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

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Chaim Indig: No, I would actually say, look, we were able to — so the way our fiscal year runs, so it runs to the end of January. And there was a lot of people that worked into the holiday season to make sure that programs transition seamlessly this year. And thank you all for making sure that those programs ran seamlessly, and our new programs went live as soon as possible. So it was about a strong January and the seamless transition the team just did. On behalf everyone in Phreesia, they really crushed it into that year and allowed us to just — we ran pretty well in January, which helped us significantly. I don’t know if that answers your question, Jared.

Jared Haase: Yes, that’s helpful. And certainly nice to hear about the strong execution. I guess just as a follow-up —

Chaim Indig: It was pure execution. Just amazing for the whole team.

Jared Haase: Got it. Yes. So just one quick follow-up from us then. I guess thinking about the fiscal ’24 guidance here. Given the strong client count growth that you saw last fiscal year, is it fair to assume the 2024 outlook is being driven by a greater mix of land-and-expand growth versus new in-year sales? Really just trying to triangulate any thoughts on if there’s anything we should be thinking about relative to the visibility that you have into this guidance at this point in the year maybe relative to prior years.

Balaji Gandhi: Yes, Jared. We obviously gave a little bit of color into the first quarter, which if you take that for what it is, it’s about the same amount of adds that we had in the fourth quarter. You would probably conclude that the growth would look about the same for the mix on growth from client adds versus revenue per client. In terms of the latter three quarters, we’re not really talking about it. We have some visibility, but we’ll just try to update you as we go. But I don’t think we would agree with where you were going as far as some kind of inversion between the contribution, for now, it’s probably still going to be more skewed to the client growth versus revenue growth.

Jared Haase: Okay. Great. Thanks for the color.

Operator: And from Piper Sandler, we’ll move next to Jessica Tassan.

Jessica Tassan: Hi. Thank you, guys, so much for taking the question. And congratulations, Balaji. That’s awesome. So we wanted to focus a little bit on, we saw you facilitated 120 million plus visits in FY ’23, up about 20% year-over-year. You grew health care services clients a little faster than that. So is there anything for us to conclude on the kind of divergence of those two growth rates?

Balaji Gandhi: Yes. It’s actually probably worth an explanation. The actual math you need to do is, it’s not like actually a clean year-over-year, and we had talked about eclipsing 100 million visits as of the end of September of 2021. So I mean, you can’t actually get to the growth to line it up perfectly. But I would say that I don’t think there’s anything you should read into the difference between visit growth or client growth, they’re probably about the same in terms of the mix of client size.

Chaim Indig: Yes. It’s pretty awesome, isn’t it?

Jessica Tassan: Yes, 120 million is quite a few.

Chaim Indig: I know. I’m proud of everyone. It’s a lot.

Jessica Tassan: Yes. Just maybe a quick follow-up. I was hoping you guys could kind of talk to us a little bit about the social determinants of health screening tool and whether or not you’re getting paid for that currently. And if you are getting paid, are the payers sponsoring that outreach and does the revenue show up in network solutions? Thank you.

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