Phreesia, Inc. (NYSE:PHR) Q3 2023 Earnings Call Transcript

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Chaim Indig: I think that with all rules, sometimes you have — you hire lots of people and whether — it doesn’t matter the category. Sometimes they’re just not the right fit for the organization and realizing that as soon as you can for them, if they’re taking you or is it the right thing. I don’t think we differentiate from any other company that way other than internally, the acknowledgment that not everyone is the right fit for Phreesia. And it’s — Phreesia is a special place. But I would say that the sales organization has just done a phenomenal job. But going back to your earlier part of the question around R&D, look, I think we keep investing in R&D because at the end of the day, the product is what — we were a product like company.

The product has to provide a phenomenal amount of value and continuously get — provide more and more value every day to our clients. We can’t treat patients. They can. All we can do is try to make it easier and better for them and their patients in, like, in experiencing the health care system and helping those patients become more activated, improving their journey. Those are all things that we’re pretty blessed and lucky to be able to be part of.

John Ransom: And do you have everybody over for dinner again tonight? Did you make dinner?

Chaim Indig: Well, we’re having dinner out around table. Really, same way. At this time — because we got feedback on the audio, like, the mic is on a pillow in the middle of the table. So hopefully, .

John Ransom: And your kids are somewhere where they’re not making a lot of noise.

Chaim Indig: The kids have left the building.

John Ransom: All right. Thank you.

Chaim Indig: Great.

Operator: Your next question comes from the line from Scott Schoenhaus with KeyBanc. Your line is now open.

Scott Schoenhaus: Hey. How are you doing team? Congrats on the results and battling of flu here. But most of my questions have been asked. Just wanted to kind of drive on this last point that you just kind of mentioned in about your team. But really, your sales and marketing expense as a percent of revenue reached kind of the lowest levels we’ve seen since 2020. And you just posted record new client wins with healthy adds expected in 4Q. How are you getting so much efficiency with your sales and marketing team now?

Chaim Indig: Well, I think it’s the fact that our whole organization understands what we have to do. Randy mentioned the leadership organization, but I would say it’s the whole organization, right? It’s winning opportunities, making phone calls, the SCRs, creating the demand of our pipe (ph), but also being able to then — make sure that we could demonstrate that value and keep that client alive and work cohesively — and a lot of that also, frankly, depends on our product organization, building great products, which we do. We — our product is great. And it’s great because we have a great product organization. And when you have a great product, you are able to demonstrate value quickly. And it does the things that you say you’re going to do, and it does them quickly.

And so I think the reason we’re able to do what we do is the investments we made over years. And over the last couple of years, we made a lot of investments, and we’re now starting to see the fruit of those investments pay off. And I think we still — and we will continue to see that for some period of time. And we’re going to keep investing in this amazing thing that we get to do, which is called Phreesia. But the reason we’re seeing improvement is the team. And the team just executing on their targets and beating them and doing and waking up the next day and doing it again. And I can’t thank them enough.

Scott Schoenhaus: Thanks. That’s all from me. Great results.

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