Revenue

3 Months Ended

Apr. 30, 2020

Revenue from Contract with Customer [Abstract]

The Company generates revenue primarily from providing an integrated SaaS-based software and payment platform for the healthcare industry. The Company derives revenue from subscription fees and related services generated from the Company’s provider customers for access to the Phreesia Platform, payment processing fees based on patient payment volume processed through the Phreesia Platform, and from digital patient engagement revenue from life sciences companies to reach, educate and communicate with patients when they are most receptive and actively seeking care.

The amount of subscription and related services revenue recorded pursuant to ASC 842 for the leasing of the Company’s PhreesiaPads and Arrival Stations was $1,554 and $1,328 for the three months ended April 30, 2020 and 2019, respectively.

Contract balances

The following table represents a rollforward of contract assets and contract liabilities:


	Contract assets (unbilled accounts receivable)		Contract liabilities (deferred revenue)
January 31, 2020	$	676	$	5,401
Amount transferred to receivables from contract assets	(106)		—
Contract asset additions	1,183		—
Revenue recognized that was included in deferred revenue at the beginning of the period	—		(2,822)
Revenue recognized that was not included in deferred revenue at the beginning of the period	—		(350)
Increases due to invoicing prior to satisfaction or performance obligations	—		4,400
April 30, 2020	$	1,753	$	6,629

Cost to obtain a contract

The Company capitalizes certain incremental costs to obtain customer contract and amortizes these costs over the life of the contracts. Amortization expense is included in sales and marketing expenses in the accompanying statements of operations and totaled $525 and $484 for the three months ended April 30, 2020 and 2019, respectively. The Company periodically reviews these deferred contract acquisition costs to determine whether events or changes in circumstances have occurred that could impact the period of benefit. There were no impairment losses recorded during the periods presented.

The following table represents a rollforward of deferred contract acquisition costs:


	April 30, 2020
Beginning balance	$	3,314
Additions to deferred contract acquisition costs	714
Amortization of deferred contract acquisition costs	(525)
Ending balance	3,503
Deferred contract acquisition costs, current (to be amortized in next 12 months)	1,788
Deferred contract acquisition costs, non current	1,715
Total deferred contract acquisition costs	$	3,503