Phreesia Q2 slightly beats estimates as restructuring plan lowers costs 

Overview

• US patient activation platform's fiscal Q2 revenue rose 10% yr/yr, slightly beating analyst expectations

• Adjusted EBITDA for fiscal Q2 rose to $32.9 mln from $22.1 mln a year earlier

• Company implemented restructuring plan in May, cutting about 220 positions to reduce costs

Outlook

• Phreesia maintains fiscal 2027 revenue outlook at $510 mln to $520 mln

• Company maintains fiscal 2027 Adjusted EBITDA outlook at $125 mln to $135 mln

• Phreesia expects mid-single-digit AHSC growth and low-single-digit revenue per AHSC growth in fiscal 2027

Result Drivers

• RESTRUCTURING PLAN - Co said cost reductions from May restructuring, including elimination of about 220 positions, contributed to profitability expansion

• PRODUCT INVESTMENTS - Co said enthusiasm for AccessOne and ProviderConnect products, as well as AI investments, are beginning to impact results

• PAYMENT SOLUTIONS GROWTH - Co attributed expanded payment solutions revenue to AccessOne acquisition and integration

Company press release: ID:nBw1qbv3Ta

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy"

• Wall Street's median 12-month price target for Phreesia, Inc. is $14.00, about 18.2% above its September 1 closing price of $11.84

• The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 20 three months ago

Reuters Recommended Reads

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)