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Investor
PresentationSeptember 2020
Statements we make in this presentation may include statements which are not historical facts and are considered forward-looking within the meaning of
Section 27A of the Securities Act and Section 21E of the Securities Exchange Act, which are usually identified by the use of words such as “anticipates,”
“believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “seeks,” “should,” “will,” “could,” “appears,” “shall,” “target,” “contemplated,”
“predicts,” “potential,” “continue” and variations and negatives of such words or similar expressions. We intend these forward-looking statements to be
covered by the safe harbor prov isions for forward-looking statements contained in Section 27A of the Securities Act and Section 21E of the Securities Exchange
Act and are making this statement for purposes of complying with those safe harbor provisions. These forward-looking statements reflect our current v iews
about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have
made. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking
statements are reasonable, we can give no assurance that the plans, intentions, expectations or strategies will be attained or achieved.
Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors
that are beyond our control including, without limitation, statements about our future financial performance and ability to achieve profitability, including our
revenue, costs of revenue and operating expenses; our anticipated growth and growth strategies and our ability to effectively manage that growth; the
sufficiency of our cash, cash equivalents and investments to meet our liquidity needs; our ability to maintain the security and availability of our platform; our
predictions about our industry (including total addressable market) and market trends for healthcare technology solutions; our ability to attract, retain and
cross-sell to healthcare provider clients; our ability to maintain renewal rates for healthcare provider clients; our ability to maintain, protect and enhance our
intellectual property; our ability to comply with modified or new laws and regulations applying to our business; the increased expenses associated with being a
public company; and our outstanding debt under our credit facility, as well as those set forth in our Annual Report on Form 10-K that was filed with the SEC on
April 23, 2020 and our other filings with the U.S. Securities and Exchange Commission, including “Risk Factors” sections contained therein.
We assume no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. This
presentation also contains estimates and other statistical data made by independent parties and by us relating to market size and growth and other data
about our industry. This data involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates.
This presentation may include certain non-GAAP financial measures as defined by SEC rules. We have provided a reconciliation of those measures to the most
directly comparable GAAP measures, which is available in the Appendix.
DISCLAIMERS AND FORWARD-LOOKING STATEMENTS
2
3
How we do it: Software-as-a-Service (SaaS) platform to manage the
patient intake process and an integrated patient payments solution for
secure processing of patient payments
~1,600 healthcare
provider organizationsis Patient Intake
$1.9Bpatient payments
processed in FY20
Who we are: Leading provider of comprehensive solutions that
transform the healthcare experience by engaging patients in their care$125Mrevenue in FY20
25% revenue
growth in FY20
What we do: Enable healthcare provider organizations to optimize
operational efficiency, improve profitability and enhance clinical care
~$7B total
addressable market
Leadership in large, underpenetrated and growing market with strong tailwinds
Proven ability to innovate and meet the evolving needs of our clients
INVESTMENT HIGHLIGHTS
4
Leading SaaS platform for patient intake and experience with integrated patient payments
Attractive, highly scalable financial model
Significant and measurable return on investment
Founder-led and deeply experienced management team with strong culture
Multiple growth opportunities
ATTRACTIVE INDUSTRY TAILWINDS
5
Wasteful
Spending
Increasing Patient
ResponsibilityIncreasing
Consumerism
Shift to Value-Based
Care Models
• $586B out-of-
pocket spend by 2027
• HDHPs represent 46% of health plan market2
• Provider organizations collect only half of
patient balances after initial v isit
• Demand for higher
quality care, cost transparency,
shared decision making and convenience
• 70%+ of patients use online reviewsas first step in
physician search
• Payment model
shift to incentivize value and quality
• Requires high levels
of documentation, robust data,
sophisticated payment-attribution capabilities and
substantive patient engagement
Focus on
Personalized Healthcare Solutions
• Need to directly
reach patients when making care decisions
• Current marketing strategies not as
effective as targeted outreach
• 1.2M intake staff
• $3.6T U.S. healthcare spend1
• $1.1T U.S.
healthcare waste1
• ~$300B admin-
related waste1
1 In 20182 As of the first half of 2018
OUR VALUE PROPOSITION AND HOW WE MAKE MONEY
6
Providers
• Simplified operations & enhanced
staff efficiency
• Improved cash flow and profitability
• Enhanced clinical quality
• Improved patient experience
• Highly v isible subscription fees
charged on a per prov ider per month basis (PMPM)
• Based on number and type of
applications elected
Patients
• Improved patient experience
• High patient usage
• Flexible payment options
• Engagement in care
• Re-occurring payment processing
fees
• Based on level of patient payment volume processed through
Phreesia Platform
Life Sciences Companies
• Targeted, direct digital marketing
• Improved brand conversion and adherence
• Feedback from patient voice
• Fees from the sale of digital
marketing solutions to life sciences companies
• Based on guaranteed number of
engagements with target audiences
Va
lue
pro
po
siti
on
Ho
w w
e m
ak
e
mo
ne
y
Staff Use These:
IN THE OFFICE
Phreesia Dashboard
AT HOME, ON THE GO,
IN THE OFFICEMobile
IN THE OFFICE
PhreesiaPadArrivals Station
Patients Use These:
IN THE OFFICE
Analytics
OUR END-TO-END PATIENT INTAKE SOLUTION
7
Real-time Integration
Electronic
Medical Record
Practice
Management System
Practice Data
WarehousesAPIs
Payment
NetworksPayers
Telehealth
Vendors
THE PHREESIA PLATFORM
Robust analytictools
Commitment to privacyand security
Reliable and scalable platform
Real-t ime integration withleading PMs and EMRs
Patient Intake Platform
Appointments
Online appointment
requests
Referrals
Appointments queue
to track requests
Revenue Cycle
Insurance verification
POS payments
Card on file
Payment plans
Online payments
Clinical Support
Clinical screening tools
and PROs for 25+ specialties
Behavioral health
screenings for primary care
Patient ActivationRegistration
Social determinants
of health screening
Mobile
Intake for Telehealth
Consent management
Payment assurance
8
Patient chat
Branded patient
announcements
Patient surveysAutomated self-
scheduling
Flexible APIs
8
Intake Workflows
Zero-Contact Intake
Typical entry-level package
Health campaigns
Life Sciences
Patient Connect
Patient Insights
Advanced Analytics
COVID-19 Screening
Module
OUR CURRENT AMBULATORY-BASED ADDRESSABLE MARKET
TAM of ~$7B
Source: (1) Kaiser Family Foundation, BLS Data, American Association of Nurse Practitioners, National Commission of Certification of Physician Assistants - assumes ~1,005,000 total physicians , with ~75% in non-acute care setting and 100% taking appointments; ~165,000 NPs, with ~85% in non-acute care setting and ~55% taking appointments; 90,000 PAs, with ~60% in non-acute care setting and ~65% taking appointments; (2) CMS, includes out-of-pocket spending for physician, clinical and other professional services; (3) ZS Associates, projected spending in point-of-care marketing in pharma (2014 – 2020)
~890K addressable providers1
in United States
Subscription-Based Revenue
$4.3B
$91B addressable out-of-pocket2
in United States
Consumer-Related Transaction
And Payment Processing Fees
$2.2B
Life Sciences
DTC point-of-care
marketing spend3
$750M
9
Current addressable market does not include acute care
~780K active physicians
~77K nurse practitioners
~35K physician assistants
SCALABLE FROM SMALL BUSINESSES TO LARGE ENTERPRISES
10
Serving ~1,600 healthcare provider organizations
25+ medical specialties of varying sizes
Serving 13 of the top 20 global pharma companies
Providers Life Sciences
Physician groups Health systems Pharma manufacturers
~40 life sciences brands
• Top 3 global pharma company
• Top 3 global biotech company
• Top 5 diabetes pharma manufacturer
• Top 5 oncology pharma manufacturer
z
In its annual “Best in KLAS: Software and Services” report, KLAS named Phreesia the
2020 Best in KLAS for Patient intake Management, based on survey data from
provider groups on areas such as integration, implementation support and overall
customer satisfaction.
This is the second year that KLAS has named a top patient intake solution. Phreesia was also the top-ranked solution last year.
Phreesia Is the 2020 Best in KLAS Patient Intake Management Solution
11
MULTIPLE GROWTH OPPORTUNITIES
12
• Direct sales model
• Acute care market in
early innings
• Focus on larger
providers
• Additional providers within existing clients
• New sites
• New providers
within existing sites
• Proven ability to continuously
innovate
• Appointments,
Cost Estimation
and Mobile
• Upsell new
applications
• New applications and new and larger
clients highly scalable on existing
platform
• Adj. EBITDA positive in FY19 and FY20
• Focus on growing partnerships (i.e. PM,
EHR, Life Sciences, R1)
• Vital Score
acquisition completed in FY19
Land new clients
Grow footprint within existing
clients
Cross-sell new applications to
existing clients
Margin expansion
through scale
Partnerships and M&A
WATCH THE VIDEO BY CLICKING BELOW
13
Financial Overview
14
FINANCIAL PERFORMANCE HIGHLIGHTS
15
• Large and growing addressable market of ~$7B
• Expansion from additional prov iders from both existing and new Clients
• Additional revenue from product innovations sold to existing clients
• Strong v isibility into revenue at the beginning of the fiscal period based on contracted business
• 80%+ revenue from recurring monthly subscriptions and re-occurring payment processing fees
• Contracts typically 1-year in length, with ~90% of prov ider client contracts renewing each year
• Strong financial discipline with focus on profitable growth
• Platform created for significant scale
• Low marginal cost to support new prov iders
• Stable recurring revenue and contribution margin from consistent Cohorts, net of churn
Growth Opportunities
Highly Visible Revenue
Attractive Economics
SCALABLE AND PREDICTABLE SOURCES OF REVENUE
16
• Fees earned as % of processed patient payments
• ~80%+ volume: Credit / debit transactions processed on
Phreesia payment facilitator model
• Remaining volume: Cash, check and credit gateway
transactions to other payment processors
• Includes base package and add-on applications
• Majority of fees charged per provider per month (PPPM)
Su
bsc
rip
tion
an
d r
ela
ted
serv
ice
s1
Pa
ym
en
t
pro
ce
ssin
g
fee
s
• Increase in payment volume from
patients of existing and new providers /
clients
• Increase in patient financial responsibility
• New provider clients
• Expansion within existing clients
• New products and applications
37%
45%
REVENUE MODEL DRIVERS FY20 % REV
• Sale of targeted digital marketing solutions to patients
• Contract duration typically 12 months
• Guaranteed # of engagements with target audience
• Fees charged per brand engagementLife
Sc
ien
ce
s • New life sciences clients
• Expansion within existing clients
• Purposeful controlled growth
• Investment in new data and analytics
products represent upside potential
18%
1 In addition to subscription revenue, Phreesia generates certain fees from provider clients for professional services associatedwith implementation, travel and expense reimbursements, shipping and handling, sale of hardware (PhreesiaPads and Arrivals Stations), on-site support and t raining
Strong visibility into revenue at the beginning of the fiscal period based on contracted business
Pro
vid
er
1,490
1,571 1,558
1,668
FY 19 FY 20 FQ2 20 FQ2 21
+5%
$5 $6
$26 $29
FQ2 20 FQ2 21
$19 $22
$81
$103
FY 19 FY 20
STRONG OPERATING AND FINANCIAL PERFORMANCE
17
TOTAL REVENUE ($M)
FY ended January 31
$100
$125
+25%
ProviderLife Sciences
1 For a reconciliation to the nearest GAAP measure, please see slide 20
$31
$35
$3.5
$4.8
$0.7 $1.2
FY 19 FY 20 FQ2 20 FQ2 21
ADJ. EBITDA ($M)1
AVG. NUMBER OF PROVIDER CLIENTS
AVG. PROVIDERREVENUE PER CLIENT ($K)
$54,231
$65,486
FY 19 FY 20
$16,472
$17,360
FQ2 20 FQ2 21
+14%
+7% +21%
+5%
+27%
+13%
Appendix
18
DETAILED INCOME STATEMENT
191 For a reconciliation to the nearest GAAP measure, please see slide 20
$M
Fiscal year ended January 31, Three months ended July 31,
FY 2019 FY 2020 Q2 2020 Q2 2021
Revenue:
Subscription and Related Services Revenue $43.9 $56.4 $14.0 $17.1
Payment Processing Revenue 36.9 46.5 11.7 11.8
Total Provider Revenue $80.8 $102.9 $25.7 $29.0
Life Sciences $19.1 $21.9 $5.1 $6.1
Total Revenue $99.9 $124.8 $30.8 $35.0
% YoY Growth 25% 25% 24% 14%
Expenses:
Cost of revenues (excl. depreciation and amortization) $15.1 $16.8 $4.2 $5.3
Payment Processing Expense 21.9 27.9 7.1 6.7
Sales and Marketing 26.4 32.4 8.1 10.1
Research and Development 14.3 18.6 4.7 5.5
General and Adminstrative 20.1 30.5 7.4 9.6
Depreciation 7.6 8.8 2.1 2.4
Amortization 4.0 5.2 1.3 1.6
Total Expenses $109.4 $140.1 $35.0 $41.3
Operating loss ($9.5) ($15.3) ($4.1) ($6.3)
Operating Margin (9.5%) (12.3%) (13.4%) (18.0%)
Other Income (Expense) ($0.0) ($1.0) 0.3 0.4
Change in Fair Value of Warrant Liability (2.1) (3.3) (2.9) 0.0
Interest Income (Expense) (3.5) (2.4) (0.7) (0.4)
Total Other Income (Loss) ($5.6) ($6.8) ($3.3) $0.0
(Benefit From) Provision for Taxes 0.0 (1.8) 0.1 0.1
Net Income (Loss) ($15.1) ($20.3) ($7.5) ($6.4)
Net Margin % (15.1%) (16.3%) (24.3%) (18.2%)
Memo: Adjusted EBITDA1
$3.5 $4.8 $0.7 $1.2
% Margin 3.6% 3.8% 2.4% 3.3%
ADJUSTED EBITDA RECONCILIATION1
20
1 Adjusted EBITDA is a supplemental measure of our performance that is not required by, or presented in accordance with, GAAP. Adjusted EBITDA is not a measurement of our financial performance under GAAP and should not be considered as an alternative to net income or loss or any other performance measure derived in accordance with GAAP, or as an alternative to cash flows from operating activities as a measure of our liquidity
$M
Fiscal year ended January 31, Three months ended July 31,
FY 2019 FY 2020 Q2 2020 Q2 2021Reconciliation to Adjusted EBITDA
Net Income (Loss) ($15.1) ($20.3) ($7.5) ($6.4)
Interest Income (Expense) 3.5 2.4 0.7 0.4
Depreciation and Amortization 11.6 13.9 3.4 4.0
Stock-Based Compensation Expense 1.4 6.2 1.5 3.4
(Benefit From) Provision for Taxes 0.0 (1.8) 0.1 0.1
Change in Fair Value of Warrant Liability 2.1 3.3 2.9 0.0
Other (Income) Expense 0.0 1.0 (0.3) (0.4)
Adjusted EBITDA1 $3.5 $4.8 $0.7 $1.2
Adjusted EBITDA Margin % 3.6% 3.8% 2.4% 3.3%
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