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Phreesia Exceeds Revenue Expectations and Provides Positive Profitability Outlook

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Andrew R. Michaud

• December 06, 2023

Shares of Phreesia experienced a significant surge on Wednesday following the release of the company's fiscal third-quarter results. The company's earnings surpassed expectations, and they also provided a positive long-term outlook focused on profitability.

Impressive Financial Performance

Phreesia, a patient-intake software company based in Wilmington, Del., recorded a remarkable 25% increase in revenue to $91.6 million. This figure exceeded the $89.6 million forecasted by analysts, indicating strong market demand for their services.

Despite reporting a loss of $31.9 million (58 cents per share) for the three months ended Oct. 31, the company demonstrated progress compared to the previous year when the loss amounted to $40.2 million (76 cents per share). Analysts polled by FactSet had expected a loss of 68 cents per share.

Encouraging Outlook for the Future

Phreesia remains confident in its revenue outlook, maintaining its guidance for fiscal 2024 at $353 million to $356 million. The company also projected revenue of $424 million to $434 million for fiscal 2025, indicating continued growth.

According to FactSet analysts, fiscal 2025 revenue is expected to reach $436.4 million, further bolstering the positive sentiment surrounding Phreesia's prospects.

Prioritizing Profitability and Revised Timeline

In a strategic move to prioritize profitability, Phreesia has revised its timeline for achieving annual revenue of $500 million. The company has made the decision to delay certain investments that may not generate revenue quickly enough.

Due to this revision, Phreesia now expects to reach its goal of $500 million in annualized revenue in fiscal 2026, a year later than its previously stated target of fiscal 2025.

These adjustments highlight Phreesia's commitment to fostering sustainable growth and ensuring long-term profitability for the company.