Phreesia : Quarterly Shareholder Letter Q1 2022

FIRST QUARTER | FISCAL YEAR 2022

Quarterly

Stakeholder

Letter

JUNE 3, 2021

Dear Phreesia stakeholders,

We enter the summer hopeful that the biggest hardships of COVID-19 here in the U.S. are behind us, thanks in large part to the ongoing efforts of the medical community we serve. Whether we're working with a small primary care practice to target patients for delayed necessary preventive care or helping a multi-hospital health system launch a COVID-19 vaccination program, we remain focused on our mission to create a better, more engaging healthcare experience.

We carried the momentum from our strong finish in Fiscal Year 2021 into the first quarter of Fiscal Year 2022. For example, in the past quarter, we saw some clients expand their use of the Phreesia platform to run successful vaccination sites, while others employed our vaccine hesitancy survey to better understand and address COVID-19 immunization concerns and vaccine access. In addition, Phreesia's work and that of our client, Ascension, was published in the New England Journal of Medicine because of our ongoing partnership with nonprofit organizations, The Commonwealth Fund and CONVINCE USA.

Phreesia also is proud to have been selected as one of Modern Healthcare's 2021 "Best Places to Work in Healthcare," a testament to our smart and hard-working employees who are passionate about supporting our healthcare industry clients.

As we look ahead, we're excited to continue providing health systems, hospitals, ambulatory providers and life sciences organizations with the tools that will help them optimize their performance and improve the patient experience.

On behalf of the Phreesia leadership team, thank you for your interest in Phreesia.

Chaim Indig

Co-Founder and Chief Executive Officer

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Fiscal Year 2022 First-Quarter Highlights

We experienced solid growth across our key performance metrics: Total Revenue, Provider Clients and Revenue per Provider Client.

KEY PERFORMANCE METRICS

Provider Clients

Over the past year, we've increasingly shown our provider clients the value of driving the adoption of patient self-service, helping to remove the burden on their front-office staff so that they could quickly implement the workflow changes and solutions necessitated by the COVID-19 pandemic. In the first quarter of Fiscal Year 2022, our average number of provider clients was 1,902, an increase of 94 clients over the previous quarter and an increase of 270 clients over the previous year's first quarter. This quickly growing client list, relative to historic trends, is a direct reflection of our team's success in pulling pipeline opportunities forward into the first quarter.

Our new clients reflect the diversity of our overall footprint, which ranges from single- specialty practices like dermatology, family medicine, orthopedics and urology, to large multi- specialty groups and health systems.

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This past quarter, we have been especially proud to work with COVID-19 vaccination management programs across the country. Our platform is helping to streamline the scheduling and intake process for vaccination sites at health systems such as the University of Alabama at Birmingham/UAB Medicine, Memorial Health System in Ohio and the Health Care District of Palm Beach County in Florida.

One of our Federally Qualified Health Center (FQHC) clients, HealthLinc, gave media interviews explaining how Phreesia's tools support its vaccination process. "Because we had been working [with Phreesia] for so long, we knew what our patients were thinking," said HealthLinc CEO Beth Wrobel in an interview with PatientEngagementHIT. "We started educating them. And now we had a system where we could schedule our own patients. We could send them the pre-registration. We had preloaded all the information that they had to answer. For us to be able to vaccinate this many people this quickly has been pretty amazing."

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In addition to our work with health systems, we continue to expand our reach in the ambulatory market. In March, we highlighted New Jersey Urology's (NJU) recent standardization and integration of Phreesia's offerings with Epic's electronic health record across its 60 locations.

With the integration of Phreesia, NJU's patient intake landscape has completely changed. Mobile technology and personal devices are the future of medicine, and the days of tethered technology are quickly becoming a practice of the past. This pendulum swing benefits all and, most importantly, it greatly supports the needs and wants of our patients."

-DEREK GRIMES,

CHIEF INFORMATION OFFICER, NEW JERSEY UROLOGY

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Phreesia also was selected as one of Modern Healthcare's 2021 "Best Places to Work in Healthcare," the fifth year we've received that distinction. The "Best Places to Work" program honors 150 U.S. companies across the healthcare industry that empower their employees to provide patients and customers with the best possible care, products and services. We're proud to be recognized for the incredible work that our dedicated, passionate team of more than 1,000 Phreesians does in support of our clients. We continue to hire across all areas of the organization to support our current and anticipated growth.

Subscription and Related Services

At every level of our organization, we engage our clients to hear about how our services are working for them and to find out where there are opportunities to meet their additional needs. As a result, Phreesia regularly releases new and updated products to support our provider clients. We appreciate the hard work and support of our Product team, which enables us to continually adapt and develop high-quality products that our clients value.

THE PHREESIA PLATFORM

Our Subscription and Related Services year-over-year revenue growth of 40% reflects our previously mentioned solid performance on new client wins and the continued expansion of our typical entry-level package, as well as new module add-ons. This past quarter, we released two particularly noteworthy offerings across our five product areas.

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