Q1 2022 Phreesia Inc Earnings Call
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Hello. This is your operator for today's call is scheduled to begin momentarily again your line will be on music hold.
Until the conference speaking thank you for your patience.
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Good morning, ladies and gentlemen, and welcome to fresher fiscal first quarter 2022 earnings for for it.
At this time all participants are in a listen only mode. We will provide instructions for the question and answer session to follow first I would like to introduce Blotchy Gandhi Senior Vice President Investor Relations for Fresher. Mr. Gandhi you may begin.
Thank you operator.
Good morning, and welcome to free just earnings conference call for the fiscal first quarter of 2022, which ended on April 30th for 2021.
Joining me on today's call are free she was chief Executive Officer and co founder.
And Chief Financial Officer, Randy Rasmussen.
Complete disclosure of our results can be found in our earnings press release issued yesterday evening.
Well as in our related form 8-K submission to the SEC.
Our 8-K filing includes the first installment of our quarterly stakeholder letter, which we are implementing to provide additional information about free just during the quarter in advance of our earnings call to provide greater efficiency to our earnings reporting process for the benefit of our stakeholders.
All of these documents are available on the Investor Relations section of our website at IR, Todd free Joe Dot Com.
As a reminder, today's call's being recorded and a replay will be available following the conclusion of the call.
During today's call we will make forward looking statements within the meaning of section 27, a of the Securities Act and section 21 E of the Securities Exchange Act.
Although we believe that the expectations reflected in these forward looking statements are reasonable these statements relate to future events for our future operational or financial performance and involve known and unknown risks uncertainties and other factors that may cause our actual results performance or achievements to be materially different.
For many future results performance or achievements.
Breast or implied by these forward looking statements.
Furthermore, actual results may differ materially from those described in the forward looking statements and will be affected by a variety of risks and factors that are beyond our control, including without limitation statements about our future financial performance, including our revenue cash flows cost of revenue and operating expenses.
Our anticipation of growth for our predictions about our industry the impact of the COVID-19 pandemic on our business and our ability to attract retain and cross sell to health care provider clients.
<unk> are also subject to other risks and uncertainties, including those more fully described in our filings with the SEC, including in our quarterly report on form 10-Q that will be filed with the SEC later today.
Forward looking statements made on this call speak only as of the date on which the statements are made.
We undertake no obligation to update and expressly disclaim any obligation to update any forward looking statements to reflect events or circumstances. After the date of this call for to reflect new information for the occurrence of unanticipated events, except as required by law.
We will also refer to.
Certain financial measures not in accordance with generally accepted accounting principles in order to provide additional information to investors.
Non-GAAP measures should be considered in addition to and not as a substitute for or in isolation from our GAAP results for <unk>.
Reconciliation of GAAP to non-GAAP results may be found in our earnings press release.
And supplemental materials, which were furnished with our form 8-K filed after the market closed on June 3rd with the SEC and May also be found on our Investor Relations website at IR day for Asia Dot Com.
As a reminder, we are participating on today's call for 3 different locations. So we appreciate your patience with us.
I will now turn the call over to our CEO Jaime.
Thank you Bilal Aziz oldest of free Joe we're.
We're looking forward to enjoying the summer with the hope that the biggest hardships of the pandemic are behind US we carried the momentum from our strong finish to fiscal 'twenty 'twenty 1 to the first quarter of fiscal year 'twenty 'twenty..2 I hope everyone has had a chance to review our earnings press release and quarterly letter operator can we open the call up for Q&A. Please.
At this time, if anybody would like to ask a question. Please press star 1 on your telephone keypad I can't that would be star 1 on your telephone keypad.
Your first question comes from Anne Samuel from Jpmorgan. Your line is open.
Hey, guys congrats on a great quarter and thanks for the new format.
It's great.
I was hoping you could maybe talk a little bit about balancing investment in growth because you've been investing a lot in your growth. This year, it's really starting to show up nicely in the results, but you know how should we be thinking about you know moving forward leveraging the P&L on a on a faster growth rate.
Okay.
Yes.
I'll take that question.
I guess before I start Jaime do you want to say anything.
No no go ahead Randy.
Yeah, I think as we look long term we really.
It's important that we invest in our business as we bring on new clients that we support the current growth we have and we look forward to the growth that we have.
The coming year and for next year that follows.
We really look at these investments from a capital allocation perspective and say.
Does it make sense for our business and whereas relative.
Top line I think in the longer term, we still have a goal of a 20% EBITDA margins, but we look out farther to reach that goal.
That makes a lot of sense and then maybe just 1 on you know that the move into the acute market.
I'm just wondering if maybe you could give us a little bit of color on how intake looks different there maybe relative to some of the ambulatory clients you have today and how we should be thinking about how that'll impact your P. P. P. M. I would imagine it's a little bit more complex.
The workflow and the use cases and the acute hospital market are very very different.
Then the ambulatory workflows you have.
High number of unscheduled patients, which makes a ton of sense.
To have tools to be able to identify which patients are coming into with records.
You have to be able to triage emergency issues. So.
So that you instantly stop any type of intake if there's any type of critical health condition, and how and when you ask for dollars is very very different and frankly some of that.
Those are different grades you get massive peaks early in the morning.
People come in for surgery, So, we've really been investing heavily in being able to meet.
Managed all the variability in these hospital workflows 1 of the.
The other things we've seen in the hospital too is people often.
Shoot.
Customer experience issue right you might go into a hospital for multiple appointments, where you might have to go win and get your would be broker that you might go into see the Doctor and then they'll send you to get an X ray and the experience of having to checking each time and still have the same people were every time. There's also something we've sold for so.
It's a multifaceted complex did.
Visit for visits that you go to them and we've really been investing heavily in those and yes. It has changed the profile of our customers.
Great very helpful. Congrats on a great quarter guys.
Thanks, Tim.
And your next question will come from Brian Daniels from William Blair. Your line is open.
Yeah, guys. Thanks for taking the questions and agree with the new format really appreciate that.
1 for you if you think about the market reopening on the ambulatory side I'm curious what that's doing to your pipeline I think consumers post COVID-19 definitely have different expectations for digital health and convenience and touchless check ins are you starting to see that manifest aggressively in the pipeline.
I think we have seen.
The interest in what we've been doing every year for the past 15 years grow right and you know them.
I I sort of look at this as something that I believe most consumers have been expecting and now the demand. So we have seen.
Consumer interest rapidly change, but it also I think there's another dynamic happening in health care right now that I think is really important which is those those conversations that everyone for having us having around wages going up a buck or 2 well it's happening at the front desk too when we talk to our clients. They are having a hard time filling.
Those seats that they need to fill in the salaries are going up so they're also being forced to look for.
Technology and productivity tools to give them the operating leverage because unlike chipotle.
Can't raise your prices right. It's just not possible. So we're also seeing just a ton of demand for practices.
And health care organizations health systems trying.
Trying to figure out how to get operating leverage.
So it's been very we've seen it sort of come from all sides.
1 of the reasons why we're investing so heavily.
Yeah.
Then at least for my next question is they do change their focus and really need to drive engagement drive satisfaction increase operating margins clearly a huge amount of challenges in that end market are there any specific products for viewers that are resonating more than others outside of the core module or any areas that you think you can invest.
And to further drive those efficiencies for providers. Thanks, guys.
I already got I'd say, Ryan I'm, a little biased.
Inc.
All of the things, we do drive massive value just some very like some part of the market.
And if we didn't think they were valued but we wouldn't be investing in them and for cross across the war. The board, we're trying to move work to the patient.
And whether that's appointments or whether that's putting someone on a payment plan or whether that's automating consent forms or taking your picture. Like these are all things that just frankly, it's about time that had happened and we're pretty excited that we can help make the difference.
Clarifying I don't think they're trying to improve margins I think theyre trying to maintain them.
Alright, I think running a health care organization in America is a tough business, but we're just trying to do whatever we can help them.
Yeah.
And your next question will come from Ryan Macdonald from Needham Your line is open.
Hi, Thanks for taking my question and congrats on a great quarter I would be curious to hear how our Q doctor is starting to resonate with your customers and in conversations youre having for expansion opportunities.
So.
Q Doctor was an acquisition we made.
End of last fiscal year.
We've since integrated the product offering to a bunch of our different offerings..1 other core off 1 of their core pieces, it's now called accelerator.
Part of our offering and it's been it's been very very well accepted by our client base and by net new clients and that team has just been a wonderful addition to for Asia.
Yeah.
As I see what we're doing I can't tell where their product is in free jet anymore, just because a lot of other things that they were doing and are doing are now just becoming part of the core offering. So we're really excited.
We couldn't have asked for a better team to join us and.
We were very happy with the early the early days for this.
Excellent and as a follow up.
You saw some really great growth in new clients in the quarter, you've obviously made a lot of investments in this area. With addition of Str's can you talk about what's driving that improved productivity is it is it sort of just those STR is getting up to speed more quickly than you expected or perhaps sales tactics that are maybe more given.
The marketplace than say they were 12 months ago.
I see.
We continue to invest in our go to market initiatives, whether its STR and sales folks.
And implementation our customer success team and I think it's the reason we had the quarter, we had as all of those teams across the board.
Really leaned into our go to market and they are just incredible.
For individuals that work really really well together that our STR team is we think 1 of the best around at least in health care and.
As a SaaS organization, we're going to keep investing in it we're over 140 <unk> now and the only sad thing is I haven't met most of them in person.
Forward to look forward to meeting, but they're doing a great job our sales org is doing a great job.
<unk> team is doing a great job in our CSM for just keeps growing too and we keep investing and making sure that we do right by our clients.
Excellent congrats again.
Thanks, Mike.
Yeah.
Your next question will come from Scott Scott Haas from Stephens. Your line is open.
Hey, thanks.
Hi, Randy and <unk> congrats on the excellent results.
I guess my first question is on the revenue guidance. If you could provide any color on the kind of breakdown in growth between provider clients versus revenue per provider client that's baked into the guide for the year that.
That would be helpful, particularly given both stats really accelerated this quarter.
Yes, Matt Thanks, Thanks for the question.
When you look at our revenue outlook.
<unk> on the top line don't provide.
The average number per provider clients, where the average revenue per provider client I think.
1 thing to keep in mind, we raised the low end of the guidance from $178 million.
$9 million, which is approximately $13 million on the low end of the guidance and on the high end of the race.
The guidance from $186 million to $194 million, which is approximately $8 million.
And if you look at the high end of the amendment.
So we're really talking about 30% year over year growth and I think there's a couple of things to keep in mind as we look at the guidance.
First 1 on payments payment revenue is subject to seasonality as this revenue is driven by the volume that patients pay.
And you also have to keep in mind that there's a annual rollover of insurance deductibles. So patient spending is higher earlier in the calendar years and when we look at payments remember last year was the big Covid impact.
You know this quarter its higher due to increased level of payments compared to that quarter and as we look at the remainder of this year.
There is less predictability in patient volume due to the disruption.
That we've experienced from COVID-19 over the past 15 months.
Thanks for Andy That's helpful. My next question is for you.
You have.
$450 million of cash on the balance sheet. What are your plans for capital allocation. What are you seeing on the M&A front are you targeting more bolt on software modular similar to your acquisition of Q Doctor. Thank you.
Yes.
I think what we've done is we have a fairly rigid and thoughtful capital allocation thesis and.
We've explained doing Todd is all of our operators at the senior level and we've said here's the things that matter to us and here's how we're thinking about growing and here's how it matters to all of our stakeholders.
And.
Please keep your eye out for things that help us do that organically or inorganically and.
And if we we.
We really continue to leverage the experience and knowledge of all of our leaders appreciate we have a better opportunities for executing which is better.
And integrating for better and making anything we do really have a shot of clear success. So our view is not do we have a lot of cash on the balance sheet.
Whether it was $200 million or $300 million of 450 on like we still have the same views on how we.
Use the capital.
And it's been it's really.
Could we use thoughtfully.
Thank you guys congrats on the results again.
Just a reminder, in the essence of time, if you could keep your questions to 1 and then jump back in the queue for a second 1 that would be great just for the make sure we get everybody in to get their questions.
Next question comes from Donald Hooker from Keybanc. Your line is open.
Yes.
Hey, great good morning, and congrats on the numbers in the quarter.
So you guys have a have a clearly have a land and expand strategy. So when I can you help help us think about your current provider client base, maybe qualitatively or quantitatively you have a little over 1900 provider clients now I think that compares to 1600 or so last year.
Any kind of difference in terms of a white space there now versus before I know, you're adding new types of clients, but just help us think about kind of the white space opportunity in the new wave of provider clients.
Thanks.
I'll try to give some color to that we've been adding clients.
Small medium large health systems, we've been landing health systems, and large clients, we've been expanding them aggressively, but we wouldn't have been able to.
For the quarter, we had if it wasn't.
The entire like we just said the organization fired on all cylinders this quarter and being able to take practices and health systems and organizations of all sizes live and support them.
And also took for cross selling upsell, sorry, I cant Donna can express that Mike is just the plethora of we would not have been able to add per quarter. We had if we hadn't.
Seeing the full gamut, it's mostly been ambulatory, but we've also taken a fair number of hospitals lines. So I don't know.
Know how else to describe that it's been it was just really really intense quarter and I'm really proud of this organization.
Thank you.
Your next question will come from Joe <unk> from Baird. Your line is open.
Oh, Great Hi, everyone, Hi, there was a comment in the shareholder letter about being impressed with new products coming from the R&D or got free and then separately David when that ski was on a podcast recently just discussing all the ways for us.
That's been able to engage patients in a more personalized way I guess my question.
Do you think the company's platform has achieved a certain scale and network, where the feedback loop is now accelerating and this drives faster innovation.
Okay.
Yeah.
Alright, so that was like you're stuck in slide 4 questions there.
It's pretty it's actually very impressive so I'll try to answer a couple of them without getting too many ingrid <unk> from velocity.
Give everyone their return.
So.
I think that day.
David that's key.
He is articulating something that we have seen which is our ability to deliver very targeted health care messages that are relevant to people and be able to to.
And and communicate with them is starting to really pay off and those are investments we've been making for for years, we've been fairly open about that Mike whether it's to a chat or.
Our investments in data science.
<unk> will be able to engage them in data collection or appointments or enrolling in programs like <unk>.
We've been saying is it's working and we're going to keep investing in it because both it it makes the product better. It makes the health care experience better. It provides a phenomenal ROI to all of our stakeholders.
I.
I really think the organization has just embraced the idea that we are moving towards a scale capacity, where we can do things you couldn't do before is a smaller business.
In terms of investing in new product were good.
R&D investment that we're making is really because we believe.
And then if you build great product and put it in the hands of people you drive great return they become happy clients and you get to monetize that and the more.
<unk>, we do that the more times that thesis has proved correct.
We have to monetize it with our subscription and payments in our life Sciences clients and it's been really it's been very wonderful to see the net effect of just a great product organization tied to our go to market team.
I'm pretty excited about that.
Great. Thank you very much.
Sure.
Your next question will come from John Ransom from Raymond James Your line is open.
Hey, Yeah good morning.
So if we think about the guidance raise that the beat its about $5 million at the midpoint is that.
Just talk about I know you don't break out revenue, but I'm just curious the seasonality the seasonality all.
Paul pretty much on the payment side does that really the amount of spending in the payment revenue the big upside to our model. So should we infer from that there is some pull through and you're expecting a little bit of moderation because of some other things that you mentioned.
Yeah, John I mean, the seasonality is primarily in the payment space and as I mentioned, it's really driven on the way that patients pay which is always higher at the beginning of the year.
And you know as I said before we did increase the low end of the range by $13 million.
Okay. Thank you.
And your next question will come from Ken Abate from D. A Davidson your line is open.
Hi, guys. Thanks for taking the question, it's great to see such success with both land and expand on the provider client side hiring plans you have inside the sales organization to continue to support those new client wins as well as cross selling upsell them.
I think we're going to <unk>.
Communicated that.
We're going to hire.
More str's share isn't going to transitioning sales or the sales org and expect that to be fairly aggressive we're going to continue to hire and interest in our.
<unk> and our CSM organizations, and we're going to continue to invest aggressively in our life Sciences organization too.
So.
At the same time.
Our marketing team has also done a great job of driving demand.
<unk>.
I'd say that.
For investment, we're going to aggressively invest as fast as we can over the next handful of corridor quarters too to be able to continue to.
You've ourselves.
Increased market share.
Great. Thanks.
Your next question will come from Richard close from Canaccord Genuity. Your line is open.
Great. Thanks for the.
Questions congratulations on the quarter in the new format as well so.
I guess my first question here is on the pace payment facilitator volume percentage, you talked about that moderating.
Can you just provide any context in terms of where you see that.
As maybe a normalized rate over time.
Yes. Thank you Richard for the question I think when you look at our payment facilitator, we have clients that use us in different ways. Some of us some of the clients use us to process the full payment, which goes through the payment facilitator model and then others will just use us as a gateway.
And then we're picking up the revenue share based on payment that you'll see in the payment facilitator model.
It really depends on the size of the practice and the health system on how they use us.
Generally larger.
Lions are using gateway so as we move.
2 larger clients, we will see that that percentage drop.
Okay.
And then maybe.
Maybe on the new products that you discussed in the letter Im just curious.
With respect to vaccine management I know you provided some data in there, but I was just curious if there was any other.
You know qualitative.
Information with respect.
How does that offering drove engagement.
By clients' customers.
Those that use debt versus those that didn't and are you able to use that type of information to go back to other clients and really illustrate.
Impact of something like that.
I think the way we think about it is true yes, we do measure engagement.
We.
We measure usage, we measure.
Value.
At the end of the day, if you build really good products and they make a difference to patients and providers.
We're doing the right thing right, it's not always about taking 1 thing too like most of these providers are looking for.
US specifically to help them.
Doing what they do is pretty hard.
I'll be referencing.
What came in helping set.
Just wanted to help them, especially in around Covid, We just wanted to help people for.
First test then.
First screen, then test than we wanted to make sure that we gave them the tools to get people in for vaccination.
Really care about hesitancy like we want to make sure. Most of this population we wanted to help them do everything they can tell this population of ours.
Back to needed as fast as possible because it's just the right thing.
I would like to go back to a free world, where we're not all wearing masks.
Unnecessarily.
Great. Thank you and congratulation yours, Thanks for me.
The next question will come from Jessica.
Sean from Piper Sandler Your line is open.
Hi, Thank you for taking my question.
And maybe if you could give an update in terms of where the opportunity lies in the acute care market.
And is there an opportunity on the payment processing or life sciences underneath that.
Or is the acute care market, primarily an opportunity on the subscription and related services.
Yes.
We mostly view the acute care opportunity as a 2 day as a subscription.
Opportunity at around $2 billion available Tam.
From our own calculation does that mean, we havent or won't win some payments and we will do some work on life Sciences, no, but the vast majority is subscription for us today and if that changes.
We will communicate to our stakeholders why and how that's changed.
Awesome, if I can sneak in maybe if you guys could provide any color on the acute care market assumptions underlying our revised guidance range for their contribution to revise guidance.
Hey, Jeff. This is Bob are you talking about the Tam the time referenced.
I would just the run rate.
In the acute care market the assumptions underlying that sales channel.
Yes.
That's not something we've talked about.
I think we've just said I think Jaime per.
For 1 in earlier question just talked about the breadth that we saw in the quarter across all different areas.
Certainly have made some progress.
In the acute care space as well, but I think that's really all.
Ready to share at this point.
Got it thank you.
And your next question will come from Sean Dodge from RBC capital markets. Your line is open.
Hey, Good morning. This is Thomas color on for Sean Thanks for taking the question.
Just following up on the life Sciences business can you give us a sense of the mix driving the strength now and how do you expect to see it trending going forward.
Lean more toward effective targeting new clients or new campaigns from existing clients any more clarity there would be helpful.
So I think first and foremost I think the strength continues to be delivered by just a phenomenal team.
Alright.
All through it for life sciences, or whether it's our sales our clients acquiring team.
Our.
Data scientists.
We've really that's just been wonderful wonderful just how they work together and how they work for their clients and our clients has been for meaningful and then as we think about product investments.
Just a meaningful pay off and we expect that to continue as we invest more in those products.
When we say investment, we think sort of thinking about it for years.
Not so much months, but we do expect.
There should be continued growth.
Life Sciences for.
Alright, Thanks, a lot I appreciate it.
Yeah.
Your next question comes from Daniel <unk> from Citi. Your line is open.
Hi, guys. Thanks for taking the question and I'll add my congrats on a strong start to the year I'd like to go back to the acceleration in payment volume you saw this quarter, particularly.
The warehousing effect, we might have seen as patients that delayed care last year seem to be coming back stronger than I expected. In your guidance are you. Assuming this is kind of a 1 time blip of other warehousing effect or do you expect to see these sustained levels of.
High volume throughout the year, and I guess tangentially tangentially to that.
Are you seeing any benefit from from vaccinations, I know youre, giving away the modules vaccination modules for free and patients don't bear responsibility for for their vaccination, but is there any secondary.
Impact you might be seeing from.
Vaccination.
So I'll start with the last day, and then I'll, let Randy answer all the other stuff.
So.
I will keep stressing that the single biggest benefit we get is by doing the right thing.
And look we had good BD resources from other projects.
To help the vaccination FERC.
But I'd say the biggest benefit has been that we've helped our practices help their patients and when you do the right thing.
And I think it's very important when you do the right thing I believe more often than not you've got outsized benefits.
From your team and from your clients.
We will continue to try to do that.
Been able to.
And we've been able to do that.
I feel pretty I feel pretty lucky that we were in a position.
With stakeholders that have empowered us to be able to help everyone.
General sense and yes, we do believe long term, we will get benefits because this is the type of client.
Partnership that our clients want to work with.
People enter health care, because they wanted to make a difference that Randy.
Yes, Dan I think your question was about seasonality.
Year over year.
Impact of payments I think.
When we look at it I don't think we really know.
Why the patient is coming back this particular quarter, if it's regular seasonality patterns that we see which is a major part of it right, where there's higher payments of the patient responsibility in the earlier part of the year there could be.
A delayed visit for the Doctor, but we really don't know so I think when we look forward.
For the rest of the year.
There is some unpredictability based on the pandemic that we've seen that's really disrupted patient visits over the past 15 months.
Got it okay. So so on that unknown piece for the rest of the year the assumption in your guidance is that.
We're not going to see the same.
Amount.
Volume that you saw in <unk>.
In terms of growth acceleration.
Danny Nowadays.
I don't know specific revenue lines, but there is a seasonality factor where the payment revenue is higher in the first quarter.
Yep got it alright, thanks, guys.
And your next question will come from Stephanie Davis from SP B Leerink. Your line is open.
Hey, guys congrats on the quarter and thank you for taking my question.
Since merchant acquiring tends to be viewed as more of a commodity with a relatively low level of stickiness are you looking at any strategy to capture the merchant volume processing relationship for guaranteed clients, especially maybe taking advantage of the vendor consolidation trend that goes on in the hospital and beyond that could you look at could you.
Tell us through any of the Ah.
Expansions youre looking at for your solution suites, and capture a larger share of wallet.
I snuck into those high velocity.
So I'll answer them sort of combined which is I don't think we.
Make a point of articulating what our go to market strategies are.
Other during before or after.
Other than to say that I think we feel pretty comfortable that we've articulated.
Think pretty clearly that we think in the acute market, we won't be aggressively going after payments.
Not in the near term and if anything changes I promise we will.
We will communicate it but look I think that those relationships right or wrong or off from tied up with very different folks in treasury.
Or often tied to lending arrangements with banks.
And I think that's very different than what you often see in sort of the other vertical I ratio opinions for anywhere.
Things are still using the the large banks are still using their treasury relationships to try to capture the vast majority of.
The payment revenue. So I think 1 other things. We think is very important is to also acknowledge where we want to spend resources to win.
Share right and we think this is a huge market.
Where we allocate resources and spin capital is an area, where we think we could.
Share in market share aggressively with great returns.
And a quick follow up on that there has been a lot of M&A in the payment side of the state.
Especially touching on the acute ambulatory system.
There are.
Any impact to your strategy, possibly for that market demand.
All of these deals.
I don't think our strategy has changed whatsoever, but we know most of these companies for a decade.
Dave.
So no I don't think our strategy has changed with M&A.
For the talking about.
For the Tau for Horizon.
We just keep doing up there.
It looks like our thing keeps working so I'm going to help us keep to 1 other thing.
Okay.
And your next question will come from David Larsen from <unk>. Your line is open.
Hey, congratulations on a good quarter.
Can you, maybe just give a little more color around COVID-19 related impact to.
Volume like are your physician office client volumes back up where they were pre pandemic or are they even slightly higher and then with the sales force I know that there was like some hesitancy during the pandemic to call on a physician practices because they were busy dealing with COVID-19 are all of your salespeople now still.
Selling and are they visiting the practices or is it still sort of remote thanks very much.
I think let me clarify like our our salespeople has been out selling.
Aggressively for quarters, and they have not been on planes at all so they're out.
Loans doing webcast and really reaching out to practices.
Health systems and.
I don't think we would have had the quarters we had.
We have our salespeople and our CRM implementation team hadn't been.
Aggressively working with.
With practices to get them on for Asia.
So look I.
Just I don't know Mike Congrats.
Congrats to our team and all the managers that help onboard all these folks as we've ramped up but you don't know I don't think.
I don't think we've communicated that our sales team hasnt been.
Salary.
Okay.
No we have not.
Okay, just Chuck I just wanted to thank you for clarifying that was misconception.
Okay, and then our volume is back up where they were pre pandemic.
I don't think we've communicated 2 volumes other than I think we put out a report to come work for him and said it was within 5%.
I wanted to say for some time in January so it's fair for luxury.
Yeah, I think I read through the early February and then obviously.
David do you ever for results to look at as well, but there is some correlation with payment volumes.
Okay, and then just 1 last quick 1 the cost came in a little bit higher than I was expecting quite.
Quite frankly.
Sales and marketing.
R&D and then also.
G&A, just any any thoughts around.
What your expected trend is for those those line items going forward for the rest of the year. Thanks.
Yeah, I mean, I think as we articulate before or we continue to invest.
Investing for growth.
We invest robustly in product and sales and marketing and it's also important as we bring on new clients to make sure that we have implementation and support resources.
We expect to continue to make those investments.
Okay, great. Thanks very much.
This brings us to the end of today's Q&A session I will now turn the call back over to the presenters for closing remarks.
I just wanted to take this opportunity to thank everyone at for Asia.
Oliver.
Clients.
All of our shareholders for everyone's support and we're really proud of what we just did this past quarter and we look forward to work for everyone.
The next couple of months of the year.
Hope everyone gets vaccinated, if you havent already and.
I look forward to seeing everyone soon enough.
Thank you everyone. This will conclude today's conference call you may now disconnect.
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For the moment.
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Yes.
Non-GAAP.
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