Health Care Software Maker Phreesia Files for $125 Million IPO

The company, which provides a patient-intake software platform for health care providers, has processed $1.4 billion in patient payments.
Health Care Software Maker Phreesia Files for $125 Million IPO

Phreesia, a health care software company based in New York City, filed a preliminary prospectus with the Securities and Exchange Commission Friday for a $125 million initial public offering.

It did not say how many shares it planned to offer or the price range.

The company said proceeds would be used to pay a cash dividend on convertible preferred stock, to pay down debt, and for general corporate purposes.

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Phreesia would trade on the New York Stock Exchange under the ticker symbol “PHR.”

The company, founded in 2005, markets a patient-intake management platform. In its SEC filing, the company said for the fiscal year 2019, it produced nearly $100 million in revenue up from $79.8 million in 2018. It reported revenue of $28.3 million for the three months ended April 30, 2019, up from $23.9 million the year prior.

It reported adjusted EBITDA of $3.5 million for fiscal 2019, up from a loss of $4.1 million in fiscal 2018. Its adjusted EBITDA for the quarter ended April 30 was a loss of $300,000, down from $1 million a year ago.

The company estimated the market for its platform and services at $7 billion. It said it processed more than $1.4 billion in patient payments and facilitated more than 54 million patient visits for about 50,000 individual providers in nearly 1,600 health care provider organizations.

Change Healthcare and Health Catalyst were among the companies that have announced plans for public offerings this year. Change Healthcare, which filed an IPO for $100 million in March, increased its offering to $200 million last month. Those offerings are being led by Goldman Sachs and JPMorgan.

JPMorgan, Wells Fargo, and William Blair are the lead managers on the Phreesia offering. Allen & Co. and Piper Jaffray acting as passive book-runners.

Phreesia raised $30 million in 2014 and $34 million in a funding round in 2017.