Le Lézard
Classified in: Science and technology, Business, Covid-19 virus
Subjects: EARNINGS, Conference Call, Webcast

Phreesia Announces Fiscal Second Quarter 2022 Results


Phreesia, Inc. (NYSE: PHR) ("Phreesia") announced financial results today for the fiscal second quarter ended July 31, 2021.

"Throughout our second quarter of Fiscal Year 2022, we again helped our clients drive patient self-service on our platform through the use of tools like mobile check-in, appointment self-scheduling and online payments," said CEO Chaim Indig. "We are proud to work with our provider clients to help them reach and schedule appointments with patients who are behind on well visits, vaccinations and other necessary preventive care".

Fiscal Second Quarter 2022 Highlights

Outlook for Fiscal 2022

We are increasing our revenue outlook for fiscal 2022 to a range of $195 million to $198 million from the previous range of $191 million to $194 million. We continue to expect our overall cash outflow to increase in fiscal 2022 compared to fiscal 2021 as we continue to ramp up hiring and infrastructure across the organization to support our anticipated growth.

Conference Call Information

The Company will hold a conference call on Thursday, September 2, 2021, at 8:30 a.m. Eastern Time to review the Company's second fiscal quarter financial results. To participate in the Company's live conference call and webcast, please dial (866) 211-4557 (or (647) 689-6750 for international participants) using conference code number 7489917 or visit the "Events & Presentations" section of ir.phreesia.com. 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.

Recent Events

COVID-19

The impact of the COVID-19 (a novel strain of coronavirus) pandemic has been widespread and rapidly evolving. Over the last six months, several vaccines for COVID-19 received FDA approval and are currently being administered across the country. We believe COVID-19 may continue to impact the normal operations of our clients, which are primarily healthcare providers. As more individuals are vaccinated, we expect these impacts to be diminished. However, as the pandemic progresses, including through the emergence of new variants and rules regarding immunization, we may experience stricter protocols.

Phreesia, Inc.

Consolidated Balance Sheets

(in thousands, except share and per share data)

 

 

July 31, 2021

 

January 31, 2021

 

(Unaudited)

 

 

Assets

 

 

 

Current:

 

 

 

Cash and cash equivalents

$

439,854

 

 

 

$

218,781

 

 

Settlement assets

15,503

 

 

 

15,488

 

 

Accounts receivable, net of allowance for doubtful accounts of $632 and $699 as of July 31, 2021 and January 31, 2021, respectively

30,356

 

 

 

29,052

 

 

Deferred contract acquisition costs

1,817

 

 

 

1,693

 

 

Prepaid expenses and other current assets

6,161

 

 

 

7,254

 

 

Total current assets

493,691

 

 

 

272,268

 

 

Property and equipment, net of accumulated depreciation and amortization of $47,124 and $40,148 as of July 31, 2021 and January 31, 2021, respectively

26,868

 

 

 

26,660

 

 

Capitalized internal-use software, net of accumulated amortization of $28,451 and $25,476 as of July 31, 2021 and January 31, 2021, respectively

12,299

 

 

 

10,476

 

 

Operating lease right-of-use assets

2,252

 

 

 

2,654

 

 

Deferred contract acquisition costs

2,513

 

 

 

1,248

 

 

Intangible assets, net of accumulated amortization of $780 and $525 as of July 31, 2021 and January 31, 2021, respectively

2,470

 

 

 

2,725

 

 

Deferred tax asset

379

 

 

 

658

 

 

Goodwill

8,211

 

 

 

8,307

 

 

Other assets

2,543

 

 

 

1,670

 

 

Total assets

$

551,226

 

 

 

$

326,666

 

 

Liabilities and Stockholders' Equity

 

 

 

Current:

 

 

 

Settlement obligations

$

15,503

 

 

 

$

15,488

 

 

Current portion of finance lease liabilities and other debt

4,494

 

 

 

4,864

 

 

Current portion of operating lease liabilities

1,133

 

 

 

1,087

 

 

Accounts payable

5,483

 

 

 

4,389

 

 

Accrued expenses

18,101

 

 

 

18,324

 

 

Deferred revenue

12,938

 

 

 

10,838

 

 

Total current liabilities

57,652

 

 

 

54,990

 

 

Long-term finance lease liabilities and other debt

5,598

 

 

 

6,471

 

 

Operating lease liabilities, non-current

1,412

 

 

 

1,899

 

 

Total liabilities

64,662

 

 

 

63,360

 

 

Commitments and contingencies

 

 

 

Stockholders' Equity:

 

 

 

Common stock, $0.01 par value - 500,000,000 shares authorized as of both July 31, 2021 and January 31, 2021; 50,892,126 and 44,880,883 shares issued as of July 31, 2021 and January 31, 2021, respectively

509

 

 

 

449

 

 

Additional paid-in capital

840,287

 

 

 

579,599

 

 

Accumulated deficit

(347,144

)

 

 

(311,777

)

 

Treasury stock, at cost, 135,918 and 99,520 shares at July 31, 2021 and January 31, 2021, respectively

(7,088

)

 

 

(4,965

)

 

Total Stockholders' Equity

486,564

 

 

 

263,306

 

 

Total Liabilities and Stockholders' Equity

$

551,226

 

 

 

$

326,666

 

 

Phreesia, Inc.

Consolidated Statements of Operations

(Unaudited)

(in thousands, except share and per share data)

 

 

Three months ended July 31,

 

Six months ended July 31,

 

2021

 

2020

 

2021

 

2020

Revenue:

 

 

 

 

 

 

 

Subscription and related services

$

22,885

 

 

 

$

17,129

 

 

 

$

44,704

 

 

 

$

32,728

 

 

Payment processing fees

16,306

 

 

 

11,828

 

 

 

32,950

 

 

 

23,535

 

 

Life sciences

11,816

 

 

 

6,052

 

 

 

21,644

 

 

 

12,142

 

 

Total revenues

51,007

 

 

 

35,009

 

 

 

99,298

 

 

 

68,405

 

 

Expenses:

 

 

 

 

 

 

 

Cost of revenue (excluding depreciation and amortization)

10,032

 

 

 

5,271

 

 

 

18,566

 

 

 

10,005

 

 

Payment processing expense

9,648

 

 

 

6,747

 

 

 

19,373

 

 

 

13,595

 

 

Sales and marketing

22,167

 

 

 

10,098

 

 

 

37,179

 

 

 

19,532

 

 

Research and development

11,443

 

 

 

5,530

 

 

 

19,497

 

 

 

10,535

 

 

General and administrative

16,244

 

 

 

9,631

 

 

 

28,915

 

 

 

18,351

 

 

Depreciation

3,701

 

 

 

2,410

 

 

 

6,998

 

 

 

4,678

 

 

Amortization

1,580

 

 

 

1,632

 

 

 

3,231

 

 

 

2,985

 

 

Total expenses

74,815

 

 

 

41,319

 

 

 

133,759

 

 

 

79,681

 

 

Operating loss

(23,808

)

 

 

(6,310

)

 

 

(34,461

)

 

 

(11,276

)

 

Other (expense) income, net

(90

)

 

 

424

 

 

 

(24

)

 

 

(291

)

 

Interest (expense) income, net

(207

)

 

 

(419

)

 

 

(445

)

 

 

(739

)

 

Total other (expense) income, net

(297

)

 

 

5

 

 

 

(469

)

 

 

(1,030

)

 

Loss before provision for income taxes

(24,105

)

 

 

(6,305

)

 

 

(34,930

)

 

 

(12,306

)

 

Provision for income taxes

(288

)

 

 

(66

)

 

 

(437

)

 

 

(177

)

 

Net loss

$

(24,393

)

 

 

$

(6,371

)

 

 

$

(35,367

)

 

 

$

(12,483

)

 

Net loss per share attributable to common stockholders, basic and diluted

$

(0.48

)

 

 

$

(0.17

)

 

 

$

(0.73

)

 

 

$

(0.33

)

 

Weighted-average common shares outstanding, basic and diluted

50,577,614

 

 

 

37,735,155

 

 

 

48,287,305

 

 

 

37,523,966

 

 

Phreesia, Inc.

Unaudited Consolidated Statements of Cash Flows

(in thousands)

 

 

 

Six months Ended July 31,

 

 

2021

 

2020

Operating activities:

 

 

 

 

Net loss

 

$

(35,367

)

 

 

$

(12,483

)

 

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

Depreciation and amortization

 

10,229

 

 

 

7,663

 

 

Stock-based compensation expense

 

13,047

 

 

 

6,300

 

 

Amortization of deferred financing costs and debt discount

 

144

 

 

 

245

 

 

Cost of Phreesia hardware purchased by customers

 

273

 

 

 

439

 

 

Deferred contract acquisition costs amortization

 

1,152

 

 

 

1,775

 

 

Non-cash operating lease expense

 

483

 

 

 

777

 

 

Change in fair value of contingent consideration liabilities

 

209

 

 

 

?

 

 

Deferred tax asset

 

279

 

 

 

109

 

 

Changes in operating assets and liabilities:

 

 

 

 

Accounts receivable

 

(1,304

)

 

 

(994

)

 

Prepaid expenses and other assets

 

(1,037

)

 

 

(2,892

)

 

Deferred contract acquisition costs

 

(2,541

)

 

 

(1,401

)

 

Accounts payable

 

950

 

 

 

(1,275

)

 

Accrued expenses and other liabilities

 

(275

)

 

 

1,116

 

 

Lease liability

 

(544

)

 

 

(755

)

 

Deferred revenue

 

2,100

 

 

 

856

 

 

Net cash used in operating activities

 

(12,202

)

 

 

(520

)

 

Investing activities:

 

 

 

 

Capitalized internal-use software

 

(5,023

)

 

 

(2,737

)

 

Purchase of property and equipment

 

(5,030

)

 

 

(4,659

)

 

Net cash used in investing activities

 

(10,053

)

 

 

(7,396

)

 

Financing activities:

 

 

 

 

Proceeds from issuance of common stock in equity offerings, net of underwriters' discounts and commissions

 

245,813

 

 

 

?

 

 

Proceeds from issuance of common stock upon exercise of stock options

 

2,678

 

 

 

2,475

 

 

Treasury stock to satisfy tax withholdings on stock compensation awards

 

(1,960

)

 

 

(869

)

 

Proceeds from employee stock purchase plan

 

295

 

 

 

?

 

 

Insurance financing agreement

 

?

 

 

 

2,009

 

 

Finance lease payments

 

(2,100

)

 

 

(1,301

)

 

Principal payments on financing agreements

 

(873

)

 

 

(220

)

 

Debt issuance costs

 

?

 

 

 

(69

)

 

Loan facility fee payment

 

(125

)

 

 

(225

)

 

Payment of contingent consideration for acquisitions

 

(400

)

 

 

?

 

 

Net cash provided by financing activities

 

243,328

 

 

 

1,800

 

 

Net increase (decrease) in cash and cash equivalents

 

221,073

 

 

 

(6,116

)

 

Cash and cash equivalents ? beginning of period

 

218,781

 

 

 

90,315

 

 

Cash and cash equivalents ? end of period

 

$

439,854

 

 

 

$

84,199

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental information of non-cash investing and financing information:

 

 

 

 

Right-of-use assets obtained in exchange for operating lease liabilities

 

$

81

 

 

 

$

3,183

 

 

Property and equipment acquisitions through finance leases

 

$

1,980

 

 

 

$

3,657

 

 

Capitalized software acquired through vendor financing

 

$

?

 

 

 

$

174

 

 

Cashless transfer of term loan and related accrued fees into increase in debt balance

 

$

?

 

 

 

$

20,257

 

 

Cashless transfer of lender fees through increase in debt balance

 

$

?

 

 

 

$

406

 

 

Purchase of property and equipment and capitalized software included in accounts payable

 

$

3,503

 

 

 

$

1,358

 

 

Capitalized stock-based compensation

 

$

82

 

 

 

$

?

 

 

Cash payments for:

 

 

 

 

Interest

 

$

365

 

 

 

$

833

 

 

Non-GAAP financial measures

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 define 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, change in fair value of contingent consideration liabilities and other expense (income), 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 Annual Report on Form 10-K 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.

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:

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 for each of the periods indicated:

Phreesia, Inc.

Adjusted EBITDA

(Unaudited)

 

 

 

Three months ended July 31,

 

Six months ended July 31,

(in thousands)

 

2021

 

2020

 

2021

 

2020

Net loss

 

$

(24,393

)

 

 

$

(6,371

)

 

 

$

(35,367

)

 

 

$

(12,483

)

 

Interest expense (income), net

 

207

 

 

 

419

 

 

 

445

 

 

 

739

 

 

Provision for income taxes

 

288

 

 

 

66

 

 

 

437

 

 

 

177

 

 

Depreciation and amortization

 

5,281

 

 

 

4,042

 

 

 

10,229

 

 

 

7,663

 

 

Stock-based compensation expense

 

7,273

 

 

 

3,428

 

 

 

13,047

 

 

 

6,300

 

 

Change in fair value of contingent consideration liabilities

 

209

 

 

 

?

 

 

 

209

 

 

 

?

 

 

Other expense (income), net

 

90

 

 

 

(424

)

 

 

24

 

 

 

291

 

 

Adjusted EBITDA

 

$

(11,045

)

 

 

$

1,160

 

 

 

$

(10,976

)

 

 

$

2,687

 

 

Phreesia, Inc.

Reconciliation of GAAP and Adjusted Operating Expenses

(Unaudited)

 

 

 

Three months ended July 31,

 

Six months ended July 31,

(in thousands)

 

2021

 

2020

 

2021

 

2020

GAAP operating expenses

 

 

 

 

 

 

 

 

General and administrative

 

$

16,244

 

 

$

9,631

 

 

$

28,915

 

 

$

18,351

 

Sales and marketing

 

22,167

 

 

10,098

 

 

37,179

 

 

19,532

 

Research and development

 

11,443

 

 

5,530

 

 

19,497

 

 

10,535

 

Cost of revenue

 

10,032

 

 

5,271

 

 

18,566

 

 

10,005

 

 

 

$

59,886

 

 

$

30,530

 

 

$

104,157

 

 

$

58,423

 

Stock compensation included in GAAP operating expenses

 

 

 

 

 

 

 

 

General and administrative

 

$

3,376

 

 

$

1,928

 

 

$

6,294

 

 

$

3,534

 

Sales and marketing

 

2,231

 

 

794

 

 

3,877

 

 

1,522

 

Research and development

 

1,144

 

 

573

 

 

1,988

 

 

1,024

 

Cost of revenue

 

522

 

 

133

 

 

888

 

 

220

 

 

 

$

7,273

 

 

$

3,428

 

 

$

13,047

 

 

$

6,300

 

Adjusted operating expenses

 

 

 

 

 

 

 

 

General and administrative

 

$

12,868

 

 

$

7,703

 

 

$

22,621

 

 

$

14,817

 

Sales and marketing

 

19,936

 

 

9,304

 

 

33,302

 

 

18,010

 

Research and development

 

10,299

 

 

4,957

 

 

17,509

 

 

9,511

 

Cost of revenue

 

9,510

 

 

5,138

 

 

17,678

 

 

9,785

 

 

 

$

52,613

 

 

$

27,102

 

 

$

91,110

 

 

$

52,123

 

Phreesia, Inc.

Key Metrics

(Unaudited)

 

 

 

Three months ended July 31,

 

Six months ended July 31,

 

 

2021

 

2020

 

2021

 

2020

Key Metrics:

 

 

 

 

 

 

 

 

Provider clients (average over period)

 

1,987

 

 

1,668

 

 

1,945

 

 

1,650

 

Average revenue per provider client

 

$

19,720

 

 

$

17,360

 

 

$

39,932

 

 

$

34,099

 

Additional Information

(Unaudited)

 

 

 

Three months ended
July 31,

Six months ended
July 31,

 

 

2021

 

2020

2021

 

2020

Patient payment volume (in millions)

 

$

696

 

 

$

466

 

$

1,397

 

 

$

921

 

Payment facilitator volume percentage

 

78

%

 

82

%

78

%

 

83

%

Available Information

Phreesia intends to use its Company website (including its Investor Relations website) as well as its Facebook, Twitter and LinkedIn accounts as a means of disclosing material non-public information and for complying with its 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 and Section 21E of the Securities Exchange Act. Forward-looking statements involve substantial risks and uncertainties. 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. 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, statements about our future financial performance, including our revenue, cash flows, costs of revenue and operating expenses; our anticipated growth; our predictions about our industry; the impact of the COVID-19 pandemic on our business and our ability to attract, retain and cross-sell to healthcare provider clients. The forward-looking statements contained in this release are also subject to other risks and uncertainties, including those more fully 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 July 31, 2021 that will be filed with the SEC following this earnings 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.

ABOUT PHREESIA

Phreesia gives healthcare organizations a suite of robust applications to manage the patient intake process. Our innovative SaaS platform engages patients in their care and provides a modern, consistent experience, while enabling healthcare organizations to optimize their staffing, boost profitability and enhance clinical care.


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