Phreesia, Inc.PHR
Phreesia, Inc. Segments Disclosure
Segments and geographic information
Operating segments are defined as components of an enterprise about which separate financial information is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company defines the term “chief operating decision maker” to be its Chief Executive Officer. The Company’s Chief Executive Officer reviews the financial information presented on an entire company basis for purposes of allocating resources and evaluating our financial performance. Accordingly, the Company has determined that it operates in a single reportable operating segment, managed on a consolidated basis, which the Company refers to as the Technology solutions segment.
The Technology solutions segment provides comprehensive software solutions that improve the operational and financial performance of healthcare organizations and improve health outcomes by helping patients take a more active role in their care. The Technology solutions segment’s solutions include SaaS-based integrated tools that manage patient access, registration and payments. Additionally, the Technology solutions segment has tools to communicate with patients about their health, which have demonstrated increased rates of preventive care and vaccinations. Additionally, Technology solutions segment’s solutions include clinical assessments to screen patients for a variety of physical, behavioral and mental health conditions, helping providers to better understand their patients and connect them to needed services, resulting in improved health outcomes. The Technology solutions segment also provides life sciences companies, health plans and other organizations, patient advocacy, public interest and other not-for-profit organizations with a channel for direct communication with patients. The Technology solutions segment also provides additional products and services such as the MediFind provider directory, which helps patients find care based on providers' specialty and condition expertise. The Technology solutions segment offers its healthcare services clients the ability to lease tablets ("PhreesiaPads") and on-site kiosks ("Arrivals Kiosks") along with their monthly subscription.
The chief operating decision maker uses net income (loss) in assessing the performance of and allocate resources to the Technology solutions segment. The chief operating decision maker uses actual versus budgeted net income (loss) in evaluating the performance of the Technology solutions segment.
The accounting policies of the Technology solutions segment are the same as those described in Note 3 - Summary of significant accounting policies. As the Company operates in a single operating segment managed on a consolidated basis, the revenues of the Technology solutions segment are equal to the Company’s total revenues presented on the accompanying consolidated statements of operations. Additionally, revenues for each significant group of products and services is presented on the accompanying consolidated statements of operations. As the Company has only one operating segment, the Company does not have inter-segment sales or transfers. Additionally, the measure of segment profit for the Technology solutions segment is equal to the Company’s Net loss presented on the accompanying consolidated statements of operations.
The following table presents the Company’s segment revenue, segment profit (loss), significant segment expenses, and other segment items, as well as a reconciliation from segment profit (loss) to consolidated net loss.
| Fiscal years ended January 31, | |||||||||||||||||
2025 | 2024 | 2023 | |||||||||||||||
Revenue | $ | 419,813 | $ | 356,299 | $ | 280,910 | |||||||||||
Labor costs (1) | 224,792 | 238,533 | 240,532 | ||||||||||||||
| Payment processing expense | 68,707 | 62,986 | 50,323 | ||||||||||||||
Third-party non-labor operating expenses | 89,550 | 90,159 | 82,528 | ||||||||||||||
Stock-based compensation | 66,975 | 71,613 | 58,775 | ||||||||||||||
Other segment items | 28,316 | 29,893 | 24,898 | ||||||||||||||
Segment net loss | $ | (58,527) | $ | (136,885) | $ | (176,146) | |||||||||||
Reconciliation of profit or loss | |||||||||||||||||
Adjustments and reconciling items | $ | — | $ | — | $ | — | |||||||||||
Consolidated net loss | $ | (58,527) | $ | (136,885) | $ | (176,146) | |||||||||||
(1) Excludes stock-based compensation expense which is presented separately | |||||||||||||||||
Other segment items include depreciation and amortization, interest income, net, provision for income taxes, loss on extinguishment of debt and other income (expense), net.
The total segment assets for the Technology solutions segment are equal to the total assets presented on the accompanying consolidated balance sheets. The following table presents other quantitative segment disclosures for the fiscal years ended January 31, 2025, 2024 and 2023, respectively.
| Fiscal years ended January 31, | |||||||||||||||||
2025 | 2024 | 2023 | |||||||||||||||
Depreciation and amortization | $ | 27,886 | $ | 29,487 | $ | 25,304 | |||||||||||
Interest income, net | $ | 330 | $ | 2,211 | $ | 1,064 | |||||||||||
| Loss on extinguishment of debt | $ | — | $ | (1,118) | $ | — | |||||||||||
| Gain on settlement (included in other income (expense), net) | $ | 2,345 | $ | — | $ | — | |||||||||||
Provision for income taxes | $ | (2,716) | $ | (1,543) | $ | (483) | |||||||||||
Expenditures for long-lived assets | $ | 25,940 | $ | 96,474 | $ | 17,270 | |||||||||||
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About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.