💼 Phreesia, Inc. (NYSE:PHR) is targeting 20% annual revenue growth, adding 104 new clients in Q2 FY25. Despite a small 2% dip in revenue per client, the company is on track to hit its goal of 4,200 healthcare services clients by the end of FY25. With deal sizes growing by 20%, Phreesia is capitalising on larger, more profitable transactions.
💸 In Q2 FY25, Phreesia generated $102.1 million in revenue, up 19% year-over-year. A key milestone was the company turning cash flow positive for the first time since going public. Adjusted EBITDA reached $6.5 million, a sharp improvement from a $11.5 million loss in the previous year. Phreesia’s strong cash flow now provides a solid foundation for future growth, reducing liquidity risks and enabling strategic investments.
📈 Subscription revenue increased by 23.7%, while payment processing rose by 7.1%. The company’s network solutions surged by 23.2%, reflecting growing demand from clients. Phreesia’s ability to tap into multiple revenue streams enhances its stability and positions it for sustainable long-term growth.
📊 Phreesia’s focus is now on increasing deal size and client retention. With larger transactions in the pipeline, the company expects higher margins as it transitions from a client acquisition model to one focused on monetisation. Leadership is confident that this strategy will drive further profitability, with the cost of acquiring new clients decreasing over time.
🚀 With a strong financial base, Phreesia is a promising investment opportunity in healthcare tech. The company’s move towards profitability and its focus on monetising its growing client base make it a compelling choice for investors seeking long-term growth. Phreesia’s multi-channel revenue model ensures it is well-positioned to continue its upward trajectory.
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