Phreesia, Inc.

Good evening, ladies and gentlemen, and welcome to the Freesia Fiscal Third Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. We will provide instructions for the question and answer session to follow. First, I would like to introduce Balaji Gandhi, Freesia's Chief Financial Officer. Mr. Gandhi, you may begin.

Thank you, Operator. Good evening and welcome to Freesia's Earnings Conference Call for the Fiscal Third Quarter of 2024, which ended on October 31st, of 2023. Joining me on today's call is Haim Indig, our Chief Executive Officer. A more complete discussion of our results can be found in our earnings press release and in our related Form 8K submission to the SEC, including our quarterly stakeholder letter, both issued after the markets closed today. These documents 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 on our investor relations website at ir.freesia.com following the conclusion of the call. During today's call, we may make forward-looking statements, including statements regarding trends, our anticipated growth, our strategies, predictions about our industry, and the anticipated performance of our business, including our outlook, regarding future financial results. Forward-looking statements are subject to various risks, uncertainties, and other factors that may cause actual results, performance, or achievements to differ materially from those described in our forward-looking statements. Such risks are described more fully in our earnings press release, our stakeholder letter, and our risk factors included in our SEC filings including in our quarterly report on Form 10-Q that will be filed with the SEC tomorrow. The forward-looking statements made on this call will be based on our current views and expectations and speak only as of the date on which the statements are made. We undertake no obligation to update and expressly disclaim the obligation to update these forward-looking statements to reflect events or circumstances after the date of this call or to reflect new information or the occurrence of unanticipated events. We may 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 not as a substitute for or in isolation from our GAAP results. The reconciliation of GAAP to non-GAAP results may be found in our earnings release and stakeholder letter, which were furnished with our Form 8K, filed after the markets closed today with the SEC, and may also be found on our investor relations website at ir.freesia.com. I will now turn the call over to our CEO, Haim Indig.

Thank you, Balaji, and good evening, everyone. Thank you for participating in our third quarter earnings call. Our stakeholder letter and earnings release were published about an hour ago. Let me start the call with a couple of highlights. For starters, I am pleased with our third quarter performance, both financially and operationally. Total revenue in the third quarter was $91.6 million, up 25% year over year. Adjusted EBITDA was negative $6.6 million, an $11.7 million improvement year over year. During the quarter, we completed a small acquisition of Connect On Call, which complements our current product suite with an innovative medical answering solution that improves patient experience and makes it easier for on-call providers to respond to patient calls. Before Balaji discusses our fiscal 2024 and 2025 outlook, let me briefly address our decision to delay the achievement of $500 million in run rate revenue to fiscal 2026. Over the past couple of months, we determined that in order to achieve $500 million in run rate revenue in fiscal 2025, we would need to increase our spending to a level that we were simply not comfortable with in the current economic and capital markets environment. Therefore, we have made very intentional decisions to delay certain planned investments in the payer space, which will accelerate our adjusted EBITDA growth. We continue to work with CMS and other payers to measure and improve performance and activation. We believe this work will drive revenue, adjusted EBITDA, and health outcomes improvements over the long term. We believe our decision will enhance shareholder value. Let me now hand it over to Balaji.