And so we moved fairly quickly. It was a very small business. It came out, it foundationally came out of the printing business which I find to be very interesting because that’s not how we evolved, which has been great. They came out, something was very physical, but what it came from was this idea that forms me to look a certain way. And as long as I’ve been in healthcare, and during Phreesia for 18 years, Evan and I keep waiting for forms to disappear and every year there’s more mandatory forms that people have to fill out a certain way, in a certain format, in a certain look. And our clients are telling us that and when we looked at one client they had over 5000 this one health system that we had had over 5000 forms all different formats and sizes and different types of signatures that needed to be done.
And like that was just so much content that was deeply proprietary and this organization had it and so we it made a lot of sense for us to make it part of Phreesia. We’ve been — we’re really excited with what we’ve seen so far, but it’s really early days, but it was pretty small.
Balaji Gandhi:
MediFind:
Chaim Indig: And helping our clients.
Joe Vruwink: Yes, yes, okay that that was all great. And then maybe a just second question, you’re sitting here as of the July quarter at $86 million in revenue, talking about $125 million in revenue at some point next year. So you kind of can do the simple math on what needs to be added over the next six quarters. I guess any directional way to think about the contribution in getting to the 125 between the different revenue segments that you break out? Would you maybe expect one to be more influential than the others, just any way of framing that?
Balaji Gandhi: Yes, I think the short answer there is no because and I think we’ve been very consistent about this, there are just multiple paths to getting to different places, not just 125, getting to 86, for example, from 68, and so Joe, that’s actually a very, very powerful aspect of our business. That said, I think like today, the composition and the mix of revenue subscription has held in, in that mid 40s as a percentage of revenue for a long time and you’ve seen network solutions, at I think multiple times it surpassed as a percentage of revenue payments. I think this quarter is an example, and that’s sort of a change that’s growing faster historically has grown faster, but I don’t think we’re going to be too prescriptive about that. And then in terms of just the path from here to that 125, we’ll also point this out, I mean, there’s seasonality, there’s different quarters where we’ve added a lot more revenue than others.
Operator: And we’ll take our next question from Richard Close with Canaccord Genuity.
Richard Close: Yes. Thanks for the questions, congratulations. Balaji, maybe you could talk a little bit about the Phreesia platform update section. You talk about looking at the text messaging part of it, maybe go into a little bit more details on what you’re thinking about the platform?
Balaji Gandhi: Richard, do you want me to ask the product? Do you want me to answer the product question? I mean, I’ll give it, I’m giving it to Chaim.
Chaim Indig: You always give me a hard time.
Balaji Gandhi: I mean, I think our goal in that, just in that section is that we are continuing to make investments in the platform. Not just, it’s not just about new products; it’s also just our ability to communicate with patients faster or better, easier. And so I think the comments we made around texting are just, that we’re continuing to invest in that platform, it’s never just like sort of won and done and the accuracy, security, privacy, all of those sort of aspects matter. But I don’t think there was anything beyond that that we were trying to communicate.
Chaim Indig: Right. And we’re very proud of the team that spent a lot of time, on that product.
Balaji Gandhi: Yes, that’s fair. It is a stakeholder letter, Richard. It’s not just for investors, but it’s for clients, it’s for all of our employees, et cetera.
Richard Close: Good. All right. And then moving on to a referral management, if we could talk about that a little bit. Maybe a three-part question, if I could sneak it in. You talk about MedMine being integrated into referral management, I’m curious on that? And then what is the revenue model for both MedMine and referral management? You really don’t talk about referral management on Slide 13 of the presentation. So if you could just remind us how you’re thinking about that part of the business going forward?
Chaim Indig: So first, Richard, I promise I’m not trying to make fun of you. It’s called MediFind, not MedMine. And we do, and so then you were asking about refer. Look, I think we’ve been investing, we, in our view, we really, if you look at Slide 10 and you think about, we really think about it all around the — around Access. So MediFind, it really, it’s a space that our providers and our — and the patients that use Phreesia have been telling us for years. They love help finding the right doctor at the right time and so it’s a space we’ve been looking at for a long time. We’ve been investing a lot in with our Connect platform, been growing very, very well. We’ve done, I want to say over a million appointments just through referrals alone.
It’s been growing at a really nice clip and frankly just helping people find the right doctor with an online platform is an area we’ve just been looking at for here. We’ve looked at building and buying and we got introduced to MediFind years ago through a client. And, an opportunity came for us to move really quickly to be able to buy it and make it part of the Phreesia family. And we moved, I was blown away how fast team was able to move. We moved unbelievably quickly to be able to make it part of Phreesia, because it — as an, as a property, it’s the number one or two in most of the searches that you do when you’re looking for a specialist in the markets, in a lot of markets, and over the next couple years we’ll be integrating it with Phreesia really with the view of driving better access for patients to find the right specialist.
This is a platform that has the massive wealth of data and expertise being built up for I want to say over two decades. And so we we’re — we just think of ourselves as lucky that they chose us as the partner to move forward with. And we will continuously invest in it very, it was very small, but it is freaking awesome, so we’re really excited about it and we thank our client for introducing us to it years ago.
Operator: All right, and we’ll take our next question from Glen Santangelo with Jefferies.
Glen Santangelo: Hi. Yes, good evening. Thanks for taking the question. Hey guys, I just want to try to follow up on some of the previous revenue questions because I think this is a big issue for folks. If you look at your subscription revenue line, clearly it’s been decelerating pretty consistently for the past year, and I think a lot of people are focused on provider ads maybe also decelerating. And then when you take that into context of your fiscal 2025 guidance to get to that $125 million, it almost looks like unless you have a big push from network solutions, you’re going to need to see subscription accelerate in fiscal 2025 versus fiscal 2024 and with low large numbers becoming a bigger issue it seems unlikely that that will happen. And so, just wanted to get your take on this pathway to $125 million as it relates to subscription revenues and if we’re even thinking about that correctly as we think about the two-year stack?
Balaji Gandhi: Yes, well, thanks Glen and I think this is, I think this relates to Joe Vruwink’s question earlier, and I think this is really important if, us being prescriptive about each revenue line item and how that contributes to $125 million is really harmful we think to the way we run the business, the way we think about building the business up over time. And every 90 days, you get another data point in terms of progress we’re making and you can sort of run numbers and see how it builds up. But I think, Glen, this is just one example maybe to think about how we think about building a big business that has long-term durable growth is payments. And so if you look back over time when we, again 12, or I guess 17 quarters ago when we went public, we had 1,558 clients.
And at that time we were doing about 290,000 in payment volume for clients. And now you fast forward, we’ve more than doubled the number of clients, right? With the 3445 we have today. And, you round a little bit, it was, I think it was 287 was this quarter, $287,000 in payment volume per client. And so what that suggests is we sort of have a similar size and profile client across the entire base as we did that. And does that make sense, Glen?
Glen Santangelo: Yes.
Balaji Gandhi: Okay, okay. And the reason and how this relates to sort of your question is, if you look at our take rate over that same period of time, our take rate was 3.04 back then, it’s 2.91 this quarter, 23 basis points, right? And I think we’ve talked about this over the past several quarters, but our philosophy has been like, we just want to do right by our clients add more value, we have other products to sell them in subscription. We’re obviously, thrilled to be able to also generate revenue in network solutions across a lot of those same clients. And so that 23 basis points, across a billion dollars in payment volume in a quarter is a few million bucks, right? And you start to think about, well, are we giving up revenue in the near-term knowing that it’s the right thing for our clients, but also it’s there in the long-term.
And so again, there’s going to be periods where we can take revenue, there’s going to be rev periods where, revenue might not show up in a quarter. That’s sort of how, we think about it over time. The numbers of the numbers, I think in our comment is we feel good about the fiscal 2025 targets.
Glen Santangelo: Okay. That’s fair. If I could just ask my follow up on the EBITDA side, I think this is a sixth quarter in a row you’ve comfortably beat EBITDA. And when we look at the full year guidance, right, it assumes no leverage from the 20 something percent revenue growth in the back half of the year. And, I understand, the wantingness there to be conservative with respect to the guidance. But I guess what my question really is, is as you think about this path to be in a $500 million company, Chaim do you feel like the existing infrastructure of the company can, is sufficient to be able to handle $500 million plus in revenues and continuing with these physician ads? Or do you think there’s going to have to be some investment made at some point to better handle the growth?
