Cover
Cover - shares | 6 Months Ended | |
Jul. 31, 2021 | Aug. 27, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jul. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-38977 | |
Entity Registrant Name | PHREESIA, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-2275479 | |
Entity Address, Address Line One | 434 Fayetteville St | |
Entity Address, Address Line Two | Suite 1400 | |
Entity Address, City or Town | Raleigh | |
Entity Address, State or Province | NC | |
Entity Address, Postal Zip Code | 27601 | |
City Area Code | 888 | |
Local Phone Number | 654-7473 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | PHR | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 50,875,523 | |
Amendment Flag | false | |
Entity Central Index Key | 0001412408 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --01-31 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jul. 31, 2021 | Jan. 31, 2021 |
Current: | ||
Cash and cash equivalents | $ 439,854 | $ 218,781 |
Settlement assets | 15,503 | 15,488 |
Accounts receivable, net of allowance for doubtful accounts of $632 and $699 as of July 31, 2021 and January 31, 2021, respectively | 30,356 | 29,052 |
Deferred contract acquisition costs | 1,817 | 1,693 |
Prepaid expenses and other current assets | 6,161 | 7,254 |
Total current assets | 493,691 | 272,268 |
Property and equipment, net of accumulated depreciation and amortization of $47,124 and $40,148 as of July 31, 2021 and January 31, 2021, respectively | 26,868 | 26,660 |
Capitalized internal-use software, net of accumulated amortization of $28,451 and $25,476 as of July 31, 2021 and January 31, 2021, respectively | 12,299 | 10,476 |
Operating lease right-of-use assets | 2,252 | 2,654 |
Deferred contract acquisition costs | 2,513 | 1,248 |
Intangible assets, net of accumulated amortization of $780 and $525 as of July 31, 2021 and January 31, 2021, respectively | 2,470 | 2,725 |
Deferred tax asset | 379 | 658 |
Goodwill | 8,211 | 8,307 |
Other assets | 2,543 | 1,670 |
Total assets | 551,226 | 326,666 |
Current: | ||
Settlement obligations | 15,503 | 15,488 |
Current portion of finance lease liabilities and other debt | 4,494 | 4,864 |
Current portion of operating lease liabilities | 1,133 | 1,087 |
Accounts payable | 5,483 | 4,389 |
Accrued expenses | 18,101 | 18,324 |
Deferred revenue | 12,938 | 10,838 |
Total current liabilities | 57,652 | 54,990 |
Long-term finance lease liabilities and other debt | 5,598 | 6,471 |
Operating lease liabilities, non-current | 1,412 | 1,899 |
Total liabilities | 64,662 | 63,360 |
Commitments and contingencies (Note 11) | ||
Stockholders’ Equity: | ||
Common stock, $0.01 par value - 500,000,000 shares authorized as of both July 31, 2021 and January 31, 2021; 50,892,126 and 44,880,883 shares issued as of July 31, 2021 and January 31, 2021, respectively | 509 | 449 |
Additional paid-in capital | 840,287 | 579,599 |
Accumulated deficit | (347,144) | (311,777) |
Treasury stock, at cost, 135,918 and 99,520 shares at July 31, 2021 and January 31, 2021, respectively | (7,088) | (4,965) |
Total Stockholders’ Equity | 486,564 | 263,306 |
Total Liabilities and Stockholders’ Equity | $ 551,226 | $ 326,666 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jul. 31, 2021 | Jan. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ (632) | $ (699) |
Accumulated depreciation and amortization, property and equipment | 47,124 | 40,148 |
Accumulated amortization, capitalized internal-use software | 28,451 | 25,476 |
Accumulated amortization, intangible assets | $ 780 | $ 525 |
Common stock, par value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 50,892,126 | 44,880,883 |
Treasury stock (in shares) | 135,918 | 99,520 |
Unaudited Consolidated Statemen
Unaudited Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | |
Revenue: | ||||
Revenues | $ 51,007 | $ 35,009 | $ 99,298 | $ 68,405 |
Expenses: | ||||
Cost of revenue (excluding depreciation and amortization) | 10,032 | 5,271 | 18,566 | 10,005 |
Payment processing expense | 9,648 | 6,747 | 19,373 | 13,595 |
Sales and marketing | 22,167 | 10,098 | 37,179 | 19,532 |
Research and development | 11,443 | 5,530 | 19,497 | 10,535 |
General and administrative | 16,244 | 9,631 | 28,915 | 18,351 |
Depreciation | 3,701 | 2,410 | 6,998 | 4,678 |
Amortization | 1,580 | 1,632 | 3,231 | 2,985 |
Total expenses | 74,815 | 41,319 | 133,759 | 79,681 |
Operating loss | (23,808) | (6,310) | (34,461) | (11,276) |
Other (expense) income, net | (90) | 424 | (24) | (291) |
Interest (expense) income, net | (207) | (419) | (445) | (739) |
Total other (expense) income, net | (297) | 5 | (469) | (1,030) |
Loss before provision for income taxes | (24,105) | (6,305) | (34,930) | (12,306) |
Provision for income taxes | (288) | (66) | (437) | (177) |
Net loss | $ (24,393) | $ (6,371) | $ (35,367) | $ (12,483) |
Net loss per share attributable to common stockholders - basic (in dollars per share) | $ (0.48) | $ (0.17) | $ (0.73) | $ (0.33) |
Net loss per share attributable to common stockholders - diluted (in dollars per share) | $ (0.48) | $ (0.17) | $ (0.73) | $ (0.33) |
Weighted-average common shares outstanding - basic (in shares) | 50,577,614 | 37,735,155 | 48,287,305 | 37,523,966 |
Weighted-average common shares outstanding - diluted (in shares) | 50,577,614 | 37,735,155 | 48,287,305 | 37,523,966 |
Subscription and related services | ||||
Revenue: | ||||
Revenues | $ 22,885 | $ 17,129 | $ 44,704 | $ 32,728 |
Payment processing fees | ||||
Revenue: | ||||
Revenues | 16,306 | 11,828 | 32,950 | 23,535 |
Life sciences | ||||
Revenue: | ||||
Revenues | $ 11,816 | $ 6,052 | $ 21,644 | $ 12,142 |
Unaudited Consolidated Statem_2
Unaudited Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | APIC | Accumulated Deficit | Treasury stock |
Beginning balance (in shares) at Jan. 31, 2020 | 36,610,763 | ||||
Beginning balance at Jan. 31, 2020 | $ 101,865 | $ 366 | $ 386,383 | $ (284,485) | $ (399) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (6,112) | (6,112) | |||
Stock-based compensation | 2,872 | 2,872 | |||
Exercise of stock options and vesting of restricted stock units (in shares) | 988,678 | ||||
Exercise of stock options and vesting of restricted stock units | 1,737 | $ 10 | 1,727 | ||
Treasury stock from vesting of restricted stock units - satisfaction of tax withholdings | (447) | (447) | |||
Ending balance (in shares) at Apr. 30, 2020 | 37,599,441 | ||||
Ending balance at Apr. 30, 2020 | 99,915 | $ 376 | 390,982 | (290,597) | (846) |
Beginning balance (in shares) at Jan. 31, 2020 | 36,610,763 | ||||
Beginning balance at Jan. 31, 2020 | 101,865 | $ 366 | 386,383 | (284,485) | (399) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (12,483) | ||||
Ending balance (in shares) at Jul. 31, 2020 | 37,882,837 | ||||
Ending balance at Jul. 31, 2020 | 97,687 | $ 379 | 395,145 | (296,968) | (869) |
Beginning balance (in shares) at Apr. 30, 2020 | 37,599,441 | ||||
Beginning balance at Apr. 30, 2020 | 99,915 | $ 376 | 390,982 | (290,597) | (846) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (6,371) | (6,371) | |||
Stock-based compensation | 3,428 | 3,428 | |||
Exercise of stock options and vesting of restricted stock units (in shares) | 283,396 | ||||
Exercise of stock options and vesting of restricted stock units | 738 | $ 3 | 735 | ||
Treasury stock from vesting of restricted stock units - satisfaction of tax withholdings | (23) | (23) | |||
Ending balance (in shares) at Jul. 31, 2020 | 37,882,837 | ||||
Ending balance at Jul. 31, 2020 | 97,687 | $ 379 | 395,145 | (296,968) | (869) |
Beginning balance (in shares) at Jan. 31, 2021 | 44,880,883 | ||||
Beginning balance at Jan. 31, 2021 | 263,306 | $ 449 | 579,599 | (311,777) | (4,965) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (10,974) | (10,974) | |||
Stock-based compensation | 5,774 | 5,774 | |||
Exercise of stock options and vesting of restricted stock units (in shares) | 214,346 | ||||
Exercise of stock options and vesting of restricted stock units | 500 | $ 2 | 498 | ||
Treasury stock from vesting of restricted stock units - satisfaction of tax withholdings | (1,145) | (1,145) | |||
Issuance of common stock in follow-on public offering, net (in shares) | 5,175,000 | ||||
Issuance of common stock in follow-on public offering, net | 245,813 | $ 52 | 245,761 | ||
Ending balance (in shares) at Apr. 30, 2021 | 50,270,229 | ||||
Ending balance at Apr. 30, 2021 | 503,274 | $ 503 | 831,632 | (322,751) | (6,110) |
Beginning balance (in shares) at Jan. 31, 2021 | 44,880,883 | ||||
Beginning balance at Jan. 31, 2021 | 263,306 | $ 449 | 579,599 | (311,777) | (4,965) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | $ (35,367) | ||||
Exercise of stock options and vesting of restricted stock units (in shares) | 689,623 | ||||
Ending balance (in shares) at Jul. 31, 2021 | 50,892,126 | ||||
Ending balance at Jul. 31, 2021 | $ 486,564 | $ 509 | 840,287 | (347,144) | (7,088) |
Beginning balance (in shares) at Apr. 30, 2021 | 50,270,229 | ||||
Beginning balance at Apr. 30, 2021 | 503,274 | $ 503 | 831,632 | (322,751) | (6,110) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (24,393) | (24,393) | |||
Stock-based compensation | 7,355 | 7,355 | |||
Exercise of stock options and vesting of restricted stock units (in shares) | 621,897 | ||||
Exercise of stock options and vesting of restricted stock units | 1,306 | $ 6 | 1,300 | ||
Treasury stock from vesting of restricted stock units - satisfaction of tax withholdings | (978) | (978) | |||
Ending balance (in shares) at Jul. 31, 2021 | 50,892,126 | ||||
Ending balance at Jul. 31, 2021 | $ 486,564 | $ 509 | $ 840,287 | $ (347,144) | $ (7,088) |
Unaudited Consolidated Statem_3
Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 31, 2021 | Jul. 31, 2020 | |
Operating activities: | ||
Net loss | $ (35,367) | $ (12,483) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 10,229 | 7,663 |
Stock-based compensation expense | 13,047 | 6,300 |
Amortization of deferred financing costs and debt discount | 144 | 245 |
Cost of Phreesia hardware purchased by customers | 273 | 439 |
Deferred contract acquisition costs amortization | 1,152 | 1,775 |
Non-cash operating lease expense | 483 | 777 |
Change in fair value of contingent consideration liabilities | 209 | 0 |
Deferred tax asset | 279 | 109 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (1,304) | (994) |
Prepaid expenses and other assets | (1,037) | (2,892) |
Deferred contract acquisition costs | (2,541) | (1,401) |
Accounts payable | 950 | (1,275) |
Accrued expenses and other liabilities | (275) | 1,116 |
Lease liability | (544) | (755) |
Deferred revenue | 2,100 | 856 |
Net cash used in operating activities | (12,202) | (520) |
Investing activities: | ||
Capitalized internal-use software | (5,023) | (2,737) |
Purchase of property and equipment | (5,030) | (4,659) |
Net cash used in investing activities | (10,053) | (7,396) |
Financing activities: | ||
Proceeds from issuance of common stock in equity offerings, net of underwriters' discounts and commissions | 245,813 | 0 |
Proceeds from issuance of common stock upon exercise of stock options | 2,678 | 2,475 |
Treasury stock to satisfy tax withholdings on stock compensation awards | (1,960) | (869) |
Proceeds from employee stock purchase plan | 295 | 0 |
Insurance financing agreement | 0 | 2,009 |
Finance lease payments | (2,100) | (1,301) |
Principal payments on financing agreements | (873) | (220) |
Debt issuance costs | 0 | (69) |
Loan facility fee payment | (125) | (225) |
Payment of contingent consideration for acquisitions | (400) | 0 |
Net cash provided by financing activities | 243,328 | 1,800 |
Net increase (decrease) in cash and cash equivalents | 221,073 | (6,116) |
Cash and cash equivalents – beginning of period | 218,781 | 90,315 |
Cash and cash equivalents – end of period | 439,854 | 84,199 |
Supplemental information of non-cash investing and financing information: | ||
Right-of-use assets obtained in exchange for operating lease liabilities | 81 | 3,183 |
Property and equipment acquisitions through finance leases | 1,980 | 3,657 |
Capitalized software acquired through vendor financing | 0 | 174 |
Cashless transfer of term loan and related accrued fees into increase in debt balance | 0 | 20,257 |
Cashless transfer of lender fees through increase in debt balance | 0 | 406 |
Purchase of property and equipment and capitalized software included in accounts payable | 3,503 | 1,358 |
Capitalized stock-based compensation | 82 | 0 |
Cash payments for: | ||
Interest | $ 365 | $ 833 |
Background and liquidity
Background and liquidity | 6 Months Ended |
Jul. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background and liquidity | Background and liquidity (a) Background Phreesia, Inc. (the "Company") is a leading provider of comprehensive software solutions that transform the healthcare experience by engaging patients in their care and enabling healthcare provider organizations to optimize operational efficiency, improve profitability and enhance clinical care and safety. Through the SaaS-based Phreesia Platform (the "Phreesia Platform" or "Platform"), the Company offers healthcare provider organizations a robust suite of solutions to manage the patient intake process and a leading payments solution for secure processing of patient payments. The Company’s Platform also provides life sciences companies with an engagement channel for targeted and direct communication with patients. In connection with the patient intake and registration process, Phreesia offers its provider customers the ability to lease tablets ("PhreesiaPads") and on-site kiosks ("Arrivals Kiosks") along with their monthly subscription. The Company was formed in May 2005, and has offices in Raleigh, North Carolina and Ottawa, Canada. The Company completed an initial public offering in July 2019. (b) Follow-on equity offering On April 12, 2021, the Company closed a follow-on public offering in which the Company issued and sold 5,175,000 shares of its common stock at a public offering price of $50.00 per share, resulting in net proceeds of $245,813 after deducting underwriting discounts and offering expenses. (c) Liquidity Since the Company commenced operations, it has not generated sufficient revenue to meet its operating expenses and has continued to incur significant net losses. To date, the Company has primarily relied upon the proceeds from issuances of common stock, debt and preferred stock to fund its operations as well as sales of Company products and services in the normal course of business. Management believes that net losses and negative cash flows will continue for at least the next year. Management believes that the Company’s cash and cash equivalents at July 31, 2021, along with cash generated in the normal course of business, and available borrowing capacity under its Second Amended and Restated Loan and Security Agreement with Silicon Valley Bank (the "Second SVB Facility") (Note 6), are sufficient to fund its operations for at least the next 12 months. The Company will seek to obtain additional financing, if needed, to successfully implement its long-term strategy. |
Basis of presentation
Basis of presentation | 6 Months Ended |
Jul. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of presentation | Basis of presentation (a) Consolidated financial statements The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States ("U.S. GAAP") and include the accounts of Phreesia, Inc., its branch operation in Canada and its subsidiaries (collectively, the "Company"). (b) Fiscal year The Company’s fiscal year ends on January 31. References to fiscal 2022 and 2021 refer to the fiscal years ending on January 31, 2022 and January 31, 2021, respectively. (c) Unaudited interim financial statements The accompanying unaudited interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States ("GAAP") and applicable rules and regulations of the SEC regarding interim financial reporting. In the opinion of management, the accompanying unaudited interim consolidated financial statements reflect all adjustments, which include normal recurring adjustments, necessary for the fair statement of the Company’s interim financial position as of July 31, 2021 and the results of its operations, changes in its stockholders' equity and its cash flows for the periods ended July 31, 2021 and 2020. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP |
Summary of significant accounti
Summary of significant accounting policies | 6 Months Ended |
Jul. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of significant accounting policies | Summary of significant accounting policies The Company’s significant accounting policies are disclosed in the audited financial statements for the fiscal year ended January 31, 2021. Since the date of those audited financial statements, there have been no material changes to the Company’s significant accounting policies, including the status of recent accounting pronouncements, other than those detailed below. The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates and assumptions on historical experience, known trends and events and various other factors that management believes to be reasonable under the circumstances, the results of which form the basis for making judgments. Although management believes its estimates and assumptions are reasonable under the circumstances at the time they are made, they are based upon information available at the time they are made. Management evaluates the estimates and assumptions on an ongoing basis and, if necessary, makes adjustments. Actual results could differ from those estimates made under different assumptions or circumstances. The most significant assumptions and estimates relate to the allowance for doubtful accounts, capitalized internal-use software, the determination of the useful lives of property and equipment, the fair value of securities underlying stock-based compensation, the fair value of identifiable assets and liabilities in a business acquisition, and the realization of deferred tax assets. (b) Concentrations of credit risk Financial instruments which potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, accounts receivable and settlement assets. The Company’s cash and cash equivalents are held by established financial institutions. The Company does not require collateral from its customers and generally requires payment within 30 to 60 days of billing. Settlement assets are amounts due from well-established payment processing companies and normally take one two The Company’s customers are primarily physician’s offices located in the United States and pharmaceutical companies. The Company did not have any individual customers that represented more than 10% of total revenues for both the three and six months ended July 31, 2021 and 2020. As of July 31, 2021, we had receivables from one entity that accounted for at least 10% of total accounts receivable. (c) Risks and uncertainties In March 2020, the World Health Organization declared the ongoing outbreak of a novel strain of coronavirus ("COVID-19") a pandemic and the United States declared a national emergency with respect to COVID-19. There continues to be uncertainty as to the extent to which the global COVID-19 pandemic may adversely impact our business operations, financial performance, and results of operations at this time. As more individuals are vaccinated, we expect these impacts to be diminished. However, as the pandemic progresses, including through the emergence of new variants and rules regarding immunization, we may experience stricter protocols. (d) New accounting pronouncements Impact of recently adopted accounting pronouncements During the three and six months ended July 31, 2021, the Company did not adopt any accounting pronouncements that materially impacted the Company's financial statements. Recent accounting pronouncements not yet adopted There are no recently issued accounting pronouncements the Company has not yet adopted that will materially impact the Company's financial statements. |
Composition of certain financia
Composition of certain financial statement captions | 6 Months Ended |
Jul. 31, 2021 | |
Composition of Certain Financial Statement [Abstract] | |
Composition of certain financial statement captions | Composition of certain financial statement captions (a) Accrued expenses Accrued expenses as of July 31, 2021 and January 31, 2021 are as follows: July 31, 2021 January 31, 2021 Payroll-related expenses and taxes $ 7,337 $ 8,946 Payment processing fees liability 3,139 2,853 Other 7,625 6,525 Total $ 18,101 $ 18,324 (b) Property and equipment Property and equipment as of July 31, 2021 and January 31, 2021 are as follows: Useful Life (years) July 31, 2021 January 31, 2021 PhreesiaPads and Arrivals Kiosks 3 $ 26,072 $ 25,837 Computer equipment 3 40,366 33,558 Computer software 3 to 5 5,248 5,105 Hardware development 3 1,024 1,024 Furniture and fixtures 7 539 539 Leasehold improvements 2 743 745 Total property and equipment $ 73,992 $ 66,808 Less accumulated depreciation (47,124) (40,148) Property and equipment — net $ 26,868 $ 26,660 Depreciation expense related to property and equipment amounted to $3,701 and $2,410 for the three months ended July 31, 2021 and 2020, respectively. Depreciation expense related to property and equipment amounted to $6,998 and $4,678 for the six months ended July 31, 2021 and 2020, respectively. Assets acquired under finance leases included in computer equipment were $21,897 and $19,933 as of July 31, 2021 and January 31, 2021, respectively. Accumulated amortization of assets under finance leases was $12,742 and $10,389 as of July 31, 2021 and January 31, 2021, respectively. (c) Capitalized internal use software For the three months ended July 31, 2021 and 2020, the Company capitalized $2,526 and $1,876, respectively, of costs related to the Phreesia Platform. For the six months ended July 31, 2021 and 2020, the Company capitalized $4,798 and $3,632, respectively, of costs related to the Phreesia Platform. During the three months ended July 31, 2021 and 2020, amortization expense related to capitalized internal-use software was $1,452 and $1,573, respectively. During the six months ended July 31, 2021 and 2020, amortization expense related to capitalized internal-use software was $2,975 and $2,866, respectively. (d) Intangible assets and goodwill The following presents the details of intangible assets as of July 31, 2021 and January 31, 2021: Useful Life (years) July 31, 2021 January 31, 2021 Acquired technology 5 $ 1,410 $ 1,410 Customer relationship 10 1,840 1,840 Total intangible assets, gross carrying value $ 3,250 $ 3,250 Less accumulated amortization (780) (525) Net carrying value $ 2,470 $ 2,725 The remaining useful life for acquired technology in years is 4.0 and 4.4 as of July 31, 2021 and January 31, 2021, respectively. The remaining useful life for customer relationships in years is 7.3 and 7.7 as of July 31, 2021 and January 31, 2021, respectively. Amortization expense associated with intangible assets amounted to $128 and $60 for the three months ended July 31, 2021 and 2020, respectively. Amortization expense associated with intangible assets amounted to $256 and $119 for the six months ended July 31, 2021 and 2020. The estimated amortization expense for intangible assets for the next five years and thereafter is as follows as of July 31, 2021: July 31, 2021 2022 (Remaining six months) $ 254 Fiscal Years Ending January 31, 2023 508 2024 494 2025 410 2026 - thereafter 804 Total $ 2,470 There were no significant changes to the Company's goodwill balance during the six months ended July 31, 2021. The Company did not record any impairments of goodwill during the three and six months ended July 31, 2021 or 2020. Goodwill was $8,211 as of July 31, 2021 and $8,307 as of January 31, 2021. (e) Accounts receivable Accounts receivable as of July 31, 2021 and January 31, 2021 are as follows: July 31, 2021 January 31, 2021 Billed $ 30,436 $ 28,464 Unbilled 552 1,287 Total accounts receivable, gross $ 30,988 $ 29,751 Less accounts receivable allowances (632) (699) Total accounts receivable $ 30,356 $ 29,052 Activity in our allowance for doubtful accounts was as follows for the six months ended July 31, 2021: July 31, 2021 Balance, January 31, 2021 $ 699 Bad debt expense 17 Write-offs and adjustments (84) Balance, July 31, 2021 $ 632 The Company’s allowance for doubtful accounts represents the current estimate of expected future losses based on prior bad debt experience as well as considerations for specific customers as applicable. The Company's accounts receivable are considered past due when they are outstanding past the due date listed on the invoice to the customer. The Company writes off accounts receivable and removes the associated allowance for doubtful accounts when the Company deems the receivables to be uncollectible. (f) Prepaid and other current assets Prepaid and other current assets as of July 31, 2021 and January 31, 2021 are as follows: July 31, 2021 January 31, 2021 Prepaid software and business systems $ 2,136 $ 2,322 Prepaid data center expenses 2,074 1,211 Prepaid insurance — 1,311 Other prepaid expenses and other current assets 1,951 2,410 Total prepaid and other current assets $ 6,161 $ 7,254 (g) Cloud computing implementation costs The Company enters into cloud computing service contracts to support our sales and marketing, product development and administrative activities. Subsequent to the adoption of ASU 2018-15, we capitalize certain implementation costs for cloud computing arrangements that meet the definition of a service contract. We include these capitalized implementation costs within Other assets on our consolidated balance sheets. Once placed in service, we amortize these costs over the remaining subscription term to the same expense line as the related cloud subscription. Capitalized implementation costs for cloud computing arrangements accounted for as service contracts were $1,382 as of July 31, 2021. Accumulated amortization of capitalized implementation costs for these arrangements was $61 as of July 31, 2021. (h) Other (expense) income, net Other (expense) income, net for the three and six months ended July 31, 2021 was expense of $90 and $24, respectively. Other (expense) income, net was income of $424 for the three months ended July 31, 2020 and expense of $291 for the six months ended July 31, 2020. For all periods presented, other (expense) income, net was composed primarily of foreign exchange losses and gains. |
Revenue and Contract Costs
Revenue and Contract Costs | 6 Months Ended |
Jul. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue and Contract Costs | Revenue and Contract Costs The Company generates revenue primarily from providing an integrated SaaS-based software and payment platform for the healthcare industry. The Company derives revenue from subscription fees and related services generated from the Company’s provider customers for access to the Phreesia Platform, payment processing fees based on patient payment volume, and digital patient engagement revenue from life sciences companies to reach, educate and communicate with patients when they are most receptive and actively seeking care. The amount of subscription and related services revenue recorded pursuant to adoption of Accounting Standards Codification No. 842, Leases (ASC 842) for the leasing of the Company’s PhreesiaPads and Arrivals Kiosks was $1,579 and $1,585 for the three months ended July 31, 2021 and 2020, respectively. The amount of subscription and related services revenue recorded pursuant to ASC 842 for the leasing of the Company's PhreesiaPads and Arrivals Kiosks was $3,223 and $3,139 for the six months ended July 31, 2021 and 2020, respectively. Contract balances The following table represents a roll-forward of contract assets: Contract assets (unbilled accounts receivable) January 31, 2021 $ 1,287 Amount transferred to receivables from beginning balance of contract assets (1,196) Contract asset additions, net of reclassification to receivables 461 July 31, 2021 $ 552 The following table represents a roll-forward of deferred revenue: Deferred revenue January 31, 2021 $ 10,838 Revenue recognized that was included in deferred revenue at the beginning of the period (9,933) Revenue recognized that was not included in deferred revenue at the beginning of the period (9,715) Increases due to invoicing prior to satisfaction of performance obligations 21,748 July 31, 2021 $ 12,938 Cost to obtain a contract The Company capitalizes certain incremental costs to obtain customer contracts and amortizes these costs over a period of benefit that the Company has estimated to be three The following table represents a roll forward of deferred contract acquisition costs: Beginning balance, January 31, 2021 $ 2,941 Additions to deferred contract acquisition costs 2,541 Amortization of deferred contract acquisition costs (1,152) Ending balance, July 31, 2021 4,330 Deferred contract acquisition costs, current (to be amortized in next 12 months) 1,817 Deferred contract acquisition costs, non-current 2,513 Total deferred contract acquisition costs $ 4,330 |
Finance Leases and Other Debt
Finance Leases and Other Debt | 6 Months Ended |
Jul. 31, 2021 | |
Debt Disclosure [Abstract] | |
Finance Leases and Other Debt | Debt As of July 31, 2021 and January 31, 2021, the Company had the following outstanding finance lease liabilities and other debt: July 31, 2021 January 31, 2021 Finance leases $ 9,623 $ 9,702 Financing arrangements 433 1,533 Accrued interest and payments 36 100 Total finance lease liabilities and other debt 10,092 11,335 Less - current portion of finance lease liabilities and other debt (4,494) (4,864) Long term finance lease liabilities and other debt $ 5,598 $ 6,471 (a) Financing Agreements On July 21, 2020, the Company entered into an insurance premium financing agreement in order to finance its premium payments for directors' and officers' insurance. As of July 31, 2021 and January 31, 2021, there was no outstanding principal amount under the agreement and $673, respectively. The agreement bore interest at 2.6% per annum. The balance of the financing agreement was paid off during the first quarter of fiscal 2022, and there was no balance outstanding as of July 31, 2021. On April 10, 2020, the Company entered into a vendor financing agreement with a principal amount of $174 to finance the acquisition of certain internal use software licenses. As of July 31, 2021 and January 31, 2021, the outstanding principal balance of the financing agreement was $89 and $133, respectively. Interest accrues at an annual rate of 2.94%. The remaining annual payments are $46 in May 2022 and May 2023, which includes principal and interest. On November 2, 2018, the Company entered into a vendor financing agreement with a principal amount of $1,256 to finance the acquisition of certain internal use software licenses. As of July 31, 2021 and January 31, 2021, the outstanding principal balance of the financing agreement was $344 and $504, respectively. Interest accrues at an annual rate of 9.83%. The remaining annual payments are $183 in November 2021 and June 2022, which includes principal and interest. (b) Finance Leases See Note 10 - Leases for more information regarding finance leases. (c) Second Amended and Restated Loan and Security Agreement On May 5, 2020 (the "Second SVB Effective Date"), the Company entered into the Second SVB Facility with Silicon Valley Bank. The Second SVB Facility modified the First Amended and Restated Loan and Security Agreement, dated February 28, 2019 (the "First SVB Facility"). The Second SVB Facility provides for a revolving credit facility with an initial borrowing capacity of $50,000. The borrowing capacity may be increased to $65,000 at the sole discretion of Silicon Valley Bank. Upon entering into the Second SVB Facility, the Company borrowed $20,663 against the revolving credit facility. The Company used the proceeds from its initial revolving credit borrowing to repay all amounts due under the First SVB Facility term loan. Borrowings under the Second SVB Facility are payable five years from the Effective Date, which is May 5, 2025 (the "Maturity Date"). Borrowings under the Second SVB Facility bear interest, which is payable monthly, at a floating rate equal to the greater of the Wall Street Journal Prime Rate or 4.5%. The interest rate will decrease by 0.5% upon reaching a defined level of Adjusted EBITDA as defined in the Second SVB Facility. For the three months ended July 31, 2021, the interest rate on the Second SVB Facility was 4.5%. In addition to principal and interest due under the revolving credit facility, the Company is required to pay an annual commitment fee of $125 per year. The Second SVB Facility was paid off in late December 2020. The Company has $50,000 of availability as of July 31, 2021. In the event that the Company terminates the Second SVB Facility prior to the Maturity Date, the Company will be required to pay a termination fee based on the length of time between termination and maturity. The Company will not be required to pay a termination fee if terminated after the fourth anniversary of the Second SVB Effective Date. The Second SVB Facility contains events of default, including, without limitation, events of default upon: (i) failure to make payment pursuant to the terms of the agreement; (ii) violation of covenants; (iii) material adverse changes to the Company’s business; (iv) attachment or levy on the Company’s assets or judicial restraint on its business; (v) insolvency; (vi) significant judgments, orders or decrees for payments by the Company not covered by insurance; (vii) incorrectness of representations and warranties; (viii) incurrence of subordinated debt; (ix) revocation of governmental approvals necessary for the Company to conduct its business; and (x) failure by the Company to maintain a valid and perfected lien on the collateral securing the borrowing. As of July 31, 2021, there is no debt outstanding related to the Second SVB Facility. As a result, the Company presented all unamortized deferred costs within other assets as of July 31, 2021. The Company is amortizing the remaining unamortized costs over the remaining term of the Second SVB Facility. Maturities of finance leases and other debt, in each of the next five years and thereafter are as follows: Total Finance Leases Other Debt 2022 (Remaining six months) $ 2,247 $ 2,081 $ 166 Fiscal year ending January 31: 2023 4,109 3,851 258 2024 2,961 2,916 45 2025 620 620 — 2026 155 155 — Total long-term debt and finance lease maturities $ 10,092 $ 9,623 $ 469 The components of interest (expense) income, net are as follows: Three months ended Six months ended 2021 2020 2021 2020 Interest expense (1) $ (226) $ (421) $ (484) $ (833) Interest income 19 2 39 94 Interest (expense) income, net $ (207) $ (419) $ (445) $ (739) (1) Includes amortization of deferred financing costs and original issue discount. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jul. 31, 2021 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity (a) Common stock The Company closed an IPO on July 22, 2019 and filed an Amended and Restated Certificate of Incorporation authorizing the issuance of up to 500,000,000 shares of common stock, par value $0.01 per share. On April 12, 2021, the Company completed a follow-on offering of its Common Stock. In connection with this offering, the Company issued and sold 5,175,000 shares of common stock at an issuance price of $50.00 per share resulting in net proceeds of $245,813, after deducting underwriting discounts and commissions. (b) Treasury stock The Company's equity based compensation plan allows for the grant of non-vested stock options, restricted stock units ("RSUs") and market-based performance-based stock units ("PSUs") to its employees pursuant to the terms of its stock option and incentive plans (See Note 8). Under the provision of the plans, for RSU and PSU awards, unless otherwise elected, participants fulfill their related income tax withholding obligation by having shares withheld at the time of vesting. On the date of vesting of the RSU or PSU, the Company divides the participant's income tax obligation in dollars by the closing price of its common stock and withholds the resulting number of vested shares. The shares withheld are then transferred to the Company's treasury stock at cost. |
Equity-based compensation
Equity-based compensation | 6 Months Ended |
Jul. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Equity-based compensation | Equity-based compensation (a) Equity award plans In January 2018, the Board of Directors adopted the Company’s 2018 Stock Option Plan (as amended), which provided for the issuance of options to purchase up to 3,048,490 shares of the Company’s common stock to officers, directors, employees, and consultants. The option exercise price per share is determined by the Board of Directors based on the estimated fair value of the Company’s common stock. In June 2019, the Board of Directors adopted the Company’s 2019 Stock Option and Incentive Plan (the "2019 Plan"), which replaced the 2018 Stock Option Plan upon the completion of the IPO. The 2019 Plan allows the Compensation Committee to make equity-based incentive awards including stock options, RSUs and PSUs to the Company’s officers, employees, directors, and consultants. The initial reserve for the issuance of awards under this plan was 2,139,683 shares of common stock. The initial number of shares reserved and available for issuance automatically increased on February 1, 2020 and automatically increases each February 1 thereafter by 5% of the number of shares of common stock outstanding on the immediately preceding January 31 (or such lesser number of shares determined by the Compensation Committee). In June 2019, the Board of Directors also adopted the Company’s 2019 Employee Stock Purchase Plan (the "ESPP"), which became effective immediately prior to the effectiveness of the registration statement for the Company’s initial public offering. The total shares of common stock initially reserved under the ESPP is limited to 855,873 shares. (b) Summary of stock-based compensation The following table sets forth stock-based compensation by type of award: Three months ended Six months ended 2021 2020 2021 2020 RSUs $ 6,072 $ 2,569 $ 10,842 $ 4,842 Stock options 632 859 1,150 1,458 PSUs 551 — 1,037 — ESPP 100 — 100 — Total stock based compensation $ 7,355 $ 3,428 $ 13,129 $ 6,300 The following table sets forth the presentation of stock-based compensation in our financial statements: Three months ended Six months ended 2021 2020 2021 2020 Stock-based compensation expense per consolidated statements of operations (1) $ 7,273 $ 3,428 $ 13,047 $ 6,300 Capitalized as internal-use software 82 — 82 — Total stock based compensation (2) $ 7,355 $ 3,428 $ 13,129 $ 6,300 (1) For the six months ended July 31, 2021 and 2020, stock-based compensation expense included in the Company's consolidated statements of cash flows is consistent with these amounts. (2) Stock-based compensation included in the Company's consolidated statements of stockholders' equity is consistent with these amounts. Options granted under the equity award plans have a maximum term of ten years and vest over a period determined by the Board of Directors (generally four years from the date of grant or the commencement of the grantee’s employment with the Company). Options generally vest 25% at the one-year anniversary of the grant date, after which point they generally vest pro rata on a monthly basis. Number of Weighted- Weighted- Aggregate Intrinsic Outstanding — January 31, 2021 3,211,354 $ 4.67 Granted in six months ended July 31, 2021 — $ — Exercised (689,623) $ 2.62 Forfeited and expired (33,735) $ 6.47 Outstanding and expected to vest — July 31, 2021 2,487,996 $ 5.21 8.30 $ 237,225 Exercisable — July 31, 2021 1,815,941 $ 4.27 7.42 $ 157,087 Amount vested in six months ended July 31, 2021 190,999 $ 6.27 The aggregate intrinsic value represents the total pre-tax intrinsic value (the difference between the Company’s estimated stock price at the time of exercise and the exercise price, multiplied by the number of related in-the-money options) that would have been received by the option holders had they exercised their options at the end of the period. This amount changes based on the market value of the Company’s common stock. The total intrinsic value of options exercised for the six months ended July 31, 2021 and 2020 (based on the difference between the Company’s estimated stock price on the exercise date and the respective exercise price, multiplied by the number of options exercised), was $36,832 and $32,060, respectively. As of July 31, 2021, there is $2,699 of total unrecognized compensation cost related to stock options issued to employees that is expected to be recognized over a weighted-average term of 1.37 years. For the three and six months ended July 31, 2021, stock-based compensation expense for stock options includes $92 and $180, respectively, related to the modification of stock options. The Company has not recognized and does not expect to recognize in the foreseeable future, any tax benefit related to employee stock-based compensation expense. (d) Restricted stock units The Company has issued restricted stock units to employees and directors that vest based on a time-based condition. For RSUs granted prior to January 2021, pursuant to a time-based condition, 10% of the restricted stock units vest after one year, 20% vest after two years, 30% vest after three years and 40% vest after four years. The restricted stock units expire seven years from the grant date. During the three months ended July 31, 2021, the Company modified the vesting of RSUs granted subsequent to January 1, 2021 for employees other than its named executive officers listed in its most recent proxy statement ("NEOs") and other members of our executive management team. Pursuant to the modified vesting schedule, RSUs granted after January 1, 2021 for employees other than NEOs and other members of its executive management team vest 6.25% each quarter over four years based on service. The Company issued 697,071 time-based restricted stock units during the six months ended July 31, 2021. These time-based restricted stock units vest 6.25% each quarter over four years based on service. Restricted stock unit activity for the six months ended July 31, 2021 are as follows: Restricted stock units Unvested, February 1, 2020 2,053,038 Granted in three months ended July 31, 2021 697,071 Vested (148,063) Forfeited and expired (70,292) Unvested, July 31, 2021 2,531,754 As of July 31, 2021, there is $75,404 of total unrecognized compensation cost related to RSU awards that is expected to be recognized over a weighted-average term of 2.89 years. For the three and six months ended July 31, 2021, stock-based compensation expense includes $143 and $298, respectively, related to the modification of restricted stock units. (e) Market-based restricted stock units (PSUs) The Company grants PSUs to certain members of our management team. PSUs vest from two The Company estimated the fair value of the PSUs using a Monte Carlo Simulation model which projected TSR for Phreesia and each member of the Peer Group over the performance period. The Company recognizes the grant date fair value of PSUs as compensation expense over the vesting period. Market-based PSU activity for the six months ended July 31, 2021 are as follows: Performance stock units Outstanding, February 1, 2020 70,806 Granted in six months ended July 31, 2021 9,664 Vested — Forfeited and expired — Outstanding, July 31, 2021 80,470 As of July 31, 2021, unrecognized compensation cost related to PSUs was $5,370, to be recognized on a straight-line basis over 2.5 years, subject to the participants' continued employment with the Company. (f) Employee stock purchase plan The ESPP is a compensatory plan because it provides participants with terms that are more favorable than those offered to other holders of the Company's common stock. Employees purchase shares at the lesser of (1) 85% of the closing stock price on the first day of the offering period or (2) 85% of the closing stock price on the last day of the offering period. The ESPP is structured as a qualified employee stock purchase plan under Section 423 of the Internal Revenue Code of 1986. The fair value of shares granted under the ESPP during the six months ended July 31, 2021 was estimated using a Black-Scholes pricing model with the following assumptions: Six Months Ended Risk-free interest rate 0.05 % Expected dividends none Expected term (in years) 0.50 Volatility 52.5 % As of July 31, 2021, unrecognized compensation cost related to the ESPP was $510. The unrecognized compensation cost is expected to be recognized over the next five months. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jul. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Balance as of July 31, 2021 Money market mutual funds $ 197,561 $ — $ — $ 197,561 Total assets $ 197,561 $ — $ — $ 197,561 Acquisition related contingent consideration liabilities $ — $ — $ (1,100) $ (1,100) Total liabilities $ — $ — $ (1,100) $ (1,100) The following table presents information about the Company's assets and liabilities that are measured at fair value as of January 31, 2021 and indicates the classification of each item within the fair value hierarchy (in thousands): Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Balance as of January 31, 2021 Money market mutual funds $ 197,522 $ — $ — $ 197,522 Foreign currency derivative contracts — 148 — 148 Total assets $ 197,522 $ 148 $ — $ 197,670 Acquisition related contingent consideration liabilities $ — $ — $ (1,286) $ (1,286) Total liabilities $ — $ — $ (1,286) $ (1,286) The carrying value of the Company’s short-term financial instruments, including accounts receivable and accounts payable approximate fair value due to the short-term nature of these instruments. The carrying value of the Company's debt approximates fair value because the interest rates approximate market rates and the debt maturities are relatively short-term. The Company used certain derivative financial instruments as part of its risk management strategy to reduce its foreign currency risk. The Company does not designate any derivatives as hedges in accordance with ASC 815 Derivatives and Hedging . The Company recognized all derivatives on the balance sheet at fair value based on quotes obtained from financial institutions. The fair value of its foreign currency contracts as of January 31, 2021 was an asset of $148, which was included in prepaid and other current assets on the accompanying balance sheet. The fair value of the foreign currency contracts were considered Level 2 in the fair value hierarchy as of January 31, 2021. The foreign currency forward contracts matured during the three months ended July 31, 2021, and no forward currency forward contracts remain outstanding as of July 31, 2021. The following table presents a roll-forward of our contingent consideration liabilities: Balance at January 31, 2021 $ 1,286 Adjustment to the acquisition-date value 5 Change in fair value of contingent consideration liabilities 209 Payments (400) Balance at July 31, 2021 $ 1,100 The Company did not have any transfers of assets and liabilities between levels of the fair value measurement hierarchy during both the three and six months ended July 31, 2021 and 2020. |
Leases
Leases | 6 Months Ended |
Jul. 31, 2021 | |
Leases [Abstract] | |
Leases | Leases (a) Phreesia as Lessee The Company leases office premises in North Carolina and Ottawa, and data center space in Virginia under operating leases which expire on various dates through March 2024. Certain of these arrangements have escalating rent payment provisions or optional renewal clauses. The table below only considers lease obligations through the renewal date as the Company is not reasonably certain to elect the option to extend its leases beyond the option date. No arrangements contain residual value guarantees or restrictions imposed on the leases. We are also committed to pay a portion of the actual operating expenses under certain of these lease agreements. These operating expenses are not included in the table below. The operating lease right-of-use assets were calculated as the present value of operating lease liabilities, less the amount of unamortized tenant improvement allowance and deferred rent. The discount rate used was the Company’s incremental borrowing rate given that the implicit rate to each lease was not readily determinable. The Company also entered into various finance lease arrangements for computer equipment. These agreements are typically for two Supplemental balance sheet information related to operating and finance leases as of July 31, 2021 was as follows: July 31, 2021 Operating leases: Lease right-of-use assets $ 2,252 Lease liabilities, current $ 1,133 Lease liabilities, noncurrent 1,412 Total operating lease liabilities $ 2,545 Finance leases: Property and equipment, at cost $ 21,897 Accumulated depreciation (12,742) Property and equipment, net $ 9,155 Lease liabilities (included in Current portion of finance lease liabilities and other debt) $ 4,106 Lease liabilities, noncurrent (included in Long-term finance lease liabilities and other debt) 5,517 Total finance lease liabilities $ 9,623 For office leases and leased equipment, the Company has elected the practical expedient to not separate lease and non-lease components, and as such, the variable lease cost primarily represents variable payments such as common area maintenance, utilities and equipment maintenance. As of July 31, 2021, for operating leases, the weighted-average remaining lease term is 2.2 years and the weighted-average discount rate is 3.5%. As of July 31, 2021, for finance leases, the weighted-average remaining lease term is 2.5 years, and the weighted-average discount rate is 3.9%. The components of lease expense for the six months ended July 31, 2021 were as follows: July 31, 2021 Operating leases: Operating lease cost $ 483 Variable lease cost 138 Total operating lease cost $ 621 Finance leases: Amortization of right-of-use assets $ 2,353 Interest on lease liabilities 191 Total finance lease cost $ 2,544 The following represents a schedule of maturing lease commitments for operating and finance leases as of July 31, 2021: July 31, 2021 Operating Finance Maturity of lease liabilities 2022 (remaining six months) $ 615 $ 2,243 Fiscal year ending January 31, 2023 1,186 4,052 2024 793 2,990 2025 52 635 Thereafter — 158 Total future minimum lease payments $ 2,646 $ 10,078 Less: interest (101) (455) Present value of lease liabilities $ 2,545 $ 9,623 Other supplemental cash flow information for the six months ended July 31, 2021 was as follows: July 31, 2021 Supplemental cash flow information Cash paid for amounts included in the measurement of lease liabilities: Operating cash used for operating leases $ 544 Operating cash used for finance leases 191 Financing cash used for finance leases 2,100 Total $ 2,835 Right-of-use assets obtained in exchange for lease liabilities: Operating $ 81 Finance 1,980 Total $ 2,061 Cash paid for amounts included in the present value of operating lease liabilities was $544 during the six months ended July 31, 2021 and is included in cash used in operating activities. (b) Phreesia as Lessor In connection with the patient intake and registration process, Phreesia offers its customers the ability to lease PhreesiaPads and Arrivals Kiosks along with their monthly subscription. These rentals fall under the guidance of ASC 842. The Company elected the practical expedient to not separate lease and non-lease components. More specifically, all contractual hardware maintenance is included with the hardware lease components. The leases contain no variable lease payments, no options to extend the lease that are reasonably certain to be exercised, and do not give the lessee an option to purchase the hardware at the end of the lease term. Additionally, the lease term does not represent a major part of the remaining economic life of the assets, and the present value of the lease payments does not equal or exceed substantially all of the fair value of the assets. As a result, all leased hardware in the SaaS arrangements are classified as operating leases. During the three and six months ended July 31, 2021, the Company recognized $1,579 and $3,223, respectively, in subscription and related services revenue related to the leasing of PhreesiaPads and Arrivals Kiosks. |
Leases | Leases (a) Phreesia as Lessee The Company leases office premises in North Carolina and Ottawa, and data center space in Virginia under operating leases which expire on various dates through March 2024. Certain of these arrangements have escalating rent payment provisions or optional renewal clauses. The table below only considers lease obligations through the renewal date as the Company is not reasonably certain to elect the option to extend its leases beyond the option date. No arrangements contain residual value guarantees or restrictions imposed on the leases. We are also committed to pay a portion of the actual operating expenses under certain of these lease agreements. These operating expenses are not included in the table below. The operating lease right-of-use assets were calculated as the present value of operating lease liabilities, less the amount of unamortized tenant improvement allowance and deferred rent. The discount rate used was the Company’s incremental borrowing rate given that the implicit rate to each lease was not readily determinable. The Company also entered into various finance lease arrangements for computer equipment. These agreements are typically for two Supplemental balance sheet information related to operating and finance leases as of July 31, 2021 was as follows: July 31, 2021 Operating leases: Lease right-of-use assets $ 2,252 Lease liabilities, current $ 1,133 Lease liabilities, noncurrent 1,412 Total operating lease liabilities $ 2,545 Finance leases: Property and equipment, at cost $ 21,897 Accumulated depreciation (12,742) Property and equipment, net $ 9,155 Lease liabilities (included in Current portion of finance lease liabilities and other debt) $ 4,106 Lease liabilities, noncurrent (included in Long-term finance lease liabilities and other debt) 5,517 Total finance lease liabilities $ 9,623 For office leases and leased equipment, the Company has elected the practical expedient to not separate lease and non-lease components, and as such, the variable lease cost primarily represents variable payments such as common area maintenance, utilities and equipment maintenance. As of July 31, 2021, for operating leases, the weighted-average remaining lease term is 2.2 years and the weighted-average discount rate is 3.5%. As of July 31, 2021, for finance leases, the weighted-average remaining lease term is 2.5 years, and the weighted-average discount rate is 3.9%. The components of lease expense for the six months ended July 31, 2021 were as follows: July 31, 2021 Operating leases: Operating lease cost $ 483 Variable lease cost 138 Total operating lease cost $ 621 Finance leases: Amortization of right-of-use assets $ 2,353 Interest on lease liabilities 191 Total finance lease cost $ 2,544 The following represents a schedule of maturing lease commitments for operating and finance leases as of July 31, 2021: July 31, 2021 Operating Finance Maturity of lease liabilities 2022 (remaining six months) $ 615 $ 2,243 Fiscal year ending January 31, 2023 1,186 4,052 2024 793 2,990 2025 52 635 Thereafter — 158 Total future minimum lease payments $ 2,646 $ 10,078 Less: interest (101) (455) Present value of lease liabilities $ 2,545 $ 9,623 Other supplemental cash flow information for the six months ended July 31, 2021 was as follows: July 31, 2021 Supplemental cash flow information Cash paid for amounts included in the measurement of lease liabilities: Operating cash used for operating leases $ 544 Operating cash used for finance leases 191 Financing cash used for finance leases 2,100 Total $ 2,835 Right-of-use assets obtained in exchange for lease liabilities: Operating $ 81 Finance 1,980 Total $ 2,061 Cash paid for amounts included in the present value of operating lease liabilities was $544 during the six months ended July 31, 2021 and is included in cash used in operating activities. (b) Phreesia as Lessor In connection with the patient intake and registration process, Phreesia offers its customers the ability to lease PhreesiaPads and Arrivals Kiosks along with their monthly subscription. These rentals fall under the guidance of ASC 842. The Company elected the practical expedient to not separate lease and non-lease components. More specifically, all contractual hardware maintenance is included with the hardware lease components. The leases contain no variable lease payments, no options to extend the lease that are reasonably certain to be exercised, and do not give the lessee an option to purchase the hardware at the end of the lease term. Additionally, the lease term does not represent a major part of the remaining economic life of the assets, and the present value of the lease payments does not equal or exceed substantially all of the fair value of the assets. As a result, all leased hardware in the SaaS arrangements are classified as operating leases. During the three and six months ended July 31, 2021, the Company recognized $1,579 and $3,223, respectively, in subscription and related services revenue related to the leasing of PhreesiaPads and Arrivals Kiosks. |
Leases | Leases (a) Phreesia as Lessee The Company leases office premises in North Carolina and Ottawa, and data center space in Virginia under operating leases which expire on various dates through March 2024. Certain of these arrangements have escalating rent payment provisions or optional renewal clauses. The table below only considers lease obligations through the renewal date as the Company is not reasonably certain to elect the option to extend its leases beyond the option date. No arrangements contain residual value guarantees or restrictions imposed on the leases. We are also committed to pay a portion of the actual operating expenses under certain of these lease agreements. These operating expenses are not included in the table below. The operating lease right-of-use assets were calculated as the present value of operating lease liabilities, less the amount of unamortized tenant improvement allowance and deferred rent. The discount rate used was the Company’s incremental borrowing rate given that the implicit rate to each lease was not readily determinable. The Company also entered into various finance lease arrangements for computer equipment. These agreements are typically for two Supplemental balance sheet information related to operating and finance leases as of July 31, 2021 was as follows: July 31, 2021 Operating leases: Lease right-of-use assets $ 2,252 Lease liabilities, current $ 1,133 Lease liabilities, noncurrent 1,412 Total operating lease liabilities $ 2,545 Finance leases: Property and equipment, at cost $ 21,897 Accumulated depreciation (12,742) Property and equipment, net $ 9,155 Lease liabilities (included in Current portion of finance lease liabilities and other debt) $ 4,106 Lease liabilities, noncurrent (included in Long-term finance lease liabilities and other debt) 5,517 Total finance lease liabilities $ 9,623 For office leases and leased equipment, the Company has elected the practical expedient to not separate lease and non-lease components, and as such, the variable lease cost primarily represents variable payments such as common area maintenance, utilities and equipment maintenance. As of July 31, 2021, for operating leases, the weighted-average remaining lease term is 2.2 years and the weighted-average discount rate is 3.5%. As of July 31, 2021, for finance leases, the weighted-average remaining lease term is 2.5 years, and the weighted-average discount rate is 3.9%. The components of lease expense for the six months ended July 31, 2021 were as follows: July 31, 2021 Operating leases: Operating lease cost $ 483 Variable lease cost 138 Total operating lease cost $ 621 Finance leases: Amortization of right-of-use assets $ 2,353 Interest on lease liabilities 191 Total finance lease cost $ 2,544 The following represents a schedule of maturing lease commitments for operating and finance leases as of July 31, 2021: July 31, 2021 Operating Finance Maturity of lease liabilities 2022 (remaining six months) $ 615 $ 2,243 Fiscal year ending January 31, 2023 1,186 4,052 2024 793 2,990 2025 52 635 Thereafter — 158 Total future minimum lease payments $ 2,646 $ 10,078 Less: interest (101) (455) Present value of lease liabilities $ 2,545 $ 9,623 Other supplemental cash flow information for the six months ended July 31, 2021 was as follows: July 31, 2021 Supplemental cash flow information Cash paid for amounts included in the measurement of lease liabilities: Operating cash used for operating leases $ 544 Operating cash used for finance leases 191 Financing cash used for finance leases 2,100 Total $ 2,835 Right-of-use assets obtained in exchange for lease liabilities: Operating $ 81 Finance 1,980 Total $ 2,061 Cash paid for amounts included in the present value of operating lease liabilities was $544 during the six months ended July 31, 2021 and is included in cash used in operating activities. (b) Phreesia as Lessor In connection with the patient intake and registration process, Phreesia offers its customers the ability to lease PhreesiaPads and Arrivals Kiosks along with their monthly subscription. These rentals fall under the guidance of ASC 842. The Company elected the practical expedient to not separate lease and non-lease components. More specifically, all contractual hardware maintenance is included with the hardware lease components. The leases contain no variable lease payments, no options to extend the lease that are reasonably certain to be exercised, and do not give the lessee an option to purchase the hardware at the end of the lease term. Additionally, the lease term does not represent a major part of the remaining economic life of the assets, and the present value of the lease payments does not equal or exceed substantially all of the fair value of the assets. As a result, all leased hardware in the SaaS arrangements are classified as operating leases. During the three and six months ended July 31, 2021, the Company recognized $1,579 and $3,223, respectively, in subscription and related services revenue related to the leasing of PhreesiaPads and Arrivals Kiosks. |
Commitments and contingencies
Commitments and contingencies | 6 Months Ended |
Jul. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Commitments and contingencies(a) Indemnifications The Company’s agreements with certain customers include certain provisions for indemnifying customers against liabilities if its services infringe a third party’s intellectual property rights. It is not possible to determine the maximum potential amount under these indemnification obligations due to the limited history of prior indemnification claims and the unique facts and circumstances that may be involved in each particular agreement. To date, the Company has not incurred any material costs as a result of such provisions and have not accrued a ny liabilities related to such obligations in our consolidated financial statements. In addition, the Company has indemnification agreements with its directors and its executive officers that require us, among other things, to indemnify its directors and executive officers for costs associated with any fees, expenses, judgments, fines and settlement amounts incurred by any of those persons in any action or proceedi n g to which any of those persons is, or is threatened to be, made a party by reason of the person’s service as a director or officer, including any action by us, arising out of that person’s services as a director or officer or that person’s services provided to any other company or enterprise at the Company’s request. The Company maintains director and officer insurance coverage that may enable it to recover a portion of any future indemnification amounts paid. To date, there have been no claims under any of its directors and executive officers indemnification provisions. (b) Legal proceedings In the ordinary course of business, the Company may be subject from time to time to various proceedings, lawsuits, disputes or claims. Although the Company cannot predict with assurance the outcome of any litigation, the Company does not believe there are currently any such actions that, if resolved unfavorably, would have a material impact on its financial condition, results of operations or cash flows. (c) Contingent consideration for acquisitions |
Income taxes
Income taxes | 6 Months Ended |
Jul. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes For the three and six months ended July 31, 2021, the Company recorded a tax provision of $288 and $437, respectively, compared to a tax provision of $66 and $177, respectively, for the corresponding periods in the prior year. The Company's provision for income taxes was 1.3% and 1.4% of loss before income taxes for the six months ended July 31, 2021 and 2020, respectively. The Company's effective tax rate differs from the U.S. statutory tax rate of 21% primarily because the Company records a valuation allowance against the majority of its deferred tax assets, and due to foreign income tax expense recorded for the Company's Canada branch. Deferred tax assets and deferred tax liabilities are recognized based on temporary differences between the financial reporting and tax basis of assets and liabilities using statutory rates. Management of the Company has evaluated the positive and negative evidence pertaining to the realizability of its deferred tax assets, including the Company’s history of losses, and concluded that it is more likely than not that the Company will not recognize the benefits for the majority of its deferred tax assets. On the basis of this evaluation, the Company has recorded a valuation allowance against its deferred tax assets that are not more likely than not to be realized at both July 31, 2021 and January 31, 2021. |
Net loss per share attributable
Net loss per share attributable to common stockholders | 6 Months Ended |
Jul. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net loss per share attributable to common stockholders | Net loss per share attributable to common stockholders(a) Net loss per share attributable to common stockholdersBasic and diluted net loss per share attributable to common stockholders was calculated as follows: Three months ended July 31, Six months ended July 31, 2021 2020 2021 2020 Numerator: Net loss $ (24,393) $ (6,371) $ (35,367) $ (12,483) Denominator: Weighted-average shares of common stock outstanding, basic and diluted 50,577,614 37,735,155 48,287,305 37,523,966 Net loss per share attributable to common stockholders $ (0.48) $ (0.17) $ (0.73) $ (0.33) (b) Potential dilutive securities The Company’s potential dilutive securities, which include stock options, restricted stock units, performance stock units, grants under the Company's ESPP and outstanding warrants to purchase shares of common stock, have been excluded from the computation of diluted net loss per share as the effect would be to reduce the net loss per share. Therefore, the weighted-average number of common shares outstanding used to calculate both basic and diluted net loss per share attributable to common stockholders is the same. The following potential common shares, presented based on amounts outstanding at each period end, were excluded from the calculation of diluted net loss per share attributable to common stockholders for the periods indicated because including them would have had an anti-dilutive effect: As of July 31, 2021 2020 Stock options to purchase common stock, restricted stock units and performance stock units 5,181,284 6,185,126 Employee stock purchase plan 34,850 — Warrants to purchase common stock — 75,137 Total 5,216,134 6,260,263 |
Related party transactions
Related party transactions | 6 Months Ended |
Jul. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related party transactions | Related party transactionsFor the three and six months ended July 31, 2021, the Company recognized revenue totaling $129 and $232 for advertisements placed by a pharmaceutical company, respectively. One of the Company's independent members of its board of directors serves on the board of directors for the pharmaceutical company. Accounts receivable from the pharmaceutical company totaled approximately $68 as of July 31, 2021. The Company recognized revenue totaling approximately $988 and $2,425 from an affiliate of a stockholder of the Company for the three and six months ended July 31, 2020, respectively, when this entity was a related party. The entity was a related party for the first half of fiscal 2021 and was no longer a related party as of January 31, 2021. |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 6 Months Ended |
Jul. 31, 2021 | |
Accounting Policies [Abstract] | |
Consolidated financial statements | Consolidated financial statementsThe accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States ("U.S. GAAP") and include the accounts of Phreesia, Inc., its branch operation in Canada and its subsidiaries (collectively, the "Company"). |
Fiscal year | Fiscal yearThe Company’s fiscal year ends on January 31. References to fiscal 2022 and 2021 refer to the fiscal years ending on January 31, 2022 and January 31, 2021, respectively. |
Use of estimates | Use of estimatesThe preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates and assumptions on historical experience, known trends and events and various other factors that management believes to be reasonable under the circumstances, the results of which form the basis for making judgments. Although management believes its estimates and assumptions are reasonable under the circumstances at the time they are made, they are based upon information available at the time they are made. Management evaluates the estimates and assumptions on an ongoing basis and, if necessary, makes adjustments. Actual results could differ from those estimates made under different assumptions or circumstances. The most significant assumptions and estimates relate to the allowance for doubtful accounts, capitalized internal-use software, the determination of the useful lives of property and equipment, the fair value of securities underlying stock-based compensation, the fair value of identifiable assets and liabilities in a business acquisition, and the realization of deferred tax assets. |
Concentrations of credit risk | Concentrations of credit riskFinancial instruments which potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, accounts receivable and settlement assets. The Company’s cash and cash equivalents are held by established financial institutions. The Company does not require collateral from its customers and generally requires payment within 30 to 60 days of billing. Settlement assets are amounts due from well-established payment processing companies and normally take one two |
New accounting pronouncements | New accounting pronouncements Impact of recently adopted accounting pronouncements During the three and six months ended July 31, 2021, the Company did not adopt any accounting pronouncements that materially impacted the Company's financial statements. Recent accounting pronouncements not yet adopted There are no recently issued accounting pronouncements the Company has not yet adopted that will materially impact the Company's financial statements. |
Composition of certain financ_2
Composition of certain financial statement captions (Tables) | 6 Months Ended |
Jul. 31, 2021 | |
Composition of Certain Financial Statement [Abstract] | |
Schedule of accrued liabilities | Accrued expenses as of July 31, 2021 and January 31, 2021 are as follows: July 31, 2021 January 31, 2021 Payroll-related expenses and taxes $ 7,337 $ 8,946 Payment processing fees liability 3,139 2,853 Other 7,625 6,525 Total $ 18,101 $ 18,324 |
Schedule of property and equipment | Property and equipment as of July 31, 2021 and January 31, 2021 are as follows: Useful Life (years) July 31, 2021 January 31, 2021 PhreesiaPads and Arrivals Kiosks 3 $ 26,072 $ 25,837 Computer equipment 3 40,366 33,558 Computer software 3 to 5 5,248 5,105 Hardware development 3 1,024 1,024 Furniture and fixtures 7 539 539 Leasehold improvements 2 743 745 Total property and equipment $ 73,992 $ 66,808 Less accumulated depreciation (47,124) (40,148) Property and equipment — net $ 26,868 $ 26,660 |
Schedule of intangible assets | The following presents the details of intangible assets as of July 31, 2021 and January 31, 2021: Useful Life (years) July 31, 2021 January 31, 2021 Acquired technology 5 $ 1,410 $ 1,410 Customer relationship 10 1,840 1,840 Total intangible assets, gross carrying value $ 3,250 $ 3,250 Less accumulated amortization (780) (525) Net carrying value $ 2,470 $ 2,725 |
Schedule of estimated amortization expense for intangible assets | The estimated amortization expense for intangible assets for the next five years and thereafter is as follows as of July 31, 2021: July 31, 2021 2022 (Remaining six months) $ 254 Fiscal Years Ending January 31, 2023 508 2024 494 2025 410 2026 - thereafter 804 Total $ 2,470 |
Schedule of accounts receivable | Accounts receivable as of July 31, 2021 and January 31, 2021 are as follows: July 31, 2021 January 31, 2021 Billed $ 30,436 $ 28,464 Unbilled 552 1,287 Total accounts receivable, gross $ 30,988 $ 29,751 Less accounts receivable allowances (632) (699) Total accounts receivable $ 30,356 $ 29,052 |
Schedule of allowance for credit losses | Activity in our allowance for doubtful accounts was as follows for the six months ended July 31, 2021: July 31, 2021 Balance, January 31, 2021 $ 699 Bad debt expense 17 Write-offs and adjustments (84) Balance, July 31, 2021 $ 632 |
Schedule of prepaid and other current assets | Prepaid and other current assets as of July 31, 2021 and January 31, 2021 are as follows: July 31, 2021 January 31, 2021 Prepaid software and business systems $ 2,136 $ 2,322 Prepaid data center expenses 2,074 1,211 Prepaid insurance — 1,311 Other prepaid expenses and other current assets 1,951 2,410 Total prepaid and other current assets $ 6,161 $ 7,254 |
Revenue and Contract Costs (Tab
Revenue and Contract Costs (Tables) | 6 Months Ended |
Jul. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Rollforward of contract assets and contract liabilities | The following table represents a roll-forward of contract assets: Contract assets (unbilled accounts receivable) January 31, 2021 $ 1,287 Amount transferred to receivables from beginning balance of contract assets (1,196) Contract asset additions, net of reclassification to receivables 461 July 31, 2021 $ 552 The following table represents a roll-forward of deferred revenue: Deferred revenue January 31, 2021 $ 10,838 Revenue recognized that was included in deferred revenue at the beginning of the period (9,933) Revenue recognized that was not included in deferred revenue at the beginning of the period (9,715) Increases due to invoicing prior to satisfaction of performance obligations 21,748 July 31, 2021 $ 12,938 |
Deferred contract acquisition costs | The following table represents a roll forward of deferred contract acquisition costs: Beginning balance, January 31, 2021 $ 2,941 Additions to deferred contract acquisition costs 2,541 Amortization of deferred contract acquisition costs (1,152) Ending balance, July 31, 2021 4,330 Deferred contract acquisition costs, current (to be amortized in next 12 months) 1,817 Deferred contract acquisition costs, non-current 2,513 Total deferred contract acquisition costs $ 4,330 |
Finance Leases and Other Debt (
Finance Leases and Other Debt (Tables) | 6 Months Ended |
Jul. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt instruments | As of July 31, 2021 and January 31, 2021, the Company had the following outstanding finance lease liabilities and other debt: July 31, 2021 January 31, 2021 Finance leases $ 9,623 $ 9,702 Financing arrangements 433 1,533 Accrued interest and payments 36 100 Total finance lease liabilities and other debt 10,092 11,335 Less - current portion of finance lease liabilities and other debt (4,494) (4,864) Long term finance lease liabilities and other debt $ 5,598 $ 6,471 |
Schedule of maturities of long-term debt | Maturities of finance leases and other debt, in each of the next five years and thereafter are as follows: Total Finance Leases Other Debt 2022 (Remaining six months) $ 2,247 $ 2,081 $ 166 Fiscal year ending January 31: 2023 4,109 3,851 258 2024 2,961 2,916 45 2025 620 620 — 2026 155 155 — Total long-term debt and finance lease maturities $ 10,092 $ 9,623 $ 469 |
Schedule of interest income (expense), net | The components of interest (expense) income, net are as follows: Three months ended Six months ended 2021 2020 2021 2020 Interest expense (1) $ (226) $ (421) $ (484) $ (833) Interest income 19 2 39 94 Interest (expense) income, net $ (207) $ (419) $ (445) $ (739) (1) Includes amortization of deferred financing costs and original issue discount. |
Equity-based compensation (Tabl
Equity-based compensation (Tables) | 6 Months Ended |
Jul. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of stock - based compensation by type of award | The following table sets forth stock-based compensation by type of award: Three months ended Six months ended 2021 2020 2021 2020 RSUs $ 6,072 $ 2,569 $ 10,842 $ 4,842 Stock options 632 859 1,150 1,458 PSUs 551 — 1,037 — ESPP 100 — 100 — Total stock based compensation $ 7,355 $ 3,428 $ 13,129 $ 6,300 |
Schedule of stock-based compensation in financial statements | The following table sets forth the presentation of stock-based compensation in our financial statements: Three months ended Six months ended 2021 2020 2021 2020 Stock-based compensation expense per consolidated statements of operations (1) $ 7,273 $ 3,428 $ 13,047 $ 6,300 Capitalized as internal-use software 82 — 82 — Total stock based compensation (2) $ 7,355 $ 3,428 $ 13,129 $ 6,300 (1) For the six months ended July 31, 2021 and 2020, stock-based compensation expense included in the Company's consolidated statements of cash flows is consistent with these amounts. (2) Stock-based compensation included in the Company's consolidated statements of stockholders' equity is consistent with these amounts. |
Schedule of stock option activity | Stock option activity for the six months ended July 31, 2021 is as follows: Number of Weighted- Weighted- Aggregate Intrinsic Outstanding — January 31, 2021 3,211,354 $ 4.67 Granted in six months ended July 31, 2021 — $ — Exercised (689,623) $ 2.62 Forfeited and expired (33,735) $ 6.47 Outstanding and expected to vest — July 31, 2021 2,487,996 $ 5.21 8.30 $ 237,225 Exercisable — July 31, 2021 1,815,941 $ 4.27 7.42 $ 157,087 Amount vested in six months ended July 31, 2021 190,999 $ 6.27 |
Schedule of restricted stock unit activity | Restricted stock unit activity for the six months ended July 31, 2021 are as follows: Restricted stock units Unvested, February 1, 2020 2,053,038 Granted in three months ended July 31, 2021 697,071 Vested (148,063) Forfeited and expired (70,292) Unvested, July 31, 2021 2,531,754 |
Schedule of market-based performance stock unit activity | Market-based PSU activity for the six months ended July 31, 2021 are as follows: Performance stock units Outstanding, February 1, 2020 70,806 Granted in six months ended July 31, 2021 9,664 Vested — Forfeited and expired — Outstanding, July 31, 2021 80,470 |
Schedule of weighted average assumptions | The fair value of shares granted under the ESPP during the six months ended July 31, 2021 was estimated using a Black-Scholes pricing model with the following assumptions: Six Months Ended Risk-free interest rate 0.05 % Expected dividends none Expected term (in years) 0.50 Volatility 52.5 % |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jul. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Balance as of July 31, 2021 Money market mutual funds $ 197,561 $ — $ — $ 197,561 Total assets $ 197,561 $ — $ — $ 197,561 Acquisition related contingent consideration liabilities $ — $ — $ (1,100) $ (1,100) Total liabilities $ — $ — $ (1,100) $ (1,100) The following table presents information about the Company's assets and liabilities that are measured at fair value as of January 31, 2021 and indicates the classification of each item within the fair value hierarchy (in thousands): Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Balance as of January 31, 2021 Money market mutual funds $ 197,522 $ — $ — $ 197,522 Foreign currency derivative contracts — 148 — 148 Total assets $ 197,522 $ 148 $ — $ 197,670 Acquisition related contingent consideration liabilities $ — $ — $ (1,286) $ (1,286) Total liabilities $ — $ — $ (1,286) $ (1,286) |
Rollforward of Contingent Consideration Liabilities | The following table presents a roll-forward of our contingent consideration liabilities: Balance at January 31, 2021 $ 1,286 Adjustment to the acquisition-date value 5 Change in fair value of contingent consideration liabilities 209 Payments (400) Balance at July 31, 2021 $ 1,100 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jul. 31, 2021 | |
Leases [Abstract] | |
Schedule of supplemental balance sheet information | Supplemental balance sheet information related to operating and finance leases as of July 31, 2021 was as follows: July 31, 2021 Operating leases: Lease right-of-use assets $ 2,252 Lease liabilities, current $ 1,133 Lease liabilities, noncurrent 1,412 Total operating lease liabilities $ 2,545 Finance leases: Property and equipment, at cost $ 21,897 Accumulated depreciation (12,742) Property and equipment, net $ 9,155 Lease liabilities (included in Current portion of finance lease liabilities and other debt) $ 4,106 Lease liabilities, noncurrent (included in Long-term finance lease liabilities and other debt) 5,517 Total finance lease liabilities $ 9,623 |
Schedule of lease expense and cash flow information | The components of lease expense for the six months ended July 31, 2021 were as follows: July 31, 2021 Operating leases: Operating lease cost $ 483 Variable lease cost 138 Total operating lease cost $ 621 Finance leases: Amortization of right-of-use assets $ 2,353 Interest on lease liabilities 191 Total finance lease cost $ 2,544 Other supplemental cash flow information for the six months ended July 31, 2021 was as follows: July 31, 2021 Supplemental cash flow information Cash paid for amounts included in the measurement of lease liabilities: Operating cash used for operating leases $ 544 Operating cash used for finance leases 191 Financing cash used for finance leases 2,100 Total $ 2,835 Right-of-use assets obtained in exchange for lease liabilities: Operating $ 81 Finance 1,980 Total $ 2,061 |
Maturities of operating leases | The following represents a schedule of maturing lease commitments for operating and finance leases as of July 31, 2021: July 31, 2021 Operating Finance Maturity of lease liabilities 2022 (remaining six months) $ 615 $ 2,243 Fiscal year ending January 31, 2023 1,186 4,052 2024 793 2,990 2025 52 635 Thereafter — 158 Total future minimum lease payments $ 2,646 $ 10,078 Less: interest (101) (455) Present value of lease liabilities $ 2,545 $ 9,623 |
Maturities of finance leases | The following represents a schedule of maturing lease commitments for operating and finance leases as of July 31, 2021: July 31, 2021 Operating Finance Maturity of lease liabilities 2022 (remaining six months) $ 615 $ 2,243 Fiscal year ending January 31, 2023 1,186 4,052 2024 793 2,990 2025 52 635 Thereafter — 158 Total future minimum lease payments $ 2,646 $ 10,078 Less: interest (101) (455) Present value of lease liabilities $ 2,545 $ 9,623 |
Net loss per share attributab_2
Net loss per share attributable to common stockholders (Tables) | 6 Months Ended |
Jul. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share, basic and diluted | Basic and diluted net loss per share attributable to common stockholders was calculated as follows: Three months ended July 31, Six months ended July 31, 2021 2020 2021 2020 Numerator: Net loss $ (24,393) $ (6,371) $ (35,367) $ (12,483) Denominator: Weighted-average shares of common stock outstanding, basic and diluted 50,577,614 37,735,155 48,287,305 37,523,966 Net loss per share attributable to common stockholders $ (0.48) $ (0.17) $ (0.73) $ (0.33) |
Schedule of shares excluded from computation of diluted net loss per share | The following potential common shares, presented based on amounts outstanding at each period end, were excluded from the calculation of diluted net loss per share attributable to common stockholders for the periods indicated because including them would have had an anti-dilutive effect: As of July 31, 2021 2020 Stock options to purchase common stock, restricted stock units and performance stock units 5,181,284 6,185,126 Employee stock purchase plan 34,850 — Warrants to purchase common stock — 75,137 Total 5,216,134 6,260,263 |
Background and liquidity (Detai
Background and liquidity (Details) - USD ($) $ / shares in Units, $ in Thousands | Apr. 12, 2021 | Jul. 31, 2021 | Jul. 31, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Issuance of common stock in public offering, net of issuance costs (in shares) | 5,175,000 | ||
Issue price per share (in dollars per share) | $ 50 | ||
Proceeds from issuance of common stock in equity offerings, net of underwriters' discounts and commissions | $ 245,813 | $ 245,813 | $ 0 |
Number of months the company have sufficient to fund its operations | 12 months |
Summary of significant accoun_3
Summary of significant accounting policies (Details) - processor | 3 Months Ended | 6 Months Ended |
Jul. 31, 2021 | Jul. 31, 2021 | |
Concentration Risk [Line Items] | ||
Number of third-party payment processors | 1 | |
Minimum | ||
Concentration Risk [Line Items] | ||
Settlement period (in days) | 1 day | |
Minimum | Accounts Receivable | Customer Concentration Risk | Customer One | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 10.00% | 10.00% |
Maximum | ||
Concentration Risk [Line Items] | ||
Settlement period (in days) | 2 days |
Composition of certain financ_3
Composition of certain financial statement captions - Schedule of Accrued Expenses (Details) - USD ($) $ in Thousands | Jul. 31, 2021 | Jan. 31, 2021 |
Composition of Certain Financial Statement [Abstract] | ||
Payroll-related expenses and taxes | $ 7,337 | $ 8,946 |
Payment processing fees liability | 3,139 | 2,853 |
Other | 7,625 | 6,525 |
Total | $ 18,101 | $ 18,324 |
Composition of certain financ_4
Composition of certain financial statement captions - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 31, 2021 | Jan. 31, 2021 | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 73,992 | $ 66,808 |
Less accumulated depreciation | (47,124) | (40,148) |
Property and equipment — net | $ 26,868 | 26,660 |
PhreesiaPads and Arrivals Kiosks | ||
Property, Plant and Equipment [Line Items] | ||
Useful life (years) | 3 years | |
Property and equipment | $ 26,072 | 25,837 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Useful life (years) | 3 years | |
Property and equipment | $ 40,366 | 33,558 |
Computer software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 5,248 | 5,105 |
Computer software | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life (years) | 3 years | |
Computer software | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life (years) | 5 years | |
Hardware development | ||
Property, Plant and Equipment [Line Items] | ||
Useful life (years) | 3 years | |
Property and equipment | $ 1,024 | 1,024 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Useful life (years) | 7 years | |
Property and equipment | $ 539 | 539 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Useful life (years) | 2 years | |
Property and equipment | $ 743 | $ 745 |
Composition of certain financ_5
Composition of certain financial statement captions - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | Jan. 31, 2021 | |
Composition Of Certain Financial Statement [Line Items] | |||||
Depreciation | $ 3,701 | $ 2,410 | $ 6,998 | $ 4,678 | |
Assets acquired under finance leases | 21,897 | 21,897 | |||
Assets under finance lease, accumulated amortization | 12,742 | 12,742 | |||
Capitalized cost of computer software | 2,526 | 1,876 | 4,798 | 3,632 | |
Capitalized computed software amortization | 1,452 | 1,573 | 2,975 | 2,866 | |
Capitalized computer software, net | 12,299 | 12,299 | $ 10,476 | ||
Amortization of intangible assets | 128 | 60 | 256 | 119 | |
Changes in goodwill balance | 0 | ||||
Goodwill, impairment loss | 0 | 0 | 0 | 0 | |
Goodwill | 8,211 | 8,211 | $ 8,307 | ||
Capitalized implementation costs | 1,382 | 1,382 | |||
Capitalized implementation costs, accumulated amortization | 61 | 61 | |||
Other (expense) income, net | (90) | $ 424 | $ (24) | $ (291) | |
Acquired technology | |||||
Composition Of Certain Financial Statement [Line Items] | |||||
Finite-lived intangible assets, remaining amortization period | 4 years | 4 years 4 months 24 days | |||
Customer relationship | |||||
Composition Of Certain Financial Statement [Line Items] | |||||
Finite-lived intangible assets, remaining amortization period | 7 years 3 months 18 days | 7 years 8 months 12 days | |||
Computer equipment | |||||
Composition Of Certain Financial Statement [Line Items] | |||||
Assets acquired under finance leases | 21,897 | $ 21,897 | $ 19,933 | ||
Assets under finance lease, accumulated amortization | $ 12,742 | $ 12,742 | $ 10,389 |
Composition of certain financ_6
Composition of certain financial statement captions - Schedule of Finite Lived Intangible Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 31, 2021 | Jan. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangibles | $ 3,250 | $ 3,250 |
Less accumulated amortization | (780) | (525) |
Net carrying value | $ 2,470 | 2,725 |
Acquired technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life (years) | 5 years | |
Finite-lived intangibles | $ 1,410 | 1,410 |
Customer relationship | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life (years) | 10 years | |
Finite-lived intangibles | $ 1,840 | $ 1,840 |
Composition of certain financ_7
Composition of certain financial statement captions - Schedule of Finite Lived Intangible Assets Future Amortization Expense (Details) - USD ($) $ in Thousands | Jul. 31, 2021 | Jan. 31, 2021 |
Composition of Certain Financial Statement [Abstract] | ||
2022 (Remaining six months) | $ 254 | |
2023 | 508 | |
2024 | 494 | |
2025 | 410 | |
2026 - thereafter | 804 | |
Net carrying value | $ 2,470 | $ 2,725 |
Composition of certain financ_8
Composition of certain financial statement captions - Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands | Jul. 31, 2021 | Jan. 31, 2021 |
Composition of Certain Financial Statement [Abstract] | ||
Billed | $ 30,436 | $ 28,464 |
Unbilled | 552 | 1,287 |
Total accounts receivable, gross | 30,988 | 29,751 |
Less accounts receivable allowances | (632) | (699) |
Total accounts receivable | $ 30,356 | $ 29,052 |
Composition of certain financ_9
Composition of certain financial statement captions - Schedule of Allowance for Credit Losses (Details) $ in Thousands | 6 Months Ended |
Jul. 31, 2021USD ($) | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Balance, January 31, 2021 | $ 699 |
Bad debt expense | 17 |
Write-offs and adjustments | (84) |
Balance, July 31, 2021 | $ 632 |
Composition of certain finan_10
Composition of certain financial statement captions - Schedule of Prepaid and Other Current Assets (Details) - USD ($) $ in Thousands | Jul. 31, 2021 | Jan. 31, 2021 |
Composition of Certain Financial Statement [Abstract] | ||
Prepaid software and business systems | $ 2,136 | $ 2,322 |
Prepaid data center expenses | 2,074 | 1,211 |
Prepaid insurance | 0 | 1,311 |
Other prepaid expenses and other current assets | 1,951 | 2,410 |
Total prepaid and other current assets | $ 6,161 | $ 7,254 |
Revenue and Contract Costs - Na
Revenue and Contract Costs - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | |
Revenue From Contract With Customer [Line Items] | ||||
Capitalized contract cost, amortization | $ 577 | $ 1,250 | $ 1,152 | $ 1,775 |
Capitalized contract cost, impairment loss | $ 0 | 0 | $ 0 | 0 |
Minimum | ||||
Revenue From Contract With Customer [Line Items] | ||||
Capitalized contract cost, amortization period | 3 years | 3 years | ||
Maximum | ||||
Revenue From Contract With Customer [Line Items] | ||||
Capitalized contract cost, amortization period | 5 years | 5 years | ||
Subscription and Related Services | ||||
Revenue From Contract With Customer [Line Items] | ||||
Lease income | $ 1,579 | $ 1,585 | $ 3,223 | $ 3,139 |
Revenue and Contract Costs - Ro
Revenue and Contract Costs - Rollforward of Contract Assets and Liabilities (Details) $ in Thousands | 6 Months Ended |
Jul. 31, 2021USD ($) | |
Contract With Customer Asset [Roll Forward] | |
Beginning balance - Contract assets (unbilled accounts receivable) | $ 1,287 |
Amount transferred to receivables from beginning balance of contract assets | (1,196) |
Contract asset additions, net of reclassification to receivables | 461 |
Ending balance - Contract assets (unbilled accounts receivable) | 552 |
Contract With Customer Liability [Roll Forward] | |
Beginning balance - Contract liabilities (deferred revenue) | 10,838 |
Revenue recognized that was included in deferred revenue at the beginning of the period | 9,933 |
Revenue recognized that was not included in deferred revenue at the beginning of the period | (9,715) |
Increases due to invoicing prior to satisfaction of performance obligations | 21,748 |
Ending balance - Contract liabilities (deferred revenue) | $ 12,938 |
Revenue and Contract Costs - Sc
Revenue and Contract Costs - Schedule of Deferred contract acquisition costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | Jan. 31, 2021 | |
Capitalized Contract Cost [Roll Forward] | |||||
Beginning balance, January 31, 2021 | $ 2,941 | ||||
Additions to deferred contract acquisition costs | 2,541 | ||||
Amortization of deferred contract acquisition costs | $ (577) | $ (1,250) | (1,152) | $ (1,775) | |
Ending balance, July 31, 2021 | 4,330 | 4,330 | |||
Deferred contract acquisition costs, current (to be amortized in next 12 months) | 1,817 | 1,817 | $ 1,693 | ||
Deferred contract acquisition costs, non-current | 2,513 | 2,513 | 1,248 | ||
Total deferred contract acquisition costs | $ 4,330 | $ 4,330 | $ 2,941 |
Finance Leases and Other Debt -
Finance Leases and Other Debt - Schedule of Outstanding Loan Balances (Details) - USD ($) $ in Thousands | Jul. 31, 2021 | Jan. 31, 2021 |
Debt Instrument [Line Items] | ||
Finance leases | $ 9,623 | $ 9,702 |
Debt | 469 | |
Total finance lease liabilities and other debt | 10,092 | 11,335 |
Less - current portion of finance lease liabilities and other debt | (4,494) | (4,864) |
Long-term finance lease liabilities and other debt | 5,598 | 6,471 |
Financing arrangements | ||
Debt Instrument [Line Items] | ||
Debt | 433 | 1,533 |
Accrued interest and payments | ||
Debt Instrument [Line Items] | ||
Debt | $ 36 | $ 100 |
Finance Leases and Other Debt_2
Finance Leases and Other Debt - Financing Arrangements (Details) - USD ($) | Apr. 10, 2020 | Nov. 02, 2018 | Jul. 31, 2021 | Jan. 31, 2021 |
Insurance Premium Financing Agreement | ||||
Debt Instrument [Line Items] | ||||
Long term debt | $ 0 | $ 673,000 | ||
Stated interest rate (as a percent) | 2.60% | |||
Vendor Financing Agreement Maturing May 2023 | ||||
Debt Instrument [Line Items] | ||||
Long term debt | $ 89,000 | 133,000 | ||
Stated interest rate (as a percent) | 2.94% | |||
Debt instrument, face amount | $ 174,000 | |||
Installment payment, amount | $ 46,000 | |||
Vendor Financing Agreement Maturing June 2022 | ||||
Debt Instrument [Line Items] | ||||
Long term debt | $ 344,000 | $ 504,000 | ||
Stated interest rate (as a percent) | 9.83% | |||
Debt instrument, face amount | $ 1,256,000 | |||
Installment payment, amount | $ 183,000 |
Finance Leases and Other Debt_3
Finance Leases and Other Debt - Second Amended and Restated Loan and Security Agreement (Details) - USD ($) | 6 Months Ended | |
Jul. 31, 2021 | May 05, 2020 | |
Second Amended And Restated Loan And Security Agreement | ||
Debt Instrument [Line Items] | ||
Effective interest rate (as a percent) | 4.50% | |
Remaining borrowing capacity | $ 50,000,000 | |
Second Amended And Restated Loan And Security Agreement | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 50,000,000 | |
Long term debt | $ 0 | 20,663,000 |
Debt instrument, term | 5 years | |
Stated interest rate (as a percent) | 4.50% | |
Scheduled reduction in interest rate (as a percent) | (0.50%) | |
Annual fee amount | $ 125,000 | |
Second Amended And Restated Loan And Security Agreement, Optional Capacity Increase | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 65,000,000 |
Finance Leases and Other Debt_4
Finance Leases and Other Debt - Schedule of Long-Term Debt Maturities (Details) - USD ($) $ in Thousands | Jul. 31, 2021 | Jan. 31, 2021 |
Total | ||
2022 (Remaining six months) | $ 2,247 | |
2023 | 4,109 | |
2024 | 2,961 | |
2025 | 620 | |
2026 | 155 | |
Total long-term debt and finance lease maturities | 10,092 | |
Finance Leases | ||
2022 (Remaining six months) | 2,081 | |
2023 | 3,851 | |
2024 | 2,916 | |
2025 | 620 | |
2026 | 155 | |
Total finance lease liabilities | 9,623 | $ 9,702 |
Other Debt | ||
2022 (Remaining six months) | 166 | |
2023 | 258 | |
2024 | 45 | |
2025 | 0 | |
2026 | 0 | |
Total long-term debt maturities | $ 469 |
Finance Leases and Other Debt_5
Finance Leases and Other Debt - Schedule of Interest Income (Expense), Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | |
Debt Disclosure [Abstract] | ||||
Interest expense | $ (226) | $ (421) | $ (484) | $ (833) |
Interest income | 19 | 2 | 39 | 94 |
Interest (expense) income, net | $ (207) | $ (419) | $ (445) | $ (739) |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | Apr. 12, 2021 | Apr. 30, 2021 | Jul. 31, 2021 | Jan. 31, 2021 | Jul. 22, 2019 |
Equity [Abstract] | |||||
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 | 500,000,000 | ||
Common stock, par value per share (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | ||
Issuance of common stock in public offering, net of issuance costs (in shares) | 5,175,000 | ||||
Issue price per share (in dollars per share) | $ 50 | ||||
Issuance of common stock in follow-on public offering, net | $ 245,813 | $ 245,813 |
Equity-based compensation - Nar
Equity-based compensation - Narrative (Details) - USD ($) $ in Thousands | Jan. 01, 2021 | Dec. 31, 2020 | Jun. 30, 2019 | Jul. 31, 2021 | Jul. 31, 2021 | Jul. 31, 2020 | Jan. 31, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Intrinsic value | $ 36,832 | $ 32,060 | |||||
Employee stock purchase plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
ESPP, employee common stock purchase discount (as a percent) | 15.00% | ||||||
Employee purchase price of common stock (as a percent) | 85.00% | ||||||
Employee stock purchase plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares available for grant (in shares) | 855,873 | 821,023 | 821,023 | ||||
Weighted average remaining expense term | 5 months | ||||||
Unrecognized compensation costs | $ 510 | $ 510 | |||||
Stock options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Maximum term | 10 years | ||||||
Vesting term | 4 years | ||||||
Unrecognized compensation cost, stock options | 2,699 | $ 2,699 | |||||
Weighted average remaining expense term | 1 year 4 months 13 days | ||||||
Incremental stock-based compensation expense | 92 | $ 180 | |||||
Restricted stock units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting term | 4 years | 7 years | 4 years | ||||
Unrecognized compensation cost, stock options | 75,404 | $ 75,404 | |||||
Weighted average remaining expense term | 2 years 10 months 20 days | ||||||
Incremental stock-based compensation expense | 143 | $ 298 | |||||
Quarterly vesting rate (as a percent) | 6.25% | 6.25% | |||||
Restricted stock units granted (in shares) | 697,071 | ||||||
Restricted stock units | Share-based Payment Arrangement, Year 1 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting term | 1 year | ||||||
Annual vesting rate (as a percent) | 10.00% | ||||||
Restricted stock units | Share-based Payment Arrangement, Year 2 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting term | 2 years | ||||||
Annual vesting rate (as a percent) | 20.00% | ||||||
Restricted stock units | Share-based Payment Arrangement, Year 3 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting term | 3 years | ||||||
Annual vesting rate (as a percent) | 30.00% | ||||||
Restricted stock units | Share-based Payment Arrangement, Year 4 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting term | 4 years | ||||||
Annual vesting rate (as a percent) | 40.00% | ||||||
Performance stock units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Annual vesting rate (as a percent) | 100.00% | ||||||
Weighted average remaining expense term | 2 years 6 months | ||||||
Restricted stock units granted (in shares) | 9,664 | ||||||
Unrecognized compensation costs | $ 5,370 | $ 5,370 | |||||
Performance stock units | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting term | 2 years | ||||||
Annual vesting rate (as a percent) | 0.00% | ||||||
Performance stock units | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting term | 3 years | ||||||
Annual vesting rate (as a percent) | 200.00% | ||||||
2018 Stock Option Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares available for issuance (in shares) | 3,048,490 | ||||||
2019 Stock Option and Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common stock reserve for future issuance (in shares) | 2,139,683 | ||||||
Percentage increase in number of shares reserved (as a percent) | 5.00% | ||||||
Number of shares available for grant (in shares) | 3,934,798 | 3,934,798 | |||||
2019 Stock Option and Incentive Plan | Stock options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Annual vesting rate (as a percent) | 25.00% |
Equity-based compensation - Sto
Equity-based compensation - Stock-based compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock based compensation | $ 7,355 | $ 3,428 | $ 13,129 | $ 6,300 |
RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock based compensation | 6,072 | 2,569 | 10,842 | 4,842 |
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock based compensation | 632 | 859 | 1,150 | 1,458 |
PSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock based compensation | 551 | 0 | 1,037 | 0 |
ESPP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock based compensation | $ 100 | $ 0 | $ 100 | $ 0 |
Equity-based compensation - s_2
Equity-based compensation - stock-based compensation in our financial statements (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | ||||
Stock-based compensation expense per consolidated statements of operations | $ 7,273 | $ 3,428 | $ 13,047 | $ 6,300 |
Capitalized as internal-use software | 82 | 0 | 82 | 0 |
Total stock based compensation | $ 7,355 | $ 3,428 | $ 13,129 | $ 6,300 |
Equity-based compensation - S_3
Equity-based compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended |
Jul. 31, 2021 | |
Number of options | |
Number of options outstanding, beginning (in shares) | 3,211,354 |
Granted (in shares) | 0 |
Exercised (in shares) | (689,623) |
Forfeited and expired (in shares) | (33,735) |
Number of options outstanding, ending (in shares) | 2,487,996 |
Exercisable (in shares) | 1,815,941 |
Amount vested during the period (in shares) | 190,999 |
Weighted- average exercise price | |
Weighted- average exercise price outstanding, beginning balance (in dollars per share) | $ 4.67 |
Granted (in dollars per share) | 0 |
Exercised (in dollars per share) | 2.62 |
Forfeited and expired (in dollars per share) | 6.47 |
Weighted- average exercise price outstanding, ending balance (in dollars per share) | 5.21 |
Exercisable (in dollars per share) | 4.27 |
Amount vested at the end of the period (in dollars per share) | $ 6.27 |
Outstanding and expected to vest- end of the period | 8 years 3 months 18 days |
Exercisable- end of period | 7 years 5 months 1 day |
Aggregate intrinsic value outstanding and expected to vest | $ 237,225 |
Aggregate intrinsic value exercisable | $ 157,087 |
Equity-based compensation - Res
Equity-based compensation - Restricted Stock Units and Performance Stock Units (Details) | 6 Months Ended |
Jul. 31, 2021shares | |
Restricted stock units | |
Restricted Stock and Performance Stock Activity [Roll Forward] | |
Beginning balance (in shares) | 2,053,038 |
Granted (in shares) | 697,071 |
Vested (in shares) | (148,063) |
Forfeited and expired (in shares) | (70,292) |
Ending balance (in shares) | 2,531,754 |
Performance stock units | |
Restricted Stock and Performance Stock Activity [Roll Forward] | |
Beginning balance (in shares) | 70,806 |
Granted (in shares) | 9,664 |
Vested (in shares) | 0 |
Forfeited and expired (in shares) | 0 |
Ending balance (in shares) | 80,470 |
Equity-based compensation - Wei
Equity-based compensation - Weighted Average Assumptions (Detail) - Employee stock purchase plan | 6 Months Ended |
Jul. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free interest rate (as a percent) | 0.05% |
Expected dividends (as a percent) | 0.00% |
Expected term (in years) | 6 months |
Volatility (as a percent) | 52.50% |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Fair Value Hierarchy (Details) - Fair Value, Recurring - USD ($) $ in Thousands | Jul. 31, 2021 | Jan. 31, 2021 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Money market mutual funds | $ 197,561 | $ 197,522 |
Foreign currency derivative contracts | 148 | |
Total assets | 197,561 | 197,670 |
Acquisition related contingent consideration liabilities | (1,100) | (1,286) |
Total liabilities | (1,100) | (1,286) |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Money market mutual funds | 197,561 | 197,522 |
Foreign currency derivative contracts | 0 | |
Total assets | 197,561 | 197,522 |
Acquisition related contingent consideration liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Money market mutual funds | 0 | 0 |
Foreign currency derivative contracts | 0 | 148 |
Total assets | 0 | 148 |
Acquisition related contingent consideration liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Money market mutual funds | 0 | 0 |
Foreign currency derivative contracts | 0 | |
Total assets | 0 | 0 |
Acquisition related contingent consideration liabilities | (1,100) | (1,286) |
Total liabilities | $ (1,100) | $ (1,286) |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Thousands | Jul. 31, 2021 | Jan. 31, 2021 |
Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency derivative contracts | $ 148 | |
Significant Other Observable Inputs (Level 2) | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency derivative contracts | $ 0 | 148 |
Significant Unobservable Inputs (Level 3) | QueueDr | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration liabilities payable | $ 1,148 | |
Significant Unobservable Inputs (Level 3) | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency derivative contracts | $ 0 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Contingent Consideration Liabilities (Details) - QueueDr $ in Thousands | 6 Months Ended |
Jul. 31, 2021USD ($) | |
Business Combination, Contingent Consideration Liability [Roll Forward] | |
Balance at January 31, 2021 | $ 1,286 |
Adjustment to the acquisition-date value | 5 |
Change in fair value of contingent consideration liabilities | 209 |
Payments | (400) |
Balance at July 31, 2021 | $ 1,100 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | |
Lessee, Lease, Description [Line Items] | ||||
Operating lease, weighted average remaining lease term | 2 years 2 months 12 days | 2 years 2 months 12 days | ||
Operating lease, weighted average discount rate (as a percent) | 3.50% | 3.50% | ||
Finance lease, weighted average remaining lease term | 2 years 6 months | 2 years 6 months | ||
Finance lease, weighted average discount rate (as a percent) | 3.90% | 3.90% | ||
Operating cash used for operating leases | $ 544 | |||
Subscription and Related Services | ||||
Lessee, Lease, Description [Line Items] | ||||
Lease income | $ 1,579 | $ 1,585 | $ 3,223 | $ 3,139 |
Minimum | Computer equipment | ||||
Lessee, Lease, Description [Line Items] | ||||
Finance lease, term of contract | 2 years | 2 years | ||
Maximum | Computer equipment | ||||
Lessee, Lease, Description [Line Items] | ||||
Finance lease, term of contract | 3 years | 3 years |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Jul. 31, 2021 | Jan. 31, 2021 |
Leases [Abstract] | ||
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property and equipment, net of accumulated depreciation and amortization of $47,124 and $40,148 as of July 31, 2021 and January 31, 2021, respectively | |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Current portion of finance lease liabilities and other debt | |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Long-term finance lease liabilities and other debt | |
Operating leases: | ||
Lease right-of-use assets | $ 2,252 | $ 2,654 |
Lease liabilities, current | 1,133 | 1,087 |
Lease liabilities, noncurrent | 1,412 | 1,899 |
Total operating lease liabilities | 2,545 | |
Finance leases: | ||
Property and equipment, at cost | 21,897 | |
Accumulated depreciation | (12,742) | |
Property and equipment, net | 9,155 | |
Lease liabilities (included in Current portion of finance lease liabilities and other debt) | 4,106 | |
Lease liabilities, noncurrent (included in Long-term finance lease liabilities and other debt) | 5,517 | |
Total finance lease liabilities | $ 9,623 | $ 9,702 |
Leases - Lease Expense (Details
Leases - Lease Expense (Details) $ in Thousands | 6 Months Ended |
Jul. 31, 2021USD ($) | |
Operating leases: | |
Operating lease cost | $ 483 |
Variable lease cost | 138 |
Total operating lease cost | 621 |
Finance leases: | |
Amortization of right-of-use assets | 2,353 |
Interest on lease liabilities | 191 |
Total finance lease cost | $ 2,544 |
Leases - Lease Liability Maturi
Leases - Lease Liability Maturity Schedule (Details) - USD ($) $ in Thousands | Jul. 31, 2021 | Jan. 31, 2021 |
Operating | ||
2022 (remaining six months) | $ 615 | |
2023 | 1,186 | |
2024 | 793 | |
2025 | 52 | |
Thereafter | 0 | |
Total future minimum lease payments | 2,646 | |
Less: interest | (101) | |
Present value of lease liabilities | 2,545 | |
Finance Leases | ||
2022 (Remaining six months) | 2,243 | |
2023 | 4,052 | |
2024 | 2,990 | |
2025 | 635 | |
Thereafter | 158 | |
Total future minimum lease payments | 10,078 | |
Less: interest | (455) | |
Present value of lease liabilities | $ 9,623 | $ 9,702 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 31, 2021 | Jul. 31, 2020 | |
Leases [Abstract] | ||
Operating cash used for operating leases | $ 544 | |
Operating cash used for finance leases | 191 | |
Financing cash used for finance leases | 2,100 | $ 1,301 |
Total | 2,835 | |
Right-of-use assets obtained in exchange for operating lease liabilities | 81 | $ 3,183 |
Right-of-use asset obtained in exchange for finance lease liabilities | 1,980 | |
Total | $ 2,061 |
Commitments and contingencies (
Commitments and contingencies (Details) $ in Thousands | Jul. 31, 2021USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Contingent consideration, liability | $ 1,100 |
Income taxes (Details)
Income taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Income tax provision | $ 288 | $ 66 | $ 437 | $ 177 |
Effective tax rate (as a percent) | 1.30% | 1.40% |
Net loss per share attributab_3
Net loss per share attributable to common stockholders - Schedule of earnings per share basic and diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jul. 31, 2021 | Apr. 30, 2021 | Jul. 31, 2020 | Apr. 30, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | |
Numerator: | ||||||
Net loss | $ (24,393) | $ (10,974) | $ (6,371) | $ (6,112) | $ (35,367) | $ (12,483) |
Denominator: | ||||||
Weighted-average common shares outstanding - basic (in shares) | 50,577,614 | 37,735,155 | 48,287,305 | 37,523,966 | ||
Weighted-average common shares outstanding - diluted (in shares) | 50,577,614 | 37,735,155 | 48,287,305 | 37,523,966 | ||
Net loss per share attributable to common stockholders - basic (in dollars per share) | $ (0.48) | $ (0.17) | $ (0.73) | $ (0.33) | ||
Net loss per share attributable to common stockholders - diluted (in dollars per share) | $ (0.48) | $ (0.17) | $ (0.73) | $ (0.33) |
Net loss per share attributab_4
Net loss per share attributable to common stockholders - Schedule of antidilutive securities excluded from computation of earnings per share (Details) - shares | 6 Months Ended | |
Jul. 31, 2021 | Jul. 31, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 5,216,134 | 6,260,263 |
Stock options to purchase common stock, restricted stock units and performance stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 5,181,284 | 6,185,126 |
Employee stock purchase plan | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 34,850 | 0 |
Warrants to purchase common stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 75,137 |
Related party transactions (Det
Related party transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | |
Affiliate of Director | ||||
Related Party Transaction [Line Items] | ||||
Recognized revenue | $ 129 | $ 232 | ||
Accounts receivable | $ 68 | $ 68 | ||
Affiliated Entity | ||||
Related Party Transaction [Line Items] | ||||
Recognized revenue | $ 988 | $ 2,425 |