Phreesia Completes $125 Million IPO on Nasdaq to Transform Patient Intake Experience

On July 18, 2019, VCBeat (WeChat ID: vcbeat) learned from foreign media that Phreesia, a U.S. healthcare SaaS provider, announced the completion of its $125 million initial public offering (IPO) and would be listed on the Nasdaq. Phreesia had filed its IPO registration statement on June 21, 2019, with an offer price of $18 per share and a total issuance of 7.8 million shares.

It is reported that Phreesia has completed nine rounds of financing to date. In 2014, Phreesia raised $30 million in private equity financing, and by the end of 2017, it secured another $34 million in a new round of funding. The most recent strategic financing was completed in January 2018, with the latest valuation undisclosed.

Phreesia was founded on February 1, 2005, and is headquartered in New York City, New York, USA. The company employs approximately 400 people across the United States and Ottawa, Canada. Phreesia is a healthcare software company established to revolutionize patient intake processes and create better, more engaging healthcare experiences.

Phreesia has created an integrated, streamlined system that automates data collection and delivers services before, during, and after patient admission. Leveraging its SaaS-based technology platform, the company simplifies the patient experience by offering convenient registration, diverse management models, and flexible, private, and secure payment options.

Phreesia’s flagship product is its point-of-service platform, which includes patient self-service tools and mobile applications. According to KLAS industry survey reports, Phreesia has been recognized as an industry leader due to its integration capabilities with healthcare provider organizations.

The Phreesia Platform manages the end-to-end patient intake process, including comprehensive services such as initial patient contact, registration, appointment scheduling, payment, and post-visit patient surveys. The Phreesia Platform securely collects and analyzes each patient’s information and provides engagement tools to effectively guide each patient through their healthcare journey.

Phreesia’s solutions are highly customizable, scalable to healthcare providers of any size, and seamlessly integrate into provider clients’ workflows as well as leading patient management (PM) and electronic health record (EHR) systems.

Through its SaaS-based Phreesia platform, Phreesia provides healthcare providers with a robust suite of solutions to manage patient intake processes, as well as a secure, integrated payment solution for processing patient payments. The platform also offers life sciences companies engagement channels to facilitate targeted direct communication with patients.

As of fiscal year 2019, Phreesia facilitated patient visits for over 54 million individuals across nearly 1,600 healthcare provider organizations in all 50 U.S. states, serving approximately 50,000 individual healthcare providers, including physicians, physician assistants, and nurse practitioners. Additionally, the Phreesia platform processed more than $1.4 billion in patient payments during fiscal year 2019.

According to Mercom Capital Group, although investment in the digital health sector reached record levels in 2018, venture capital funding in this sector stabilized in the first quarter of 2019, representing a 19% decline compared to the first quarter of 2018. In fiscal years 2018 and 2019, Phreesia reported revenues of $79.834 million and $99.889 million, respectively, marking a 25% growth rate, with net losses of $15.1 million and $18.2 million over the two-year period. Phreesia has yet to achieve profitability.

“We had already viewed ourselves as a public company prior to our IPO, and we believed it was crucial to demonstrate our profitability before going public,” said Chaim Indig, CEO of Phreesia. “We have been executing the same strategy for years and will continue to do so for many years to come. Phreesia’s public listing will enhance the healthcare experience for patients, healthcare providers, and employees. We see ourselves as the digital gateway to the healthcare experience, and this IPO provides another platform for the public to engage with our work. We believe that Phreesia will achieve rapid growth following its public listing.”

(Compiled by Cheng Tao)