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

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Chaim Indig: Look, I think they’re tired. They’re working hard. It’s hard to pay people what they need to. They’re still having staff turnover. I think they feel like their organizations are fairly understaffed often. And they don’t have a ton of money. So look, our view is they’re looking for solutions that drive a phenomenal amount of value pretty quickly and they just don’t want to take a lot of risk. And so I think that’s where we’ve been having a lot of success is they could look to their right and they could look to their left and they can find other people that use for Phreesia. They get a phenomenal amount of value for it. And frankly, a lot of them have used it at their doctors. And we give them the ability to get great value with no risk, and that’s really, really important in this market.

But I feel for our health care providers right now. The last four years has been a rough go. It’s been a really rough go. And I’m just really honored that we get to work with so many great ones. They’re in it to treat patients. That’s why you go to medical school. You want to make a difference.

Richard Close: All right. Thanks.

Operator: We’ll hear now from John Ransom with Raymond James.

John Ransom: Hey, there. I guess I have to congratulate Balaji or you guys will be mad. Congratulations, Balaji. Hope dinner was good. Just thinking about your upcoming hiring cycle for your SCRs. Last year, obviously, was the big experiment of stepping on the gas. What are we thinking about this year in terms of additions? Thanks.

Chaim Indig: I feel like becoming an SCR at Phreesia is like a job that they probably wouldn’t hire me if I was graduating college. That team is amazing with more experience than they’ve ever had, and they’re doing really well. We’re really investing in them. And I think they’re staying in their seats longer. And that’s by design because we actually want to get them deeper into Phreesia. And it’s been very successful. And we’ve created new roles around it. We now talk about not just the SCR team but also where they graduate to an ISR team. And the ISRs are just rocking it out right now. And they’re the future of the organization, so we’re pretty excited about it. Won’t you agree Balaji?

Balaji Gandhi: Yes. And I’m surprised we got this long in the call without somebody asking the number, but it’s 177 for the quarter. So John, it’s been tracking sort of in that range for 3 quarters now. And I think you know what we’re talking about doing in terms of expense trends and operating leverage.

Chaim Indig: And I would also point out and I have a lot of meetings, just as a side note. We use SCRs in all parts of our go-to-market organization, not just our provider market. So we have SCRs in our life sciences organization, in our payer organization. All of them have been doing just phenomenal work.

John Ransom: My other question is, I mean, if we go back to the roots of the company, starting with smaller doctor offices, let’s say somebody has been with you for 4, 5, 6 years. I mean do you hit a plateau with that client, I would assume. I mean they can only see so many patients. You can only do so many things for them. So how do you think about the long-term growth with some of your more mature kind of legacy clients or is that just kind of the foundation that you build new customers off of?

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