Phreesia Q1 2023 Earnings Report
Key Takeaways
Phreesia reported a strong start to fiscal year 2023, with a 31% increase in revenue compared to the same period last year. The company saw gains in new clients and expansion within existing clients across healthcare services and life sciences. The company is maintaining its revenue outlook for fiscal 2023 of $271 million to $275 million implying year-over-year growth of 27% to 29%.
Revenue increased by 31% to $63.4 million compared to $48.3 million in the same period last year.
Average number of healthcare services clients increased by 33% to 2,526 compared to 1,902 in the same period last year.
Adjusted EBITDA was negative $30.6 million compared to positive $0.1 million in the same period last year.
Cash and cash equivalents totaled $269.2 million as of April 30, 2022.
Phreesia
Phreesia
Phreesia Revenue by Segment
Forward Guidance
Phreesia is maintaining its revenue outlook for fiscal year 2023 of $271 million to $275 million implying year-over-year growth of 27% to 29%. They are raising their Adjusted EBITDA outlook for fiscal year 2023 to negative $126 million to negative $122 million from a previous range of negative $154 million to negative $149 million.
Positive Outlook
- Revenue outlook for fiscal year 2023 maintained at $271 million to $275 million, implying 27% to 29% year-over-year growth.
- Adjusted EBITDA outlook for fiscal year 2023 raised to negative $126 million to negative $122 million.
- Expectation that Adjusted EBITDA outlook in fiscal year 2023 will be the low annual mark for fiscal years 2023 to 2025 maintained.
- Company expects to reach profitability in fiscal year 2025.
- Annualized revenue target of $500 million to be achieved during a quarter of fiscal year 2025 is maintained.
Challenges Ahead
- Adjusted EBITDA was negative $30.6 million in the quarter.
- Cash and cash equivalents decreased by $44.6 million compared to January 31, 2022.
- Adjusted EBITDA outlook has not been reconciled to GAAP Net income (loss).
- Uncertainty and potential variability of Other (income) expense, net and (Benefit from) provision for income taxes.
- Reconciliation of the non-GAAP financial measure outlook to the corresponding GAAP measure is not available without unreasonable effort.
Revenue & Expenses
Visualization of income flow from segment revenue to net income