Phreesia, Inc. Reports Fiscal Third Quarter 2025 Financial Results
Phreesia, Inc. (NYSE: PHR) has announced its financial results for the fiscal third quarter ended October 31, 2024.
Key Financial Metrics
| Financial Metric | Q3 FY2025 | Q3 FY2024 | Year-over-Year Change |
|---|---|---|---|
| Total Revenue ($ millions) | 106.8 | 91.2 | +17% |
| Net Loss ($ millions) | -14.4 | -31.9 | Improvement |
| Adjusted EBITDA ($ millions) | 9.8 | -6.6 | Improvement |
| Net Cash from Operating Activities ($ millions) | 5.8 | -6.3 | Improvement |
| Free Cash Flow ($ millions) | 1.6 | -11.6 | Improvement |
Phreesia showed robust growth, with revenue increasing by 17% year-over-year, coupled with significant improvements in both net loss and adjusted EBITDA, reflecting enhanced operational efficiency.
Revenue Performance by Segment
| Segment | Q3 FY2025 Revenue per AHSC ($) | Year-over-Year Change |
|---|---|---|
| Total Revenue per AHSC | 25,207 | +1% |
| Healthcare Services Revenue per AHSC | 17,481 | -2% |
The segment performance shows continued overall growth in revenue per client, although healthcare services revenue per AHSC saw a slight decline, indicating areas for future strategic focus.
Key Developments and Operational Highlights
- The average number of healthcare services clients increased by 15% year-over-year, reaching 4,237.
- As of October 31, 2024, Phreesia held $81.7 million in cash and cash equivalents.
- No outstanding borrowings were recorded under its credit facility with Capital One.
Management Commentary
Phreesia's CEO and co-founder, Chaim Indig, expressed optimism regarding the company's future, highlighting continuous network growth and increased adoption of current offerings. Indig underscored the potential in new solutions Phreesia is investing in to sustain their growth trajectory.
Forward Guidance
Phreesia has adjusted its revenue outlook for fiscal year 2025 to a narrowed range of $418 million to $420 million, reflecting anticipated growth of 17% to 18% year-over-year. Adjusted EBITDA is expected between $34 million and $36 million, showing an upward revision based on recent performance. The company also outlined an inaugural fiscal year 2026 revenue outlook of $472 million to $482 million and an Adjusted EBITDA of $78 million to $88 million.
Overall, Phreesia's third-quarter performance depicts a strong position from a financial perspective, bolstered by strategic growth initiatives and positive outlook adjustments for the coming fiscal years.
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