Balaji Gandhi: Well, I think the first part of your, question and you sort of answered it probably yourself, which is, the most of this year is not really, relevant. The show really starts, with the open enrollment the annual open enrollment period. And, we’ll just say it again like, it’s still very early. I think we like having, exposure in the payer space. We gain that through the acquisition of Insignia and then launching into this, product with MemberConnect. But no real, nothing really new to update there from the last time we talked. And we’re – but we’re still excited about it.
Operator: We’ll take our next question from Sean Dodge with RBC Capital Markets.
Sean Dodge: Yep, thanks. Good afternoon. Just on the healthcare services revenue for AHSC metric, it’s continuing in, that $18,300 range, I’m just curious the underlying dynamics there. You’re cross-selling and expanding into more locations and that should help grow that metric, but that’s being offset by newer clients that are starting with fewer solutions. And there’s also, is there a client size mix impact at play two? And what I’m trying to get at is just understanding how much progress you’re making with the cross-sell and land and expand absent, these other offsetting factors. Is there any way you can kind of quantify, the kind of the list you’re getting from cross-selling and land and expanding?
Chaim Indig: Yes, we are growing within our base, but I think Sean, the comment earlier around just using that payments as an interesting way to think about it, because upwards of 80% of our clients, are a payment facilitator you know, we’re the payment facilitator for, and so if we were running about 290,000 in payment volume in a quarter when we were 1,558 clients, and it’s about the same number now, there’s a number of doctors and or providers, associated with a client. There’s a number of patients they see. There’s a certain amount of payment volume that crosses. I think that’s as probably as powerful a way to think about has the sizing or the shape of our footprint changed over four years and it just really hasn’t. And I think our go-to-market of letting people try the product and then they convert over and they, then they try a new product and it is sort of, that is, that does distort that number over time.
But I think we brought this up, we’ve added so many clients over time that, can sort of take longer and we’re okay with that. We feel really good about that.
Sean Dodge: Okay. And then you mentioned during one of the earlier questions, there were some benefits from payment timing you realized during the quarter. Can you quantify for us how much that that was
Chaim Indig: When you say payment timing, I missed that.
Sean Dodge: I don’t, it was something you said. I think in response to like Ryan’s question, you said there was a benefit in the quarter from payment timing.
Chaim Indig: No, no, that wasn’t payment time. Yes. That was, yes, in cost of sales. Yes, there was just like a vendor where we had like, an expense that will reverse so that reversed. So my point is our gross margin, in this quarter is probably running 50 to a 100 points basis points higher, just like onetime benefit, think about it that way, but we’re still in the same sort of range.
Sean Dodge: Okay, all right, great. Thanks again.
Chaim Indig: Yes.
Operator: Our next question comes from Jeff Garro with Stephens.
Jeff Garro: Yes, good afternoon. I have a question on the sales and marketing spend. And it looks like sales and marketing spend down both year-over-year and quarter-over-quarter, while you all keep adding healthcare services clients at a healthy clip and have a multitude of growth drivers on the network solutions side. So wanted to ask if there’s color that you could add on mix and trends in sales and marketing spend on new healthcare services, client focused resources where, you have that, that good balance of growth versus resources versus network solutions, which I think clearly in an earlier growth stage.
Chaim Indig: Well, it’s, network solutions is actually, is an 18 years old in terms of being part of our business. I think that sales and marketing expense line is for all areas of the company. I think, we’re constantly sort of, calibrating that, and I don’t think there’s anything that’s changed a whole lot over the past few quarters. But just know that, and I think this comes up a lot too, that is absolutely supports clients added in healthcare services, but also brands that we add. And even things we do, in the revenue cycle area. So and, so I think, I don’t think anything particularly to call out there, you can see that we’ve, again, continue to get nice operating leverage on that sales and market.
Jeff Garro: Great. That helps. And one more question on the spend side. Maybe I’ll follow up to Glen’s earlier question that the, the guidance does seem to imply some ramp in OpEx spending in the second half versus the first half. So we want to see if there’s any areas investments you would call out or maybe part of the ramp is, some type of expense from the integration of MediFind and access built in. Thanks.
Chaim Indig: There you go. That’s the answer. You answered it yourself.
Jeff Garro: Done. Thanks again guys.
Chaim Indig: Thanks.
Operator: We’ll take our next question from Jack Wallace with Guggenheim.
Jack Wallace: Hey, yes, thanks for taking my questions. Just wanted to go back and see if there’s a connection between the Access eForms acquisition, which sounds like it’s [indiscernible] in the hospital space as well as the payments commentary you’ve had Balaji, and if we should expect that there’d be a higher level of, inpatient mix that will help you boost the payment volumes and potentially even a higher take rate. And then I got a follow up.
Balaji Gandhi: I don’t think I draw any connection to that time, would you?
Chaim Indig: No, I will say we’ve been, we’re very happy with the progress we’ve been making in the hospital space and it’s an area we continue to invest in and it’s an area of great need and I think we still are very excited about it.
Jack Wallace: Got it. Thanks. And then you just thinking about the mix of growth into the 125 number, and maybe to ask those, the questions slightly differently is should we expect any you composition mix within the client base into larger customers that have, more wallet share, more you TAM per client opportunity as being a driver to get to that figure? Thank you.
Balaji Gandhi: I mean, I think one thing, Jack, that over time we do, we are, moving to more of an enterprise model. And so if you think about some independent groups that have become affiliated with some of these large position aggregators out there we’re able to sort of do more enterprise deals at that level. But again, that’s just an aggregation of what would’ve been, an individual smaller Phreesia client that’s now just a large enterprise and part of that. But, healthcare’s still pretty big. I think the data from the American Medical Association is 51% of groups are still, 10 providers are smaller. Obviously there’s some very large ones too, but so not really.
Operator: We’ll take our next question from Robert Simmons with D.A. Davidson.
Robert Simmons: Hey, thanks for taking the question. I was wondering if you could talk about patient volumes over the course of the quarter. What did you see month to month and also what did you see so far this quarter?
Balaji Gandhi: When you say this quarter, you mean the second quarter?
Robert Simmons: No, sorry. So when I say what did you see in second quarter, month to month and what have you seen so far in 3Q?
Balaji Gandhi: Yes, I mean, I think, and I think we brought this up maybe last on the last call and in a lot of the meetings we’ve had with investors over the past few months, I mean, a lot of the things that sort of swing payments for us, we have seasonality, let’s start with that, right? Deductibles reset at the beginning of the calendar year that we have the natural seasonality, which you see that bump in our fiscal first quarter. And then there’s how many Mondays, are in a given month and more people tend to go to the doctor on Monday than on Friday, sort of the opposite of what you see in retail. So Robert, just one good example is this year, July 3rd fell on a Monday, and so a lot of people took that day off, went right into the holiday and so that you had, some of the, the smoke fire stuff in the month of June.
You know, you had some flooding stuff in July. I guess we hear about some hurricane category five rolling up the northeast now. These are sort of the things that swing back and forth we’re pretty distributed across different specialties, across different geographies. So I mean, again, if the points I brought up are probably what drives a billion being 990 sequentially.
