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Oct 31, 2023
Phreesia Q3 2024 Earnings Report
Announced financial results for the fiscal third quarter ended October 31, 2023.
Key Takeaways
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.
Phreesia
Phreesia
Phreesia Revenue by Segment
Revenue by Segment
Subscription Services Revenue
CapyFin.comPayment Processing Revenue
CapyFin.comNetwork Solutions Revenue
CapyFin.com 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.
Positive Outlook
- 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.
Challenges Ahead
- 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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income