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Phreesia Posts Q1 Loss, Beats Revenue Estimates; Shares Gain

Phreesia, Inc. (PHR), a provider of patient check-in solutions for medical practices, reported a wider-than-expected quarterly loss but beat revenue expectations driven by a rise in the average number of provider clients. Shares jumped over 5% in early trading on June 3.

The company reported a loss of $0.24 per share in the fiscal first quarter, compared to a loss of $0.16 per share in the prior-year quarter. Analysts had estimated a loss of $0.17 per share.

Revenue climbed 45% year-over-year to $48.3 million, and also beat the Street’s estimates of $42.78 million.

On a year-over-year basis, subscription revenue grew 40%, payment processing fees increased 42%, and Life sciences revenue was up 61%.

Compared to the prior-year quarter, the average number of provider clients grew 17% to 1,902 clients, and average revenue per provider-client soared 21% to $20,222. (See Phreesia stock analysis on TipRanks)

The company’s CEO Chaim Indig said, “We carried the momentum of the strong finish to our fiscal year 2021 into the first quarter of fiscal 2022. As we look ahead, we’re excited to continue providing health systems, hospitals and ambulatory providers with tools that will help them optimize their performance and improve the patient experience.”

For Fiscal 2022, the company now projects revenue in the range of $191 million to $194 million, while the Street estimates revenue to be $183.6 million.

Following the results, Needham analyst Ryan MacDonald maintained a Buy rating on the stock with a price target of $70, which implies 35.9% upside potential.

MacDonald said, “While we were concerned by recent industry data that indicated in-person visits remained below pre-pandemic levels, Phreesia clearly didn’t see any impact from this… While management increased its outlook early in FY22, we believe current assumptions leave room for upside.”

Consensus among analysts is a Strong Buy based on 8 Buys and 1 Hold. The average analyst price target stands at $63.63 and implies upside potential of 22.4% to current levels. Shares have gained 78% over the past year.

TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on PHR, with 17.8% of investors increasing their exposure to PHR stock over the past 30 days.

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