Phreesia Q2 slightly beats estimates as restructuring plan lowers costs
PHR•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
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 a restructuring plan in May, cutting about 220 positions to reduce costs
Key details
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Revenue | Slight Beat* | $129.46 mln | $129.07 mln (18 Analysts) |
| Q2 EPS | $0.03 | ||
| Q2 Net Income | $1.92 mln |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
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.
