Phreesia (PHR) 6 Sep 232024 Q2 Earnings call transcript

Company Profile

Participants

Chaim Indig	Chief Executive Officer
Balaji Gandhi	Chief Financial Officer
Ryan Daniels	William Blair
Jessica Tassan	Piper Sandler
Joe Vruwink	Baird
Richard Close	Canaccord Genuity
Glen Santangelo	Jefferies
Scott Schoenhaus	KeyBanc
Daniel Grosslight	Citi
Matthew Shea	Needham
Sean Dodge	RBC Capital Markets
Jeff Garro	Stephens
Jack Wallace	Guggenheim
Robert Simmons	D.A. Davidson

Call transcript

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Operator

Good evening ladies and gentlemen and welcome to the Phreesia Fiscal Second Quarter 2024 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, Phreesia’s Chief Financial Officer. Mr. begin. may you Gandhi,

Balaji Gandhi

Good the welcome XXXX, fiscal XX, on operator. conference which Phreesia’s call July for second XXXX. evening, you, to and earnings ended Thank quarter of

today’s Chief on Joining Indig, is our me Executive call Officer. Chaim

the markets more are quarterly found our Relations be ir.phreesia.com. issued stakeholder Investor our Form letter, earnings results the available to the in in X-K and both discussion submission our our closed release SEC, of A documents website complete related can on today. of These press including section after our at

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

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

materially actual our cause Forward-looking or achievements to that statements are subject differ may those risks, uncertainties factors results, performance statements. other from and described our various to forward-looking in

unanticipated these to obligation of the update We this call Such are and earnings of The obligation filed expectations to information on letter based press that and circumstances reflect filings, events. call on be risks XX-Q speak statements to disclaim in included only SEC factors the our after our on new release, in made or date events views on our including in Form undertake our or fully our risk current no stakeholder made. the quarterly and will our forward-looking report date and as be the statements described to of statements with tomorrow. more are this or SEC occurrence will which the the update reflect expressly forward-looking

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

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

Chaim Indig

evening, and in you, Thank everyone. our you call. good earnings participating Balaji, second for Thank quarter

stakeholder material letter few by hour Our the earnings let call ago, a and me we an sharing released. about the of highlights came start release out so key

second and EBITDA Adjusted was Network up was the revenue and grew revenue year-over-year. was million, grew processing year-over-year million $XX Solutions negative million, improvement in $XX XX% revenue year-over-year. XX% $XX Subscription up XX% XX% revenue quarter and Total related year-over-year services the year-over-year.

up clients healthcare year-over-year. up year-over-year. our quarter of We in average services Our was to $XX,XXX, revenue increased total number XX% X% XXXX, the for clients

to profitability. want owners I for delivering for forward say to revenue our when speak team nice another leverage. I we driving returning of all I also of solid quarter growth while to employee operating look thank the

XXXX it to Balaji me fiscal hand Let about over our to talk outlook.

Balaji Gandhi

good and everyone. evening Chaim Thanks

of fiscal Moving are XX% is our of to XXXX maintaining growth on fiscal million XXXX, to our which implying outlook for over January fiscal the ends 'XX, outlook XX, XXXX revenue. revenue in on for range XX% $XXX we our million which to $XXX

the EBITDA end million our by and outlook We on the top of $X adjusted 'XX are fiscal raising bottom range.

path the progress of a organization EBITDA continued EBITDA previous our negative and $XX on new range range operating million to is million. from to million leverage profitability. Our $XX continued negative $XX million reflects $XX negative The negative adjusted to Adjusted increase across

which fiscal revenue in during implies and the targets $XXX returning are fiscal We of 'XX revenue profitability $XXX million XXXX. fiscal revenue quarter for targets are of profitability fiscal annualized EBITDA Those our million to sets also with during and and financial finance maintaining for XXXX. adjusted a deliver our to ability up XXXX beyond. year on capital with targets strategy us allocation XXXX comfortable our targets We to We fiscal current remain our year our believe cash our position.

We continue to focus shareholder on driving value.

you. Operator, we think up for Q&A. can open it I now Thank

Operator

Thank you. William [Operator first Ryan our Blair. Instructions] question from We'll take Daniels with

Ryan Daniels

the question. for to you looks spend. of platform evening, were on growth talked the shareholder I know you and in Good year-over-year cost the strong Balaji, like letter quarter doing the guys. Yes. about things optimize Thanks you're specifically. down taking for first It the the despite revenues revenue one some

can it go impressive cost that more controls there? pretty little a bit So detail as on into you looks like

Balaji Gandhi

of And was specifically a Ryan, in little payments. of quarter, on just first there point timing benefit of out of this Yes. bit certain all terms to

I been of has said last big the this made the the we've past on as about improvement, lot think in four So quarters. think while of pretty improvement couple we still seen there's feel to the I opportunity, six we improvement the a quarters, good over And line.

made we look your I big other -- to a this just lot a mean And investments we question, it. think talked just we've across into length of we this lot the of at growing about I was, about platform and

gross those from just to when I knowing well we over was go to So XXXX clients we make and you points making XXXX what were clients think investment all basis well. us just support clients wanted sure XXX margins lower XXXX that to going were saw to

Ryan Daniels

leads then that. super of one That's picture of kind bigger Okay. question, it And helpful. off

You've at willing XXXX to better point you. and you're XXXX look what little like and great progressing if to us And model go however approach the you year. you've financial to a job beyond ahead beyond curious I'm we run that of it goals rate might in established? view want time as of or the the your fiscal that schedule about done give Thank get bit breakeven a in kind manner characterize to

Balaji Gandhi

on Ryan to it previous your topic. helpful to gross me around Thanks, question Maybe be first margin. step and a try taking that Ryan. relates Well, actually just look back let

So the about let's But think our G&A when we pretty very into talk some processes, think profile. we or quarter about and did going specifically systems is did $XX growing of important And be higher. a with to you those public financial big just somewhere just million investments make investments theme I G&A our $XX with etcetera, annually. million. so public significantly expense trailing we IPO a from you controls, of years And research about a did recognized a was We annually plus it about performing over and in was we $XXX ago. may around million to specifically process four revenue it lot high this in be research you company Ryan remember and to of million proper and spending quickly neighborhood and were the concluded XX that this go

a that's step up pretty from So the big we XX were at.

And people, that that it et of yes is to and and not we do upfront. cetera. that it we of of realized is systems And some our a and lot delay chose some just processes in research that companies delay investment

quarters, quarters quarters that saw been step fiscal income company, done folks flat. G&A ago has think itself, category great sort so you in have in and all so into if I seven you team, And both held we've of growing the job at the flat. parts leverage entire but that to generating the of also other we of kudos that our operating people the and a the just And seven to about G&A in in look peaked think while big of 'XX our And G&A or over started I past ago. seven statement up in build a in

quarters So in just ago X% just numbers, seven and growth revenue important I looking, question. your for I'm from think context effectively with maybe some XX% growth in that's G&A very it's it's

a that that a to pretty we've path that be feel 'XX, sort that's from that. we we all of around G&A about growing of which our percentage we is revenue think G&A good in turning base where maybe now of we towards of now question teens research So the where should and think into beyond your gotten as

about just is in now, So our where we're when teens. it's and G&A to the around it be million of again clear, is revenue at $XXX

that beyond top growing grower a get sort with a of sort 'XX, that back longer we've see sort but but just in much of had I more as that we ourselves we try out was manifest, with. and had the the and great that, think Ryan. up of bit putting a lot when of profit. so the we products, this And hopefully going think helpful, a I closer. And XX% step company question people getting went out we bigger to think will still profile range is answers to track of profitability which be how to a we we communicate record some on to your targets We're I lot be went a story from line We're can to public, continue away

Operator

from question Piper next with our take Jessica We'll Sandler. Tassan

Jessica Tassan

Hi, guys. much Thank for you the questions. so

So kind despite Congrats an We've of across Solutions nice this for quarter. Phreesia of the on as noise performance competitive obviously for area the seen consistent the in -- landscape. strength Network strength

inventory? you some a programmatic to life on marketplaces the of the offer can digital as role hoping sell sciences just guys So on place media and perspective market

Chaim Indig

Yes.

First solutions team the that look, well Like quarter team. strong the just a our across really off, the we the executed network had and So is think board, I strong why even all reason sales on coordination our content market. super of team, team. It's our was our organization, hard a And and network organization, competitive. There was I product here. lot team our look, analytics think it's a our side

frankly company, saying do winning what I really delivering terms impact think dollars easy a try outcomes. think about what's terms attempting we're to things been been that's lives is keep the consistent but I ROIs thinking pretty you one all -- really really, when it the just fairly we I really then ROI's And it outcomes but and they valuable which going, think on in it's and to we'll continuously in we of -- patients cents, as patient those terms have phenomenal to that to is, share we've and really and here. do, not messages think proud and not about inspiring improve is focused we've patient of that and of of

very proud you about asked So something then it's of. programmatic? really the numbers we're effort, And were a team but much

Jessica Tassan

just, just… Yes,

Chaim Indig

ahead. Go

Jessica Tassan

free relevant to whether on that's organization? not or know just I'm a the participate sales if marketplaces curious Network your even Solutions if you and success to guys to of perspective or have programmatic

Chaim Indig

products programmatic. heavily science machine our right we the patients in the time. thoughtfully to team and data the at learning take right don't Today and in participate for invested and live being able We've content

that patient being deep have is we actually programmatic that's skill time, So we something right is business. -- when think able -- we the right in the we in something set think to message, I think ad new frankly deliver it's right at about the some that not and

maybe the it's think it's little much for I -- about, very business. as long talked as been it's a but existed that's something in we've

Jessica Tassan

And from indicated And XXX my up clients helpful. quick Access healthcare in services that's follow about client that reaccelerate your just to letter ad is the including should XQ eForms. really gained

give deceleration of a you kind us of core guys. little expectation your going So can And hoping services bit for growth the and around clients again just healthcare XQ color forward? thanks the

Balaji Gandhi

thanks, I I past little you've or be jump Jess. Yes, sort the think four thanks, can Yes, it around six seen mean, a of quarters over bit.

XXX, where it was was from down to -- XXX there XXX. think to a quarter went I XXX

because visibility trying into to try make what and like of that's have we're with folks I the think we XXX. listening to doing some the quarter we're from sure a to next we're giving lot it

new I continue -- we XXX the a think feel versus read to add in and to ton into XXX, of don't clients versus there's a quarter last I lot think being be. about our where with to very the it The really would great job. thought teams doing are performance, to ability we and good continue We're business. the a grow happy it's XXX

Operator

next our Joe from question with Vruwink Baird. take We'll

Joe Vruwink

in Hi the in maybe has little for that think a the what in road maybe of detail, of hoping to been strategy adds, map financial And detail factored a of run revenue going an forward? to I'm acute Access from One, strategic be up to question the just how of client everyone. just rate is Freesia more a Part B what contribution it of kind and last the seem question existing asked Great. then annual this market? bit relative the for about a opens eForms, kind two-parter. bit get it and on yes terms and sort more business maybe just of does standpoint, to

Chaim Indig

he Yes, can you part I'll answer let because Maybe last of really question interpret Balaji I the the asking. it. understand were didn't what

excited about, been we that's got been there were us really team -- a We're of capabilities -- capabilities lot what clients, a lot a has right that content. realized just the its to our capabilities. us. and to we just lot led frankly personally It I founder So with this really clients away. well have a about this realized and that that certain with common those blown of and I'm but shared everyone was you when needed I realized spending have we booking, is and us we know were we some really lot we've introduced for we're talked and Access introduced we am we've of excited, interacted time didn't deep got of to organization And

be forms of to to people the disappear have forms been as it idea there's And mandatory look. Evan was waiting me very very It something I to because came a very business physical, healthcare, in out, Phreesia certain that small quickly. evolved, for and came from that's which in keep was it way, this business. I to and that certain how in long out not foundationally interesting certain a look year which out, It what XX fill every was a a fairly I've find years, came out a we format, printing but They way. has forms for great. and more certain moved we came during so as And been

with looked health that that that they so over just forms of this be deeply and was days, we're of And and signatures and we seen had so part And that had we at organization system clients had one sizes -- like had been are sense all but really Phreesia. make so pretty our and types was to it formats telling it but XXXX it different to lot we've different We've content it's it what this of us client and excited much XXXX over for made that we one early small. us far, was proprietary really when done. needed a

Balaji Gandhi

done second if wasn't And And it you is this I much mean I I have other ones lot very they that six have your acquisition. of clear flavor Chaim's Joe, product they in on like some I answer, clients. if think clients mean product our acquisitions question, from think history, we've think of and sort Access, overlapping all centric some brought of some a them of so bring the over -- about have

to great, is existing which those more of deepen is have it with we So because nice to value clients. relationships able add be some and

we the accretive product immaterial. pretty being It's Qdoctor, it's we about around design it's MediFind, it's I and financial those growth. that adding beyond contribution here company then So whether sets that with great really terms think similar contributor it's is contribution that to of the really and financial sort being numbers can the profile. to and grower XX% mean to 'XX be in of whether whether I mean the the Insignia, edges

Chaim Indig

our clients. helping And

Joe Vruwink

that great. a talking quarter second And the in maybe all $XXX just year. that point at some million revenue, July sitting was of you're revenue question, here okay in yes, about as next $XX at then Yes, million

to that So you between added of kind that? think about I directional any contribution than you needs just any revenue the out? in the expect the math to way getting can do on more the to Would you be the simple influential quarters. over different framing of way others, the next guess to what six one be maybe segments XXX break

Balaji Gandhi

to places, consistent because XX, that's example, been I aspect getting so answer think to multiple the very no just long you've of payments. just powerful the to multiple short our I of a there composition think different business. XXs that the revenue for as very paths percentage has and times revenue in, That revenue about this, percentage said, XXX, of at not from for time I it solutions, Yes, XX, are getting today, surpassed we've I a is and a very, in Joe, actually think held think and of like a network mix mid as seen there and subscription

I quarter faster historically too is that. then and don't from out, a think the this think be different that's I in point added to also terms that's we'll a I faster, prescriptive And of about XXX, change path there's others. but of here just lot example, seasonality, sort revenue there's where an this more we've that mean, than quarters grown we're going growing has to

Operator

we'll from And question with our Richard next Canaccord Close take Genuity.

Richard Close

the Thanks about Balaji, a maybe talk the you Yes. for update bit could platform questions, Phreesia section. little congratulations.

it, the looking you're text bit little of about what go on maybe about talk thinking at details the a part platform? messaging more You into

Balaji Gandhi

want answer I'm I'll giving do it want ask to me the give Chaim. to Do product Richard, to you you mean, me the I it, question? product?

Chaim Indig

give me hard a You always time.

Balaji Gandhi

think ability mean, that in are about we our with I to or investments continuing in to it's communicate not our just just that I products; new Not also just, just make goal faster patients it's platform. that, easier. the in section better, is

think trying And anything continuing and think of and won there just, I those are accuracy, never of texting comments to that of so that security, the to we're But don't we like beyond communicate. the matter. in was privacy, aspects that just that sort invest all platform, done sort around made I were we it's

Chaim Indig

a Right. product. And very that the team time, on lot proud we're of of that spent

Balaji Gandhi

but Yes, cetera. our a clients, of not letter, for It et employees, that's for stakeholder all is it's It's Richard. for investors, fair. just it's

Richard Close

if referral a could if Good. talk that it could Maybe question, three-part All right. And then a about moving I a on little we bit. to in. management, sneak

what management, presentation. Slide management referral And XX management? don't model referral into the I'm about really revenue then for about the of on You both talk and on being talk referral curious integrated You is MedMine MedMine that?

just thinking us could forward? you that if how of the part business going remind So about you're

Chaim Indig

called So to look we not And about about investing, do, refer. first, so then view, around fun we Slide -- Richard, our it about, in if MediFind, really, promise at around not I'm and make the Look, you. you It's think we you and been MedMine. really trying we've think I we, asking I all of were XX you think Access.

Connect right right really, a the for investing love at been looking that -- I an and doctor space our It's it We've lot platform, over been have a it's a with a to million with an our been looking growing referrals been right telling a at really through is for very space years. find growing MediFind, frankly want finding just the long just platform and it's Phreesia time. for They our us We've at so done, at very, patients use area nice the in and clip well. people that providers the we've So been time doctor alone. helping a we've and appointments say just online help here. been

it we'll specialist. years in better with you're that a part We've for patients -- buying introduced looked able Phreesia as building it's two MediFind came the for it to an opportunity with be in And, a at it for specialist part of find got really to quickly you of move client. years us over I because one move. the next Phreesia integrating buy of Phreesia, and a able it unbelievably ago the We a blown in markets, the driving to quickly lot really to the right and to be able searches as through we looking when to it family. was to view fast make make most and of the away number an, the markets, to And be access team of do property, how we moved, was or and couple moved

a wealth data say over the built and decades. up is platform massive This that I of expertise being for has to two want

we but to lucky And invest it so it us small, thank we're so partner forward for we that we're And client and it -- our ago. continuously very, of as really to it excited as in we chose with. will awesome, we just ourselves was about think is the years move us it very freaking introducing they

Operator

and with take from we'll next our right, Santangelo Glen All question Jefferies.

Glen Santangelo

evening. of good previous issue try Hey because folks. for on question. the revenue Yes, some is a to Hi. think for up I Thanks taking I the big follow want guys, this to just questions

to into subscription lot for past If the you maybe line, fiscal provider people year, your ads think get you And at you're also it and decelerating numbers clearly with are have accelerate push guidance a XXXX consistently almost and million, decelerating. unless $XXX will revenue need then bigger big focused of that context in to XXXX fiscal see look it subscription versus your unlikely been I going network large of to when it's to on a pretty take that issue a from looks that solutions, low becoming XXXX you like fiscal that happen. seems

it so, wanted even the just get about this subscription as to $XXX pathway to we're correctly on revenues as And we relates think to two-year take thinking stack? your that about million and if

Balaji Gandhi

is progress making way Joe one run I the Yes, well, terms way relates us see to a building this the up about I contributes and this it and that example we we important you million about numbers about XX each to item just think big we line think over think another how business, prescriptive if, that can think data run get growth business maybe and time. business think, payments. harmful point you durable of I is we the thanks Glen, of And think days, is think is, up. this this every has to think how in sort about But we're $XXX how long-term is builds building and earlier, and the I to really really question revenue Vruwink's being Glen

volume we was, XXXX look we XX, the XX at With quarter, we when think a if today. quarters bit, this time the it had time guess public, over again clients. went you it number payment ago we in little have clients. X,XXX round And forward, when payment $XXX,XXX fast I XXX we've so doubled for XXX,XXX was more back And, we, that I you you per or clients, doing were And of And client. in volume right? was now than about

so that. And base size the that And entire across we we of does suggests profile a that and make as Glen? sort have what is similar client did sense,

Glen Santangelo

Yes.

Balaji Gandhi

the several also relates clients. how the have of is, of been this We're same our to to then, if your look rate clients we same our we points, past value, quarters, right question network but take period lot over to right? X.XX over philosophy able And to and like, was want in okay. I sell this do obviously, it's those sort about XX back you take And this quarter, by products at time, a rate basis reason Okay, X.XX that be add think we've in across solutions our just has of to our more generate thrilled them revenue other subscription. talked

a bucks, quarter that million volume in points, payment dollars few a basis a so is billion And in right? across XX

in up start revenue the you thing there knowing are think but long-term. it's for the clients, that to And near-term giving our also about, in right well, the we it's

XXXX of And can where, over revenue be there's be numbers the we The up targets. quarter. comment the is how, going numbers, rev it I revenue, our again, not show we think about where in in think to That's might going so we fiscal time. sort of periods take to good periods about feel a there's

Glen Santangelo

ads? the to I year the my And, And in guidance, think with the to I is really with is I $XXX beat about a what to Or on the quarter no can, side, as ask guidance. just plus million think to I of you existing $XXX these continuing follow going right, revenues and the half do full growth it at Chaim look is to leverage wantingness a do at infrastructure this respect to But percent the this a growth? EBITDA like better the row my Okay. If feel path sixth XX be to be EBITDA. That's to guess understand, able some handle up year. you we company, be there's something you've in be fair. when think company could the made physician some of in handle in sufficient investment have the from assumes question the is, point there you revenue back conservative comfortably million

Chaim Indig

will for clients in it's game on just next lot keeping Well, I think sure a just phenomenal our the we're continuously not value for large but line lot our think we're just sustainably the for next And playing we to moat getting or and make that quarter competitive make we at the and year, let's we I but beyond time that of while shareholders. to are continue being a and build bottom investments eye provide same to plan not also investments an on now the And we that, XXX, of after that, continuously. are here so, investments that, I making a making think right?

Balaji Gandhi

I'll comment. add Glen, that to just And,

trying I have, the I again, the lead which same to think we entire the do don't way we both, and under we're actually to team in doing for trying that. business business to that time. It's think Phreesia And we're business at the not and you to grow in investing run a the are easy. the is, credit concern

Operator

We'll take with our next Scott question KeyBanc. Schoenhaus from

Scott Schoenhaus

has this Hi, eForms revenue further but vast the into your per of I catalog this Balaji. I your of modules guess holder more bridge And you're acute-care higher you acute your in you're the a into enhance Access kind eForms cross-sell? letter able just into ties that wanted to to number translate the and stock as the mentioned able into AHSC Access that Chaim acquisition. cadence space. content to then and dig current in of sell Does also modules revenue should setting? more this long-term

Chaim Indig

impact will, our minimal think it it on to revenue I think very client. probably So have per early I will

add bunch not in, have you just we time, of the that think period there's value to significant but track value that hospital, if continuously. it that already are a it's it's I that, investment when like have to is to value, that through significant we signed content to it's in, documented tied a started a record ever make sharing pretty we over of of upside, which a add I And replicate. cap, have good thing, do but And Phreesia, look going to sexy to and clients. our work long think like been of to lots anyone's hard and make needs point, that just to be a paperwork into

watching the and a content activation as view or measure, massive and if that do video you're built really X,XXX or, healthcare is a was often example people one reality the they book bought that as was it but it's, of is, these the this it's us. we when content forms. like vast, which sort is that's that just of library And whether client this X,XXX Insignia patient vast, we like And the, in or had, of forms just that out content for having

network So vast next those do couple that our the majority what to types the we of available really of have is years. over of list forms do making for

Balaji Gandhi

we always into every client. we, be buy, to subscription, been about into think and happened that have it's or And big around you the, this to we to number be buy, mean, your but And I think TAM arena. can think philosophy like of not question Scott, get, need has falls scope, just right I our would this things the and something for that rent don't a too that I build, going revenue. do. And and deep that

it's base when from I clients many material, be, three going of would, don't years spread that's we're the years, now, but to you two So across X,XXX at, years, and a part… I think opportunity however five

Scott Schoenhaus

color. that all for Thanks Great.

Chaim Indig

Great.

Scott Schoenhaus

incremental I my nascent the I up coming business? payer to mentioned can require metrics us pretty Thanks. remind additional is uplift, up season occurring it open doesn't here I huge more referral. you high these that. that. think on some get appreciate these enrollment before so sales around you've know, on is the quickly that, margins, Obviously this quickly, a just wanted just you just, I follow color are and profitability

Balaji Gandhi

that around like we every we're is think the corner. said of learn bit year don't sort every learn enrollments what more I that and but anything it this. economics, I could from it's don't I think a unit and season, take that, I we open and still any kind Scott, it's there's Yes, little I mean, say more of around we away we've will about early think, early

Operator

We'll take our Citi. next question from Daniel Grosslight with

Daniel Grosslight

for or tech has what Hi become year cut. cycle this comment had provide a changed guys, think remainder has deciding season should user has thanks and if changing look pretty selling the on revenue we is taking taken for discounts, hard that sales et just question. Chaim, challenged of for side to previously really bit as everyone to the on mentioned broadly, the spend that you've at more the the you Can the a and cetera subscription more how per how average about year? you

Chaim Indig

right X:XX A.M. think, P.M. I Look, like, feel season. and coast, and small keeping stuff. season selling in big more and and at And every them of I, out is really work them starts we east week and and teams Like systems to and between, till I and in selling hospitals groups we're good single multi-hospital selling track doing then us for practices win there there pretty and clients. goes record as wish have we the everything groups a our getting and front I the X:XX right? west it the good clients, calling coast, Monday health groups, just Friday was a of

want, is more stuff get to sell it sell from value it introduce it of And transactions. we a transaction we and product so we the give we really, sometimes the sometimes and part them them, it them, to of lot adds them, sometimes, we it's is that to way we

it's been but I've think think but that I happy. really the tough in a job team's just the the lot So I a is not product still marketing hard, organization, of And I sales a think also great environment. it's organization. doing

good we do, a We well, and try do to it with we do going awesome our to implement starts really of product clients the job have selling really good them can. we as as product good treat say them we're things and to and our we we best and

Balaji Gandhi

in when couple we people add inched think for revenue that acquiring have a these And, of around the points think it. lines that, about at cost the said, end day, up But and the that to all client, about how about, network independently sure to type at when of our that's do three we you go-to year-over-year solutions totality subscription, if, just I Chaim remarks, of think it's we market, it's, of payments, customer at as a the fine. really think that helpful I'd of and look stuff. It's XX,XXX. just different at I'm obviously earlier and the also And look look

Daniel Grosslight

get then the do $XX or fiscal I additional can fiscal cetera. And point funding targets, raising on call But XXXX wondering to you your without mentioned spend, software, capitalized XXXX you okay. within could you I'm et perhaps Yep, that, put Balaji so maybe know on a if capital. that it need. you million profitability on finer

if your think curious cash or, position raise flow you current to you capital perhaps think So additional get beyond to you I'm profitability that there? you with to cash just get have you XXXX, free can do

Balaji Gandhi

Well, I we question, talked think comment, growing the I earlier profitably that. to Ryan's beyond about the, think

adjusted think EBITDA Daniel I it's, let's like get with, So to start profitability.

milestones there's the think way. I along

first think really loss look all the that that's You this single a cycle the time return operating that's at happened. single flow number this quarter, very to digit for number investment a I and cash big of sort proud digit since that we're

flow data and cash point. adjusted a that's free And then cash then, flow. So operating EBITDA

it's it XXXX that we come growing in market we like, But be So I needing think raise business and say, envision was grow to that. we about profitably grow. at can comment need, to to that. to continue want grow fiscal at beyond be that to can, we that's, clear the earlier not the we we to just We that business ourselves let's money as invest rate the to intended clear, around should,

Operator

with Ryan next question from Needham. We'll MacDonald our take

Matthew Shea

and Shea for messages anticipated being on that more than the is strong a for with start of this stakeholder network those on in of you Hey, messages comment question half. Matt expected congrats some There half first Ryan. to letter the Thanks quarter. the guys delivering with was discussed for in second XXXX taking Wanted solutions. the originally the

we if of your back help second forward upsells expectations for a additional in interpret as for could half and as of programs unpack would kind pull that of strong this are curious, half like spending. the half understand first performance So just to Or what the the the an should year? lead incremental or messages to

Balaji Gandhi

in half Sure. same Matt. scenarios. lack guidance the remainder not us there for year of Look our really I the Matt, the look job other it's wait every year is activity for want to performing is in Phreesia. is think, the time, we of that that And, year, at great. year But the it forward. able the we're than is for done clients, of your different the because see. to rolling the any has into and Thanks pulling messages deliver that's former outstanding and two of of the first team It And those an which some

would we And point I the it in this of absolutely just year, portfolio. of so and think so where are as that's at sort

Matthew Shea

with you recent if Advantage plans look gets you whether to and periods this of conversations in weaponize survey beneficiaries? enrollment some what it. with generation your those got maybe there's gone preferences, excited relative it be, communication going knowing any maybe kind or AEP has then curious payers Medicare about to And have different of That's obviously Advantage how just this then year's like to MemberConnect, you had every is anything AEP of to your the Medicare but from kind business Okay, to that particular, date, annual Solutions any turning expectations, generated Network guys curious helpful. guys insights not lead again, sticking yet, year, year of

Balaji Gandhi

the with Well, it's I of enrollment still first yourself, the period. answered really we'll open The not question of the And, say like, really, and part sort is, you your, most probably it just show very enrollment early. think of is it open starts, relevant. annual this again which year the

having, then I think Insignia payer acquisition from of new but exposure into talked. gain it. like the excited But MemberConnect. we're nothing this, about really and we the update we time real, space. to And we're product launching that the with – there last still through in We no

Operator

We'll with RBC from Markets. our Capital Sean Dodge next question take

Sean Dodge

Yep, thanks. Good afternoon.

it's continuing the AHSC Just just for that on metric, the $XX,XXX I'm in, healthcare services revenue there. curious dynamics range, underlying

can list cross-selling progress is offsetting absent, you're there locations more the grow cross-sell much making what that the is play how are offset expand just I'm and at metric, newer at kind that help of should kind impact clients that's And into factors. get of mix by and quantify, there's with client And land expanding and way and and that also, solutions. Is size expanding? but understanding land fewer from to there being the these other starting cross-selling you're with getting any two? you a trying You're and

Chaim Indig

just clients, the a and know, of using Yes, There's earlier if number it, because crosses. quarter now, the facilitator XX% in about that our are about we are clients, Sean, in within running number growing around think were base, doctors but There's we're of we so number the of payment payment interesting providers, comment for, we facilitator payment upwards certain a it's think payments a I you and a when were to our see. patients as way an volume amount a there's associated payment about of or volume X,XXX that XXX,XXX client. they same a of with and

think But our really And changed over about product convert think probably letting of as this is, just think shape sizing really longer sort four our I does go-to-market over to distort over about they or the then that's we've hasn't. they a we're many think that I the and footprint people we We number added up, a that, and product can time of that. and and it the I take has that years brought okay of as of, way and that. feel try is they, time. sort powerful with good then it clients new try over that so

Sean Dodge

some were realized questions, you one mentioned benefits payment quarter. there much the for during the from Can that that timing you earlier us then during how And of you was Okay. quantify

Chaim Indig

that. missed I timing, payment say you When

Sean Dodge

was I don't, something it you said.

in there think you the quarter question, said from benefit timing. response like a Ryan's payment to in I was

Chaim Indig

yes, an time. that had That just Yes, like, payment No, sales. expense will was, where was no, Yes. so we a that cost vendor in of reversed. that wasn't reverse there like

sort margin, my about range. think in is points that higher, way, this XX gross basis of in onetime but it points we're running the still benefit, our same to XXX So point like is a just quarter probably

Sean Dodge

right, great. all Okay, Thanks again.

Chaim Indig

Yes.

Operator

Our Jeff next question comes Garro Stephens. from with

Jeff Garro

adding like a I on marketing year-over-year spend both spend. solutions down a healthy all the looks have clients network on it question of and marketing drivers have the quarter-over-quarter, while keep side. a services and at clip you Yes, healthcare and sales afternoon. sales And good and multitude growth

solutions, clearly of So wanted trends think which mix growth to have healthcare that, if and there's on resources and add focused you ask new spend you versus marketing services, in could balance earlier stage. where, that in that an on good resources versus color sales I network client growth

Chaim Indig

business. is part our Well, terms it's, network being of solutions an XX actually, in years of old is

for areas the company. is I marketing of sales expense and all think that line

sort do, lot that, whole lot don't absolutely up we even the think too, of, healthcare services, add. a cycle anything clients brands but past revenue supports that think that's just calibrating constantly we're changed think, added a there's But we few things And in and comes quarters. that in know over is that, also I I I and area. this the

on I so that nice again, out and there, So don't continue can particularly that see think I market. leverage we've, anything sales call and, to to operating think, get you

Jeff Garro

the some in side. on the, does helps. to in to spend half. question that ramp half up versus earlier Glen's That question first imply guidance follow spending And OpEx seem the the one the second I'll more Great. Maybe

maybe is, of expense in. type some investments we the and So of want see the MediFind integration there's out built any part or Thanks. ramp from would access to if areas call you of

Chaim Indig

go. you There That's answer. the

You answered yourself. it

Jeff Garro

guys. Thanks Done. again

Chaim Indig

Thanks.

Operator

We'll Jack Guggenheim. our with from take Wallace question next

Jack Wallace

questions. thanks for my taking yes, Hey,

and as if to well eForms connection which as sounds had a hospital the space you've the go [indiscernible] and it's Balaji, wanted acquisition, the there's see Access Just will like and back between that expect in payments the I that commentary if payment a higher higher we boost there'd you of, got And a follow inpatient should potentially up. then even help level volumes rate. take be a mix

Balaji Gandhi

connection any you? I that don't draw time, would to I think

Chaim Indig

we've and making say to will very we're hospital the invest with been are we in it's continue the we've think happy I great in it's been, excited it. of very No, an about space and area still and an progress area we need I

Jack Wallace

is about questions to to thinking the just you expect we get mix client figure? mix more into more then ask and And maybe driver a Thanks. growth customers being share, Thank wallet slightly you those, should the it. number, the any that differently TAM you. Got base composition of have, within that larger the opportunity to into per XXX you client as

Balaji Gandhi

an thing, time we do, to of model. Jack, over I we more one think mean, are, moving I enterprise that

with still Phreesia And enterprise healthcare's individual so level. pretty out about large again, if do some of that's what we're that. and sort aggregators an that's that just that deals of But, part a to of have affiliated there smaller just at been, large think more become position independent these able But groups you big. aggregation enterprise now of would've an client some

not really. groups providers data large Association the too, so XX think are Medical ones I the Obviously from are of smaller. is still, American XX% some very but there's

Operator

Simmons with We'll take D.A. our Davidson. next question from Robert

Robert Simmons

Hey, the see talk the quarter? of was so volumes What you you thanks over course far to month the quarter. did and did about for also this could question. month you patient what see wondering if taking I

Balaji Gandhi

the this you When mean second quarter? quarter, you say

Robert Simmons

sorry. No,

did what you in month in far to second So when seen I have XQ? and so month say see quarter, what you

Balaji Gandhi

that, are had mean, see lot than tend that let's we go the our the in on opposite the and retail. the few of right? past first things see beginning reset I you last and a Mondays, of year sort at think the month of brought many with for I Friday, the a Deductibles payments there's which in how I the we to I Yes, maybe on quarter. people the a have months, have up with seasonality, sort seasonality, that given and then fiscal natural of start over in to us, of this last more the we've swing we lot calendar of think, call on meetings mean, that you And Monday in doctor bump what investors

of right off, of took holiday good had, So stuff year, Robert, people Monday, went so just you Xrd fire the into on that smoke the of and the in this lot so some that June. fell example July and one month a is the, a day

had category different and northeast the rolling know, guess July. hear that we're across up flooding geographies. forth You of in we are across about the hurricane swing some things I you five now. back stuff some specialties, different These distributed pretty sort

again, points up billion mean, brought a are XXX being drives I So what I probably sequentially. the if

Robert Simmons

it. Got

The there? a, settle has grow about you to to mean, out here your Okay. start I it, ago coming And pretty head peaked been bit. a it a then soon? count that steadily what base pretty are on and expectations your since do about it has was half When a declined expect What again? year maybe? does

Balaji Gandhi

of goes and path our around think sort comment to just sort I like the made, this of investments think, I Well, profitability. we to earlier

of think XX%. range pretty we've I sort minus been sort or minus, plus this number in or That will plus be consistent. of

pretty good we clear, investing mean, we was of that. growth. are range. in be be feel should to business that about maybe sort for You Glen's to and And long-term think question, expect still I it the I this But in

Robert Simmons

you Thank very it. much. Got

Balaji Gandhi

Yep.

Operator

the over And or for session. turn like the remarks. closing back call Indig question-and-answer I'd to concludes any additional to that Chaim

Chaim Indig

to everyone Thanks I of days Cheers. for in all in lucky. you forward XX hope joining this we're and for look call. us to maybe if and between talking

Operator

for does Thank that conclude today’s presentation. your participation. you And

You may now disconnect.

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