Chaim Indig: So we provide those social determinants of health modules and everything we do around the set of questions right now, that’s just part of what people get as part of the package. We don’t charge extra for it. I just philosophically tend to not believe that that’s something that we have thought about monetizing. We think it’s just the right thing to do. And so we try to do the right thing as an organization to help clients help their patients. And no, we, today, don’t make any money from payer clients on social determinants of health. It’s really just about making sure that we identify the issues that caregivers and providers can help them.
Jessica Tassan: Awesome. Thank you, guys.
Operator: We’ll hear next from Joe Vruwink with Baird.
Joe Vruwink: Hi. Great. Thanks and congrats, Balaji. Just reflecting on EBITDA performance over the last 12 months, actual results, I think ended up being almost $60 million better than the preliminary guidance. And I definitely appreciate it’s probably not the pragmatic thing out of the gates to embed the type of productivity per employee that ended up being seen over the last year. But I’m just wondering kind of in that context, how you might handicap or kind of scenario plan around the forecast that was provided today, any puts and takes or thoughts on kind of the upward trajectory and productivity continuing on a quarterly basis.
Balaji Gandhi: Yes. And thanks, Joe. So I think the biggest difference between a year ago at this time when we laid out the EBITDA outlook versus today, and I think we talked about this maybe on the last call, I mean there were a lot of other unknowns out there. One was we were coming off of that big step-up in inflation and we talked about that, and wages went up. And that was that big step-up in terms of expenses, and you saw the drop in EBITDA. So to be frank, I think I’m maybe speaking for Chaim too, and our exec team, I don’t think we knew whether we were in the seventh inning of that or the ninth inning of that. And so that was baked into our expectations. I think we’ve also talked about the situation in Ukraine at that time, so it would have been late March of ’22.
So those are two factors that were very different. Beyond that, I think we’ve been pretty open talking about productivity and revenue per employee and metrics like that. So I think everything else is sort of headed in the right direction, but those are two differences between last year and this year.
Chaim Indig: Look, and I also think that we have a culture of ownership at the company and all of our people, our shareholders. And I think what we try really hard to articulate to them what we have to do, which is be thoughtful about the money we spend and all of them took it seriously. So a lot of the material improvements are thanks to them and everyone on the team for being just really good stewards of capital. It can’t just be on the leadership; it went all the way through the organization. And I think that’s why we did a lot better, too.
Joe Vruwink: Okay. That’s great. And then any time a new metric is debuted, you kind of asked why. And so I think the interpretation here is like contribution from the network business certainly seems like it’s going to be a tailwind for a while. I guess maybe related to this, do you think you’re coming up on a point in time where Phreesia will be less of a client add story, I’m not saying that goes away. Like, maybe it’s more of a net retention story and it’s going to be maybe more of a growth contributor to SaaS side of the growth algorithm.
Chaim Indig: I don’t think we’re ready to say that yet. I think we still have a lot of growth left in growing the network in the near term.
