Core Insights - Progyny, Inc. has appointed Dr. Gloria Richard-Davis and Dr. Whitney Booker to its Medical Advisory Board, enhancing its leadership in women's health and family building solutions [2][3] Group 1: Company Developments - The addition of Dr. Richard-Davis and Dr. Booker is aimed at bringing critical insights to Progyny's work in advancing care, health equity, and research in fertility and maternal health [3] - Dr. Richard-Davis is recognized for her leadership in women's health and reproductive medicine, with a focus on health equity and has held significant academic and leadership roles [3][4] - Dr. Booker is noted for her expertise in prenatal fetal diagnosis and high-risk maternal care, contributing her research background in hypertension and cardiovascular disease in pregnancy [4][5] Group 2: Company Vision and Services - Progyny envisions a world where everyone can achieve their family and health goals, providing comprehensive, inclusive, and intentionally designed solutions that benefit employers, patients, and physicians [7] - The company's benefits solution includes concierge support, coaching, education, and access to a network of fertility and women's health specialists, aimed at driving optimal clinical outcomes and reducing healthcare costs [8] Group 3: Recognition and Impact - Progyny has been recognized as a leader in its field, receiving accolades such as TIME100 Most Influential Company and CNBC Disruptor 50, highlighting its growth and impact in women's health [9]

Company Overview - Progyny, Inc. is a global leader in women's health and family building solutions, trusted by leading employers, health plans, and benefit purchasers [3][5] - The company aims to create a world where everyone can achieve their family and health aspirations through comprehensive and inclusive solutions [3] Recent Events - Progyny's CEO Pete Anevski and CFO Mark Livingston will participate in a fireside chat at the BofA Securities 2025 Health Care Conference on May 14, 2025, at 3:00 P.M. Pacific Time / 6:00 P.M. Eastern Time [1] Services and Solutions - Progyny offers a benefits solution that includes concierge support, coaching, education, and digital tools, providing access to a premier network of fertility and women's health specialists [4] - The company's approach is designed to drive optimal clinical outcomes while reducing healthcare costs [4] Recognition and Awards - Progyny has received multiple accolades, including being named a TIME100 Most Influential Company, CNBC Disruptor 50, and recognized by Modern Healthcare, Forbes, Financial Times, and Inc. for its leadership and growth [5]

Financial Performance - Revenue for Q1 2025 was $324,038,000, an increase of 16.5% compared to $278,078,000 in Q1 2024[25] - Gross profit for Q1 2025 was $75,795,000, up 21.5% from $62,406,000 in Q1 2024[25] - Net income for Q1 2025 decreased to $15,059,000 from $16,898,000 in Q1 2024, representing a decline of 10.9%[25] - For the three months ended March 31, 2025, total revenue was $324.0 million, a 16.5% increase from $278.1 million in the same period of 2024[73] - Fertility benefits services revenue increased to $206.4 million, up 21.5% from $169.8 million year-over-year[73] - Pharmacy benefits services revenue rose to $117.6 million, a 8.5% increase compared to $108.3 million in the prior year[73] - The net income for the same period was $15.059 million, compared to $16.898 million in 2024, resulting in a basic net income per share of $0.18[102] - Adjusted EBITDA for Q1 2025 was $57.790 million, an increase from $50.291 million in Q1 2024, showing a growth of 14.9%[141] - Adjusted EBITDA for the three months ended March 31, 2025, was $57.8 million, up from $50.3 million in 2024, reflecting a significant increase in operational efficiency[147] - Gross profit rose by $13.4 million, or 21%, to $75.8 million for the three months ended March 31, 2025, with a gross margin improvement to 23.4% from 22.4%[150][151] Assets and Liabilities - Total current assets increased to $567,692,000 as of March 31, 2025, compared to $472,721,000 at December 31, 2024, reflecting a growth of 20.0%[23] - Total assets rose to $730,285,000 at the end of Q1 2025, up from $607,102,000 at the end of Q4 2024, marking an increase of 20.2%[23] - Total liabilities increased to $263,126,000 as of March 31, 2025, compared to $185,040,000 at December 31, 2024, a rise of 42.2%[23] - Cash and cash equivalents decreased to $109,239,000 from $162,314,000, a decline of 32.7%[23] - The company had $111.9 million in financial assets held in money market accounts as of March 31, 2025, down from $167.7 million at the end of 2024[76] - As of March 31, 2025, the company had cash and cash equivalents of $109.2 million and marketable securities of $146.9 million[176] Client and Market Growth - The Company serves over 530 employers, covering approximately 6.7 million lives, with a focus on expanding clients with more than 2,500 covered lives[121] - As of March 31, 2025, the company has 532 clients serving approximately 6.7 million members, an increase from 473 clients and 6.5 million members as of December 31, 2024, representing a growth of 12.4% in clients and 3.7% in members[123] - The company has diversified its client base across more than 40 different industries, up from just two industries at the launch of its fertility benefits solution in 2016[122] - The company plans to continue investing in sales and marketing to drive new client acquisition and increase brand awareness among employers[121] - The company focuses on retaining existing clients and expanding services, which is critical for revenue growth[192] Revenue Recognition and Accounting - The company recognizes revenue for its fertility benefit solution in the period when Smart Cycle services are provided, based on actual claims received and estimates for services rendered[51] - The company applies a five-step model for revenue recognition, ensuring that revenue reflects the consideration expected in exchange for services[43] - The fixed rate per Smart Cycle is included in the transaction price for the fertility benefits solution, aligning with the services provided during the contract term[47] - The company assesses whether it acts as a principal or agent in client arrangements, presenting revenue gross of amounts paid to provider clinics and specialty pharmacies[53] Expenses and Cash Flow - Operating cash flow for Q1 2025 was $49,808,000, significantly higher than $25,732,000 in Q1 2024, indicating an increase of 93.5%[34] - Sales and marketing expenses increased to $17.786 million in Q1 2025, up from $15.454 million in Q1 2024, reflecting the company's ongoing investment in growth[141] - General and administrative expenses increased by $5.4 million, or 19%, driven by higher personnel-related costs and increased bad debt expense[153] - Cash provided by operating activities was $49.8 million for the three months ended March 31, 2025, compared to $25.7 million in 2024, indicating improved cash flow generation[158][160] Acquisitions - The Company completed the acquisition of Benefit Bump LLC for $10.5 million on January 8, 2025, enhancing its parental leave benefits offerings[95] - The acquisition of Apryl GmbH was finalized on June 17, 2024, for €5.1 million ($5.5 million), aimed at expanding global offerings[98] - The company acquired Apryl GmbH in June 2024 and Benefit Bump LLC in January 2025 to expand its offerings in fertility benefits and parental leave[200] Risks and Challenges - The company operates in a highly competitive market, facing risks from established competitors with greater resources and brand recognition[185] - The company is exposed to market risks primarily due to fluctuations in interest rates, which may affect interest income and the fair market value of investments[176] - The company may encounter challenges in integrating acquired businesses, which could adversely affect its financial condition and results of operations[200] - The company’s growth strategy may be impacted by unfavorable economic conditions, including potential recessionary environments and increased interest rates[189] - Changes in laws regarding reproductive healthcare may limit the fertility services available, impacting demand for the company's offerings[218] - A reduction in demand for fertility benefits management could adversely affect the company's business and financial condition[219] Operational Insights - The company experienced a net loss of $8.6 million for the year ended December 31, 2019, but achieved profitability starting in 2020[203] - The company went live with its fertility benefits solution in 2016 and Progyny Rx in 2018, indicating a limited operating history with its current platform[202] - The company has faced significant revenue growth since 2016, but future revenue growth may not sustain historical rates due to various market risks[211] - The company expects to continue investing substantial financial and other resources, which may not lead to increased revenue growth, potentially harming profitability in the long term[212] - The company aims to attract new clients and maintain existing ones while effectively pricing solutions to expand sales and maintain profitability[213]

Core Viewpoint - Progyny reported quarterly earnings of $0.48 per share, exceeding the Zacks Consensus Estimate of $0.45 per share, and showing an increase from $0.39 per share a year ago, indicating a positive earnings surprise of 6.67% [1] - The company also posted revenues of $324.04 million for the quarter, surpassing the Zacks Consensus Estimate by 6.60% and up from $278.08 million year-over-year [2] Financial Performance - Over the last four quarters, Progyny has consistently surpassed consensus EPS estimates, achieving this four times [2] - The company has also topped consensus revenue estimates two times in the same period [2] - Progyny shares have increased by approximately 35.8% since the beginning of the year, contrasting with a -4.3% decline in the S&P 500 [3] Future Outlook - The sustainability of the stock's price movement will largely depend on management's commentary during the earnings call and the company's earnings outlook [3][4] - Current consensus EPS estimate for the upcoming quarter is $0.42 on revenues of $306.87 million, and for the current fiscal year, it is $1.62 on revenues of $1.21 billion [7] Industry Context - The Medical Services industry, to which Progyny belongs, is currently ranked in the top 22% of over 250 Zacks industries, suggesting a favorable industry outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Progyny's stock performance [5]

Financial Data and Key Metrics Changes - The company reported a revenue growth of 16.5% to $324 million in the first quarter, driven by an increase in the number of clients and covered lives compared to the previous year [17] - Adjusted EBITDA grew 15% to $58 million, with an adjusted EBITDA margin of 17.8%, slightly down from the previous year [24][25] - Net income was $15.1 million or $0.17 per diluted share, compared to $16.9 million or $0.17 per share in the prior year [25] Business Line Data and Key Metrics Changes - Fertility revenue increased by 22% to $206 million, while pharmacy revenue grew by 9% to $118 million [22] - ART cycles reached a record high of 16,160, reflecting a 9% growth year-over-year [21] Market Data and Key Metrics Changes - The CDC reported record low birth rates for women aged 25 and younger, while rates for women aged 30 to 44 increased, indicating a shift in family planning trends [8][9] - More than 51% of all births in the U.S. now come from women aged 30 or older, highlighting the increasing need for fertility and maternity services [10] Company Strategy and Development Direction - The company is focused on expanding its product portfolio and enhancing member experience, particularly in women's health and family building [6][11] - The company aims to deepen relationships with existing clients, with 20% to 25% of the base typically taking additional services [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the current engagement levels and the pipeline for new clients, despite some macroeconomic uncertainties [12][13] - The company raised its full-year revenue guidance to between $1.185 billion and $1.235 billion, reflecting growth of 1.5% to 5.8% [29] Other Important Information - The company generated nearly $50 million in operating cash flow, nearly double the prior year period [25] - Total working capital as of March 31 was $331 million, with $256 million in cash and no debt [27] Q&A Session Summary Question: Inquiry about historical seasonality of cycles per utilizer - Management indicated that the guidance reflects uncertainty rather than a change in normal seasonality [32] Question: Drivers of gross margin expansion - Management noted that last year's revenue shortfall affected margins, and they expect gross margin expansion for the full year compared to 2024 [33][35] Question: Comments on the 2026 selling season and RFP processes - Management confirmed that they are not seeing a slowdown in RFP activities and are targeting to add at least 1 million new lives each year [40][43] Question: Impact of tariffs on costs - Management stated that existing tariffs have not significantly impacted costs, and they have flexibility in arrangements with clients to mitigate potential increases [54] Question: Pricing benefits in ART cycles - Management clarified that growth is primarily driven by engagement and consumption rather than pricing [69]

Financial Data and Key Metrics Changes - First quarter revenue grew 16.5% to $324 million, primarily due to an increase in the number of clients and covered lives compared to the previous year [15] - Adjusted EBITDA increased by 15% to $58 million, with an adjusted EBITDA margin of 17.8%, slightly down from the previous year [22][28] - Net income was $15.1 million or $0.17 per diluted share, compared to $16.9 million or $0.17 per share in the prior year [22] Business Line Data and Key Metrics Changes - Fertility revenue increased 22% to $206 million, while pharmacy revenue grew 9% to $118 million [20] - ART cycles reached a record high of 16,160, reflecting a 9% growth year-over-year [19] Market Data and Key Metrics Changes - The CDC reported record low birth rates for women aged 25 and younger, while rates for women aged 30 to 44 continue to rise, indicating a shift in family planning trends [6][7] - Over 51% of all births in the U.S. now come from women aged 30 or older, highlighting the increasing need for fertility and maternity solutions [8] Company Strategy and Development Direction - The company is focusing on expanding its product portfolio and enhancing member experience, particularly in women's health and family building [5][9] - New services in maternity, postpartum, and menopause are expected to contribute up to 10% of revenue by 2028, although significant contributions are not anticipated in the near term [13][14] Management's Comments on Operating Environment and Future Outlook - Management raised full-year guidance, projecting revenue between $1.185 billion and $1.235 billion, reflecting growth of 1.5% to 5.8% [27] - The company expects continued member engagement at historical levels, despite potential variability in activity and treatments [25] Other Important Information - The company generated nearly $50 million in operating cash flow in the first quarter, nearly double the prior year period [23] - Total working capital as of March 31 was $331 million, with $256 million in cash and no debt [24] Q&A Session Summary Question: Historical seasonality of cycles per utilizer - Management indicated that guidance reflects uncertainty rather than a change in normal seasonality [30] Question: Drivers of gross margin expansion - Management noted that last year's revenue shortfall affected margins, and while they expect gross margin expansion for the full year, investments may impact margins [31][33] Question: 2026 selling season and RFP process - Management confirmed that they are not seeing a slowdown in RFP activities and are targeting to add at least 1 million new lives each year [38][43] Question: Incremental adjusted EBITDA margin - Management explained that the lower margin is due to investments in platform and product expansion, which are expected to impact the P&L this year [44] Question: Interest in new modules - The menopause product is seeing higher engagement due to a larger addressable audience compared to maternity products [47] Question: Impact of tariffs on costs - Management stated that existing tariffs have not significantly impacted costs, and potential tariffs on pharmaceuticals are not expected to affect their operations [53] Question: Pricing benefits in ART cycles - Management clarified that growth is driven by engagement and activity rather than pricing [68]

Core Insights - Progyny, Inc. reported record revenue of $324.0 million for Q1 2025, reflecting a 16.5% growth compared to $278.1 million in Q1 2024, driven by an increase in clients and covered lives [4][5][14] - The company raised its full-year guidance due to a strong start to the year and ongoing demand in women's health and family building solutions [1][16] - Member engagement remains consistent with historical levels, indicating a strong desire for family building among members [3][12] Financial Performance - Revenue for Q1 2025 was $324.0 million, a 16.5% increase from $278.1 million in Q1 2024 [4][5] - Gross profit increased by 21% to $75.8 million, with a gross margin of 23.4%, up from 22.4% in the prior year [7][14] - Net income was $15.1 million, or $0.17 per diluted share, compared to $16.9 million, also $0.17 per diluted share, in Q1 2024 [8][34] - Adjusted EBITDA rose 15% to $57.8 million, with an adjusted EBITDA margin of 17.8%, slightly down from 18.1% in Q1 2024 [9][14] Cash Flow and Financial Position - Net cash provided by operating activities was $49.8 million in Q1 2025, compared to $25.7 million in Q1 2024, attributed to higher profitability [10] - As of March 31, 2025, the company had total working capital of approximately $330.6 million and no debt, with cash and cash equivalents totaling $256.1 million [11] Client Metrics - The company had 532 fertility and family building clients as of March 31, 2025, up from 451 clients a year earlier [12] - Fertility benefit services revenue was $206.4 million, a 22% increase from $169.8 million in Q1 2024, while pharmacy benefit services revenue increased by 9% to $117.6 million [14] Guidance and Outlook - For the full year 2025, revenue is projected to be between $1.185 billion and $1.235 billion, reflecting growth of 1.5% to 5.8% [20] - The second quarter of 2025 is expected to generate revenue between $310.0 million and $325.0 million, with net income projected between $11.5 million and $14.5 million [20]

Core Viewpoint - Investors in the Medical Services sector may find GoodRx Holdings, Inc. (GDRX) and Progyny (PGNY) as potential stocks to consider, with GDRX appearing more attractive for value investors [1] Valuation Metrics - GoodRx Holdings, Inc. has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while Progyny has a Zacks Rank of 4 (Sell) [3] - GDRX has a forward P/E ratio of 9.59, significantly lower than PGNY's forward P/E of 14.46, suggesting GDRX may be undervalued [5] - The PEG ratio for GDRX is 0.86, compared to PGNY's PEG ratio of 0.94, indicating GDRX's expected earnings growth is more favorable [5] - GDRX's P/B ratio is 2, while PGNY's P/B ratio is 4.73, further supporting GDRX's valuation as more attractive [6] - GDRX's overall Value grade is A, while PGNY's Value grade is C, highlighting GDRX's stronger position in terms of value metrics [6] Earnings Outlook - GDRX is noted for its improving earnings outlook, which enhances its attractiveness in the Zacks Rank model [7]

Group 1 - Progyny, Inc. will report its financial results for the quarterly period ended March 31, 2025, on May 8, 2025, after market close [1] - A conference call will be held at 4:45 p.m. Eastern Time on the same day, with a press release issued prior to the call [1] - Interested participants can access the conference call via specific phone numbers and passcodes provided for both U.S. and international participants [2] Group 2 - An audio replay of the conference call will be available until May 15, 2025, with access details also provided [2] - A live webcast and archive of the call will be accessible from the Events and Presentations section of Progyny's website [3] Group 3 - Progyny is recognized as a global leader in women's health and family building solutions, serving leading employers and health plans [4] - The company aims to provide comprehensive and inclusive solutions that benefit employers, patients, and physicians [4] - Progyny's benefits solution includes concierge support, coaching, education, and access to a network of fertility and women's health specialists [5] Group 4 - Progyny is headquartered in New York City and has received multiple accolades for its leadership and growth, including recognition from TIME, CNBC, and Forbes [6]

Core Insights - Progyny (PGNY) has a strong track record of exceeding earnings estimates, particularly in the last two quarters, with an average surprise of 10.81% [1][2] Earnings Performance - For the last reported quarter, Progyny achieved earnings of $0.42 per share, surpassing the Zacks Consensus Estimate of $0.37 per share, resulting in a surprise of 13.51% [2] - In the previous quarter, the company was expected to earn $0.37 per share but delivered $0.40 per share, yielding a surprise of 8.11% [2] Earnings Estimates and Predictions - Recent estimates for Progyny have been increasing, with a positive Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of an earnings beat [5][8] - The current Earnings ESP for Progyny is +2.68%, suggesting analysts are optimistic about its near-term earnings potential [8] Statistical Insights - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [6] - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, reflecting the latest analyst revisions [7]