Phreesia, Inc.

Good morning, ladies and gentlemen, and welcome to the Freesia fiscal fourth quarter and full year 2021 earnings conference call. At this time, all participants are in a listen only mode. Later, we will conduct a question and answer session and instructions will follow at that time. I would now like to introduce Balaji Gandhi, Vice President Investor Relations for Freesia. Mr. Gandhi, you may begin.

Thank you, operator. Good morning and welcome to Freesia's earnings conference call. for the fiscal fourth quarter of 2021, which ended on January 31st, 2021. Participating on today's call from Frisia, our Chief Executive Officer and Co-Founder, Haim Indig, Chief Financial Officer, Tom Alvier, and Senior Vice President of Marketing and Business Development, Michael Davidoff. Following prepared remarks from Haim, Michael, and Tom, we will conduct a Q&A session. A complete disclosure of our results can be found in our earnings press release issued yesterday evening, as well as in our related Form 8K submission to the SEC, both of which are available on the investor relations section of our website at ir.freesia.com. As a reminder, today's call is being recorded and a replay will be available following the conclusion of the call. During today's call, we will make forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act. Although we believe that the expectations reflected in these forward-looking statements are reasonable, these statements relate to future events or our future operational or financial performance and involve known and unknown risks, uncertainties, and other factors that may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by these forward-looking statements. 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, including our revenue, cash flows, cost of revenue, and operating expenses, our anticipated growth, our predictions about our industry, the impact of the COVID-19 pandemic on our business, and our ability to attract, retain, and cross-sell to healthcare provider clients. These statements are also subject to other risks and uncertainties, including those more fully described in our filings with the SEC, including in our annual report on Form 10-K that will be filed with the SEC later today. The forward-looking statements made on this call speak only as of the date on which these statements are made. We undertake no obligation to update and expressly disclaim the obligation to update any forward-looking statements to reflect events or circumstances or to reflect new information or the occurrence of unanticipated events except as required by law. We will also refer to certain financial measures not in accordance with generally accepted accounting principles in order to provide additional information to investors. These non-GAAP measures should be considered in addition to and under the substitute for or in isolation from our GAAP results. A reconciliation of GAAP to non-GAAP results may be found in our earnings press release and supplemental materials, which were furnished with our Form 8K filed after the market closed on March 30th with the SEC. It may also be found on our investor relations website at ir.freesia.com. As a reminder, we are participating on today's call from four different locations, so we appreciate your patience with us. I will now turn the call over to our CEO, Hyman Dick.

Thank you, Balaji. Good morning, and thank you for your interest in Frisia. Our fourth quarter reflects continued solid performance. Total revenue was $41.8 million, up 27% year over year. The average number of provider clients was 1,808, up 13% year over year. Average revenue per provider client was $17,858, up 7% year over year. Life sciences revenue was $9.5 million, up 58% year over year. Adjusted EBITDA was negative $85,000. a decline of $1.4 million year over year, reflecting our continued investment in long-term growth. Our performance over the past year was truly a team effort. There are two unique aspects of the past fiscal year that I would like to highlight and acknowledge. First, the transition to remote work. From the earliest days of the pandemic, everyone at Freesia has had to adapt to full-time remote work. often in the same living space as their roommates or families who are working or learning remotely as well. This has allowed us to continue to grow our team to over 800 folks who work tirelessly for our clients and their communities. Our team grew 55% in fiscal 2021, with growth spread across all areas of our organization, service and support, sales and marketing, research and development, and G&A. The recruitment and onboarding of hundreds of new team members in the pandemic environment was particularly challenging. There is no playbook to draw from. Our human resources team and managers across the organization adapted to the new environment by testing new approaches to recruitment and onboarding that we believe will strengthen our processes going forward. We will continue to invest and learn together as we adapt our company to permanently remote-first environment. Second, the development of new solutions such as our COVID-19 screener, intake for telehealth, and vaccine delivery management, all of which were not part of our near-term product roadmap when we entered fiscal 2021. These modules are helping our clients operate safely and efficiently through the pandemic. We saw significant client growth with our average provider client count in the fourth quarter, increasing by over 200 clients year over year. These clients range from small ambulatory practices who are onboarded quickly to large health systems that engaged us and will likely look to expand their relationship with us over time. We will continue to invest across the organization to support our work with all the new and existing clients. Finally, we grew through acquisition. In October 2020, we integrated two web-based workflow applications co-developed by Geisinger and Merck that focused on patient communication and medication adherence respectively. In January 2021, we acquired QDoctor, an innovative company in our space who we have known for six years. Both of these additions to Frisia were led by our operating executives. I've asked Michael Davidoff, our SVP of Marketing and Business Development, to join us today to provide an overview of the QDoctor acquisition.