Phreesia's (PHR) catalyst for Q3 is the performance for its network solutions business, with the company expected to update its full-year guidance during its next earnings report, RBC Capital Markets said in a Thursday note.

Noting network solutions' $38.3 million revenue contribution in Q2, RBC said that early traction with ProviderConnect remains encouraging but campaigns are largely pilots at this stage.

RBC said that it sees next opportunity for upside in Q4 during the upfront selling season, where Phreesia will attempt to capture higher total addressable market of about $5 billion by selling ProviderConnect alongside the traditional book.

RBC maintained its outperform rating with a $19 price target on the company's stock.

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