v3.24.0.1
Composition of certain financial statement captions
 12 Months Ended
Jan. 31, 2024
Composition Of Certain Financial Statement [Abstract]  
Composition of certain financial statement captions Composition of certain financial statement captions
(a) Accrued expenses
Accrued expenses at January 31, 2024 and 2023 are as follows:
January 31,
20242023
Payroll-related expenses and taxes$8,981 $4,461 
Stock-based compensation liability5,890 5,884 
Payment processing fees liability6,008 4,796 
Acquisition-related liabilities1,888 96 
Income and other tax liabilities3,042 1,491 
Information technology services5,927 2,249 
Other5,394 2,833 
Total$37,130 $21,810 
(b) Other current liabilities and other long-term liabilities
Other current liabilities and other long-term liabilities as of January 31, 2024 were $5,875 and $2,857, respectively. There were no other current liabilities and other long-term liabilities recorded as of January 31, 2023.
Other current liabilities and other long-term liabilities represent deferred consideration liabilities payable to the former equity holders of ConnectOnCall. See Note 16 - Acquisitions for additional information regarding the acquisition of ConnectOnCall.
(c) Property and equipment
Property and equipment at January 31, 2024 and 2023 are as follows:
Useful life
(years)		January 31,
20242023
PhreesiaPads and Arrivals Kiosks3$18,610 $17,932 
Computer equipment
362,888 54,485 
Computer software
3 to 5
11,687 8,571 
Hardware development
3576 529 
Total property and equipment
$93,761 $81,517 
Less: accumulated depreciation(76,859)(59,847)
Property and equipment — net$16,902 $21,670 
Depreciation expense related to property and equipment amounted to $17,584, $17,988 and $14,985 for the fiscal years ended January 31, 2024, 2023 and 2022, respectively.
Assets acquired under finance leases included in computer equipment were $35,250 and $27,813 at January 31, 2024 and 2023, respectively. Accumulated amortization of assets under finance leases was $27,399 and $20,657 at January 31, 2024 and 2023, respectively. See Note 10 - Leases for additional information regarding finance leases.
(d) Capitalized internal-use software
For the fiscal years ended January 31, 2024, 2023 and 2022, the Company capitalized $19,521, $23,604 and $12,830 of costs related to the Company's solutions, respectively.
During the fiscal years ended January 31, 2024, 2023 and 2022 amortization expense related to capitalized internal-use software was $9,527, $5,945 and $5,664, respectively.
(e) Intangible assets and goodwill
On June 30, 2023, the Company entered into an agreement to acquire Comsort, Inc. d/b/a MediFind ("MediFind") (the "MediFind Acquisition"). The Company acquired certain intangible assets and goodwill in connection with the MediFind Acquisition. See Note 16 - Acquisitions for additional information regarding the MediFind Acquisition.
On August 11, 2023, the Company entered into an agreement to acquire Access eForms, LLC ("Access") (the "Access Acquisition"). The Company acquired certain intangible assets and goodwill in connection with the Access Acquisition. See Note 16 - Acquisitions for additional information regarding the Access Acquisition.
On October 3, 2023, the Company entered into an agreement to acquire ConnectOnCall.com, LLC ("ConnectOnCall") (the "ConnectOnCall Acquisition"). The Company acquired certain intangible assets and goodwill in connection with the ConnectOnCall Acquisition. See Note 16 - Acquisitions for additional information regarding the ConnectOnCall Acquisition.
The tables set forth below include intangible assets and goodwill acquired in all of the Company's acquisitions.
The following presents the details of intangible assets as of January 31, 2024 and 2023.
Useful LifeJanuary 31,
(years)20242023
Acquired technology
5 to 7
$9,310 $1,410 
Customer relationship
7 to 15
17,940 6,340 
License156,200 6,200 
Trademarks153,100 — 
Total intangible assets, gross carrying value$36,550 $13,950 
Less: accumulated amortization(4,925)(2,549)
Net carrying value$31,625 $11,401 
The weighted average remaining useful life for acquired technology in years was 6.0 and 2.7 as of January 31, 2024 and 2023, respectively. The remaining useful life for customer relationships in years was 12.4 and 8.3 as of January 31, 2024 and 2023, respectively. The remaining useful life for the license to the Patient Activation Measure ("PAM"®) in years was 12.8 and 13.8 as of January 31, 2024 and 2023, respectively. The remaining useful life for the trademarks in years was 14.5 as of January 31, 2024.
Amortization expense associated with intangible assets for the fiscal years ended January 31, 2024, 2023 and 2022 was $2,376, $1,371 and $653, respectively.
The estimated amortization expense for intangible assets for the next five years and thereafter is as follows as of January 31, 2024:
January 31, 2024
2025$3,481 
20263,450 
20273,157 
20283,157 
Thereafter18,380 
Total$31,625 
The following table presents a roll-forward of goodwill for the years ended January 31, 2023 and 2024:
Balance at January 31, 2022$33,621 
Measurement period adjustments to goodwill during the year ended January 31, 2023115 
Balance at January 31, 2023$33,736 
Goodwill acquired during the year ended January 31, 202442,109 
Balance at January 31, 2024$75,845 
During the quarter ended October 31, 2023, the Company completed its quarterly triggering event assessments and determined that the decline in the market value of its publicly-traded stock, which resulted in a corresponding decline in its market capitalization, constituted a triggering event. Due to the decline in the Company’s market capitalization during the quarter ended October 31, 2023 the Company evaluated whether changes in the Company’s market capitalization indicated that the carrying value of goodwill in the Company’s single reporting unit was impaired. As of October 31, 2023, the Company’s market capitalization exceeded the carrying value of the Company’s equity by over 100%. As a result, the Company did not believe that changes in the Company’s market capitalization during the quarter ended October 31, 2023 indicated that that the carrying amount of the Company’s goodwill was impaired as of October 31, 2023.
As of January 31, 2024, the Company's market capitalization also exceeded the carrying amount of the Company's equity by over 100%. As a result, the Company does not believe that the Company’s goodwill is impaired as of January 31, 2024. No other triggering events occurred during fiscal 2024.
The Company did not record any impairments of goodwill during the years ended January 31, 2024, 2023 or 2022.
Additions to goodwill during the year ended January 31, 2023 represent measurement period adjustments for the acquisition of Insignia Health, LLC (the "Insignia Acquisition"). Substantially all of the Company's goodwill is amortizable for tax purposes.
(f) Accounts receivable
Accounts Receivable as of January 31, 2024 and 2023 are as follows:
January 31,
20242023
Billed$62,880 $51,458 
Unbilled3,375 989 
Total accounts receivable, gross$66,255 $52,447 
Less: accounts receivable allowances(1,392)(1,053)
Total accounts receivable$64,863 $51,394 

Activity in the Company's allowance for doubtful accounts was as follows for the years ended January 31, 2024 and 2023:
Balance, January 31, 2022$863 
Bad debt expense587 
Write-offs and adjustments(397)
Balance, January 31, 2023$1,053 
Bad debt expense377 
Increases due to acquisitions681 
Write-offs and adjustments(719)
Balance, January 31, 2024
$1,392 

The Company’s allowance for doubtful accounts represents the current estimate of expected future losses based on prior bad debt experience as well as considerations for specific customers as applicable. The Company's accounts receivable are considered past due when they are outstanding past the due date listed on the invoice to the customer. The Company writes off accounts receivable and removes the associated allowance for doubtful accounts when the Company deems the receivables to be uncollectible.
(g) Prepaid and other current assets
Prepaid and other current assets as of January 31, 2024 and 2023 are as follows:
January 31,
20242023
Prepaid software and business systems$4,922 $3,426 
Prepaid data center expenses3,872 2,389 
Prepaid insurance1,257 1,552 
Other prepaid expenses and other current assets4,410 3,342 
Total prepaid and other current assets$14,461 $10,709 
(h) Cloud computing implementation costs
The Company enters into cloud computing service contracts to support its sales and marketing, product development and administrative activities. The Company capitalizes certain implementation costs for cloud computing arrangements that meet the definition of a service contract. The Company includes these capitalized implementation costs within prepaid expenses and other current assets and within other assets on its consolidated balance sheets. Once placed in service, the Company amortizes these costs over the remaining subscription term to the same caption in the consolidated statements of operations as the related cloud subscription. Capitalized implementation costs for cloud computing arrangements accounted for as service contracts were $1,532 as of January 31, 2024 and 2023. Accumulated amortization of capitalized implementation costs for these arrangements was $1,021 and $610 as of January 31, 2024 and 2023, respectively.