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Phreesia Inc. (PHR+1.31%) has submitted its 10-Q filing for the quarterly period ended October 31, 2024.
The filing reports a total revenue increase of 17% to $106.8 million for the three months ended October 31, 2024, compared to $91.6 million for the same period in the previous year. This growth was driven by increases in subscription and related services, payment processing fees, and network solutions revenue.
Phreesia reported a net loss of $14.4 million for the three months ended October 31, 2024, an improvement from the net loss of $31.9 million for the same period in 2023. The company attributed the improvement to increased revenues and reduced operating expenses.
Operating expenses decreased, with sales and marketing expenses dropping by 18% to $30.1 million, and general and administrative expenses slightly decreasing by 3% to $19.6 million. Research and development expenses increased by 3% to $29.3 million.
The company highlighted a significant cybersecurity incident involving a third-party vendor, Change Healthcare, which affected its payment processing revenue. The incident accelerated the wind-down of a relationship with a clearinghouse client, reducing payment processing revenue by approximately $1.4 million for the quarter.
Phreesia continues to focus on expanding its client base and enhancing its product offerings. The company reported an average of 4,237 healthcare services clients for the quarter, up from 3,688 in the same quarter last year.
Cash and cash equivalents at the end of the period were $81.7 million, down from $87.5 million at the beginning of the fiscal year. Net cash provided by operating activities was $5.8 million for the quarter, compared to net cash used in operating activities of $6.3 million in the same period the previous year.
The filing also discusses risks related to privacy concerns, cybersecurity threats, and regulatory compliance, emphasizing the company's focus on maintaining robust data protection and privacy measures.
Phreesia reiterated its commitment to growth through strategic acquisitions and partnerships, highlighting recent acquisitions of MediFind, Access eForms, and ConnectOnCall to enhance its service offerings.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Phreesia Inc. quarterly 10-Q report dated December 9, 2024. To report an error, please email earnings@qz.com.