Phreesia, Inc. (NYSE:PHR) Q4 2023 Earnings Call Transcript

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Chaim Indig: Well, look, some of our oldest clients are using our newest products, too. I was in a meeting where I was like, why have I heard about that client, John? And it turns out it was one of the first clients we ever had and they’re still using us, and they just changed their name. And now they’re using some of our new beta products, which are pretty exciting, and which hopefully we’ll talk about in the coming years. But our best clients are the ones that often have been with us the longest. And they’ve seen what happens when Phreesia comes out with new products and the wins they get with it. So I don’t know, I wouldn’t say our old clients are out there. Our CSM organization, they’ve just been phenomenal getting those clients to try and use our newer products which is the whole thesis.

John Ransom: That was my sneaky way, I was hoping you’d slip up and tell us what some of those were, but you didn’t take the bait. So —

Chaim Indig: No. Balaji’s been training me. I’m not allowed to say anything.

Balaji Gandhi: I think there’s another angle there. Some of those older clients have actually become consolidators in the market. And that’s just private equity roll-up of specialists that started with smaller Phreesia.

Chaim Indig: They have. And like we also have some of those smaller clients that have been bought by health systems and it turns out that those health systems use Phreesia now because of those smaller clients. But I think that was a long time ago that, that was our core focus.

John Ransom: I understand. Now my last question is, it’s been a couple of years, I’m probably losing track of time since you announced you were going into the hospital market. And I know your thesis at the time was we can save on data entry. But what have been the learnings as you’ve expanded your reach into the hospital market? And how do you think about that opportunity now versus when you started? Thanks.

Chaim Indig: We just think about it the same. I think the hospital market is pretty big. We’ve been rolling out a lot of hospitals over the years. Obviously, there’s different segmentation. We’ve had a lot of success in children’s hospitals, in community hospitals, regional hospitals, tertiary hospitals, acute hospital. It’s sort of funny, John. You see one hospital, you see one hospital and you go to another one, they all have different systems. And we’ve been able to add just a ton of value to them. And we’re building out new very specific workflows that, if you asked me 3 years ago that we’d be building, I didn’t even know some of those workflows existed. But they’re laborious and hard for these hospitals to do. It’s coming from the teams, both our implementation organization, our CSM organization but also our product organizations, just working in tandem.

I think we still have years of work to just continuously automate and move work to the patient and just create a better health care experience with better outcomes. But we’re starting to talk a lot more about outcomes than we ever have.

John Ransom: Great. Thanks so much.

Operator: We’ll hear now from Scott Schoenhaus with KeyBanc.

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