Core Viewpoint - Progyny reported strong fourth-quarter results, with revenue and adjusted EPS exceeding analysts' expectations, but concerns remain due to the loss of a significant client [2][6]. Financial Performance - Revenue for Q4 2024 reached $298.4 million, surpassing the estimated $277 million, marking a 10.6% increase from $269.9 million in Q4 2023 [3][6]. - Adjusted EPS was $0.42, significantly higher than the expected $0.10 and up 31.3% from $0.32 in Q4 2023 [3][6]. - Adjusted EBITDA for the quarter was $47.5 million, reflecting a 9.9% increase from $43.2 million in the previous year [3]. - Operating cash flow improved to $52.2 million, a 38.5% increase from $37.7 million in Q4 2023 [3]. Business Overview - Progyny is a leader in reproductive health and fertility benefits, focusing on innovative plans that enhance treatment access and outcomes [4]. - The company emphasizes a data-driven approach and integrated pharmacy benefits, providing holistic support to members during their fertility journeys [4]. Client and Market Dynamics - The client base expanded to 473, up from 392 a year prior, contributing to revenue growth [6]. - Despite growth, the company faced challenges, including the loss of a major client, which may impact future projections [7]. Future Outlook - For 2025, Progyny projects revenue growth of 1% to 5%, estimating total revenue between $1.175 billion and $1.225 billion [9]. - Management anticipates adjusted EBITDA in the range of $188 million to $201 million, with net income forecasted between $45 million and $53.9 million [10].

Financial Data and Key Metrics Changes - Revenue for Q4 2024 grew 11% to $298.4 million, while full-year revenue increased 7% to $1.17 billion, marking the ninth consecutive year of growth [23][24] - Adjusted EBITDA for Q4 rose 10% to $47.5 million, yielding a margin of 15.9%, and for the full year, adjusted EBITDA increased 6% to $198.8 million with a margin of 17% [35][36] - Net income for Q4 was $10.5 million or $0.11 per diluted share, compared to $13.5 million or $0.13 per share in the prior year [36] Business Line Data and Key Metrics Changes - Medical revenue increased 9.4% in Q4 to $188 million and grew 7.9% for the full year to $730 million [28] - Pharmacy revenue rose 13% in Q4 to $111 million and grew 6% for the full year to $438 million [28] Market Data and Key Metrics Changes - As of December 31, the company had 473 clients with at least 1,000 lives, averaging 6.5 million covered lives in Q4, up from 392 clients and 5.4 million covered lives a year ago [25] - The company entered 2025 with over 530 clients and 6.7 million lives under contract, despite the loss of a large client [27] Company Strategy and Development Direction - The company is focusing on expanding its product offerings in maternity, postpartum, and menopause, with 20% of existing clients and 40% of new clients adopting these services [16][10] - The strategy includes integrating recent acquisitions to enhance the member experience and improve the overall service delivery model [20][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential, citing ongoing trends in family building and women's health as key drivers [11][10] - The company anticipates variability in member engagement in 2025 but remains optimistic about maintaining a strong growth trajectory [43][42] Other Important Information - The company plans to invest approximately $15 million in capital expenditures for digital solutions and integration of recent acquisitions in 2025 [41] - The operating cash flow for Q4 was $52.2 million, compared to $37.7 million in the prior year [38] Q&A Session Summary Question: Impact of Amazon lives rolling off on guidance - Management expects about $37 million to $40 million in revenue from the transition period related to the Amazon client, primarily in Q1 [49] Question: Thoughts on recent executive order expanding access to IVF - Management views the executive order positively, as it aims to protect access and affordability in the IVF sector [52] Question: Contribution of ancillary services to revenue - Management indicated that it is too early to quantify the revenue contribution from new ancillary services, as member marketing efforts are still underway [55] Question: Female utilization rate and impact of large client leaving - Management explained that the departure of a mature client with a higher utilization rate is expected to dilute overall utilization metrics temporarily [62] Question: Investments needed for integrating BenefitBump - Investments will focus on enhancing the member experience and integrating various services to provide a cohesive offering [65] Question: Competitive environment and pricing strategies - Management emphasized their focus on delivering broader value rather than competing solely on price, noting that aggressive pricing strategies by competitors are often short-term [127][128]

Progyny, Inc. (NASDAQ:PGNY) Q4 2024 Earnings Conference Call February 27, 2025 4:45 PM ET Company Participants James Hart - Investor Relations Pete Anevski - Chief Executive Officer Mark Livingston - Chief Financial Officer Michael Sturmer - President Conference Call Participants Anne Samuel - JPMorgan Michael Cherny - Leerink Partners John Pinney - Canaccord Genuity Scott Schoenhaus - KeyBanc Jailendra Singh - Truist Securities Allen Lutz - Bank of America Sarah James - Cantor Constantine Davides - Citizen ...

Core Insights - Progyny, Inc. reported a quarterly revenue of $298.4 million, reflecting a 10.6% growth compared to the previous year, marking the tenth consecutive year of revenue growth [1][8][12] - The company generated $52.2 million in quarterly operating cash flow and provided financial guidance for 2025, projecting revenue growth of 1% to 5% [1][28] - The CEO highlighted improved member engagement trends as the company enters its tenth year in the market, emphasizing the unique approach to value-based care [2][3] Financial Highlights - **Fourth Quarter 2024 Results**: - Revenue: $298.4 million, up 10.6% from $269.9 million in Q4 2023 [4][8] - Gross Profit: $63.4 million, an 11% increase from $56.9 million in Q4 2023 [9] - Net Income: $10.5 million, or $0.12 per diluted share, down from $13.5 million, or $0.13 per diluted share in Q4 2023 [10][11] - Adjusted EBITDA: $47.5 million, a 10% increase from $43.2 million in Q4 2023 [11] - **Full Year 2024 Results**: - Revenue: $1,167.2 million, a 7.2% increase from $1,088.6 million in 2023 [12] - Gross Profit: $253.4 million, up 6.1% from $238.8 million in 2023 [13] - Net Income: $54.3 million, or $0.57 per diluted share, down from $62.0 million, or $0.62 per diluted share in 2023 [14] - Adjusted EBITDA: $198.8 million, a 6.2% increase from $187.1 million in 2023 [15] Cash Flow and Financial Position - Net cash provided by operating activities for 2024 was $179.1 million, compared to $188.8 million in 2023 [17] - As of December 31, 2024, the company had total working capital of approximately $304.1 million and no debt [18] - The company repurchased 3,248,298 shares for $52.5 million in Q4 2024, totaling 12,382,193 shares repurchased in 2024 [22] Client and Market Metrics - The company had 473 clients as of December 31, 2024, compared to 392 clients a year earlier [23] - Fertility benefit services revenue was $187.5 million in Q4 2024, a 9% increase from $171.3 million in Q4 2023 [19] - Pharmacy benefit services revenue was $111.0 million in Q4 2024, a 13% increase from $98.6 million in Q4 2023 [19] Financial Outlook - For the full year 2025, revenue is projected to be between $1.175 billion and $1.225 billion, with net income expected to be between $45.0 million and $53.9 million [28] - For Q1 2025, revenue is projected to be between $300.0 million and $318.0 million, reflecting growth of 8% to 14% [28]

Core Viewpoint - The market anticipates Progyny (PGNY) will report a year-over-year increase in earnings driven by higher revenues for the quarter ending December 2024, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - Progyny is expected to post quarterly earnings of $0.37 per share, reflecting a year-over-year increase of +15.6%, with revenues projected at $280.37 million, up 3.9% from the previous year [3]. - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst expectations [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate for Progyny is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +0.18%, indicating a bullish outlook from analysts [10]. - A positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3, which increases the likelihood of a positive surprise to nearly 70% [8]. Historical Performance - Progyny has a history of exceeding consensus EPS estimates, having beaten expectations in the last four quarters, including a +8.11% surprise in the most recent quarter [12][13]. Conclusion - Progyny is positioned as a compelling candidate for an earnings beat, but investors should consider other factors influencing stock performance beyond earnings results [16].

Core Viewpoint - Progyny, Inc. will report its financial results for the fourth quarter and full year of 2024 on February 27, 2025, and will host a conference call to discuss these results [1] Company Overview - Progyny is a transformative solution for fertility, family building, and women's health benefits, trusted by leading employers and health plans [4] - The company aims to enable individuals to achieve their family and health aspirations through comprehensive and inclusive solutions [4] Financial Reporting - The financial results will be announced after market close on February 27, 2025, followed by a conference call at 4:45 p.m. Eastern Time [1] - An audio replay of the conference call will be available until March 6, 2025 [2] Access Information - U.S. participants can join the conference call by dialing 1.866.825.7331, while international participants can call 1.973.413.6106, using the passcode 265484 [2] - A live webcast and archive of the call will be accessible on the company's website [3]

Core Viewpoint - Progyny (PGNY) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][2]. Earnings Estimates and Stock Price Movement - The change in earnings estimates is a powerful factor affecting near-term stock price movements, with institutional investors using these estimates to determine fair value [3]. - Progyny's rising earnings estimates and the subsequent rating upgrade suggest an improvement in the company's underlying business, likely leading to an increase in stock price [4]. Zacks Rank System - The Zacks Rank system effectively utilizes earnings estimate revisions to classify stocks into five groups, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [6]. - The Zacks rating system maintains a balanced distribution of 'buy' and 'sell' ratings, ensuring that only the top 20% of stocks are recognized for superior earnings estimate revisions [8][9]. Specifics on Progyny's Earnings Estimates - For the fiscal year ending December 2024, Progyny is expected to earn $1.57 per share, reflecting a 12.1% increase from the previous year, with a 6.1% rise in the Zacks Consensus Estimate over the past three months [7].

Core Viewpoint - Progyny (PGNY) is well-positioned to continue its earnings-beat streak in the upcoming report, having a history of exceeding earnings estimates, particularly in the last two quarters with an average surprise of 13.78% [1][3]. Earnings Performance - In the last reported quarter, Progyny achieved earnings of $0.40 per share, surpassing the Zacks Consensus Estimate of $0.37 per share, resulting in a surprise of 8.11% [2]. - In the previous quarter, the company was expected to post earnings of $0.36 per share but delivered $0.43 per share, yielding a surprise of 19.44% [2]. Earnings Estimates and Predictions - There has been a favorable change in earnings estimates for Progyny, with a positive Zacks Earnings ESP (Expected Surprise Prediction), indicating a strong likelihood of an earnings beat [3][6]. - 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 [4]. Earnings ESP Metric - The current Earnings ESP for Progyny is +0.56%, suggesting analysts are optimistic about its near-term earnings potential [6]. - A negative Earnings ESP reduces predictive power but does not necessarily indicate an earnings miss [6]. Importance of Earnings ESP - Many companies beat consensus EPS estimates, but this is not the sole reason for share price gains; some stocks may remain stable even if they miss estimates [7]. - It is crucial to check a company's Earnings ESP before quarterly releases to enhance the chances of successful investment decisions [7].

Core Insights - Progyny, Inc. has acquired BenefitBump to enhance its parental leave benefits navigation program, aiming to provide comprehensive support for families from pregnancy to early childhood [1][3] - The acquisition is part of Progyny's strategy to address the needs of parents, with 90% of parents seeking more support to manage work and home responsibilities [2][4] Company Overview - Progyny is a transformative solution in fertility, family building, and women's health benefits, trusted by leading employers and health plans [5][6] - The company offers concierge support, coaching, education, and access to a network of specialists, driving optimal clinical outcomes and reducing healthcare costs [6][7] Enhanced Service Offerings - The integration of BenefitBump will provide high-touch, guided support, easing the complexities of navigating employee benefits and leave programs for new parents [3][4] - The enhanced suite of services will include clinical social worker-led parental wellness programs, comprehensive parental leave navigation, and clinician-facilitated peer support groups [8]

Company Overview - Progyny, Inc. (NASDAQ:PGNY) is a transformative solution for fertility, family building, and women's health benefits, trusted by leading employers and health plans [5][6] - The company aims to empower patients through concierge support, coaching, education, and access to a premier network of specialists, driving optimal clinical outcomes while reducing healthcare costs [6] Leadership Appointment - Debra Morris, a 30-year healthcare industry veteran, has been appointed to Progyny's board of directors effective January 16, 2025 [1][2] - Morris currently serves as President of AccessHope and has previously held the position of EVP and CFO at Apria Healthcare, showcasing her ability to navigate complex industry challenges [2] Strategic Impact - The CEO of Progyny, Pete Anevski, emphasized that Morris's expertise in scaling organizations and understanding healthcare systems will be invaluable as the company expands its services [3] - Morris expressed her personal connection to the mission of Progyny, highlighting the company's innovative model and commitment to empowering women and families [3] Recognition and Growth - Progyny has received multiple accolades, including being named a TIME100 Most Influential Company and a CNBC Disruptor 50, reflecting its leadership and growth in the industry [7]