v3.24.2.u1
Leases
 6 Months Ended
Jul. 31, 2024
Leases [Abstract]  
Leases Leases
(a) Phreesia as Lessee
The Company leases office premises and third-party data center space in the U.S. under operating leases which expire on various dates through March 2027. Certain of these arrangements have escalating rent payment provisions or optional renewal clauses. The Company has also entered into various finance lease arrangements for computer equipment. These agreements are typically three years and are secured by the underlying equipment.
The Company has also entered into various finance lease arrangements for computer equipment. These agreements are typically for two to three years and are secured by the underlying equipment.
For office leases and leased equipment, the Company has elected the practical expedient to not separate lease and non-lease components, and as such, the variable lease cost primarily represents variable payments such as common area maintenance, utilities and equipment maintenance.
As of July 31, 2024, for operating leases, the weighted-average remaining lease term is 2.1 years and the weighted-average discount rate is 7.9%. As of July 31, 2024, for finance leases, the weighted-average remaining lease term is 2.1 years, and the weighted-average discount rate is 7.6%.
The components of lease expense for the six months ended July 31, 2024 were as follows:
July 31, 2024
Operating leases:
Operating lease cost$439 
Variable lease cost— 
Total operating lease cost$439 
Finance leases:
Amortization of right-of-use assets$3,378 
Interest on lease liabilities409 
Total finance lease cost$3,787 
Amortization of right-of-use assets for finance leases is included within depreciation expense on the Company's consolidated statements of operations.
The following represents a schedule of maturing lease commitments for operating and finance leases as of July 31, 2024:
July 31, 2024
OperatingFinance
Maturity of lease liabilities
2025 (remaining six months)
$568 $3,761 
Fiscal year ending January 31,
20261,053 5,580 
2027583 3,114 
202834 453 
Thereafter— — 
Total future minimum lease payments$2,238 $12,908 
Less: interest(174)(1,050)
Present value of lease liabilities$2,064 $11,858 
As of July 31, 2024, the Company has signed a finance lease for computer equipment which does not commence until October 2024. Total undiscounted payments through the fiscal year ended January 31, 2028 related to the lease are $7,408 and are excluded from the table above but are included in the Company's other contractual
commitments. See Note 11 - Commitments and contingencies for additional information regarding other contractual commitments.
Other supplemental cash flow information for the six months ended July 31, 2024 was as follows:
July 31, 2024
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash used for operating leases$498 
Operating cash used for finance leases409 
Financing cash used for finance leases3,275 
Right-of-use assets obtained in exchange for lease liabilities:
Operating$1,958 
Finance6,862 
Total$8,820 
(b) Phreesia as Lessor
In connection with the patient intake and registration process, Phreesia offers its customers the ability to lease PhreesiaPads and Arrivals Kiosks along with their monthly subscription. These rentals fall under the guidance of ASC 842. The Company elected the practical expedient to not separate lease and non-lease components. More specifically, all contractual hardware maintenance is included with the hardware lease components. The leases contain no variable lease payments, no options to extend the lease that are reasonably certain to be exercised, and do not give the lessee an option to purchase the hardware at the end of the lease term. Additionally, the lease term does not represent a major part of the remaining economic life of the assets, and the present value of the lease payments does not equal or exceed substantially all of the fair value of the assets. As a result, all leased hardware in the SaaS arrangements are classified as operating leases.
During the three and six months ended July 31, 2024, the Company recognized $2,324 and $4,712, respectively, in subscription and related services revenue related to the leasing of PhreesiaPads and Arrivals Kiosks.
Future lease payments receivable under operating leases were immaterial as of July 31, 2024, except for those with terms of one year or less.
Leases Leases
(a) Phreesia as Lessee
The Company leases office premises and third-party data center space in the U.S. under operating leases which expire on various dates through March 2027. Certain of these arrangements have escalating rent payment provisions or optional renewal clauses. The Company has also entered into various finance lease arrangements for computer equipment. These agreements are typically three years and are secured by the underlying equipment.
The Company has also entered into various finance lease arrangements for computer equipment. These agreements are typically for two to three years and are secured by the underlying equipment.
For office leases and leased equipment, the Company has elected the practical expedient to not separate lease and non-lease components, and as such, the variable lease cost primarily represents variable payments such as common area maintenance, utilities and equipment maintenance.
As of July 31, 2024, for operating leases, the weighted-average remaining lease term is 2.1 years and the weighted-average discount rate is 7.9%. As of July 31, 2024, for finance leases, the weighted-average remaining lease term is 2.1 years, and the weighted-average discount rate is 7.6%.
The components of lease expense for the six months ended July 31, 2024 were as follows:
July 31, 2024
Operating leases:
Operating lease cost$439 
Variable lease cost— 
Total operating lease cost$439 
Finance leases:
Amortization of right-of-use assets$3,378 
Interest on lease liabilities409 
Total finance lease cost$3,787 
Amortization of right-of-use assets for finance leases is included within depreciation expense on the Company's consolidated statements of operations.
The following represents a schedule of maturing lease commitments for operating and finance leases as of July 31, 2024:
July 31, 2024
OperatingFinance
Maturity of lease liabilities
2025 (remaining six months)
$568 $3,761 
Fiscal year ending January 31,
20261,053 5,580 
2027583 3,114 
202834 453 
Thereafter— — 
Total future minimum lease payments$2,238 $12,908 
Less: interest(174)(1,050)
Present value of lease liabilities$2,064 $11,858 
As of July 31, 2024, the Company has signed a finance lease for computer equipment which does not commence until October 2024. Total undiscounted payments through the fiscal year ended January 31, 2028 related to the lease are $7,408 and are excluded from the table above but are included in the Company's other contractual
commitments. See Note 11 - Commitments and contingencies for additional information regarding other contractual commitments.
Other supplemental cash flow information for the six months ended July 31, 2024 was as follows:
July 31, 2024
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash used for operating leases$498 
Operating cash used for finance leases409 
Financing cash used for finance leases3,275 
Right-of-use assets obtained in exchange for lease liabilities:
Operating$1,958 
Finance6,862 
Total$8,820 
(b) Phreesia as Lessor
In connection with the patient intake and registration process, Phreesia offers its customers the ability to lease PhreesiaPads and Arrivals Kiosks along with their monthly subscription. These rentals fall under the guidance of ASC 842. The Company elected the practical expedient to not separate lease and non-lease components. More specifically, all contractual hardware maintenance is included with the hardware lease components. The leases contain no variable lease payments, no options to extend the lease that are reasonably certain to be exercised, and do not give the lessee an option to purchase the hardware at the end of the lease term. Additionally, the lease term does not represent a major part of the remaining economic life of the assets, and the present value of the lease payments does not equal or exceed substantially all of the fair value of the assets. As a result, all leased hardware in the SaaS arrangements are classified as operating leases.
During the three and six months ended July 31, 2024, the Company recognized $2,324 and $4,712, respectively, in subscription and related services revenue related to the leasing of PhreesiaPads and Arrivals Kiosks.
Future lease payments receivable under operating leases were immaterial as of July 31, 2024, except for those with terms of one year or less.
Leases Leases
(a) Phreesia as Lessee
The Company leases office premises and third-party data center space in the U.S. under operating leases which expire on various dates through March 2027. Certain of these arrangements have escalating rent payment provisions or optional renewal clauses. The Company has also entered into various finance lease arrangements for computer equipment. These agreements are typically three years and are secured by the underlying equipment.
The Company has also entered into various finance lease arrangements for computer equipment. These agreements are typically for two to three years and are secured by the underlying equipment.
For office leases and leased equipment, the Company has elected the practical expedient to not separate lease and non-lease components, and as such, the variable lease cost primarily represents variable payments such as common area maintenance, utilities and equipment maintenance.
As of July 31, 2024, for operating leases, the weighted-average remaining lease term is 2.1 years and the weighted-average discount rate is 7.9%. As of July 31, 2024, for finance leases, the weighted-average remaining lease term is 2.1 years, and the weighted-average discount rate is 7.6%.
The components of lease expense for the six months ended July 31, 2024 were as follows:
July 31, 2024
Operating leases:
Operating lease cost$439 
Variable lease cost— 
Total operating lease cost$439 
Finance leases:
Amortization of right-of-use assets$3,378 
Interest on lease liabilities409 
Total finance lease cost$3,787 
Amortization of right-of-use assets for finance leases is included within depreciation expense on the Company's consolidated statements of operations.
The following represents a schedule of maturing lease commitments for operating and finance leases as of July 31, 2024:
July 31, 2024
OperatingFinance
Maturity of lease liabilities
2025 (remaining six months)
$568 $3,761 
Fiscal year ending January 31,
20261,053 5,580 
2027583 3,114 
202834 453 
Thereafter— — 
Total future minimum lease payments$2,238 $12,908 
Less: interest(174)(1,050)
Present value of lease liabilities$2,064 $11,858 
As of July 31, 2024, the Company has signed a finance lease for computer equipment which does not commence until October 2024. Total undiscounted payments through the fiscal year ended January 31, 2028 related to the lease are $7,408 and are excluded from the table above but are included in the Company's other contractual
commitments. See Note 11 - Commitments and contingencies for additional information regarding other contractual commitments.
Other supplemental cash flow information for the six months ended July 31, 2024 was as follows:
July 31, 2024
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash used for operating leases$498 
Operating cash used for finance leases409 
Financing cash used for finance leases3,275 
Right-of-use assets obtained in exchange for lease liabilities:
Operating$1,958 
Finance6,862 
Total$8,820 
(b) Phreesia as Lessor
In connection with the patient intake and registration process, Phreesia offers its customers the ability to lease PhreesiaPads and Arrivals Kiosks along with their monthly subscription. These rentals fall under the guidance of ASC 842. The Company elected the practical expedient to not separate lease and non-lease components. More specifically, all contractual hardware maintenance is included with the hardware lease components. The leases contain no variable lease payments, no options to extend the lease that are reasonably certain to be exercised, and do not give the lessee an option to purchase the hardware at the end of the lease term. Additionally, the lease term does not represent a major part of the remaining economic life of the assets, and the present value of the lease payments does not equal or exceed substantially all of the fair value of the assets. As a result, all leased hardware in the SaaS arrangements are classified as operating leases.
During the three and six months ended July 31, 2024, the Company recognized $2,324 and $4,712, respectively, in subscription and related services revenue related to the leasing of PhreesiaPads and Arrivals Kiosks.
Future lease payments receivable under operating leases were immaterial as of July 31, 2024, except for those with terms of one year or less.