Phreesia (PHR) 14 Mar 242024 Q4 Earnings call transcript

Good evening, ladies and gentlemen. Welcome to the Phreesia Fiscal Fourth Quarter 2024 Earnings Conference Call. [Operator Instructions] First, I would like to introduce Balaji Gandhi, Phreesia's Chief Financial Officer. Mr. Gandhi, you may begin.

operator. you, Thank welcome fiscal and January earnings call conference XXXX. Good quarter to of the fourth on XXXX, for evening, Phreesia's which XX, ended

documents Joining related be quarterly issued our found our available our Investor earnings including ir.phreesia.com. Chaim are complete call our and stakeholder of submission in me after in to Relations release closed Officer. A SEC, our discussion can both Executive today. X-K the the more Indig, of results our press on today's Form letter, These Chief on markets section is at the website

a As Investor replay Relations is conclusion recorded, our will ir.phreesia.com at and call. following the reminder, a call today's website of on be available the being

including our anticipated outlook anticipated statements regarding call, today's including our results. During trends, strategies, and the about statements, growth, our performance industry of future financial our business, we may regarding forward-looking predictions our make

information statements views and the XX-K or which obligation update expressly no Form risks, and included on occurrence investors. current reflect reconciliation a annual information statements order accounting made. X-K isolation actual be to that may our on subject more expectations to that measures our measures factors today certain update and substitute for or These the as uncertainties made forward-looking speak risk with fully are to other the of after tomorrow. The on statements are the described the should from materially SEC of to in be unanticipated obligation in the date be SEC Form stakeholder new statements. provide differ based in may not performance also earnings addition furnished including our to Forward-looking filed results, additional and our filings, disclaim results. A Such those described filed will also to GAAP SEC with to found to and risks ir.phreesia.com. I considered We to factors not earnings stakeholder release, non-GAAP closed website on or to letter, accepted various our turn letter are our after as our to our circumstances principles this events call, Relations forward-looking and on of our be press over in our in will financial forward-looking refer be events. We now which in in these will the the or release with accordance with from this found market call CEO, our in our cause our reflect may date or generally non-GAAP and in may achievements report statements of GAAP were call Chaim the and undertake at results to only Indig. Investor

Thank for fourth in our quarter you, earnings evening, good Balaji, and participating everyone. Thank call. you

and Our stakeholder were published release letter an ago. hour about earnings

in with a and beyond with Let intake. a performance, both is that fiscal impact operationally. and fourth our of the financially I year our patient new pleased call am very me start quarter Phreesia highlights. era extends couple

we Our still XX% every with approximately more aligning visits, growing our million capabilities set of outside patient mission to fiscal point make fiscal of care solutions of care, our day. In the expands XXXX, than XXX while XXXX. more easier than facilitated

EBITDA revenue $XX XX% a $X.X year-over-year. was Adjusted negative million total million, quarter, was fourth $XX improvement year-over-year. million, the For up

for clients my would hard and it continued Before fiscal for thank to and their commitment Phreesia to to also like support. our outlook, work their I colleagues XXXX thank our to like discuss turn mission. to our Balaji investors I I'd

XXXX. work very returning fiscal to to continue to growth deliver and we all do profitability of are excited in We proud while the are

now me over Let hand it Balaji. to

provided revenue We X initial for maintaining everyone. our our Thanks, XXXX our last are fiscal to on fiscal of results for and December we we good fiscal outlook $XXX third year. Today, outlook million. evening, released year quarter when Chaim, at $XXX million XXXX

adjusted to million to updating outlook $XX a for our million. We a of to range are $XX range XXXX, year fiscal new from previous million $XX EBITDA $XX also of million

focus updated efficiency reflects on Our outlook our and leverage. ongoing operating improving

are of health to first the clients for fiscal also we We average XXXX. the services AHSCs expect providing of quarter in a number forecast add care or

in to across see sufficient we fiscal as we our in for was incorporated subscription it along the final current business, first provided back compared cash that up to We we the think plan by in worth are December, quarter fiscal our AHSC and profitable and for expect outlook, revenue payment now the now can to related equivalents continued services, Network first I to growth balance, with growth AHSC is and for We prospects XXXX note. flexibility fourth growth we Solutions. It processing XXX our open at which increase reach in AHSC that forecast we into cash to XXXX us that XXXX. Operator, and quarter our believe can maintaining. One outlook profitable cash the least normal revenue prioritized quarter drive noting of believe give and course fiscal generated Q&A. in

with the William comes Instructions] The of from Ryan next Blair. [Operator Difficulty] Daniels [Technical line question

me? can can me? Guys, you hear you Hello, hear

Ryan?

Can me? you Yes. hear

Ryan, you. hear can Yes. we

in color wanted Network client to me. Can better dive ask have growth into processing growth. about in that really more like sales? I prospects, can payment Just certain prioritizing average you that out profitable It stood Is deliberate Okay. very specialties prospects that. there, adds. Balaji, on a of a a add question that about you drive Perfect. your any cause focus or higher XXX billing can that seems language to Solutions more things the

apologize the some for had on question. -- the difficulty Sure, Yes. And think yes, I Ryan. technical I first we

was back the So into that maybe whoever in, dialing come queue.

on comments And we last made some revenue, it's in the to payback return it's And back profitability, but of the is and letter. our points, some which hitting Ryan, your think I question, goes we it's also you're think on quarter this get. I

to we're terms revenue at probably clients of off to type currently all we'd really expect in generate really that point. say feel them, the of expect in we and we good adding that's and of type the this profit future the about the So

And then Okay. for And then we those have have associated probably cadence should consider a event, an two, all-employee impact? to things going quick don't if an follow-up I number the of had QX it's move profitability -- costs with that. any would know some needle, I X to the but you. the noise some with given of Anything change. in noticed number one, enough you

Yes.

that I event. a the talked was event we So about QX think

So those costs were largely in the fourth quarter.

anyone change, talk really can I else terms think of I cadence, out, about terms of call has or the guidance maybe more a nothing to think Ryan. little bit outlook But the question. In in that we and if a

out though is year we'd payments, which call margin. are an think, nothing has years. I new there versus around this stronger, which on previous seasonality That's impact

Our from Richard Canaccord Close the of line comes next with question Genuity.

impact, to high-level investments. a Congratulations clients your you a you're noticed you're on Change letter, there, the what strong down on bit about path go Change, hack helping talked just positive, negative you in see? the thoughts doing how and the just just discuss that security curious And little year. with security, and maybe I any further. Maybe Change

Yes.

thanks Chaim. the try little and This -- some think So the question break to of I'll then try the down bit, for question, Change. to is the commentary Richard. we'll around a answer I

couple although then terrible of that And for pretty as we of significantly to compliance. depend a that security level. And think of terrible. wanting years, investment talk really think been Change, call increased our take pretty care it's lot think out internal know are, is and our both couple -- of how -- did In almost -- terms and on And We of of we in We data. really the can part of we look, to our were. clearing with clients attacked. how dollars our our -- it's with they infrastructure also, them. And years running like, of keep be R&D and clients. everything all dramatically the security. really all letter, Balaji, in we important. last we spend, And service, really the we seriously. But can our sugar their have that a a increasing that. been a help -- it that they And role work keep number. absolute I There's it we doing dollar they over terms coating what to major as health sure can of into baked just we we and And much was I'm was last tell, the making a putting -- reference increasing with about that's can as that our one collect really an our But clients no were them our Change, to have in important we're stankholders start businesses houses. let's really as And unbelievably of sure, investment as and like still investment and they steward over more on can in it's expect to from percentage strain fair, just our we, it's we

one out years. identified of And vast really they call made pretty part weeks, of of health part working couple infrastructure, clearing quickly a on moving over sh**ty. American our above and we've eligibility services. this last checks work, big difference them and service was when move the at houses I pretty I really didn't Change our team, business. our their think our care of as volume. They houses was enough. alternate as it So normally know that been we they thank disrupt can't our of to it, to American for started clearing a clients But what provide that as with of the to big it it's look, benefit lot And and our It beyond ton did majority a on backup do. I a so our the of to attack

comes question Anne JPMorgan. next from line with of Samuel Our the

You payment what better on if helped could kind in in the you called was some touch your of forecast part I you're by letter out that within maybe for embedding And year utilization just year? full was processing your wondering utilization.

question. the for thanks Annie, Well,

on on think about lot weather, and on like of something fall is history model different of in this days a like sort model payment the swing And biggest is factors, we've swing given years how -- like, calls is with quarter. things calendar the we we're We that. that things I it. experience the factors processing these talked a

-- usage Obviously, is of as I and we talk that's sort of big utilization weather But link like being services not factor. can as of predictable. play which as as think a sort specific about it. role, don't patterns

And -- maybe And X that? you then that measure hoping on Or more. was pharmacies product. is your follow-through? to opportunity to the Great. an just are touch partnering is there maybe with works? post-script I engagement there How do could you

who not very I'm -- -- I are this about We'll so get why don't through product. excited

I I too. know the was This a that's Sorry, time. end, quite for product excited on some is team Annie. the is to right it. I'm worked really jumping been about

to it, be need could doctor And to that And fill many know every possible simplest important. -- better prescription therapy be thinks the reminder right, if so sense a on why so should to therapy this when At is just you to to of is as answer and from if -- you you're -- a why fill your at they just any Building it. -- as doing nudge you you makes much get and questions. it that stage a as so able frankly, also they provider, script form, as you're not should much they get important. its to your a inform you it's

been who in-house. very it. a to It's about early nice add-on But on, about And and looking And about it. so some about to tremendous, patients I'm for working our was really -- nice are think response valuable impact been excited I talking it's this it's patients we've personally excited Early been don't a pretty we're time. partnering phenomenal. has we're pretty the with The -- developed and we're it. providers. indications on product It has

John the Our with Raymond next question of from line comes James. Ransom

settling it group G&A the So of with leverage kind into are like like. a you looks and nice guys

R&D think that for in just X-year concurrent that assume, X think we and about growth marketing company, you math, let's As kind about grow the and your because would [indiscernible]? easy theoretical G&A and How out the top future. should can of your line years accompany foreseeable think we XX% it's XX% a

Yes, John, Balaji. is this

I 'XX. let project trying me formally all, know about I can fiscal helpful. -- of try to mean, talking but out, we you're really to first we're So But be

pretty comments make and a some going processes company to and to have And them. made we We chose public public company G&A, place, about we think have some delay specific procedures costs. could to analysis of people that I felt to. in We all world-class investments. to choose and did where on not right the we be we're lot a

So we feel there's the an not year, magnitude running go we're pretty up things order about obviously now need. increase larger of of every a But but support we the where good cost like to it's organization. resources there's in

that seen for leverage happen operating you've think years now. I And No.

Yes.

a dollar [indiscernible] change. As amount

How The hiring we you some grow quickly thoughts different might that that up. Well, season how about had think then quickly you've not -- let's or you coming question give about do SDR for. you answer. is a SD&R how

talk So and about productivity couple up you to kind hiring of ago. of learnings maybe for your ramp goals a of as years tried your that

think a quicker, out also of team for were that Well, really year. of important. because couple that we over SDR up been is our lot ramp-up the there for ramped market we acknowledging on things it really a a about SDR COVID around One, have of the I

during So of we sort peak new it in just a -- any during didn't SDRs we period. because really pandemic filling hire of hiring some that COVID, of net just was lot the

So that John. it, of some was

into the we that -- lot excited -- now have provider other But tools the productivity it the really think our only expanding and team. I But and for season. us. team opportunities think how of not a the it's how been pretty and also keeps but improvement, all on happy are with and that we I've we're provider organization of on frankly, which sort cadence backfilling quite have qualify disposal, now, executing proving landing been well running SDRs, drive hire and provider been I we're organization organization to have improving. productivity very be sales They've not we we and -- of the driving SDR that good really also been very effective. Right just SDR were we our liking So just the of And see we footprint. proud returns of really keeps the

a add to to qualitative? answer want [indiscernible] that you do [indiscernible] Balaji, number or

qualitative. it keep I'll

I dog your liked it. think

That's I'll it's We'll my poodle. neighbor's an annoying dog, okay. That's [indiscernible]. now. go on mute

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

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

effort We're day question, thanks very about going its they're well, it's of and on thousands booking done now. time. for great integration being much are way. MediFind. those appointments well The and is asking in and every So appointments, Jess, real very

a on So I specific think integration, were we're monetization slow effort, from the very on it from take a track to I we've that's pretty going been monetization. think on technology that we

of we still the majority [ vast over expect I monetizing, site, the the coming are change not months is the monetized. say ]. But We traffic to to that

to an or is did expect event? that over Sorry, FY years? 'XX you say FY the coming change you that 'XX Or

coming his Balaji's years. nodding years. Over on head

years. So

generating I time the that guess, my I fourth I'm know, kind quarter. first all just to just in sales engagement, you that inventory. that monetized And in the commenced post-visit said curious of Cool. is launched And have revenue is or -- think quarter follow-up that it post-risk is on you the, XQ? Okay. Is fourth in like

in -- I'm or QX. anything I revenue What sure was it pretty

follow can sounds up... That We right.

have We the going a that. I'm don't sure me in can now notes right area. the from to is the other And you team, If follow we on with had I products send note. engagement who post-script get someone up

I is of a in QX. And probably that It's robust, it. that built QX think we space. and products the the to that we is is confirm, started It's off previous most this the this of had in learnings lot correct. really to on revenue the

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

Congrats ConnectOnCall on the I little bit. wanted quarter. on to touch a

to been able you from the Have cross-sells cross-sell way able of other added, then through you them believe, you any I ConnectOnCall? have core kind clients some Phreesia clients the on core been of the clients. to to to acquisition. XXX your Phreesia So those make products of And the

So well, think already product, so rebranded that's core I I we've first, PhreesiaOnCall, think the as happened.

expect this I So PhreesiaOnCall. to referring to us keep

was amazing. -- on expectations. it's it's know we having this think a my had client cross-sell, clients. frankly it's that on set exceeded early share, early. response the where had out I speaking possible, team so proposition, days If early where PhreesiaOnCall clients even to we're are upsell PhreesiaOnCall of it's indications in rolling an is product. our it's base. provider cross-sell the know it's still to value out And -- I But from comment the I think shared right And client the our know I the our been expectation I there -- And that the I'd the early far that the beautiful clients, fit. mostly trying to ConnectOnCall that clients know a don't still we've that we upselling is I right? And be we that lot base. old of sure delta success with them is team with fair, And didn't and I'm

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

wrong I mean, [indiscernible] run quarter-to-quarter. just quarters a rated where think number, but in don't the for is But higher. XXs, and high fluctuation -- if there that I it's you'd be little Daniel's year. or you I less some little be a think will the there

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

us. growth. Just X obvious you that for add that me. add XQ number I to you're the it's profitable gave provider appreciate quick looking ones And

I add is And to incrementally trying you view, are where up a so to longer-term get so where give take on perspective. been I'm the follow-up then And are that X a getting for sense an just it of maybe at to I'll for take get my to want just now. on from It's harder John's bit a a we're think Maybe just you profitable your to kind those penetration little at. And interesting providers? curious X question. we right company. how And these years following of

profitability. were you you're sort to You were very profitable, unprofitable now of very and then back

over on feel to look Do to years, next side. few infrastructure couple gains any continue leverage and be efficiency major there. you stop you you able place made the is pretty the like the at the Or As obviously, horizon? good do to you see a And on I'll great investments grow.

questions to sure I process Well, and really just brain make want Glen, [indiscernible] down. there of was my a for lot quickly,

I'm sorry.

okay. It's It's okay.

these many and let I like are start X try think questions. can. Those that Balaji you as it's to funny. answer think I of -- me as

We're would investments products our sciences frankly, of amount. back more But kinds put more lot on continuously than think and is lot And a amount then. a organization. phenomenal still went phenomenal like we able -- with of add clients start of on clients sales doing less looking spent lot on consumer a today percentage. look, spending a to the life we we to and It's that of our clients, spending different public, value itself. marketing spending say, clients have did we're are I we're out we significantly even all I we're to making we're dollar we let's more as our provider what when a our R&D. -- and a -- look, So

we're ultimately, mindset. And we we making so growth investments because a growth keep my company view is, a and will yes, have

your all think But more to harder no, to place question, back investments. And we're return is first win is profitability. do just much it excited I making frankly a answer to for us. comfortable we're clients. It's to still

think and are it's it And environment think where the margins reason just and at job is builds of high phenomenal and to we've clients frankly, clients. I always supporting lot our there's does noise. and the like an like the and successful team team a I are product of implementing great a product been in and health great right, sells win hard care, tight, expectations

bring Our customers appreciate them. the value we

I it take years. but lightly, So pretty I almost XX for don't we've been the don't at on good think take job going I

Yes. think too. going I And Glen, add, I question, to to was just and related John's

tried and we've actually increased think be if have I together. to years ago numbers in And the mattering. go at fourth you pretty both throw consistent just today. some We out They profitability operating X to XX%, growth to about look by you. expenses quarter

important is highest point, lot. what's that really we've the revenue has grown a over period. XX% So the But that same invested

So to future. also that's important leverage getting in to the but be and grow, to operating continue profitable being going

hopefully, So helpful. that's

Dodge next with comes Sean Our from RBC Capital Markets. question

quarter. This on nice on Sean. is Thomas Congrats for Kelliher a

an mentioned then variability question. on to of about to the we think that earlier should expect fiscal heading here and about? pretty Just side, follow-up efficiency we how year? I or some cost we of thinking 'XX seasonality a creating modeling but payment kind the particular know linear? little the should But be and actions, of into on you cadence course a a kind other over quick the any need one stay Or EBITDA

Definitely not linear.

seasonality on there's -- one up, you the I payments. For reasons think brought the of if

to provided revenue to if of the sort for the year, operating it's the outlook at over we've just and X quarters, mentioned or look you going this but we've this the too, and is, in leverage in seen lot mind other past we think and X not of I as keep thing EBITDA. be past a much

sort margin dropping XQ the you improve associated will then But of pretty good as it incremental So year. grows. payment more lower -- with revenue down just margin incremental has revenues. And throughout

and can So about to up. -- we quarterly free to feel you we're providing model but not look, -- your guidance, happy but talk to follow

from Guggenheim with Wallace the comes Securities. line [indiscernible] of Jack

I growth per thinking legacy, going in about forward, the R&D wanted some customer? revenue that some the maybe about how target about be ask the in your to of tuck-in coming And much particularly deals? customers. underpenetrated newer as of algorithm you've versus out, both but rolled products growth profitable you should we thinking from more products of M&A as well as

start to was base, think sort I it can talk I of it's year, should total what I number, can of bit 'XX, of Look, fiscal things to a about it -- little over 'XX per which come. profitable is new up little ticked a think was say one the everything. more the I combination at we sign fiscal be Maybe over mean, that's And revenue Jack, bit, was in a more. and client that well. can the for look up can is we up, it's and a 'XX, acquisitions 'XX in be than clients 'XX as full

Chaim, the add? you anything acquisition of then, products to or terms And the in want

the has think we going different I products been adoption Look, very the of well. have

very to based them And hands the that work into clients the very a lot products And and very quickly. doing on able of technology a on. go-to-market, job the easily. adding value our CSM been is get a -- that's think think -- lot great testament products just to to clients our our is of fairly to I I a making these and organization, of very, differentiated. being ton which our easy of the has team of turn

a it's -- of everyone. But those years. thanking So products of and bag being see the and are different many, working for some were our many our but lot adopted. we've on of clients acquisitions, have all we products in some years also far, newer been for that so -- or

job a around think pretty them. I'm team very doing of all, is adoption. I the proud So good like in all

should then about Yes. products I sources And those can mix sneak expansion, I versus if thinking appreciate I get of gross an of count. can to SDR third then as And wonder how if scale? a think getting some that. we're margin shift we about we in there, lastly,

Yes.

items all, to this, gross see, of a but not margins, a think a talked a few first may sort the really be about gotten. the time, come those a where ton opportunity, gross still opportunity Jack, little We there other relative other XXXX. the you. for the bit account over I of X on So good of We focus of leverage feel will we've would the SDR -- gotten And we've have more I of X And to year. of about on with margins will leverage and this I lot line were there lines. as back source operating for modeling I

grab for you. me number that Let just

go Jack. with follow next I'll can we to So the up question,

think Operator, can Hopefully there's me. for next go questions question. we I the to

And comes with Vruwink our line question from Joe Baird. next of the

Solutions. Network on One Great.

clinical marketing help just look the or at the you at that to customers here when the you that even spend year-end decisions. with some later-stage Just activity of maybe of in business standing propensity at

backdrop to macro sense starting because might new it's you so? Are just for the that into better you a or over fiscal get here that pretty and the been months think Do the maybe campaigns obviously last actually beyond. and challenging environment broader XXXX XX business face be the that might

think a I question. fair that's don't --

guess pipeline but play way tell the I a to But the speaking, too really is team and year doing so out, say think I the job. whenever I And there's I harder, And will looks. too. how year. early I the to it's to it's easier, a get wrong get it's in on think whenever generally feel execution that, going I'm months of many lot think years the I good I'd done a for great usually I wrong. about now, thought of going having sort think often this

value And say, what We So that try we our hire we ] phenomenal have the our returns revenue sure all I patients great network clients. think people. come. keep to great [ we that -- amount right the see those drive patients. we I on Network right like, to the make messages keep provide for growing to to would of opportunity that, for Solutions to the our time And a doing years

think that That's way to dig I that right that expecting sounds in what guess, in wanted a mix the practice, happening in things your a to the maturing this you just average over see you're gross of few prospects of is move costs, growth. Phreesia then definitely bit the what means the it is it? profitable prioritize retention It And Okay. to implication. higher bears to I more So moving next installed kind into acquisition me years tenure point? at for to great. Is customer obviously factors kind to customer time? higher, of like that as revenue favorable over like that drive base and

sure. Yes,

retention is we So very something are Joe, absolutely about. religious

focusing absolutely to we retention. an So impact on have customers, and profitable on growth expect profitable

Number is two, payback. though,

get. can a time the you that's think really you thing, I that can you amount get and revenue of how you revenue certain underwrite So think much

profitability changed. helpful? of those revenue growth And other growth. that's But sort that so X and that's the influence things thing Is

leave it I'll great. that's there. No, Yes.

to Great. January the go XX SDR can XXX. We count question. the And was next for

Yes. next from from And Jailendra Singh the Securities. question comes Truist

at specific QX? to use A -- few Or that the respect in to the With provider run quarterly QX, a rate add year? good we to is to XXX as this if is model least can. quarterly of I clarifications,

more getting I Jailendra, mean, Yes. know with I us. familiar you're

amount you We have of do keep number. out. year the sharing periods, goes next We in we'll quarter have a and with given that decent that as historical visibility,

you want But of a fair to specific think think don't we it's give a to So about. like watermark I sort number.

revenue we've Just that guidance. got know

model whatever client So in you sort it's per a have growth, going client. of for to revenue different

Okay. And to want then back to issues. I Change go Healthcare

Solutions But payment -- all much to on you exposed in without that clearing pretty thanks business color you impact you is for just guys seen, utilization houses other -- and Network general, think at switch to about providers. because any I utilization disruption providers, processing to your able were basically quickly your trends have the were your trends. for

of this So impacting way work kind a they new -- willingness terms that, in of that? And that roll -- this Change with sales disrupted dealing is across Healthcare the with you related are any any your out impact country are to cycle of providers of lot solutions to on as the kind in their issues. by to

Just from maybe Change impact Healthcare. -- can clearing curious switch just like go if you house beyond

first And any So and we from providers at of provider want their the changes this foremost, what all seen can we haven't our not significantly to our think I seeing groups. say, say patients. providers, treat time. Most I utilization

that So seen other... in I we any the we change a -- if would did. From of, know patterns haven't hear utilization and what's probably it about I

think? I environment, Selling

seen But obviously, No, goes on months, going I think and a environment. you've just it's environment? this if pretty change don't for shi**y. selling months the Selling material to to and be months

think 'XX revenue your fiscal for of But X ] then like one, the Balaji, terms any And purpose, guidance each know, might maybe in to color individual I growth fair. modeling you to guidance segment segments compared we as for give just terms That's the should compared for guidance? provide want [ about maybe of in fiscal for in to Yes. there. directional your how about to want for last overall year, any segment any your 'XX think you not we overall on

Yes.

more but the lines, is about around the segments, where I be the So Jailendra, here, of and to your that's revenue not these think spirit right? are want I they're revenue question clear terminology lines,

Yes.

Yes.

we're So the is XX% so slowest different, revenue past, be X processing consistent is and that think have across no are XXXX been we've with And obviously, different in payment fiscal will to that the to growth about I lags, company, the range lines. of of the all XX%. different there's outlook of spread able costs an areas X, rate

Network outpace safe that it's and subscription Solutions services would processing. think to revenue the related I lines say and payment

from Barclays. comes line of question next Our Davis the Stephanie with

growth. Miami. questions had client the profitable from I Hello more on

levels? AHSC think an the is subset for it as growth profitable, historically cultivated? more or maybe we can should pursuing ramp the a this kind to to more something up with certainly your XXX being closer and is that's pick to of XQ, refocus at client you Then rebuild cross-sell? takes pipeline, choosier quarter you -- where looking question on opportunity ads Or up that more the time prior of there's the a this when pipeline So this of

is all, if to that's go-to-market of And you one note our thing first about think So important making, I this is think mean, months I these strategy. clients, many of in right? the

to about returns, and years. last at over we're So year really the returns past and this and obviously, was getting. starting at changed look environment of the that the something couple look the went we

seeing of shift. is that you're sort different. we're think the at and I looking looking this constantly at And of obviously, So capital output cost that is of now

as [indiscernible] question, think I get to too, Jailendra's this trying last in we're quarter relates Joe's keep about drive think question retention. the to client. trying client going that led we'll per but to updated dramatically it XXX the revenue profitability. We as We're they're the trying pretty we good to we feel this drive you think, plus to good XQ. But then to that change. year and I we expect We're earlier, to, lots to think added think go, drive I of past clients about don't things I made

the And so it will higher quarter, the if that's plus. I through of that's about. it's or -- lower, just talked be lens XXX that for metrics If it's those next

I ] [ the did SDR forgot question, -- clarify to you for XXX? say just And count, Helpful. my

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the [indiscernible] On provider...

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provider our organization. on just That's

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quarter, that so last XX% decline? a comp to ] Does [ XXX the

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on. hold It last Yes, comes XXX quarter. to

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spur remap any kind this this certain of as there is assignment So down that -- on a to channel had you Or focus less maybe your a opportunity is profitable of subset did SDRs your had historically new clients? layoff there a market?

Were they -- roles graduated those to are SDRs other the have in organization.

in as role attrition well. general there's that And

question of line with comes KeyBanc. Schoenhaus from next Scott the Our

happy and Chaim, you're you go-to-market your on executing strategy. pretty So seem

clients. out is of needs helping solutions, Your rapidly team building the

the Healthcare. follow Change Just on up want to

have last weeks, the you you're over X solutions the on the mitigate wondering Healthcare last X any the to Over help new weeks? then for if guys clients been unusual activity Change also seeing able payment your deploy issue? And side, to

have our solutions prioritized back don't of they on products get been but say just some around has use to newer more access sure So Scott, possible Change could as all business. But new other products these say built started able adoption [ question, some if clients I'd the for in so have helping clients, Scott, been making And been they've products of operating end. wouldn't we being years. get they that keep products those those payment soon think to the the what or collections other certain for ] to what solutions, Change And your products [ to in question? for as mostly it's payment? our deploy built of just I their rollout we the new I should new built I was been answer all, clients, just question? accelerating often we've was mostly ]

on payment the payment side? seen the behavior guess, side, on the Just over changes, weeks I any you X last have

No.

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line of from Jeff Our next the question Stephens. comes with Garro

was Network about says revenue in Network FY rough visit business. about Solutions revenue want up that I my X% to Solutions ask And 'XX. in math per

pricing you additional is that if science strategic put drive driver to life see to Network partners? per value to comments Any want what out on lens would continue visit call Solutions and to to any key mix, I for among it. on a create adoption also or your So for growth. runway the

think life was of be So above, and We mixture our I forward. we a team sciences growth success a and drove of our use Jeff, the the -- probably say of continued was that of mixture of success thoughtful execution driver all all that of and would moving to expect moving product a a lot of do in investment network. it clients

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of our we sciences organization, to We're getting also but well. frankly, proud leverage both really they're be And keep we in investing -- fun, stars. -- them. organizations, our -- our work is That a And they growing part team life They're to continue them of hard, them. sciences significant our doing they life rock to keep expect provider teams. go-to-market to and we expect expect off and have they're those

sub-$XX entire that And $XX mean, marketing public, expense year million. year and area that that, we sales with went was Jeff, the first I the team, associated just million revenue out point me let that our when was and

to have have continue been the we'll made. significant So investments been point, Chaim's I To ones but made. that, mean, do

next of from the MacDonald with Our question line comes Needham Ryan & Company.

more motion motion lands about better churn think management unprofitable profitable try And of proactively a to looking going where growth? event, the focus Phreesia as think as to portfolio go-to-market sort you there initial we would where As this the kind drive prospects, in the of of about restrategize sort a or sales kind can to you're drive kickoff like effort deliver we profitable the cross-sell of is you on customers. Fest and any -- consider more like on is to larger

to already start forgotten because going I'm I've -- I'll Fest. So question the first with you it. remind going ask And I'm then then to Phreesia about

teams lot sales often. years. Phreesia X has of that and each Fest other just a years It was last to we've done collaboratively meet it team each kickoff. bring in other in the And so get work all-company X very into our together didn't was chance because meeting first just the was company changed with much to the really important a So

as fully-virtual we're stakeholders, -- our I a we're remind As of all should company.

us So intake. mission, significant talking a -- was vision about really but also our values talk moving to allowed our it along is beyond what about it were, with this and investment, and

engineering And the on go-to-market the so we our yes, talked and team also motion, line. front team celebrate that's our organization we but we we support Network celebrate celebrate Solutions about our and

the that our where areas your investment even of that we So go-to-market made. view returns and was better and down the that first We we've is as is regularly that little always think our think make we're motion. have pull other Phreesia pruning really out triple continue value we organization, from try our just clients. people view about making drive portfolio where investments clients, allocation capital already back sure being down I don't organization a invest to or think it it where get is and we do the make And that. most bit we I and clients management, question an to where happen. And about This and isn't think I doing this all about our that valuable we on doubled

just opportunities Helpful. a this curious going of more about year, trying drive to just greater ask PAM. really that physicians maybe to I the create to opportunity usage about more you're And the a that follow-up. to longer-term sort beyond. it's in of to wanted here. calculation But Obviously, the given maybe of start inclusion how of hands for get sort and XXXX MIPS

on. whole and a From of really license. working thousands performance the the a for getting that's activation measure, motion, PAM in provider performing of the to a go-to-market hundreds clients is edification, we with regular team So our live basis. it's it are the there's PAMs owner that and We're just everyone's measure a on of patient

already is lot already more. of PAM. X have have patients now have have I'm a million in know put over we their hands, stages. to up clients we that body work done getting a that I always we're early adding of And still And that unique think its

[ ] ] that -- -- the [ board. will help and we So of the producing body and the drives that feel work that data across activation the All generally better our view driving start the we're community walk outcomes. good in further skew going to

you great with spent And MIPS care in Care program, lot -- a Ryan, community, Kidney that results, the have we and a time the Yes. lot mentioned, we're think. of of addition we program Choices drive to help kidney the them

next Aaron JMP. from question comes Our the line of with Kimson Citizens

[indiscernible] buy [ sure modern delivery I'm health tech-enabled to building of ] that Northeast kind announced general in catalyst its saw the guys you care Ohio platforms at thesis January, intent in scale. with of

] there curious So for of system of up you profit to nonprofit who and secondly, the risks over these types Chaim, that health grew I'm care think wondering outcomes? patient slipping I'm [ better born Phreesia? And in perspective, and in about potential opportunities and on was if you could care time someone, network before transactions share as the it, your frankly, you see patient and drive thoughts from then a how

All right.

-- for-profit support clients ambulatory care that we systems. have And by country, And about So health ]. we're nonprofit, or I able able of and amazing great care their doing America's think keep for I in really the do often ], operating on be the unbelievably think whether professionals operate a space what across is that carefully across to like nonprofit the care they at system for-profit and I'm system into manner do not have between for-profit a tax tax still give would care make their and difference could issues care manner, -- -- patients. look clients and if the is to frankly, loss right? not, nonprofit I to provide So [ to dedicated is the it [indiscernible] deliver there's and at [ just we profit, have for-profit both are they say business. And to the that there's -- it's a status. tread lot they talking for there's work delivery a health nonprofits. I because you in tend that this But that going But publicly

has think status. than organization with I do more to So it the actually tax its

I team are closing call now back will to for over There questions. our turn further the no remarks.

All hope all we thank Phreesia, right. and in a all I soon. want forward to spring, And has and to talk to and I you coming for -- months. to look -- [indiscernible] nice of the and you talk Balaji listening everyone really everyone supporting I'll seeing

you. Thank