Phreesia Inc (NYSE: PHR) stock fell over 1.4% on 9th September, 2020 (as of 2:41 pm GMT-4; Source: Google finance) post lower than expected second quarter of 2021 performance.
The group’s overall revenue rose 14% yoy to $35 million, while Subscription and related service revenue rose 22% yoy to $17.1 million driven by new provider clients added during the quarter, expansion and cross-selling of existing provider clients and higher related services revenue. The firm’s Payment processing fee revenue rose 1% yoy to $11.8 million but healthcare providers have reopened and trends are improving. However, the patient visits during the quarter were below their pre-COVID-19 levels. Life Science revenue rose 18% yoy to $6.1 million in the quarter, while Provider revenue which combines revenue from subscription and related services and payment processing fees was $29 million, rising 13% yoy. The two drivers of the 13% provider revenue growth were average provider client growth up 7% year-over-year and average revenue per provider client up 5% year-over-year.
The firm’s Average number of provider clients rose 7% yoy to 1,668 in the quarter from 1,558 in the same period in the prior year, while Average revenue per provider client rose 5% yoy to $17,360 during the quarter from $16,472 in the same period in the prior year. Adjusted EBITDA was positive $1.2 million in the quarter compared to positive $0.7 million in the same period in the prior year. Cash on the balance sheet as of July 31, 2020 fell $6.1 million to $84.2 million, from January 31, 2020.
Cost of revenue rose 110 basis points yoy to $5.1 million or 14.7% of total revenue, due to ramp up in client services and support during the period. Sales and marketing expense rose 110 basis points to $9.3 million or 26.6% of total revenue. Research and development expense surged 10% yoy to $5 million and fell 50 basis points year-over-year as a percentage of revenue. General and administrative rate of expense was $7.7 million or 22% of total revenue, rising 110 basis points year-over-year.