PHR - Earnings call 3 2024

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Operator

Good evening, ladies and gentlemen, and welcome to the Phreesia Fiscal Third Quarter 2024 Earnings Conference Call. [Operator Instructions]First, I would like to introduce Balaji Gandhi, Phreesia's Chief Financial Officer. Mr. Gandhi, you may begin.

Balaji Gandhi

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

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

reminder, recorded, and conclusion statements, outlook the growth, future regarding business, trends, be website will call industry we the a our As Investor including our our ir.phreesia.com including statements strategies, at today's call, is forward-looking of and a Relations make anticipated our our on being results. anticipated our call.During replay about the regarding of predictions following performance today's available may financial

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

Chaim Indig

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

and earnings published release an Our stakeholder ago. hour letter about were

and I highlights.For million, call operationally. XX% million, our performance, improvement year-over-year. was $XX.X $XX.X Total EBITDA pleased with quarter the me an Let financially million a in $X.X start third negative quarter of both Adjusted starters, with third was revenue the couple year-over-year. am up

makes ConnectOnCall, quarter, in that solution and which current patient with a revenue providers on-call patient of easier answering During acquisition improves we fiscal small the run address XXXX suite it $XXX an calls.Before medical our of Balaji briefly million completed and innovative complements product for to delay to to let discusses XXXX respond the our fiscal XXXX. rate me decision to our achievement outlook, experience

in and not certain a and achieve will adjusted believe We determined will value.Let to the intentional have EBITDA investments payers would payer we to space, in Therefore, and fiscal and delay were level run long need to which CMS enhance other over our will term. the couple very environment. XXXX, that past capital EBITDA work hand accelerate it economic work markets performance $XXX activation. simply outcomes improve measure we in believe decisions to this to now in our to increase Balaji. and decision the we in planned drive spending to current the with order improvements million rate growth.We made me adjusted comfortable continue that revenue, Over our health months, We with shareholder we of revenue over

Balaji Gandhi

Thank you, Chaim.

by start me outlook our addressing fiscal for Let XXXX.

we related Network implying of Sciences the at where new our discussed million, strong a adjusted mostly highlighting is that approximately $XX.X the of range evolving provide We of year-over-year are scenarios important allocation revenue also line, $XXX given $X $XX generate growth from $XX XXXX have $XX early our to XXXX we prior earlier. maintaining fiscal to operating to it Solutions' in for an to XX% a our We from million range year million revenue a leverage capital negative continue wider of negative outlook represents revenue our of $XXX note XXXX XX%. for for maintenance our previous which outlook, outlook revenue our believe month the represents business.We across that to philosophy Life a This fiscal the clients.We raising to of Chaim EBITDA the increase range million. outlook spending January, are million fiscal million midpoint million our negative to is

range fiscal million. We be the $XXX expect million revenue XXXX in $XXX to to of

provided acquisitions completed XX, range.The fiscal fiscal XXXX. revenue Our revenue above growth the from revenue now between potential of XXXX outlook midpoint no implies outlook XXXX future XXXX additional at our assumes range fiscal and January for XX% over

We now EBITDA million adjusted some the we EBITDA positive of The revenue the rate accelerating expect fiscal to and to grow Solutions' achievement be made XX% of average in positive cash it fiscal to point Network give new new facility updating our flow growth.To finance we previous that flexibility improving believe prefer appreciate range Bank. tied mostly factors in will $XX we in believe Phreesia's during services business expectation to now a delay in to of credit we XXXX growth healthcare continue the which about notice at space.As later position.Separately, ability our compared decision our We we in $XX growth, while proven to in our the services I up growth, secured remain the client think X-year XXXX. revenue now made open million is and our questions. million us very replaces can network range fiscal in will in attractive clients our model.We of comfortable is be drive we investments payer target of fiscal have the with to $XXX that the outlook very the our profitability One. It's result we target for intentional our profitability in space. is expected aspect to million achieved investments the progress increase leveraging is revolving run think are The XXXX. to our into cash XXXX current have X-year team. our delay outlook We We in critical healthcare a important the by of also term.Operator, revenue growth to drives unique revenue. significant a you certain fiscal compared of go-to-market previous facility achieving given senior that entered our it new financial planned This outlook in Capital adjusted consider former our with with end, XXXX Valley its facility multitude that additional payer can $XX Silicon through to facility to

Operator

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

Ryan Daniels

maybe focus strong on Balaji, quarter. just versus one on products. profits you in the novel some the of for Congrats investments the on

environment positive But applaud I capital? current it return given to that I'm it's think platform more just markets about Or curious a the you capital market it's dollars I and really investors seeing and back? the just more will using your of were marketing is there here that. -- payers to among think if the you pull preserve lower caused on hesitation the or kind desire capital

Balaji Gandhi

Yes.

I we're to remember think our way. evaluating the along decisions always investment is one thing

mean, And of it's absolutely this. the months, the XX changed past so this, I cost And capital dramatically we so calibrate. weighed into in to specifically to have

that realize versus So would we think revenue else. time as anything we investment dollars that more have it about the more than

Operator

from next We'll take question Sandler. Vishal Patel our with Piper

Vishal Patel

integrate help onto the strategy? product platform? Tassan, with us what still And the needed had? Patel is and you This In some the model what pricing and strong quarter. What on on color ConnectOnCall congratulations to the Phreesia deal is particular, does Vishal this go-to-market are capabilities the Could acquisition? for investments on Jess

Chaim Indig

also started for talk many to happy so of We and after the finally as some about the was and to -- interact that's questions, them heard of them of a we providers, coming never "Look, had Look, to just the we're response but very this us area -- they just of I'll at would doctor share. product has a we just quarters, patients they been expect nice beautiful us phenomenal.And too day, what's talk as couple obviously, keep as to it's about phenomenal. never a And capability. how it just" The an is able we that's really, really us, really, with the So we some And all X clients investing we're level, think years, we to about like of over they It's do." clients like, excited been we and a patients.This replacement we to the -- "we from talk is did, saw call stages group that parlors early was people the is always and they actually we more beautiful you at And And well connected guys the to ConnectOnCall, in a answer and we the or with. going try end company assumed of greatest looked providers -- them your just of of we've And that doctors it. them after-hours uses I small we when our required to a they of been what often provide was And bought. about the never reaction for were us provider Phreesia. early know at they're phenomenal really were doctors answer this was in coming people, that do -- to be what our of -- have agents. service. the the that And And resources same have viewing about doctors look, product. services a most go-to-market ours. that had told has we after-hours keep -- their the -- their when with ability a integrated. that it. just we're And But letting or And the most -- to those -- service. And after-hours right? are they they're phones funeral are plumber.

Vishal Patel

pricing being retention evolved I was is on business deals since you your able to versus the That's one really About balancing how Awesome. business stakeholder just growth? your in quickly. more mentioned ago and quarterly in win then? pricing. in sneak on competitive if more And helpful. And payment Phreesia and letter, year How by pricing perspective you could a that are processing that

Balaji Gandhi

take don't But in would I that which of with X.X us constantly sort general think we Yes, one in specifically it has fluid. Vishal, helped mean, if And home range. that our the we and I sort price think as to terms it it. But found X.X I sort comment it's around, bounced of topic rate, think be sort to I pricing. every very of in of We're any you of of specific of milestone. follow We're had something quarter, but was experimenting this there disclose comment constantly lowered revisiting the the think share. that's market --

Operator

We'll Instructions] question Santangelo next Glen from [Operator with our take Jefferies.

Glen Santangelo

guess direction growth are year it processing Balaji, your just calling you versus recognizing of -- I'm sort for sort that that rate. subscription to about quarter. I still doesn't you I'm mean, and kind the really clearly, in about that Network the either of faster like talk what about you're midpoint kind of mean, in to of the fourth saying we growing move Solutions. in is much slowing I next Solutions.I want implicitly And midpoint. It's much good But quarter heard guidance the over XX% XX% curious business for some of curious I sort XX%. It fiscal revenue Network business I than 'XX. about growth another is assume what looks payment over if comments volatility

saying just So each I'm of it about those curious 'XX? as what you're to of kind about X relates businesses

Balaji Gandhi

Yes.

recognize all, than way year grow you our first you fact revenue mean, network. there's don't To of payments from that in other But to than Most some point, is so we yet. that X growth that fiscal I that I So slower it's X, the the over does more aside, let's is coming of that growing is we're it. think really different lines. then And read seasonality even is create your should December the which no payments. outlook the past, not provided

slower in just and probably always, revenue be growth growth our that So the or say other no That's probably largely I from growth, we'd now wouldn't network, It's or minus. ever. will comes itself than X say, it lines. the there's plus

Operator

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

Richard Close

the the Congratulations on acquisition in quarter.

in maybe Ryan's on digging little bit Just question. a more

So that all? on just that you Is on the the maybe guard of just it Just part payer there business? Has curious. materializing fast? update, caught the as anything not at opportunity I'm off changed

Chaim Indig

move I for payers the don't just think of opportunity, look, dollars. allocate -- investment the and been was Richard, I anytime and think rate that think don't we've soon we Look, pace our away years. going fast. don't think growing I I And No, where are payer and view very they many

driving we it. get don't not can back to let's business. as try in move general companies our all at frankly, by too move growth we make capital So view fast, they And allocation. to I fast make is dollars a profitability still was, that I want soon if as around And view decisions think while throwing pretty to think our significant much

Operator

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

Daniel Grosslight

Balaji, comment question of your to kind fiscal percent-plus you with rate guys a the comment percent-plus to XX-ish that $XXX fiscal if I'm about $XXX 'XX. of push squaring [Technical on was have know curious just million achieving based growth. what. out And I run a the that Difficulty]. million on at committed remaining specific because or XX-ish guidance I [Technical run Difficulty] don't But rate, to medium-term that

I'm that by So million driving target? of that fiscal step in 'XX implied that kind push out down of curious what's growth $XXX in

Balaji Gandhi

mind of bit I cut your the out Daniel, you at little -- repeat your the there maybe a just -- half the you guess. end. really second Do repeating question,

Daniel Grosslight

Sorry. How is my volume now?

Balaji Gandhi

Better. Yes, it's much better. Can you hear...

Daniel Grosslight

Better? Okay.

million if is, to $XXX 'XX. lower kind look Balaji, mentioned and imply does in at growth growing revenue really question the you XX% annual So that fiscal 'XX run you on And an in of it than based revenue target fiscal rate 'XX, that XX%. committed you're fiscal

'XX driving of what's year-over-year So delta that I'm there kind 'XX? in step that's from curious growth fiscal the down fiscal to

Balaji Gandhi

on I haven't But we I rate think like 'XX 'XX. $XXX out. to I calls really but growth I think digging unpacking pushing both don't investments made about can really this about point. Daniel, run any prior talking said million call 'XX. I made mean, a say appropriate than But and start in this I other for think Yes. to of Chaim position comments all it's at lot that's in beyond think also XX% we've we ourselves and

Operator

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

Scott Schoenhaus

research, base. diverse initial an like just client looks ConnectOnCall it So from has a

this really your base -- about here You XX provider legacy said or think you can the trying goal eForms release a And it then can you legacy Is letter the per of I'm in base can press 'XX for new new you solutions? that clients. customer new clients. means where cross-sell on what and But you Access in to. additional and add solutions bolt-on was create your bridge your growth? kind revenue solutions. installed have inherently to your investor just that to cross-sell Obviously, client provider have these you guidance average about

Chaim Indig

build about our capabilities, eForms, can. take buy, we're think that, that and whatever when -- unbelievably ConnectOnCall, about like product around down about renting be for we're to answer about -- minimums technology whatever or the pay a But that years. have base. this right?Like we month. in on phases a they have value strategy top -- what just our per like does with like worked we phone XX like always of of it's acquisition, if the replacing And to phenomenal product them that when phenomenal your by our talking mind And centers add capability these bought. done and they're in call right? replacing think still you adding from call Like to or they're that acquisitions, it's current go that we're forms so healthcare, Yes. even a to Access it's just just old us a I talking to I'll center well about that that's through every a almost using. answer the phenomenal look talk subset client -- as in our for it using we product organization been about capabilities, -- minute Phreesia like think have is as so they'd and to I And amount amount early of for digitizing, we single blows existing move -- that's company introduced using drives They're can see a we -- buying from obviously a to money costs that doctors, mostly physical -- just try It's message.Like away to best way my had that having we practice of we technology have just someone analysis interested forms. we've very, for small a question think still payer government acquired certain paper, if -- it's a that like the we we they people you And very paper sign like if operator exists. right? guess, a capability that

Operator

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

Ryan MacDonald

was great for was calculation XXXX. It PAM to the in included see that MIPS

you think to forward, out right that two, this bat then of in As one, 'XX? effect And included populations? potential you this of patient be calculations maybe just be all rolling rollout monetize monetization, how the is off what how over are specific amongst you monetization, sort gradually does going in and we fee? mean in going is to a of the this usage-based sort impact about provider the Or of time? about there, as adoption think potentially license moving customers for And

Chaim Indig

Yes.

So up answering from it experts questions. much a MIPS do And is have these we practice. job better measure, that the a Phreesia absolutely, of could to at

their of a clinical adopt it these patients. is outcomes best will -- in to world as policy what up just part in So for and much measure as take And it broad outcomes, -- in as practices it my and really it's massive as adopted, gets high-level is or and the as MIPS the standpoint, -- measures. materially time But to be. believe very breed.And the what so both believe will first clinical submit material as of and off, we change practice health is very adoption from of over MIPS measure the outcomes they this measure this getting scale this awareness seen PAM strongly as answer a we

And included pick, pick year PAM, I this to you PM in And a there's the could categories pages. of X, you [ measure, is bonus what as specialty, say your depending ] want it's it. different PRO like on So how measure. X,XXX

Medicare up revenue X practice, contribute their X% between XX the them points to to in to which additional to can So bonus revenue. it's on

it's you when in Phreesia. impact, of part it's And pretty what get part significant this but Phreesia. of we're about So terms making its you get excited of

PAMs now. thousands running And hundreds so we're of of right

Operator

next Jeff question Garro from And Stephens. we'll with our take

Jeffrey Garro

around Life just year? planning budgets remaining in behavior to into for the and color customers describe market. for cycles year-end are end ask Sciences you you coming would more how next on their wanted those I in what Curious seeing customer

Chaim Indig

still think that clients scale focused we're continuously another it's see is I early. year I pretty it's -- And what top Look, of we on seen team and the it's them. butts have year. and we out be early ROI next of nice their cycle. tried-and-true have that really lot are very can platforms hope that But will for think that much And to working deliver is there really strong clients But the we're think Life list. both been off I in very of buy all at of their And still a -- the us. Sciences

Operator

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

Unknown Analyst

] Mitchell is This [ on for Jack.

the segment the expansion? considering recent to near- just the per on trial based the algorithm growth promotion of medium-term how subscription So revenue software in and is period acquisitions, client much

Balaji Gandhi

you that Can again? repeat I'm sorry.

Unknown Analyst

Yes.

-- Just and period medium-term to subscriptions the client growth considering trial the recent on wondering expansion? algorithm how promotion per based kind revenue the recent near- the just of of is much we're within acquisitions, software

Balaji Gandhi

Got it. it. Got

fact, So basis, think mentioned fact particular, I think little and so the it's client. of of on I this in in dollars -- per I very mean, the ConnectOnCall, mean tiny. revenue the brought in I of mean the hundreds number quarterly revenue. hundreds a letter. I that -- clients, like we with a mean just in I in

have has I the that, think we impact you an dragging outside fact ways that have think our a little of which outside that bit down.I of about client But Network it don't XQ think it. talked impacted little that's So And to number what generating totality impact and really It I the more inclusive it's Solutions. is that bit. the of will of a revenue XQ and different about, just revenue of comment of think more. we've of across that impacts -- one XQ how base, that

Operator

next question We'll Instructions] Sean Capital take Markets. our Dodge [Operator from with RBC

Thomas Kelliher

wanted think processing. pricing, toward the refocus that mostly for platform. targeted earlier it on Sean. This to is maybe on wanted up to one the I I subscription I payment following question on Kelliher on -- was Thomas

prospective specifically in of all more make easier So when the to does fit last those factors? evaluating over decisions? to evolved rank Are that's factors you where what key those different And are intake there? have customers the price solutions, years? at are able couple Like

Chaim Indig

our the buying I'd breadth show drive drive at more that drive though to less to the still against visits, their want When think selling and more know intake And are the talk we work they that and of that And hands lots those solutions win are patients.But intake I more that both less phenomenal We're ROI why on the of any often on just we of ability is -- while just more tend time, practice. -- of a a are #X little patient our clients, the capabilities to #X are quickly, being value and vast solutions about same running we to tied really intake. with it's of of to majority drive people solutions cost more, foremost. to point at the time specific our to appointments, our down frankly, and also, us provider the EMR the things on of able specialties. even they markets first like we're willing selling breadth driver. can, say being put frankly, or we just able lower not of reason and becoming provide to and same

Operator

back no additional to call I'd All for questions. the Chaim And over turn remarks. time, there further like to at Instructions] right. any [Operator Indig closing this or are indeed

Chaim Indig

continuously I'd of you. we quarter, Year. all everyone just wish thank everyone thank I'd Happy happy like Cheers. team to joining to like us holiday. and look I New on a to another happy the the for to good And and call. forward talking holidays for

Operator

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

now You disconnect. may

Phreesia (PHR) 5 Dec 232024 Q3 Earnings call transcript