudinally type able two. provide has patients, very, type revenue. of the you told if Life Sciences just that

So.

Jessica Tassan

Life there I think just of is Sciences I is of does product? billable that you And a change them. is just letter, us you my honestly new pointing your the view be be, ROI No, it mentioned Life would guys segment know, TAM that's Sciences answered patient And I to? insights, follow-up this you sort for all And of would in to think guess that all. it. then a curious at the

Chaim Indig

So, we it's do have Sciences, a website Life lifesciences.phreesia.com. for

totally of a on ROI website. it's there's examples go can You that, a in, great bunch

So, go Is wonderful. there was every day. there do. TAM... I other. what And It's the then

Jessica Tassan

billable product. it's Yes,

Chaim Indig

mostly You so on just used it it's it getting bundling gotten valuable. people it We've as great as sell using we've an in feedback we're we and because now it, clients it, from to right are using offering. been

just us promise it's will right make mostly now, TAM put I'd So it. And Balaji about being if TAM, bundled does talk out I and the in. say another it change

-- he So though. is coming not now that

Operator

Your Jack from Guggenheim. question next Wallace with comes

open. is line Your

Jack Wallace

have an base. the us Congrats your to another of quarters. year. about really building six angle. per upselling to just on solid quarter in and cohorts? thinking Maybe more bit for the these two matched to relatively rate help -- about to solid And a you some cohorts cohorts seen the new will of relative just how wanted us from flat up I kind half years. lift as the think year buying sales There's little per last revenue then client basis, they've in -- hit on maybe a as use different better if guide, context from to get the question of kind trajectory it prior the prior less software something prior the provider software just customers client really if cohorts client wins, first seen, software give what and a half had been from this the potential those of you're or but prior some not we've Are accelerating annual over first cohorts coming the

Randy Rasmussen

think we I numbers. new revenue you've are apps of seen the mean from generating the as new in I client sure. Yes, most

from think are the I they So multiple I customer of kind products, perspective size. think of buying it by varies

So I there's if don't distinct pattern. know any

statistic has I as new trust just it think customers that volume the where cut of we've seen or sheer to flat. just

there's quarter I we of a those indication. pattern price the have the I a And six before, particular or at adding to if you in think clients. six clients last As mentioned that cohorts also we're expand an or lot months over period. continue that's we don't look that rate

been. I think just we've

Chaim Indig

We're really well. just doing

Randy Rasmussen

different been Has across areas the of in of board. lots selling

Balaji Gandhi

other you earning in retention spite the is saw the and holding per adding client subscription year-over-year. years that Jack, did worth And we revenue clients And of then client four retention. share gross almost obviously thing in, of revenue

think I with that starting people just that in of suggests sort us still are So the same to way. work

Jack Wallace

item at quarter? Yes, How me. the housekeeping that's many of up And a do for the helpful. we just end with end SDRs then

Randy Rasmussen

XXX.

Jack Wallace

you. Got you. Thank

Randy Rasmussen

XXX. sorry I am

Operator

with Your next question from comes Joe Vruwink Baird.

open. is line Your

Joe Vruwink

Great.

metrics starting Or year-over-year to Is knowing I that XX-month last of a frame EBITDA improved frame all the on new discussed we're guess your X- now productivity of you've the think really is trending the And the in say past, a employee year's we're kind in the higher does to plan? also per a to outlook better for than hire. basis. time revenue see essentially this according and going for I productivity time expectations? class, for now year tracking

Chaim Indig

trying expectations. I'd we're say would much I to well, do our just is know. unbelievably -- -- team It's I'm and doing better than the tracking say think how I

Randy Rasmussen

in are direction tracking allometric bumped we the that them very are moving strongly... The to

Chaim Indig

back productivity Yes. go expect it We was. to to where

cost acquire looking Our good. really is to

looking I revenue good per we're to employee pleased. is think Our

Joe Vruwink

at Okay. then gross you you Great. look of be in fiscal meant I'm increased the watermark curious EBITDA. the clients. margin subscription trend year for is sequentially, specifically obviously, that know to I low new this a lot and onboarded if And

that. implementation success should incremental would be needed probably some investments there I call further a levels? early customer kind Or still behind in these of and you gross margins, team and might expect subscription imagine we there? trough think from improvement to had too Do maybe you the So stable it's

Randy Rasmussen

little in an think actually in see else, bit QX, would had that had that that than talked we the subscription you're as quarter, you go margin margins to, XXs. better up less I And we've thought. this we everything or about mean improve. expectation low we referring done a gross the it like And improvement I payments

really I think using is about the and resources. spend how organization thoughtful we're

continue the second to to expect that half. we improve So, margin in

Operator

with from Your comes next JMP question Joe Goodwin Securities.

Your is line open.

Joe Goodwin

have be commentary curious, would attrition? natural So for Or quarters. And just attrition? the your is past is down sequentially Any great. two that employees I'm that come

Chaim Indig

well I has is that we think the Look, XX a I We've done say from has Xx keep it's net. question? it's phenomenal the to more a team, think folks you that and know team very but we how -- our team of ago... rewarded up good I do I'd natural I important done see months what -- I had think are think ebbs answer making not job. we don't yes, But think job And and I sure is flows, attrition. want

Randy Rasmussen

over It almost three triple years.

Chaim Indig

years. at it three tend over quarterly a triple trending time. on but we basis not And almost over to And look

Joe Goodwin

Understood.

client then, call, like Okay. there's care at the in movement briefly seen on anything commented client on the macro but And so the that? been health retention earlier -- anything services your maybe or even no from all you retention

Chaim Indig

No.

Randy Rasmussen

basis, at where and so. the It or look on it's helps consistent a consistent in been with. We it's past it monthly year

Operator

from Your Ransom with John next comes question Raymond James.

open. line Your is

John Ransom

the we look XXX ones to talked today and you then about If adding quarter. this added you're at were you customers the

So on the added call on doctor is systems average round per of sort bigger bigger it provider as average, as class today all a hospital Is number. let's or this of customer bigger XXX of kind along. set Or same groups? providers you've basis the TAM just in a

Chaim Indig

are And They're though, we're seeing networks. of we seeing but all land. all we're seeing thing those part they're absolutely And John, large are, sizes. more The we're They're they to medium. different then that also it's them. and They're in enterprise small. expand one the look clients, tons midsize, they're clients. all

has that team to of more phenomenal health and those list. all just the across Phreesia think helping needed. job a selling We done the enterprise think provide about it I versus spectrum

John Ransom

I And of core capabilities. think understand mean, guys the then I adding new we are secondly, Phreesia you and

isolate about more is as core, it Company that is, it around than next and these If -- Or you is two you kind is that think big you've that it the this just it the could the anything is going one capabilities is will. be kind is and enhancements that, on if gosh, revenue? -- of added, we or we what thought, this were better there to are this of accentuate should

Chaim Indig

are making right. been products traction how been successful, say been be we've have access and is the and think don't products insights. providers. quarters, investment the Sciences Company unbelievably like we're I years. a But appointments get I'd of some most making Well, next is people announcements products around that's had it just we'll about. -- some of around into and have been the since our all We've excited investments. it's the rocking had that just new getting Life we've Well, other and been great. in lot products It's making we've one what significant Hopefully, over

say, those R&D to I'd -- that a We're investments adding John, investments, we're see off, pay products building we made big starting So value... we've people have of right? in and and ton great are

Joe Vruwink

to have but You that's went I years of virtual -- ago. productivity an a or couple so sound impediment creativity. doesn't like really it not mean I coming off, been

Chaim Indig

in Randy are been lot high-grade around Yes, equal were of to pre-COVID, to everyone had field. right? playing sitting in it -- already some, work just an Has made ways, table, right? on it harder right and for -- now, We for we easier think So this Balaji kitchen my I a

Randy Rasmussen

Balaji? it dinner, or... for Is What's good

Chaim Indig

takeout. have We

Balaji Gandhi

to Next helping time, you. you'll cook at have

Chaim Indig

build care track sure right make just And the make we and testing outcomes our the build But want product a we needs that I And just amount how about products and our great care do think making an what of just health are provide iterating for what client of as I just sure phenomenal phenomenal is we used that has and we we we building, to... understanding job done organization, and organization value. a do what's sure get making clients products. and that our view and

Joe Vruwink

up. Sorry, I That's Thanks for guys. it it. Appreciate me. broke

Operator

There call I'll for are back to remarks. at no this Chaim questions his time. further turn the closing

Chaim Indig

to start right, fall. I for I thank in the thank our on All September, for the hope the want we to Phreesia great everyone our us shareholders, month to and has team and and bye-bye. want all everyone call. hopefully, a joining see everyone of I everyone of

Operator

conference call. This concludes today's

may You now disconnect.

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