Company: PHR
Filing Date: 2025-05-28
Form Type: 10-Q
Source: 0001412408-25-000039
Chunk: 84

Company: Phreesia, Inc.
Filing Date: 2025-05-28
Form: 10-Q
Item: Part I, Item 1
Chunk 84
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, 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 

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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 the periods presented.The following table represents a roll-forward of deferred contract acquisition costs:Balance, January 31, 2025$984 Additions to deferred contract acquisition costs— Amortization of deferred contract acquisition costs(110)Balance, April 30, 2025$874 Deferred contract acquisition costs, current (to be amortized in next 12 months)$414 Deferred contract acquisition costs, non-current460 Total deferred contract acquisition costs$874 

6. Finance leases and other debt

As of April 30, 2025 and January 31, 2025, the Company had the following outstanding finance lease liabilities and other debt: April 30, 2025January 31, 2025Finance leases$12,881 $14,256 Financing arrangements1,606 1,913 Accrued interest and payments23 24 Total finance lease liabilities and other debt$14,510 $16,193 Less: current portion of finance lease liabilities and other debt(8,348)(8,043)Long-term finance lease liabilities and other debt$6,162 $8,150 (a) Finance leasesSee Note 10 - Leases for more information regarding finance leases.(b) Financing agreementsIn June 2023, the Company entered into a software licensing financing agreement (the "financing agreement") in order