Phreesia Slips 9% On Wider-Than-Feared 3Q Loss, CFO Departure

Shares of Phreesia were down 9.4% in Wednesday’s pre-market session after the software company recorded a loss of $0.17 per share in 3Q, which was wider than analysts’ expectations of a loss of $0.09 per share. The loss increased from $0.07 per share in the same period last year. Meanwhile, the company’s 3Q revenues increased 17% to $38.5 million and surpassed the Street’s estimates of $35.6 million.

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Phreesia’s (PHR) CEO Chaim Indig said, “Our third quarter results reflect our entire team’s commitment to our clients and Phreesia’s mission of creating a better, more engaging healthcare experience.”

For fiscal year 2021 (ending Jan. 31, 2021), the company expects to generate revenues in the range of $146 million to $147 million. For fiscal year 2022, Phreesia projects revenues to grow in the range of 20% to 25% year-over-year.

Concurrent with the earnings, Phreesia announced that Tom Altier will retire from the role of CFO in April 2021 but will continue to serve the company as an advisor. Altier will be succeeded by Randy Rasmussen, the company’s chief accounting officer, effective from May 1, 2021. (See PHR stock analysis on TipRanks).

On Dec. 4, KeyBanc analyst Donald Hooker raised the stock’s price target to $50 (3.7% downside potential) from $37 and maintained a Buy rating, citing its valuation.

Meanwhile, the Street has a bullish outlook on the stock with a Strong Buy analyst consensus. The average price target stands at $43.33 and implies downside potential of about 16.5% to current levels. Shares have already rallied almost 95% so far this year.