NYSE$PHR

Phreesia Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Announced financial results for the fiscal third quarter ended October 31, 2023.

Phreesia reported a 25% increase in total revenue, reaching $91.6 million compared to the same period last year. The average number of healthcare services clients increased by 24% to 3,688. Net loss was $31.9 million, an improvement from the $40.2 million loss in the prior year, and adjusted EBITDA was negative $6.6 million, compared to negative $18.3 million in the prior year.

  • Total revenue increased by 25% to $91.6 million compared to the same period in the prior year.
  • The average number of healthcare services clients increased by 24% to 3,688 compared to the same period in the prior year.
  • Net loss improved to $31.9 million compared to $40.2 million in the same period in the prior year.
  • Adjusted EBITDA improved to negative $6.6 million compared to negative $18.3 million in the same period in the prior year.

Headline financials

Total Revenue

$91.6M

Previous: $73.1M+25.3%
EPS (adj)

-$0.58

Previous: -$0.76+23.7%
Avg. Healthcare Clients

3.7K

Previous: 3.0K+23.7%
Revenue per AHSC

$24.8K

No prior period
Patient Payment Volume

$965M

No prior period
Payment Facilitator % Volume

82.0%

No prior period
Capital Expenditures

-$3.34M

Previous: -$4.03M+17.0%
Free Cash Flow

-$35.3M

Previous: -$44.2M+20.2%
Net Income

-$31.9M

Previous: -$40.2M+20.5%
Operating Income

-$32M

Previous: -$39.8M+19.5%
Gross Profit

$76.1M

Previous: $58.5M+30.0%
Cash & Equivalents

$103M

Previous: $210M-50.7%
Total Assets

$375M

Previous: $397M-5.7%
R&D Expense

$28.5M

No prior period
Stock-Based Comp

$18M

Previous: $14.8M+21.5%

Revenue & EPS history

Phreesia · Revenue · Quarterly

$91.6M

Q3 2024+25.3%vs Q3 2023
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Phreesia · $91.6M total across 3 segments · Q3 2024

  • Subscription Services
    $42.6M+29.1%
  • Network Solutions
    $25.8M+26.0%
  • Payment Processing
    $23.2M+18.3%

Forward guidance

Phreesia is maintaining its revenue outlook for fiscal year 2024 at $353 million to $356 million, implying year-over-year growth of 26% to 27%. They are raising their Adjusted EBITDA outlook for fiscal year 2024 to approximately negative $39 million from a previous range of negative $54 million to negative $49 million. They expect revenue to be in the range of $424 million to $434 million for fiscal year 2025. They expect Adjusted EBITDA for fiscal 2025 to be in the range of $10 million to $20 million.

Tailwinds

  • Maintaining revenue outlook for fiscal year 2024 at $353 million to $356 million, implying year-over-year growth of 26% to 27%.
  • Raising Adjusted EBITDA outlook for fiscal year 2024 to approximately negative $39 million from a previous range of negative $54 million to negative $49 million.
  • Expect revenue to be in the range of $424 million to $434 million for fiscal year 2025.
  • Expect Adjusted EBITDA for fiscal 2025 to be in the range of $10 million to $20 million.
  • Available borrowing capacity under credit facility with Capital One provides an additional source of capital to pursue future growth opportunities not incorporated into fiscal 2025 revenue and Adjusted EBITDA outlook.

Headwinds

  • Decisions to hold back on certain planned investments in go to market and in the payer space.
  • Now expect to achieve $500 million of annualized revenue in a quarter in fiscal 2026 as compared to previous target of a quarter in fiscal 2025.
  • Uncertainty and potential variability of Other (income) expense, net and (Benefit from) provision for income taxes.
  • Impact of pandemics on business and economic conditions.
  • Recent high inflationary environment and other general, market, political, economic and business conditions.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 18 quarterly earnings reports · overlaid with Q3 2024

Historical avgQ3 2024

-1.6%

Avg return

Earnings day

+2.5%

Avg return

5 days after

+2.0%

Avg return

30 days after

54%

15 / 28 earnings

Positive

+21.4%

Q2 2023

Best reaction

-26.3%

Q4 2026

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026-26.3%-1.1%
Q1 2027+2.3%+13.3%
Q3 2026-22.8%-19.2%-16.0%
Q2 2026-9.8%-18.8%-25.4%
Q1 2026-6.6%-0.2%+14.2%
Q4 2025+6.9%+14.6%+1.1%
Q3 2025+11.1%+14.8%+30.8%
Q2 2025+7.9%+0.5%-6.8%
Q1 2025-13.3%-14.7%-2.9%
Q4 2024+1.7%-0.7%+1.0%
Q3 2024+17.8%+18.8%+45.2%
Q2 2024-21.2%-27.1%-39.1%
Q1 2024+3.6%+10.3%+4.0%
Q4 2023-13.5%-10.0%-5.7%
Q3 2023+18.7%+34.8%+20.0%
Q2 2023+21.4%+28.2%+4.9%
Q1 2023+11.9%+17.5%+40.1%
Q4 2022-11.9%+1.3%-23.6%
Q3 2022-20.2%-20.9%-32.9%
Q2 2022-12.4%-6.2%-15.4%
Q1 2022+6.6%+12.7%+24.2%
Q4 2021+2.5%+8.4%+3.3%
Q3 2021+7.3%+18.1%+16.2%
Q2 2021-3.2%-9.2%+3.5%
Q1 2021-6.7%-10.5%-13.1%
Q4 2020+4.2%+18.1%+30.6%
Q3 2020-1.0%-8.8%-6.9%
Q2 2020+0.2%+7.3%+1.2%
Q1 2020
Q4 2019
Q3 2018
Q2 2018
Q1 2018

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