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

But we did think it was really important as we have over the last couple of years significantly increased that investment level. And then in terms of change, look, let’s start with it’s been pretty terrible for a lot of our clients. Like, there’s really no sugarcoating that a major part of the healthcare infrastructure was attacked, and it’s pretty terrible. And we’re doing everything we can to help our clients. We’re just collect dollars and making sure that they can keep running their businesses as they were. And from what we can tell, almost all of them still are, although it’s really putting strain on them. And in terms of how we work with change, they were one of our clearinghouses. So we, as part of our service, provide eligibility and benefit checks as part of a lot of our services.

And we’ve been working with change as one of our clearinghouses for years. And to call out our team, over the last couple of weeks really quickly when they identified it started moving to our backup and alternate clearing houses to move the vast majority of our volume. They did that above and beyond normally what they do. It was a ton of work. I can’t thank them enough. I know it made a big difference to our clients so that it really didn’t disrupt their business. But look, this is a — this was a pretty big attack on American — on the American healthcare infrastructure and I think it’s pretty shitty.

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

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

Balaji Gandhi: I think this is something we’ve talked about a lot on these calls is the swing factors. The biggest swing factors on payment processing is things like weather, things like where different days on the calendar fall in a given quarter, and that’s how we sort of model it. We model it with years of history on experience like that. Obviously, weather can play a role, which is not as predictable, but that’s sort of it. I don’t think we sort of talk about like specific patterns and usage, utilization of services as being as big as bank factor.

Anne Samuel: And then maybe just one more. I was hoping you could touch on your postscript engagement product, how that works? And is there are you partnering with the pharmacies maybe to measure follow through? Or is there an opportunity to do that?

Balaji Gandhi: We’ll not get through, I’m very excited about this product. I was jumping right to the end, Anne. This is a product that’s been worked on for quite some time, really excited about it. I know the team is too. And this is, at its simplest form, when you get a script from the provider, it just makes so much sense to be able to get a reminder to fill it. Filling your prescription is just so important at every stage. If your doctor thinks that you need to be on a therapy, they should nudge you as many as much as possible to fill that therapy and answer any of your questions. And frankly, also know why and if you’re not doing it, so they can better inform you as to why it’s important. And so we’ve been working on this product for some time.

It was developed all in-house, early indications are the response has been phenomenal, the impact to patients has been is looking very tremendous, and we’re pretty excited about it. And early on, I don’t think we’re talking about who we’re partnering about with it, but I’m personally pretty excited about it. It’s a really nice valuable add on to our patients and providers.

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

John Ransom: So it looks like you guys are kind of settling into a nice groove with g and a leverage and the like. As we think about your company, let’s just think 5 years out and assume because it’s easy math that you can grow your top-line 20% for the foreseeable future. How should we think about the concurrent growth in G&A and marketing and R&D that would accompany a theoretical kind of 5 year 20%?

Balaji Gandhi: Yes. John, this is Balaji. So first of all, I mean, I know you’re trying to project out, but we’re really formally talking about fiscal 2025. But let me we can try to be helpful. I think we made some pretty specific comments about G&A, where we did a lot of analysis on public company costs and we felt that to be a world class public company and have all the right processes and procedures and people in place. We’re going to have to make some investments, we could choose to delay them, we chose not to. So, we feel pretty good about where we’re running now to support a larger organization. But there’s obviously the cost of things go up every year, but, it’s not like there’s an order of magnitude increase in the resources we need.

Chaim Indig: No. And I think you’ve seen that operating leverage happen for years now.

Balaji Gandhi: Yes. Right. As the dollar amount of real change.

John Ransom: Then let’s give you a question that you might answer. The FT&R hiring season is coming up. How do we think about, you you’ve had some different thoughts about how quickly or how not quickly you grow that FT&R for us. So maybe talk about your goals for hiring and kind of your learnings of productivity as you try to ramp that up a couple of years ago?