Growth ConcernsPhreesia trades at a CY25E EV/revenue multiple of 2.7x, while our $30 price target implies a multiple of 3.4x, a 15% discount to the peer group median multiple, which is justified by uncertainty surrounding the growth profile of the business beyond FY25.
Market ExpectationsWhile there is an upward bias to 2Q revenue and adj-EBITDA, a corresponding guidance raise is not expected, which could be viewed unfavorably by the market.
Operational PerformanceThe company noted in the 1Q call that it expects to add roughly 100 AHSCs in 2Q, which would be the lowest number of AHSC adds sequentially since 2QFY'22.