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

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Operator: We’ll move now to Ryan MacDonald with Needham.

Ryan MacDonald: Hi. Thanks for taking my questions and congrats, Balaji. Maybe first starting on MemberConnect. I understand it’s early in the process and sort of the monetization and maturation of the offering. But as you got through the first enrollment period, can you talk about how you’re measuring, whether it’s ROI or conversion rates, on the leads and referrals that you’re generating and how you might be able to use that for the upcoming enrollment period as we get into 2023 here to sort of expand and grow that offering? Thanks.

Chaim Indig: I think it’s probably still too early for us to give color on that, but I’m sure the team will start putting out promotional material. And when they do, we’ll let them lead with it as opposed to anything else.

Balaji Gandhi: And you could probably, there’s a payer website and there’s information there. So just if you look at that, you’ll get a sense of how we’re going to market there.

Ryan MacDonald: Okay. And then maybe as a follow-up for you, Balaji. I just wanted to make sure I got this down, sort of a clarification on the state of the cash balance. In the press release, I think you said on the recent events that, at the end of it, you believe the cash generated will be sufficient for at least the next 12 months. And then in the fiscal ’25 target, you say it will be enough to support you along your path to hitting your targets. Do you still feel confident in your ability to sort of reach your breakeven target in 2025 with the cash on the balance sheet? Just want to make sure I have that clarification right and some of the wording on the press release. Thanks.

Balaji Gandhi: Yes, I’m glad you asked. And yes, we feel comfortable with our cash balance to take us to our targets in ’25. And I think that was worded, I’ll just say sort of from an SEC regulatory and accounting and audit perspective. It was worded that way, but we still feel very comfortable with the comments we’ve made.

Ryan MacDonald: Thanks again.

Operator: And from Guggenheim, we’ll move to Jack Wallace.

Jack Wallace: Hey, thanks for taking my questions. Balaji, congratulations on the new role. And to you both, thanks for the kind words in the last public call. First off, I just want to ask about the commercial team. Looking back over the last year plus, you added a lot of bodies. Obviously, you’ve added quite a bit of clients. I’m thinking about just how the team is settling in and their comfort levels and cross-training now to be able to sell more of the full stack versus, say, where we were a year or even a few quarters ago. Thank you.

Chaim Indig: I don’t know if I understand it. What was the question?

Balaji Gandhi: Yes. Sorry, Jack.

Chaim Indig: It’s like a really good statement. Like I’m sort of lost with the question.

Jack Wallace: Just asking about the state of the commercial team now in terms of their comfort level in cross-selling and upselling versus you being more focused on the land expansion just given the average tenure of the team today versus, say a couple of quarters ago or even a year ago.

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