On September 4, 2024, Phreesia Inc (PHR, Financial) released its 8-K filing for the fiscal second quarter ended July 31, 2024. Phreesia Inc, a provider of comprehensive software solutions that improve the operational and financial performance of healthcare organizations, reported significant financial milestones and performance metrics.
Company Overview
Phreesia Inc is a leading provider of SaaS-based technology platforms designed to enhance patient activation and optimize health outcomes. The Phreesia Platform offers a robust suite of integrated solutions for managing patient access, registration, payments, and clinical support, encompassing technologies and services from initial patient contact to post-appointment surveys.
Performance Highlights
Phreesia Inc reported total revenue of $102.1 million for the quarter, marking a 19% year-over-year increase and surpassing the analyst estimate of $101.70 million. The company also achieved a positive free cash flow of $3.7 million, a significant milestone in its financial evolution.
Key performance metrics include:
- Average number of healthcare services clients (AHSCs) was 4,169, up 21% year-over-year.
- Total revenue per AHSC was $24,494, down 2% year-over-year.
- Healthcare services revenue per AHSC was $17,729, down 3% year-over-year.
Financial Achievements
Phreesia Inc's financial achievements for the quarter include:
- Net loss reduced to $18.0 million from $36.8 million in the same period last year.
- Adjusted EBITDA was $6.5 million, compared to negative $11.5 million in the prior year.
- Net cash provided by operating activities was $11.1 million, compared to a net cash outflow of $9.3 million in the previous year.
- Cash and cash equivalents stood at $81.8 million as of July 31, 2024.
Income Statement Summary
| Metric | Q2 FY2025 | Q2 FY2024 |
|---|---|---|
| Total Revenue | $102.1 million | $85.8 million |
| Net Loss | $(18.0) million | $(36.8) million |
| Adjusted EBITDA | $6.5 million | $(11.5) million |
Balance Sheet and Cash Flow
Phreesia Inc's balance sheet reflects a solid financial position with total assets of $362.2 million and total liabilities of $110.9 million. The company reported a decrease in cash and cash equivalents by $5.7 million from January 31, 2024, but an increase of $2.3 million from April 30, 2024.
CEO Commentary
"We reached another very important milestone in Phreesia’s evolution by crossing over to positive Free cash flow in the fiscal second quarter of 2025," said CEO and Co-Founder Chaim Indig. "We believe this milestone marks the start of a new era for Phreesia in which we are able to deploy internally generated cash to drive stakeholder value."
Analysis and Outlook
Phreesia Inc's performance in Q2 FY2025 demonstrates robust revenue growth and improved financial metrics, positioning the company well within the healthcare providers and services industry. The achievement of positive free cash flow is a significant milestone, indicating effective cash management and operational efficiency.
The company maintains its revenue outlook for fiscal 2025 at $416 million to $426 million, reflecting year-over-year growth of 17% to 20%. Additionally, the Adjusted EBITDA outlook has been updated to a range of $26 million to $31 million, up from the previous range of $21 million to $26 million, underscoring the company's focus on margin improvement.
Phreesia Inc's strategic initiatives and financial discipline are expected to drive continued growth and value creation for stakeholders in the coming quarters.
Explore the complete 8-K earnings release (here) from Phreesia Inc for further details.
