Phreesia, Inc. (NYSE:PHR) Q4 2024 Earnings Call Transcript

Balaji Gandhi: Well, I think there was a couple of things around the ramp up on our SDR team that were really important. One, you ramped it up a lot quicker also acknowledging that we really had been out of the SDR market for about because of COVID for over a year. So some of it was just filling in a lot of hiring that we because we really didn’t hire any net new STRs during COVID, just sort of during the peak pandemic period. So that was some of it, John. So we’re we were really sort of the running season. But the productivity of our SDR team not only just keeps like, frankly, we’re liking the productivity improvement. It keeps improving. But I think how we hire and also how we, qualify and drive opportunities into the provider organization, now I think we have not just SDRs, but we have a lot of other tools at our disposal, which have been also proven to be very effective.

Right now, we’re pretty happy with the cadence that we see on the provider sales organization and the SDR organization on landing and expanding our provider footprint. And it’s been, I’ve been really excited and proud of that team. They’ve been executing very well and driving really good returns for all of us.

John Ransom: Balaji, you want to add a number to that financer or just keep it qualitative?

Balaji Gandhi: Keep it qualitative. I think your dog liked it.

John Ransom: That’s my neighbor’s dog. He’s an annoying poodle, but that’s okay. We’ll figure out. I’ll let go on mute now.

Operator: Our next question comes from the line of Jessica Tassan with Piper Sandler.

Jessica Tassan: I was hoping you could maybe talk a little bit about what we see on medifind.com today. We see, obviously, providers by specialty clinical trials that are open for enrollment and drugs suitable for a particular condition. Curious to know, how much, how many of those items are you monetizing today, if any at all, and just the extent to which you’ve integrated the site with the intake management platform?

Chaim Indig: That’s a great question, Jess and thanks for asking about MediFind. The integration effort is very much well on its way. We’re booking appointments, thousands of appointments every day now or every and it’s going very well, and they’re being done in real time. So from a technology integration, I think that’s on track. From a monetization effort, I think we were very, we’ve been very specific on that we’re going to take it pretty slow in the monetization. We are monetizing. I’d say the vast majority of the traffic to the site still is not monetized. But we expect that to change over the coming.

Jessica Tassan: Sorry, did you say you expect that to change over the coming years or is that an FY ’25 event?

Chaim Indig: Overcoming years. Balaji is nodding its head on years. Years, yes.

Jessica Tassan: And my follow-up is just, on postscript engagement, is that the kind of first time that you all have monetized the, I guess, post visit inventory? And I’m curious to know, I think you said it launched in the fourth quarter. Is that like revenue generating in the fourth quarter or just sales commence in 4Q?

Chaim Indig: I’m pretty sure it was revenue generating in Q1.

Balaji Gandhi: That sounds right. We can follow-up with you.

Chaim Indig: We can follow-up with you on that, if I don’t get the notes right now from the team, who I’m sure someone’s going to send me a note. And we have had other products in the post script engagement area. I think this is probably the most robust, and this is built off the learnings of a lot of the previous products that we’ve had in the space. Let me and to confirm that is correct, it’s a it’s Q1. It’s really in Q1 that we started to, revenue on it.

Operator: Our next question comes from the line of Daniel Grosslight with Citi.

Daniel Grosslight: I want to touch on ConnectOnCall a little bit. So you added, I believe, 120 clients from them through the acquisition. Have you been able to cross sell some of the core Phreesia products to those clients? And then have you been able to make any of the cross sells the other way to your kind of core, free to clients on ConnectOnCall?

Chaim Indig: So, well, first, the core product, I think we’ve rebranded as PhreesiaOnCall. So I think that’s already happened. So expect us to keep referring to this PhreesiaOnCall. I think we’ve had, I think it’s so early. I don’t know that I’d comment that I know the team is having, early success with cross sell, upselling, the old, ConnectOnCall client base. But to be fair, we frankly shared a lot of clients. And that Delta was mostly, clients that we didn’t share. And so I’m sure that I know that the team is out there speaking with them and trying to cross sell, upsell where possible, where it’s the right fit. And I know we’re still in the early days of rolling out PhreesiaOnCall to our client base. And the response from our clients, our provider clients on PhreesiaOnCall has been, it’s been amazing. If we had an expectation set on the value proposition, it’s the early indications are this is it’s far exceeded even my expectations and it’s a beautiful product.

Daniel Grosslight: Yes. And then on cash flow, there was a bit of a step up in CapEx this quarter sequentially to around $7.9 million. Is that the right run rate that we should be thinking about for 2025?

Chaim Indig: I mean, I think there is some fluctuation quarter-to-quarter. I don’t think you’d be wrong if you just run rate of that number. But there will be quarters where it’s a little less or little higher. But in the high 20s, Daniel, it’s 1, for the year.

Operator: Our next question comes from the line of Glen Santangelo with Jefferies.