Company: PHR
Filing Date: 2025-05-28
Form Type: 10-Q
Source: 0001412408-25-000039
Chunk: 97

Company: Phreesia, Inc.
Filing Date: 2025-05-28
Form: 10-Q
Item: Part I, Item 1
Chunk 97
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 Company’s Annual Report on Form 10-K for the fiscal year ended January 31, 2025, filed with the SEC on March 13, 2025.

12. Income taxes

For the three months ended April 30, 2025 and 2024, the Company recorded a tax provision of $735 and $510, respectively. The Company's provision for income taxes was 23.1% and 2.7% of loss before income taxes for the three months ended April 30, 2025 and 2024, respectively. The Company's effective tax rate differs from the U.S. statutory tax rate of 21% primarily because the Company records a valuation allowance against its U.S. deferred tax assets, and due to foreign income tax expense related to its Canadian branch and its subsidiary in India.Deferred tax assets and deferred tax liabilities are recognized based on temporary differences between the financial reporting and tax basis of assets and liabilities using statutory rates. Management of the Company has evaluated the positive and negative evidence pertaining to the realizability of its deferred tax assets, including the Company’s history of losses, and concluded that it is more likely than not that the Company will not recognize the benefits for its U.S. deferred tax assets. On the basis of this evaluation, the Company has recorded a valuation allowance against its deferred tax assets that are not more likely than not to be realized at both April 30, 2025 and January 31, 2025.

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13. Net loss per share attributable to common stockholders

(a) Net loss per share attributable to common stockholdersBasic and diluted net loss per share attributable to common stockholders was calculated as follows: Three months endedApril 30, 20252024Numerator:Net loss$(3,914)$(19,722)Denominator:Weighted-average shares of common stock outstanding, basic and diluted58,920,782 56,666,311 Net loss per share attributable to common stockholders$(0.07)$(0.35)(b) Potential dilutive securitiesThe Company’s potential dilutive securities, which include stock options, RSUs, performance stock awards and grants under the Company's ESPP, have been excluded from the computation of diluted net loss per share as the effect would be to reduce the net loss per share. Therefore, the weighted-average number of common shares outstanding used to calculate both basic and diluted net loss per share attributable to common stockholders is the same. The following potential shares