Company: PHR
Filing Date: 2025-05-28
Form Type: 10-Q
Source: 0001412408-25-000039
Chunk: 128

Company: Phreesia, Inc.
Filing Date: 2025-05-28
Form: 10-Q
Item: Part I, Item 8
Chunk 128
---
31, 2025. Accumulated amortization of capitalized implementation costs for these arrangements were $1,432 as of January 31, 2025. As of April 30, 2025 these arrangements were fully amortized.

5. Revenue and contract costs

The Company generates revenue primarily from providing integrated SaaS-based software and payment solutions for the healthcare industry. The Company derives revenue from subscription fees and related services generated from the Company’s healthcare services clients for access to the Company's solutions, payment processing fees based on patient payment volume, and fees from life sciences companies and other organizations for delivering qualified direct communications to patients who consent to receive this type of engagement using the Company's solutions.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 $2,419 and $2,388 for the three months ended April 30, 2025 and 2024, respectively.Contract balancesThe following table represents a roll-forward of contract assets:Balance, January 31, 2025$4,743 Amount transferred to receivables from beginning balance of contract assets(4,528)Contract asset additions, net of reclassification to receivables5,373 Balance, April 30, 2025$5,588 The following table represents a roll-forward of deferred revenue:Balance, January 31, 2025$32,877 Revenue recognized that was included in deferred revenue at the beginning of the period(20,562)Current period activity in deferred revenue18,943 Balance, April 30, 2025$31,258 Cost to obtain a contractThe 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 years. The Company determined the period of benefit by taking into consideration its customer contracts, its technology and other factors. Amortization expense is included in sales and marketing expenses in the accompanying consolidated statements of operations and totaled $110 and $192 for the three months ended April 30, 2025 and 2024, respectively. The Company periodically reviews 

18

Table of Contents

these deferred contract acquisition costs to determine whether events or changes in circumstances have occurred that could impact the period of benefit. During fiscal 2025, the Company updated its estimate of the period of benefit from five years to three years for certain deferred contract acquisition costs. There were no impairment losses recorded during