Financial Performance - Revenue for the three months ended September 30, 2024, was $286.625 million, compared to $280.891 million in the same period in 2023[27] - Net income for the three months ended September 30, 2024, was $10.421 million, down from $15.898 million in the same period in 2023[27] - Gross profit for the nine months ended September 30, 2024, was $189.931 million, compared to $181.905 million in the same period in 2023[27] - Net income per diluted share for the nine months ended September 30, 2024, was $0.46, compared to $0.48 in the same period in 2023[27] - Total comprehensive income for the nine months ended September 30, 2024, was $41.315 million, compared to $49.914 million in the same period in 2023[29] - Net income for the nine months ended September 30, 2024, was $43.8 million, compared to $48.6 million in the same period in 2023[33] - Net cash provided by operating activities for the nine months ended September 30, 2024, was $126.9 million, down from $151.2 million in 2023[33] - The company's total stockholders' equity at September 30, 2024, was $434.9 million, compared to $515.4 million at September 30, 2023[31] - Fertility benefits services revenue for the three months ended September 30, 2024, was $178.8 million, compared to $175.1 million in the same period in 2023, representing a 2.1% increase[70] - Pharmacy benefits services revenue for the three months ended September 30, 2024, was $107.9 million, compared to $105.8 million in the same period in 2023, representing a 2.0% increase[70] - Total revenue for the three months ended September 30, 2024, was $286.6 million, compared to $280.9 million in the same period in 2023, representing a 2.0% increase[70] - Total revenue for the nine months ended September 30, 2024, was $868.8 million, compared to $818.7 million in the same period in 2023, representing a 6.1% increase[70] - Net income for the nine months ended September 30, 2024 was $43.8 million, with basic net income per share of $0.48[96] - Diluted net income per share for the nine months ended September 30, 2024 was $0.46, calculated using 95.8 million weighted-average shares[96] - Revenue increased by $5.7 million (2%) for the three months ended September 30, 2024, driven by growth in fertility benefits and Progyny Rx solutions[142] - Cost of services increased by $9.1 million (4%) for the three months ended September 30, 2024, primarily due to higher medical treatment and pharmacy prescription costs[143] - Gross profit decreased by $3.4 million (5%) for the three months ended September 30, 2024, with gross margin declining 160 basis points to 20.7%[144][145] - Sales and marketing expense increased by $1.5 million (10%) for the three months ended September 30, 2024, driven by higher personnel-related costs[146] - General and administrative expense increased by $0.8 million (3%) for the three months ended September 30, 2024, due to incremental headcount[147] - Interest and other income, net increased by $2.8 million (101%) for the three months ended September 30, 2024, primarily due to higher interest income[148] - Provision for income taxes increased by $2.5 million (50%) for the three months ended September 30, 2024, due to reduced tax benefits for equity compensation[149] - Net income for the three months ended September 30, 2024, was $10.4 million, compared to $15.9 million in the same period in 2023[141] - Adjusted EBITDA for the three months ended September 30, 2024, was $46.5 million, compared to $50.0 million in the same period in 2023[141] - Revenue increased by $50.1 million, or 6%, to $868.8 million for the nine months ended September 30, 2024, driven by a $37.1 million (7%) increase in fertility benefits solution revenue and a $13.0 million (4%) increase in Progyny Rx solution revenue[150] - Cost of services increased by $42.1 million, or 7%, to $678.9 million for the nine months ended September 30, 2024, primarily due to higher medical treatment and pharmacy prescription costs, as well as increased personnel-related costs[151] - Gross profit increased by $8.0 million, or 4%, to $189.9 million for the nine months ended September 30, 2024, while gross margin decreased by 30 basis points to 21.9% due to higher personnel-related costs[152][153] - Sales and marketing expenses increased by $3.8 million, or 8%, to $48.3 million for the nine months ended September 30, 2024, primarily due to higher personnel-related costs and stock-based compensation[155] - Interest and other income, net increased by $7.8 million, or 130%, to $13.9 million for the nine months ended September 30, 2024, driven by higher interest income[157] - Provision for income taxes increased by $15.9 million, or 271%, to $21.7 million for the nine months ended September 30, 2024, due to higher operating profit and reduced tax benefits for equity compensation[158] - Net cash provided by operating activities was $126.9 million for the nine months ended September 30, 2024, compared to $151.2 million in the same period in 2023, primarily due to changes in accounts receivable and prepaid expenses[162][163] - Net cash provided by investing activities was $120.8 million for the nine months ended September 30, 2024, primarily from net proceeds of $129.6 million from marketable securities, partially offset by $5.3 million used for a business acquisition[167] - Net cash used in financing activities was $253.6 million for the nine months ended September 30, 2024, primarily due to $245.2 million in share repurchases under the February, May, and August 2024 share repurchase programs[168] Stock and Compensation - Stock-based compensation expense for the nine months ended September 30, 2024, was $97.3 million, up from $93.8 million in 2023[33] - The company repurchased $245.2 million worth of common stock in the nine months ended September 30, 2024[33] - The Company repurchased 9,133,895 shares of common stock under share repurchase programs during the nine months ended September 30, 2024, at an average price per share of $27.09 and a total cost of $249.8 million[86] - Total stock-based compensation expense for the three months ended September 30, 2024, was $33.2 million, compared to $31.3 million in the same period in 2023[87] - Total stock-based compensation expense for the nine months ended September 30, 2024, was $97.3 million, compared to $93.8 million in the same period in 2023[87] Marketable Securities and Investments - Purchase of marketable securities in the nine months ended September 30, 2024, was $170.3 million, compared to $263.0 million in 2023[33] - Sale of marketable securities in the nine months ended September 30, 2024, was $300.0 million, up from $158.8 million in 2023[33] - Cash and cash equivalents at the end of September 30, 2024, were $91.5 million, down from $158.1 million at the end of September 30, 2023[33] - The Company had $95.0 million in financial assets held in money market accounts as of September 30, 2024, compared to $35.2 million as of December 31, 2023[72] - The Company had $144.2 million in marketable securities, including U.S. treasury bills, as of September 30, 2024, compared to $273.8 million as of December 31, 2023[72] - Interest income on cash and cash equivalents and marketable securities for the three months ended September 30, 2024, was $8.9 million, compared to $10.4 million for the nine months ended September 30, 2024[72] - Unrealized gains on marketable securities for the nine months ended September 30, 2024 were $4.6 million, net of tax expense of $1.7 million[89] - As of September 30, 2024, the company had $91.5 million in cash and cash equivalents and $144.2 million in marketable securities, with sufficient liquidity to support operations for at least the next 12 months[159] - Cash and cash equivalents amounted to $91.5 million, and marketable securities totaled $144.2 million as of September 30, 2024[182] - A hypothetical 10% change in interest rates would not materially impact the company's consolidated financial statements[182] Business Operations and Strategy - The company's largest clients account for a significant portion of revenue, with a significant number of clients in the technology industry[12] - The company's growth depends on maintaining strategic relationships with third parties, including channel partners and vendors[16] - Progyny operates in one segment, providing fertility benefits solutions and pharmacy benefits solutions[36] - Progyny launched Progyny Rx, a pharmacy benefits solution, effective January 1, 2018, providing members with access to medications needed during fertility treatment, including care management services and timely delivery through a network of specialty pharmacies[37] - Progyny's fertility benefits solution generates revenue through a per employee per month (PEPM) administration fee and a fixed rate per Smart Cycle, with revenue recognized ratably over the contract term[47] - The pharmacy benefits solution, offered as an add-on to the fertility benefits solution, includes a PEPM administration fee and a fixed fee per fertility drug, with revenue recognized when prescriptions are filled and delivered[53] - Progyny's contracts typically have a three-year term with termination options after the first year, allowing clients to terminate with 30 to 90 days' notice[44] - The company estimates accrued receivables and claims payable based on historical experience, with adjustments made at the time of billing, and these adjustments have not been material[58] - Progyny's revenue recognition follows a five-step model, including identifying contracts, performance obligations, transaction price, allocation, and recognition when obligations are satisfied[43] - The company currently provides coverage to approximately 6.4 million employees and their partners (covered lives)[100] - Progyny's fertility benefits solution has a Net Promoter Score (NPS) of +80 as of December 31, 2023[100] - Live birth rate per attempted retrieval for Progyny members is 44.4%, significantly higher than the national average of 35.5%[101] - Single embryo transfer rate for Progyny members is 93.9%, compared to the national average of 75.5%[101] - IVF multiples rate for Progyny members is 1.9%, significantly lower than the national average of 6.9%[101] - The company currently serves over 465 employers with at least 1,000 covered lives in the United States, representing approximately 6.4 million covered lives[107] - The member base grew from approximately 110,000 members in 2016 to approximately 6.4 million members as of September 30, 2024[115] - The number of Assisted Reproductive Treatment (ART) cycles performed for Progyny members was 14,911 in Q3 2024 and 45,275 for the nine months ended September 30, 2024[118] - The utilization rate for all members was 0.54% in Q3 2024 and 1.10% for the nine months ended September 30, 2024[118] - The average number of members was 6,444,000 in Q3 2024 and 6,381,000 for the nine months ended September 30, 2024[118] - The company's current member base of approximately 6.4 million covered lives represents a mid-single digit percent of the total market opportunity of 106 million potential covered lives[113] - The company served 468 clients as of September 30, 2024, up from 392 clients as of December 31, 2023[113] - The company's revenue has both a utilization-based component and a population-based component, with PEPM fees representing 1% of total revenue for the nine months ended September 30, 2024 and 2023[109] - The company's fertility benefits solution revenue includes amounts received directly from members, such as deductibles, co-insurance, and co-payments associated with treatments[122] - The company's pharmacy benefits solution revenue includes prescription fees negotiated with clients, including the portion collected directly from members[123] - 91% of current clients have adopted the Progyny Rx solution, with approximately 98% of clients signed in 2023 launching the solution[201] - The company currently serves over 465 employers with at least 1,000 covered lives in the United States across more than 40 industries[205] - For the nine months ended September 30, 2024, one client accounted for 12% of total revenue, compared to 13% for the same period in 2023[205] - No other clients accounted for more than 10% of total revenue for the nine months ended September 30, 2024 and 2023[205] - The company was notified in Q3 2024 that the major client elected to terminate its services agreement effective January 1, 2025[205] - Client contracts are generally multi-year in duration, but early termination or failure to renew could negatively impact revenue and growth strategy[205] - A significant portion of revenue is generated from clients in the technology industry, making the company vulnerable to industry changes[205] - Potential risks include workforce reductions, employee attrition, economic changes, mergers, and reduced spending on benefits programs[205] - Clients may renegotiate pricing terms at contract renewal, which could negatively impact revenue[205] Regulatory and Market Risks - The COVID-19 pandemic and similar health epidemics could continue to adversely impact the company's business and operations[13] - The company operates in a highly regulated industry and must comply with complex and evolving legal and regulatory requirements[17] - The healthcare regulatory and political framework is uncertain and evolving, which could adversely impact the company's business[18] - The company faces interest rate risk due to fluctuations influenced by U.S. monetary policies, economic factors, and other uncontrollable variables[181] - Inflation has not had a material effect on the company's business, financial condition, or results of operations, but significant inflationary pressures could harm future performance[183] - The company's market risk exposure primarily stems from fluctuations in interest rates, which could affect interest income and the fair market value of investments[180] - The fertility benefits market is highly competitive, with competitors potentially developing more efficient or appealing solutions, which could harm the company's market position[195] - The company's ability to retain clients and expand services depends on factors such as pricing, outcomes, and the ability to maintain its Center of Excellence network[202] - Consolidation in the healthcare industry could lead to competitors with greater market power, potentially impacting the company's ability to retain clients or grow its client base[197] - Unfavorable global economic conditions, including inflation, interest rate fluctuations, and regulatory changes, could negatively affect the company's growth and results of operations[198] Acquisitions and Expansion - Completed acquisition of Apryl GmbH for €5.1 million ($5.5 million) on June 17, 2024 to expand global fertility benefits offerings[92]

SAN DIEGO, Nov. 08, 2024 (GLOBE NEWSWIRE) -- Shareholder rights law firm Johnson Fistel, LLP is investigating whether Progyny, Inc. (NASDAQ: PGNY) or others violated securities laws by misrepresenting or failing to timely disclose material adverse to investors. The investigation focuses on investors’ losses and whether they may be recovered under federal securities laws. What if I purchased Progyny securities? If you purchased securities and suffered losses on your investment, join our investigation now: Cl ...

NEW YORK, Oct. 29, 2024 (GLOBE NEWSWIRE) -- Progyny, Inc. (Nasdaq: PGNY), a transformative fertility, family building, and women’s health benefits solution, will report its financial results for the quarterly period ended September 30, 2024 after the close of the market on Tuesday, November 12, 2024. The company will host a conference call at 4:45 P.M. Eastern Time (1:45 P.M. Pacific Time) and issue a press release regarding its financial results prior to the start of the call. Interested participants in th ...

SAN FRANCISCO, Oct. 21, 2024 (GLOBE NEWSWIRE) -- Fertility benefits provider Progyny, Inc. (NASDAQ: PGNY) is under intense scrutiny following the unexpected announcement of a major client’s departure. Shareholder rights firm Hagens Berman has launched a probe into the company's disclosures regarding its client retention rates. The firm urges Progyny investors who suffered substantial losses to submit your losses now. The firm also encourages persons with knowledge who may assist the investigation to contact ...

I last covered Progyny (NASDAQ: PGNY ) in June, recommending a buy after they reported Q1'24 and the market punished the shares with a 15% decline. After reporting Q2'24 on the 6th of August, the shares declined another 19%. To top it off, management I'm in the last year of my law PhD on the topic of corporate wrongdoing. My main focus in equity research is following up on companies that have been targeted by activist short sellers. I have found these interesting because:i) they are typically undercovered - ...

NEW YORK, Sept. 20, 2024 (GLOBE NEWSWIRE) -- Attorney Advertising--Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of purchasers of Progyny, Inc. ("Progyny" or "the Company") (NASDAQ: PGNY). Investors who purchased Progyny securities are encouraged to obtain additional information and assist the investigation by visiting the firm's site: bgandg.com/PGNY. Investigation Details On September 18, 2024, Progyny disclosed in a filing with the U.S. Securities and Exchange Commission ...

SAN FRANCISCO, Sept. 19, 2024 (GLOBE NEWSWIRE) -- Hagens Berman urges Progyny, Inc. (NASDAQ: PGNY) investors who suffered substantial losses to submit your losses now. The firm also encourages persons with knowledge who may assist the investigation to contact its attorneys. On September 18, 2024, after the market closed, Progyny announced that it "was recently notified by a significant client (the 'Client') that the Client has elected to exercise a 90-day option to terminate its services agreement with the ...

One of Progyny's big clients is bailing on the fertility solutions provider. Shares of Progyny (PGNY -29.86%) were crashing 30.1% lower as of 11:22 a.m. ET on Thursday. The steep decline came after the fertility benefits provider disclosed in a regulatory filing that it was losing an unnamed major client. Progyny said that the client "confirmed they had no issues of concern over the course of its multiyear relationship with the Company, including member satisfaction or quality of service or outcomes." It al ...

DjelicS/E+ via Getty Images Progyny's (NASDAQ:PGNY) Q2 results were less than stellar, as the stock sold off significantly after lowering their full-year revenue guidance. Currently, Progyny is down over 40% YTD and down nearly 30% since my last article. I believe the company's long-tern thesis is still on track, and I'll diseuss the data presented from the company's recent Investor Day, which may calm some anxious Progyny shareholders I haven't given up on the company yet, but I'm downgrading my rating to ...

Progyny's second-quarter earnings weren't what the market wanted, but there's no reason to panic just yet. Shares of leading fertility benefits specialist Progyny (PGNY -20.51%) dropped 19% as of 1 p.m. EDT on Wednesday, according to data provided by S&P Global Market Intelligence. While Progyny beat analysts' expectations for $0.40 in adjusted earnings per share (EPS) by $0.03, its revenue of $304 million was ever-so-slightly below the consensus of $305 for the second quarter. However, what really seemed t ...