Phreesia, Inc. reported a total revenue of $106.8 million for the three months ended October 31, 2024, marking a 17% increase from $91.6 million in the same period last year. For the nine months ended October 31, 2024, revenue rose 19% to $310.1 million compared to $261.3 million in the prior year. The company’s net loss narrowed to $14.4 million for the latest quarter, down from a loss of $31.9 million a year earlier, while the nine-month net loss decreased to $52.1 million from $106.2 million. Adjusted EBITDA improved significantly, reaching $9.8 million for the quarter, compared to a negative $6.6 million in the prior year, and $20.4 million for the nine months, up from a negative $31.9 million.
The company experienced notable growth in its subscription and related services, which generated $49.4 million in the latest quarter, up 16% year-over-year. Payment processing fees increased by 6% to $24.7 million, although this figure was impacted by a $1.4 million reduction due to the wind-down of a relationship with a clearinghouse client following a cybersecurity incident involving Change Healthcare. Network solutions revenue surged 27% to $32.7 million, driven by increased engagement and education programs.
Phreesia has made strategic acquisitions, including MediFind, Access, and ConnectOnCall, which are expected to enhance its service offerings and client base. The company reported a total of $60.2 million in acquisition-related costs for these transactions. As of October 31, 2024, Phreesia had 4,237 average healthcare services clients, an increase from 3,688 in the previous year, indicating a growing market presence. The company also reported a cash balance of $81.7 million, down from $87.5 million at the beginning of the fiscal year.
Operationally, Phreesia's employee headcount increased to 1,200 as of October 31, 2024, reflecting its expansion efforts. The company continues to focus on enhancing its technology infrastructure and product offerings to meet the evolving needs of its clients. Looking ahead, Phreesia anticipates ongoing investments in its business to support growth, although management acknowledges that net losses and negative cash flows may persist for the foreseeable future. The company believes its current cash position, along with cash generated from operations and available credit facilities, will be sufficient to fund its operations for at least the next 12 months.
About Phreesia, Inc.
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