Phreesia Inc (NYSE: PHR) stock plunged 10.89% on 9th September, 2019 (Source: Google finance) as the company in the second quarter of FY 20 as the Adjusted EBITDA fell to $0.7 million in the second quarter against $1.7 million in the same period in the prior year, down 57.4% reflecting increases in ongoing general and administrative expenses in preparation for operating as a public company.
The firm reported 24.4% growth in the revenue to $30.8 million compared to $24.8 million in the same period in the prior year. Average revenue per provider client was $16,472 in the second quarter compared to $13,420 in the same period in the prior year, which is an increase of 22.7%. Average number of provider clients was 1,558 in the second quarter 2020 compared to 1,463 in the same period in the prior year, which is an increase of 6.5%. The company had cash on the balance sheet as of July 31st of $100.1 million, which is up $94.2 million from April 30, 2019. Cash had increased by $94.2 million during the second quarter reflecting $130.8 million in net proceeds from our IPO and the repayment of the $17.7 million outstanding balance on our revolving line of credit, a dividend of $15.0 million to the preferred stockholders and $3.9 million of cash payments associated with the IPO. Cash flow from operations for the second quarter was $0.6 million compared to $1.9 million in the prior-year quarter reflecting the higher expenses and cash payments associated with preparing to operate as a public company.
For fiscal year 2020, the company expect the total revenue to be in the range of $118.5 to $119.0 million and adjusted EBITDA to be positive
Meanwhile, in July 2019, the company had closed the initial public offering (IPO), of 10.7 million shares of common stock, consisting of 7.8 million shares issued and sold by the company and 2.9 million shares sold by certain of the selling stockholders. The price per share to the public was $18.00. The company had received net proceeds of $130.8 million from the IPO, net of underwriters’ discounts and commissions of $9.8 million, and before deducting offering costs of approximately $6.1 million. J.P. Morgan, Wells Fargo Securities and William Blair had acted as joint book-running managers for the offering as representatives of the underwriters. Allen & Company LLC and Piper Jaffray were passive book-running managers for the offering.