Investor Presentation September 2019
DISCLAIMERS AND FORWARD-LOOKING STATEMENTS Statements we make in this presentation may include statements which are not historical facts and are considered forward-looking within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act, which are usually identified by the use of words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “seeks,” “should,” “will,” “could,” “appears,” “shall,” “target,” “contemplated,” “predicts,” “potential,” “continue” and variations and negatives of such words or similar expressions. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act and Section 21E of the Securities Exchange Act and are making this statement for purposes of complying with those safe harbor provisions. These forward-looking statements reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, we can give no assurance that the plans, intentions, expectations or strategies will be attained or achieved. Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond our control including, without limitation, statements about our future financial performance and ability to achieve profitability, including our revenue, costs of revenue and operating expenses; our anticipated growth and growth strategies and our ability to effectively manage that growth; the sufficiency of our cash, cash equivalents and investments to meet our liquidity needs; our ability to maintain the security and availability of our platform; our predictions about our industry (including total addressable market) and market trends for healthcare technology solutions; our ability to attract, retain and cross-sell to healthcare provider clients; our ability to maintain renewal rates for healthcare provider clients; our ability to maintain, protect and enhance our intellectual property; our ability to comply with modified or new laws and regulations applying to our business; the increased expenses associated with being a public company; and our outstanding debt under our credit facility, as well as those set forth in the prospectus for our recent offering of our shares of common stock that was filed with the SEC on July 19, 2019 and our other filings with the U.S. Securities and Exchange Commission, including “Risk Factors” sections contained therein. We assume no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. This presentation also contains estimates and other statistical data made by independent parties and by us relating to market size and growth and other data about our industry. This data involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. This presentation may include certain non-GAAP financial measures as defined by SEC rules. We have provided a reconciliation of those measures to the most directly comparable GAAP measures, which is available in the Appendix. 2019 Phreesia Confidential Information 2
~1,600 healthcare is Patient Intake provider organizations $1.4B patient payments processed in FY19 Who we are: Leading provider of comprehensive solutions that transform the healthcare experience by engaging patients in their care $100M revenue in FY19 What we do: Enable healthcare provider organizations to optimize operational efficiency, improve profitability and enhance clinical care 25%+ revenue growth in FY19 How we do it: Software-as-a-Service (SaaS) platform to manage the patient intake process and an integrated patient payments solution for ~$7B total secure processing of patient payments addressable market 2019 Phreesia Confidential Information 3
INVESTMENT HIGHLIGHTS Leadership in large, underpenetrated and growing market with strong tailwinds Leading SaaS platform for patient intake and experience with integrated patient payments Significant and measurable return on investment Proven ability to innovate and meet the evolving needs of our clients Attractive, highly scalable financial model Multiple growth opportunities Founder-led and deeply experienced management team with strong culture 2019 Phreesia Confidential Information 4
ATTRACTIVE INDUSTRY TAILWINDS Wasteful Increasing Patient Increasing Shift to Value-Based Focus on Responsibility Spending Consumerism Care Models Personalized Healthcare Solutions • 1.2M intake staff • Payment model • $586B out-of- • Demand for higher • Need to directly shift to incentivize pocket spend by quality care, cost reach patients • $3.6T U.S. value and quality 2027 transparency, when making care healthcare spend 1 shared decision decisions • Requires high levels • HDHPs represent making and • $1.1T U.S. of documentation, 46% of health plan • Current marketing convenience healthcare waste 1 robust data, market 2 strategies not as sophisticated effective as • 70%+ of patients • ~$300B admin- • Provider payment-attribution use online reviews targeted outreach related waste 1 organizations capabilities and as first step in collect only half of substantive patient physician search patient balances engagement after initial visit 1 In 2018 2 As of the first half of 2018 2019 Phreesia Confidential Information 5
OUR VALUE PROPOSITION AND HOW WE MAKE MONEY Patients Providers Life Sciences Companies • Simplified operations & enhanced • Improved patient experience • Targeted, direct digital marketing Value proposition staff efficiency • High patient usage • Improved brand conversion and • Improved cash flow and adherence profitability • Flexible payment options • Feedback from patient voice • Enhanced clinical quality • Engagement in care • Improved patient experience • Highly visible subscription fees • Re-occurring payment processing • Fees from the sale of digital How we make charged on a per provider per fees marketing solutions to life sciences month basis (PMPM) money companies • Based on level of patient payment • Based on number and type of volume processed through • Based on guaranteed number of applications elected Phreesia Platform engagements with target audiences 2019 Phreesia Confidential Information 6
OUR END-TO-END PATIENT INTAKE SOLUTION Patients Use These: Staff Use These: AT HOME, ON THE GO, IN THE OFFICE IN THE OFFICE IN THE OFFICE IN THE OFFICE PhreesiaPad Mobile Arrivals Station Phreesia Dashboard Analytics Real-time Integration Practice Electronic Payment Practice Data Management APIs Payers Medical Record Networks Warehouses System 2019 Phreesia Confidential Information 7
OUR CURRENT AMBULATORY-BASED ADDRESSABLE MARKET Consumer-Related Transaction Subscription-Based Revenue Life Sciences And Payment Processing Fees ~890K addressable providers 1 DTC point-of-care $91B addressable out-of-pocket 2 marketing spend 3 in United States in United States ~780K active physicians ~77K nurse practitioners ~35K physician assistants $4.3B $2.2B $750M TAM of ~$7B Current addressable market does not include acute care Source: (1) Kaiser Family Foundation, BLS Data, American Association of Nurse Practitioners, National Commission of Certification of Physician Assistants - assumes ~1,005,000 total physicians , with ~75% in non-acute care setting and 100% taking appointments; ~165,000 NPs, with ~85% in non-acute care setting and ~55% taking appointments; 90,000 PAs, with ~60% in non-acute care setting and ~65% taking appointments; (2) CMS, includes out-of-pocket spending for physician, clinical and other professional services; (3) ZS Associates, projected spending in point-of-care marketing in pharma (2014 – 2020) 2019 Phreesia Confidential Information 8
SCALABLE FROM SMALL BUSINESSES TO LARGE ENTERPRISES 25+ medical specialties of varying sizes ~40 life sciences brands Providers Life Sciences Physician groups Health systems Pharma manufacturers Top 3 global pharma company • Top 3 global biotech company • z Top 5 diabetes pharma • manufacturer Top 5 oncology pharma • manufacturer Serving 13 of the top 20 Serving ~ 1,600 healthcare provider organizations global pharma companies 2019 Phreesia Confidential Information 9
Phreesia is the Top-Ranked Patient Intake Management Solution 2019 Category Leader for Patient Intake Management, based on survey data from provider groups on areas such as integration, implementation support and overall customer satisfaction Utilization ranked as the highest among its competitors across functionality Broadest adoption of KLAS patient intake functionalities in 2018, with most extensive integration capabilities and high client satisfaction Note: KLAS Research is a HCIT data and insights research company 10
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