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

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Balaji Gandhi: But I do think, Joe, that the takeaway from this, I think one of the things we concluded, and I don’t know, you probably weren’t following us back then. But when we went public, we had this key metric which was the health care services revenue, which, in fact, that was called provider revenue per client. And if you really think about it, it’s sort of like more of a jigsaw puzzle and that was putting together the subscription-related services and the payment processing and you could calculate. Then what happened, we noticed that the investment community started to break that down and looked at subscription per client, looked at payment per client. And so we just sort of like added this third component to it. Now you can look at total and you can look at network solutions.

So the intention isn’t to introduce something new, it’s to just sort of like step back and look at the entire picture and break it up any way you want. But in any given quarter, one of those can contribute more than the other. Does that make sense?

Joe Vruwink: Yes, it does. I’ll leave it there. Thank you.

Operator: And from Jefferies, we’ll move next to Glen Santangelo.

Glen Santangelo: Yes. Thanks for taking my question. I just have two quick ones. Chaim, I first wanted to just talk to you about the top-line here. I mean, essentially, if we use your guidance for revenue this year, it almost seems like you need to grow faster in fiscal ’25 to get to your fiscal ’25 goals of $500 million run rate, so by default, you’re effectively giving 2 years of guidance here. And I want to get a sense for you on where we are with respect to the penetration of automated check-in within the business more broadly. And I guess, what sort of gives you that comfort that the growth rate that you’re currently enjoying is sustainable for another eight quarters?

Chaim Indig: All right. Look, I think we’ve got a lot of work to do to get where we need to be, and I don’t think it’s going to be easy. And I think we’re still in the very, very early innings of building in our business and I’m pretty excited about it. I’ll ask Balaji to answer this. But I think if you look back, we’ve been public for a bunch of quarters now. And during that time, we’ve had acceleration, like, it’s gone down a bit and we reaccelerated up. Like, how many times have we done that, Balaji?

Balaji Gandhi: If you look back, it’s been like three or four times, Glen, where we’ve had sequential quarter growth vary on a total revenue basis. And I think the reason even if you take out some of the distortion from COVID with payments, the biggest reason is it sort of relates to the earlier question that Joe asked about the three revenue streams. So again, there’s a little bit of seasonality around network solutions or seasonality around payments. So I think when you’re sort of thinking about growth rates on an annual basis or CAGRs, you can kind of lose sight of how our business operates. So again, there’s quarters where we’ve grown 36%, there’s quarters where we were growing 27%. And this is where we’re setting things up for annual guidance for this year.

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