Latest news with #ChaimIndig
Business Wire
7 days ago
- Business
- Business Wire
Phreesia Named to the 2025 Capterra Shortlist for Patient Engagement and Medical Scheduling
ALL-REMOTE COMPANY/WILMINGTON, Del.--(BUSINESS WIRE)--Phreesia, a leader in patient intake, outreach and activation, has been named to the 2025 Capterra Shortlist in the Patient Engagement and Medical Scheduling categories. The Capterra Shortlist is an independent assessment that evaluates user reviews and online search activity to identify a list of market leaders that offer the top products in various software categories. "Being named to two of the 2025 Capterra Shortlists is an honor that reflects the positive reviews and feedback we receive from our healthcare provider clients,' said Phreesia CEO Chaim Indig. 'Our digital solutions help engage and empower patients to take a more active role their care, and this award is a welcome recognition of those efforts.' Phreesia has an overall rating of 4.3 out of 5 on Capterra, driven by direct feedback from clients. 'Phreesia has become an integral partner in the management of my practice. It allows us to focus more on providing quality care to our patients,' one practice director shared in a review on the Capterra site. Capterra uses exclusive data and trusted reviews from verified software users to build its Capterra Shortlist reports, which present a comprehensive view of products' recent popularity and ratings based on data from a defined timeframe. For more information on Phreesia, visit About Phreesia Phreesia is the trusted leader in patient activation, giving healthcare providers, life sciences companies and other organizations tools to help patients take a more active role in their care. Founded in 2005, Phreesia enabled approximately 170 million patient visits in 2024—1 in 7 visits across the U.S.—scale that we believe allows us to make meaningful impact. Offering patient-driven digital solutions for intake, outreach, education and more, Phreesia enhances the patient experience, drives efficiency and improves healthcare outcomes. To learn more, visit
CNBC
08-07-2025
- Business
- CNBC
Indig: AI has been wildly effective for us, our providers, and patients
Chaim Indig, CEO and founder of Phreesia, joins "Worldwide Exchange" to discuss how AI streamlines care delivery, enables patient self-service, and positions Phreesia as a digital front door to healthcare.
Yahoo
30-05-2025
- Business
- Yahoo
Q1 Earnings Outperformers: Phreesia (NYSE:PHR) And The Rest Of The Healthcare Technology for Providers Stocks
Looking back on healthcare technology for providers stocks' Q1 earnings, we examine this quarter's best and worst performers, including Phreesia (NYSE:PHR) and its peers. The healthcare technology industry focuses on delivering software, data analytics, and workflow solutions to hospitals, clinics, and other care facilities. These companies enable providers to streamline operations, optimize patient outcomes, and transition to value-based care models. They boast subscription-based revenues or long-term contracts, providing financial stability and growth potential. However, they face challenges such as lengthy sales cycles, significant upfront investment in technology development, and reliance on providers' adoption of new tools, which can be hindered by budget constraints or resistance to change. Over the next few years, the sector is poised for growth as providers increasingly prioritize digital transformation and efficiency in response to rising healthcare costs and patient demand for seamless care. Tailwinds include the growing adoption of AI-driven tools for patient engagement and operational improvements, government incentives for digitization, and the expansion of telehealth and remote patient monitoring. However, headwinds such as tightening hospital budgets, cybersecurity threats, and the fragmented nature of healthcare systems could slow adoption. The 6 healthcare technology for providers stocks we track reported a mixed Q1. As a group, revenues beat analysts' consensus estimates by 3.4% while next quarter's revenue guidance was 0.7% below. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 8.7% since the latest earnings results. Founded in 2005 to streamline the traditionally paper-heavy patient check-in process, Phreesia (NYSE:PHR) provides software solutions that automate patient intake, registration, and payment processes for healthcare organizations while improving patient engagement in their care. Phreesia reported revenues of $115.9 million, up 14.5% year on year. This print exceeded analysts' expectations by 0.6%. Overall, it was a strong quarter for the company with an impressive beat of analysts' EPS estimates and customer base in line with analysts' estimates. "Our fiscal year 2026 is off to a strong start. I am grateful to our team for their continued commitment to our mission, vision and values. I believe our performance is a reflection of our team truly living our values,' said CEO and Co-Founder Chaim Indig. The stock is down 2.2% since reporting and currently trades at $24.43. Is now the time to buy Phreesia? Access our full analysis of the earnings results here, it's free. Operating one of the largest healthcare group purchasing organizations in the United States with over 4,350 hospital members, Premier (NASDAQ:PINC) is a technology-driven healthcare improvement company that helps hospitals, health systems, and other providers reduce costs and improve clinical outcomes. Premier reported revenues of $261.4 million, down 8.9% year on year, outperforming analysts' expectations by 7.4%. The business had a very strong quarter with a solid beat of analysts' EPS estimates and an impressive beat of analysts' full-year EPS guidance estimates. Premier scored the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 10.8% since reporting. It currently trades at $22.75. Is now the time to buy Premier? Access our full analysis of the earnings results here, it's free. Formerly known as Apollo Medical Holdings until early 2024, Astrana Health (NASDAQ:ASTH) operates a technology-powered healthcare platform that enables physicians to deliver coordinated care while successfully participating in value-based payment models. Astrana Health reported revenues of $620.4 million, up 53.4% year on year, falling short of analysts' expectations by 2.5%. It was a slower quarter as it posted revenue guidance for next quarter meeting analysts' expectations and full-year EBITDA guidance slightly missing analysts' expectations. Astrana Health delivered the fastest revenue growth but had the weakest performance against analyst estimates and weakest full-year guidance update in the group. As expected, the stock is down 24% since the results and currently trades at $25.38. Read our full analysis of Astrana Health's results here. Driven by the vision of an "Autonomous Pharmacy" with zero medication errors, Omnicell (NASDAQ:OMCL) provides medication management automation and adherence tools that help healthcare systems and pharmacies reduce errors and improve efficiency. Omnicell reported revenues of $269.7 million, up 9.6% year on year. This number surpassed analysts' expectations by 3.7%. Taking a step back, it was a slower quarter as it recorded full-year EBITDA guidance missing analysts' expectations. The stock is down 2.2% since reporting and currently trades at $29.83. Read our full, actionable report on Omnicell here, it's free. Founded in 2011 to transform how healthcare is delivered to patients with complex needs, Evolent Health (NYSE:EVH) provides specialty care management services and technology solutions that help health plans and providers deliver better care for patients with complex conditions. Evolent Health reported revenues of $483.6 million, down 24.4% year on year. This print topped analysts' expectations by 4.9%. Aside from that, it was a mixed quarter as it also recorded full-year revenue guidance slightly topping analysts' expectations but a significant miss of analysts' EPS estimates. Evolent Health pulled off the highest full-year guidance raise but had the slowest revenue growth among its peers. The stock is down 31.5% since reporting and currently trades at $7.38. Read our full, actionable report on Evolent Health here, it's free. As a result of the Fed's rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed's 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump's victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
28-05-2025
- Business
- Yahoo
Phreesia (NYSE:PHR) Surprises With Q1 Sales
Healthcare technology company Phreesia (NYSE:PHR) reported Q1 CY2025 results exceeding the market's revenue expectations , with sales up 14.5% year on year to $115.9 million. The company expects the full year's revenue to be around $477 million, close to analysts' estimates. Its GAAP loss of $0.07 per share was 35.6% above analysts' consensus estimates. Is now the time to buy Phreesia? Find out in our full research report. Revenue: $115.9 million vs analyst estimates of $115.2 million (14.5% year-on-year growth, 0.6% beat) EPS (GAAP): -$0.07 vs analyst estimates of -$0.11 (35.6% beat) Adjusted EBITDA: $20.82 million vs analyst estimates of $16.75 million (18% margin, 24.3% beat) The company reconfirmed its revenue guidance for the full year of $477 million at the midpoint EBITDA guidance for the full year is $87.5 million at the midpoint, above analyst estimates of $81.46 million Operating Margin: -2.8%, up from -19.2% in the same quarter last year Free Cash Flow was $7.46 million, up from -$6.17 million in the same quarter last year Customers: 4,411, up from 4,341 in the previous quarter Market Capitalization: $1.48 billion "Our fiscal year 2026 is off to a strong start. I am grateful to our team for their continued commitment to our mission, vision and values. I believe our performance is a reflection of our team truly living our values,' said CEO and Co-Founder Chaim Indig. Founded in 2005 to streamline the traditionally paper-heavy patient check-in process, Phreesia (NYSE:PHR) provides software solutions that automate patient intake, registration, and payment processes for healthcare organizations while improving patient engagement in their care. Examining a company's long-term performance can provide clues about its quality. Any business can have short-term success, but a top-tier one grows for years. Over the last five years, Phreesia grew its sales at an exceptional 27.3% compounded annual growth rate. Its growth beat the average healthcare company and shows its offerings resonate with customers. Long-term growth is the most important, but within healthcare, a half-decade historical view may miss new innovations or demand cycles. Phreesia's annualized revenue growth of 20.1% over the last two years is below its five-year trend, but we still think the results suggest healthy demand. Phreesia also reports its number of customers, which reached 4,411 in the latest quarter. Over the last two years, Phreesia's customer base averaged 18.8% year-on-year growth. Because this number is in line with its revenue growth, we can see the average customer spent roughly the same amount each year on the company's products and services. This quarter, Phreesia reported year-on-year revenue growth of 14.5%, and its $115.9 million of revenue exceeded Wall Street's estimates by 0.6%. Looking ahead, sell-side analysts expect revenue to grow 12.7% over the next 12 months, a deceleration versus the last two years. Still, this projection is noteworthy and suggests the market is forecasting success for its products and services. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Operating margin is a key measure of profitability. Think of it as net income - the bottom line - excluding the impact of taxes and interest on debt, which are less connected to business fundamentals. Phreesia's high expenses have contributed to an average operating margin of negative 34.1% over the last five years. Unprofitable healthcare companies require extra attention because they could get caught swimming naked when the tide goes out. It's hard to trust that the business can endure a full cycle. On the plus side, Phreesia's operating margin rose by 9.5 percentage points over the last five years, as its sales growth gave it operating leverage. This performance was mostly driven by its recent improvements as the company's margin has increased by 44.7 percentage points on a two-year basis. Phreesia's operating margin was negative 2.8% this quarter. The company's consistent lack of profits raise a flag. We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. Although Phreesia's full-year earnings are still negative, it reduced its losses and improved its EPS by 41.4% annually over the last five years. The next few quarters will be critical for assessing its long-term profitability. In Q1, Phreesia reported EPS at negative $0.07, up from negative $0.35 in the same quarter last year. This print easily cleared analysts' estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street is optimistic. Analysts forecast Phreesia's full-year EPS of negative $0.74 will reach break even. We were impressed by how significantly Phreesia blew past analysts' EPS expectations this quarter. We were also glad its full-year EBITDA guidance exceeded Wall Street's estimates. Overall, we think this was a solid quarter with some key areas of upside. The stock traded up 3.7% to $25.90 immediately following the results. Phreesia may have had a good quarter, but does that mean you should invest right now? If you're making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it's free.
Business Wire
28-05-2025
- Business
- Business Wire
Phreesia Announces First Quarter Fiscal 2026 Results
ALL-REMOTE COMPANY/WILMINGTON, Del.--(BUSINESS WIRE)--Phreesia, Inc. (NYSE: PHR) ('Phreesia' or the "Company") announced financial results today for the fiscal first quarter ended April 30, 2025. "Our fiscal year 2026 is off to a strong start. I am grateful to our team for their continued commitment to our mission, vision and values. I believe our performance is a reflection of our team truly living our values,' said CEO and Co-Founder Chaim Indig. Please visit the Phreesia investor relations website at to view the Company's Q1 Fiscal 2026 Stakeholder Letter. Fiscal First Quarter Ended April 30, 2025 Highlights Total revenue was $115.9 million in the quarter, up 15% year-over-year. Average number of healthcare services clients ("AHSCs") was 4,411 in the quarter, up 9% year-over-year. Total revenue per AHSC was $26,283 in the quarter, up 6% year-over-year. See "Key Metrics" below for additional information. Net loss was $3.9 million in the quarter, as compared to net loss of $19.7 million in the same period in the prior year. Adjusted EBITDA 1 was $20.8 million in the quarter, as compared to $4.1 million in the same period in the prior year. Net cash provided by operating activities was $14.9 million in the quarter, as compared to net cash used in operating activities of $0.7 million in the same period in the prior year. Free cash flow 2 was $7.5 million in the quarter, as compared to negative $6.2 million in the same period in the prior year. Cash and cash equivalents as of April 30, 2025 was $90.9 million, up $6.7 million from January 31, 2025. Fiscal 2026 Outlook We are maintaining our revenue outlook for fiscal 2026. We expect revenue to be in the range of $472 million to $482 million. The revenue range provided for fiscal 2026 assumes no additional revenue from potential future acquisitions completed between now and January 31, 2026. We are updating our Adjusted EBITDA outlook for fiscal 2026 to a range of $85 million to $90 million from a previous range of $78 million to $88 million. The Adjusted EBITDA range provided for fiscal 2026 assumes continued improvements in operating leverage across the Company through a focus on efficiency. We are maintaining our expectation for AHSCs to reach approximately 4,500 in fiscal 2026. Additionally, we expect total revenue per AHSC in fiscal 2026 to increase from fiscal 2025. We believe our $90.9 million in cash and cash equivalents as of April 30, 2025, along with cash generated in our normal operations, gives us sufficient flexibility to reach our fiscal 2026 outlook. Additionally, our available borrowing capacity under our credit facility with Capital One provides us with an additional source of capital to pursue future growth opportunities not incorporated into our fiscal 2026 outlook. As of April 30, 2025 we had no borrowings outstanding under our credit facility. Non-GAAP 3 Financial Measures We have not reconciled our Adjusted EBITDA outlook to GAAP net income (loss) because we do not provide an outlook for GAAP Net income (loss) due to the uncertainty and potential variability of other (income) expense, net and (benefit from) provision for income taxes, which are reconciling items between Adjusted EBITDA and GAAP net income (loss). Because we cannot reasonably predict such items, a reconciliation of the non-GAAP financial measure outlook to the corresponding GAAP measure is not available without unreasonable effort. We caution, however, that such items could have a significant impact on the calculation of GAAP net income (loss). For further information regarding the non-GAAP financial measures included in this press release, including a reconciliation of GAAP to non-GAAP financial measures and an explanation of these measures, please see 'Non-GAAP financial measures' below. Available Information We intend to use our Company website (including our Investor Relations website) as well as our Facebook, X, LinkedIn and Instagram accounts as a means of disclosing material non-public information and for complying with our disclosure obligations under Regulation FD. Forward Looking Statements This press release includes express or implied statements that are not historical facts and are considered forward-looking within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally relate to future events or our future financial or operating performance and may contain projections of our future results of operations or of our financial information or state other forward-looking information. These statements include, but are not limited to, statements regarding: our future financial and operating performance, including our revenue, operating leverage, margins, Adjusted EBITDA and cash flows; our ability to finance our plans to achieve our fiscal 2026 outlook with our current cash balance and cash generated in the normal course of business; and our outlook for fiscal 2026, including our expectations regarding revenue, Adjusted EBITDA, AHSCs and total revenue per AHSC. In some cases, you can identify forward-looking statements by the following words: 'may,' 'will,' 'could,' 'would,' 'should,' 'expect,' 'intend,' 'plan,' 'anticipate,' 'believe,' 'estimate,' 'predict,' 'project,' 'potential,' 'continue,' 'ongoing,' or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. Although we believe that the expectations reflected in these forward-looking statements are reasonable, these statements relate to future events or our future operational or financial performance and involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond our control, including, without limitation, risks associated with: our ability to effectively manage our growth and meet our growth objectives; our focus on the long-term and our investments in growth; the competitive environment in which we operate; our ability to comply with the covenants in our credit agreement with Capital One; changes in market conditions and receptivity to our products and services; our ability to develop and release new products and services and successful enhancements, features and modifications to our existing products and services; our ability to maintain the security and availability of our platform; the impact of cyberattacks, security incidents or breaches impacting our business; changes in laws and regulations applicable to our business model; our ability to make accurate predictions about our industry and addressable market; our ability to attract, retain and cross-sell to healthcare services clients; our ability to continue to operate effectively with a primarily remote workforce and attract and retain key talent; our ability to realize the intended benefits of our acquisitions and partnerships; and difficulties in integrating our acquisitions and investments; and other general, market, political, economic and business conditions (including from the change in U.S. presidential administration, tariff and trade issues, and the warfare and/or political and economic instability in Ukraine, the Middle East, India or elsewhere). The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those listed or described in our filings with the Securities and Exchange Commission ('SEC'), including in our Quarterly Report on Form 10-Q for the fiscal quarter ended April 30, 2025 that will be filed with the SEC following this press release. The forward-looking statements in this press release speak only as of the date on which the statements are made. We undertake no obligation to update, and expressly disclaim the obligation to update, any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law. This press release includes certain non-GAAP financial measures as defined by SEC rules. We have provided a reconciliation of those measures to the most directly comparable GAAP measures, with the exception of our Adjusted EBITDA outlook for the reasons described above. Conference Call Information We will hold a conference call on Wednesday May 28, 2025 at 8:30 a.m. Eastern Time to review our fiscal 2026 first quarter financial results. To participate in our live conference call and webcast, please dial (800) 715-9871 (or (646) 307-1963 for international participants) using conference code number 7404611 or visit the 'Events & Presentations' section of our Investor Relations website at A replay of the call will be available via webcast for on-demand listening shortly after the completion of the call, at the same web link, and will remain available for approximately 90 days. About Phreesia Phreesia is a trusted leader in patient activation, giving healthcare providers, life sciences companies and other organizations tools to help patients take a more active role in their care. Founded in 2005, Phreesia enabled approximately 170 million patient visits in 2024—1 in 7 visits across the U.S.—scale that we believe allows us to make meaningful impact. Offering patient-driven digital solutions for intake, outreach, education and more, Phreesia enhances the patient experience, drives efficiency and improves healthcare outcomes. Phreesia, Inc. Consolidated Balance Sheets (in thousands, except share and per share data) April 30, 2025 (Unaudited) Assets Current: Cash and cash equivalents $ 90,871 $ 84,220 Settlement assets 33,006 29,176 Accounts receivable, net of allowance for doubtful accounts of $1,811 and $1,468 as of April 30, 2025 and January 31, 2025, respectively 75,099 73,617 Deferred contract acquisition costs 414 401 Prepaid expenses and other current assets 16,019 15,871 Total current assets 215,409 203,285 Property and equipment, net of accumulated depreciation and amortization of $87,488 and $84,505 as of April 30, 2025 and January 31, 2025, respectively 23,492 23,651 Capitalized internal-use software, net of accumulated amortization of $59,013 and $55,991 as of April 30, 2025 and January 31, 2025, respectively 53,531 52,763 Operating lease right-of-use assets 1,262 1,477 Deferred contract acquisition costs 460 583 Intangible assets, net of accumulated amortization of $9,277 and $8,407 as of April 30, 2025 and January 31, 2025, respectively 27,273 28,143 Goodwill 75,845 75,845 Other assets 3,123 2,668 Total Assets $ 400,395 $ 388,415 Liabilities and Stockholders' Equity Current: Settlement obligations $ 33,006 $ 29,176 Current portion of finance lease liabilities and other debt 8,348 8,043 Current portion of operating lease liabilities 957 964 Accounts payable 3,204 5,622 Accrued expenses 34,059 37,460 Deferred revenue 31,146 32,758 Total current liabilities 110,720 114,023 Long-term finance lease liabilities and other debt 6,162 8,150 Operating lease liabilities, non-current 401 646 Long-term deferred revenue 112 119 Long-term deferred tax liabilities 568 484 Other long-term liabilities 246 185 Total Liabilities 118,209 123,607 Commitments and contingencies Stockholders' Equity: Preferred stock, undesignated, $0.01 par value—20,000,000 shares authorized as of both April 30, 2025 and January 31, 2025; no shares issued or outstanding as of both April 30, 2025 and January 31, 2025 — — Common stock, $0.01 par value—500,000,000 shares authorized as of both April 30, 2025 and January 31, 2025; 60,814,930 and 60,083,444 shares issued as of April 30, 2025 and January 31, 2025, respectively 608 601 Additional paid-in capital 1,132,124 1,111,274 Accumulated deficit (805,410 ) (801,496 ) Accumulated other comprehensive income (loss) 384 (51 ) Treasury stock, at cost, 1,355,169 shares as of both April 30, 2025 and January 31, 2025 (45,520 ) (45,520 ) Total Stockholders' Equity 282,186 264,808 Total Liabilities and Stockholders' Equity $ 400,395 $ 388,415 Expand Phreesia, Inc. Unaudited Consolidated Statements of Operations (in thousands, except share and per share data) Three months ended April 30, 2025 2024 Revenue: Subscription and related services $ 54,355 $ 46,742 Payment processing fees 29,925 27,060 Network solutions 31,656 27,415 Total revenues 115,936 101,217 Expenses: Cost of revenue (excluding depreciation and amortization) 16,637 15,723 Payment processing expense 21,428 18,297 Sales and marketing 26,043 32,011 Research and development 31,829 28,881 General and administrative 16,408 19,052 Depreciation 2,986 3,524 Amortization 3,892 3,149 Total expenses 119,223 120,637 Operating loss (3,287 ) (19,420 ) Other income (expense), net 338 (31 ) Interest (expense) income, net (230 ) 239 Total other income, net 108 208 Loss before provision for income taxes (3,179 ) (19,212 ) Provision for income taxes (735 ) (510 ) Net loss $ (3,914 ) $ (19,722 ) Net loss per share attributable to common stockholders, basic and diluted $ (0.07 ) $ (0.35 ) Weighted-average common shares outstanding, basic and diluted 58,920,782 56,666,311 (1) Our potential dilutive securities have been excluded from the computation of diluted net loss per share as the effect would be to reduce the net loss per share. Therefore, the weighted-average number of common shares outstanding used to calculate both basic and diluted net loss per share attributable to common stockholders is the same. Expand Phreesia, Inc. Unaudited Consolidated Statements of Cash Flows (in thousands) Three months ended April 30, 2025 2024 Operating activities: Net loss $ (3,914 ) $ (19,722 ) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation and amortization 6,878 6,673 Stock-based compensation expense 17,225 16,840 Amortization of deferred financing costs and debt discount 62 61 Cost of Phreesia hardware purchased by customers 436 343 Deferred contract acquisition costs amortization 110 192 Non-cash operating lease expense 215 173 Deferred taxes 85 63 Changes in operating assets and liabilities: Accounts receivable (1,490 ) (1,393 ) Prepaid expenses and other assets (256 ) 414 Accounts payable (1,739 ) (2,936 ) Accrued expenses and other liabilities (891 ) (1,155 ) Lease liabilities (252 ) (219 ) Deferred revenue (1,619 ) (55 ) Net cash provided by (used in) operating activities 14,850 (721 ) Investing activities: Capitalized internal-use software (3,888 ) (4,570 ) Purchases of property and equipment (3,504 ) (876 ) Net cash used in investing activities (7,392 ) (5,446 ) Financing activities: Proceeds from issuance of common stock upon exercise of stock options 128 347 Proceeds from employee stock purchase plan 768 913 Finance lease payments (1,376 ) (1,280 ) Principal payments on financing agreements (320 ) (289 ) Debt issuance costs and loan facility fee payments (38 ) (152 ) Financing payments of acquisition-related liabilities — (1,364 ) Net cash used in financing activities (838 ) (1,825 ) Effect of exchange rate changes on cash and cash equivalents 31 (1 ) Net increase (decrease) in cash and cash equivalents 6,651 (7,993 ) Cash and cash equivalents – beginning of period 84,220 87,520 Cash and cash equivalents – end of period $ 90,871 $ 79,527 Supplemental information of non-cash investing and financing information: Right of use assets acquired in exchange for operating lease liabilities $ — $ 764 Property and equipment acquisitions through finance leases $ — $ 6,529 Purchase of property and equipment and capitalized software included in current liabilities $ 1,117 $ 2,440 Capitalized stock-based compensation $ 332 $ 348 Issuance of stock to settle liabilities for stock-based compensation $ 6,508 $ 6,177 Cash paid for: Interest $ 324 $ 483 Income taxes $ 551 $ 1,593 Expand Non-GAAP Financial Measures This press release and statements made during the above-referenced webcast may include certain non-GAAP financial measures as defined by SEC rules. Adjusted EBITDA is a supplemental measure of our performance that is not required by, or presented in accordance with, GAAP. Adjusted EBITDA is not a measurement of our financial performance under GAAP and should not be considered as an alternative to net income or loss or any other performance measure derived in accordance with GAAP, or as an alternative to cash flows from operating activities as a measure of our liquidity. We calculate Adjusted EBITDA as net income or loss before interest expense (income), net, provision for income taxes, depreciation and amortization, and before stock-based compensation expense and other (income) expense, net. We have provided below a reconciliation of Adjusted EBITDA to net loss, the most directly comparable GAAP financial measure. We have presented Adjusted EBITDA in this press release and our Quarterly Report on Form 10-Q to be filed after this press release because it is a key measure used by our management and board of directors to understand and evaluate our core operating performance and trends, to prepare and approve our annual budget, and to develop short and long-term operational plans. In particular, we believe that the exclusion of the amounts eliminated in calculating Adjusted EBITDA can provide a useful measure for period-to-period comparisons of our core business. Accordingly, we believe that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors. We have not reconciled our Adjusted EBITDA outlook to GAAP net income (loss) because we do not provide an outlook for GAAP net income (loss) due to the uncertainty and potential variability of other (income) expense, net and (benefit from) provision for income taxes, which are reconciling items between Adjusted EBITDA and GAAP net income (loss). Because we cannot reasonably predict such items, a reconciliation of the non-GAAP financial measure outlook to the corresponding GAAP measure is not available without unreasonable effort. We caution, however, that such items could have a significant impact on the calculation of GAAP net income (loss). Our use of Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our financial results as reported under GAAP. Some of these limitations are as follows: Although depreciation and amortization expense are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and Adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements; Adjusted EBITDA does not reflect: (1) changes in, or cash requirements for, our working capital needs; (2) the potentially dilutive impact of non-cash stock-based compensation; (3) tax payments that may represent a reduction in cash available to us; or (4) interest expense (income), net; and Other companies, including companies in our industry, may calculate Adjusted EBITDA or similarly titled measures differently, which reduces its usefulness as a comparative measure. Because of these and other limitations, you should consider Adjusted EBITDA along with other GAAP-based financial performance measures, including various cash flow metrics, net loss, and our GAAP financial results. The following table presents a reconciliation of Adjusted EBITDA to net loss, the most directly comparable GAAP financial measure, for each of the periods indicated: We calculate free cash flow as net cash provided by (used in) operating activities less capitalized internal-use software development costs and purchases of property and equipment. Additionally, free cash flow is a supplemental measure of our performance that is not required by, or presented in accordance with, GAAP. We consider free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by our business that can be used for strategic opportunities, including investing in our business, making strategic investments, partnerships and acquisitions and strengthening our financial position. The following table presents a reconciliation of free cash flow from net cash provided by (used in) operating activities, the most directly comparable GAAP financial measure, for each of the periods indicated: Phreesia, Inc. Reconciliation of GAAP and Adjusted Operating Expenses Three months ended April 30, (in thousands, unaudited) 2025 2024 GAAP operating expenses General and administrative $ 16,408 $ 19,052 Sales and marketing 26,043 32,011 Research and development 31,829 28,881 Cost of revenue (excluding depreciation and amortization) 16,637 15,723 $ 90,917 $ 95,667 Stock compensation included in GAAP operating expenses General and administrative $ 6,573 $ 6,209 Sales and marketing 5,174 5,766 Research and development 4,393 3,627 Cost of revenue (excluding depreciation and amortization) 1,085 1,238 $ 17,225 $ 16,840 Adjusted operating expenses General and administrative $ 9,835 $ 12,843 Sales and marketing 20,869 26,245 Research and development 27,436 25,254 Cost of revenue (excluding depreciation and amortization) 15,552 14,485 $ 73,692 $ 78,827 Expand The definitions of our key metrics are presented below. AHSCs. We define AHSCs as the average number of clients that generate subscription and related services or payment processing revenue each month during the applicable period. In cases where we act as a subcontractor providing white-label services to our partner's clients, we treat the contractual relationship as a single healthcare services client. We believe growth in AHSCs is a key indicator of the performance of our business and depends, in part, on our ability to successfully develop and market our solutions to healthcare services organizations that are not yet clients. We believe growth in AHSCs provides useful information to investors as an important indicator of expected revenue growth. In addition, growth in AHSCs informs our management of the areas of our business that will require further investment to support expected future AHSC growth. For example, as AHSCs increase, we may need to add to our customer support team and invest to maintain effectiveness and performance of our solutions for our healthcare services clients and their patients. Total revenue per AHSC. We define total revenue per AHSC as total revenue in a given period divided by AHSCs during that same period. Our healthcare services clients directly generate subscription and related services and payment processing revenue. Additionally, our relationships with healthcare services clients who subscribe to our solutions give us the opportunity to engage with life sciences companies, government entities, patient advocacy, public interest and not-for-profit and other organizations who deliver direct communication to patients through our solutions. As a result, we believe that our ability to increase total revenue per AHSC provides useful information to investors as an indicator of the long-term value of our solutions. Patient payment volume. We believe that patient payment volume is an indicator of both the underlying health of our healthcare services clients' businesses and the continuing shift of healthcare costs to patients. We measure patient payment volume as the total dollar volume of transactions between our healthcare services clients and their patients utilizing our payment platform, including via credit and debit cards that we process as a payment facilitator as well as cash and check payments and credit and debit transactions for which we act as a gateway to other payment processors. Payment facilitator volume percentage. We define payment facilitator volume percentage as the volume of credit and debit card patient payment volume that we process as a payment facilitator as a percentage of total patient payment volume. Payment facilitator volume is a major driver of our payment processing revenue. Our payment facilitator volume percentage could decline slightly over time should we increase our penetration of enterprise customers that are less likely to use Phreesia as a payment facilitator. 1 Adjusted EBITDA is a non-GAAP measure. We calculate Adjusted EBITDA as net loss before interest income, net, provision for income taxes, depreciation and amortization, stock-based compensation expense and other income, net. See 'Non-GAAP Financial Measures' for a reconciliation of Adjusted EBITDA to the closest GAAP measure. 2 Free cash flow is a non-GAAP measure. We calculate free cash flow as net cash provided by (used in) operating activities less capitalized internal-use software development costs and purchases of property and equipment. See 'Non-GAAP Financial Measures' for a reconciliation of free cash flow to the closest GAAP measure. 3 GAAP is defined as generally accepted accounting principles in the United States.
