Core Viewpoint - Progyny, Inc. is facing potential claims from investors following the announcement of a significant client terminating its services agreement, which has led to a downgrade in the company's stock rating and a sharp decline in stock price [2]. Group 1: Company Developments - On September 18, 2024, Progyny disclosed that a significant client has elected to exercise a 90-day option to terminate its services agreement, effective January 1, 2025 [2]. - Following this announcement, JMP Securities downgraded Progyny from Outperform to Market Perform, citing concerns over potential lower retention rates due to the loss of its largest client [2]. - The stock price of Progyny fell sharply during intraday trading on September 19, 2024, in response to the news [2]. Group 2: Investigation and Legal Actions - Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of purchasers of Progyny securities and encourages investors to assist in the investigation [1][3]. - The firm represents investors in class actions on a contingency fee basis, meaning they will only seek reimbursement for expenses and attorneys' fees if successful [4]. - Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that has recovered hundreds of millions of dollars for investors in securities fraud class actions [5].

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 ...

Core Viewpoint - Progyny's shares fell significantly by 30.1% following the announcement of losing a major client, which is expected to impact future revenues despite no immediate financial repercussions for the current fiscal year [1][3]. Group 1: Client Relationship - The unnamed major client has had a multiyear relationship with Progyny and reported no issues regarding member satisfaction, quality of service, or outcomes during this period [2]. - There have been no disputes between Progyny and the client, indicating a smooth operational history [2]. Group 2: Financial Impact - The client accounted for 12% of Progyny's revenue over the six months ending June 30, and 13% over the twelve months ending December 31, 2023 [4]. - The loss of this client will affect Progyny's financials in the following year, although the current fiscal year remains unaffected due to the existing service agreement lasting through the end of 2024 [3][4]. - Progyny continues to project an increase in overall member count for both 2024 and 2025, suggesting potential for future growth despite the loss [4]. Group 3: Investment Considerations - The recent decline in stock price may attract some investors looking to buy on the dip, but caution is advised until there is more clarity on the company's growth prospects [5].

Core Insights - Progyny's Q2 results were disappointing, leading to a significant stock sell-off after the company lowered its full-year revenue guidance [1][16] - The company is down over 40% year-to-date and nearly 30% since the last analysis, prompting a downgrade to a "hold" rating due to management's lack of visibility on business performance [1][16] - Despite current challenges, the long-term growth thesis remains intact, supported by recent data from the company's Investor Day [1] Financial Performance - For Q2 2024, Progyny reported revenue of approximately $304 million, a 9% increase year-over-year, with fertility benefits services revenue at nearly $194 million, up 12% from the previous year [7][9] - The company expects revenue for the full year to be in the range of $1.165 to $1.2 billion, down from previous guidance of $1.23 to $1.27 billion, reflecting a growth rate of 13% to 17% [4][16] - Net income for Q2 2024 was $16.485 million, compared to $14.991 million in Q2 2023, indicating a positive trend in profitability [9] Utilization and Guidance - A significant factor in the stock price drop was a decline in user utilization levels, with estimates for 2024 utilization rates dropping to 0.95 to 0.96 from 0.99 in 2023 [4][16] - Management acknowledged the variability in utilization but could not provide clear explanations or predict its persistence, raising concerns among analysts [4][16] Growth Potential - Since going public in 2019, Progyny has expanded its client base, leading to increased revenues and a higher EBITDA margin, with a projected revenue target of over $2.4 billion and adjusted EBITDA of at least $500 million by 2028 [5][6] - The company aims to grow covered lives to 11.5 million and maintain a high retention rate of 99%, with annual spend growth for current clients at 20% [6][5] - Recent product rollouts and an acquisition of a Germany-based fertility benefits company are expected to enhance growth opportunities [6][5] Market Context - The political climate poses risks to Progyny's growth, particularly with potential changes in support for fertility services depending on election outcomes [18][17] - The increasing demand for assisted reproductive technologies, with ART use up 10% since 2010, suggests a favorable market environment for Progyny's services [6][18] Valuation - Despite the stock price drop, Progyny is still considered expensive by some metrics, although its price-to-sales ratio has declined to its lowest value this year [12][13] - Analysts expect Progyny to return to double-digit revenue growth in the coming years, with an estimated intrinsic value of over $46 per share based on conservative growth assumptions [13][15]

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 ...

Financial Data and Key Metrics - Q2 2024 revenue grew 9% YoY to $304.1 million, marking the first quarter to exceed $300 million in revenue [17] - Medical revenue increased 12% YoY to $194 million, while pharmacy revenue grew 4% YoY to $110 million [20] - Adjusted EBITDA grew 15% YoY to $54.5 million, with an adjusted EBITDA margin of 17.9%, up 90 basis points YoY [23] - Net income was $16.5 million, or $0.17 per diluted share, compared to $15 million, or $0.15 per diluted share in Q2 2023 [23] - Operating cash flow was $56.7 million, down from $76 million in Q2 2023 due to higher cash taxes and favorable working capital items in the prior year [24] - The company repurchased 5.6 million shares for approximately $160 million in Q2, reducing shares outstanding by 6% since the start of the year [25] Business Line Performance - ART cycles performed in Q2 increased 5% YoY to 15,600, with a female utilization rate of 0.47%, down from 0.50% in Q2 2023 but up sequentially from 0.46% in Q1 2024 [21] - The company expects ART cycles per unique female utilizer to remain flat or increase slightly in Q3, deviating from historical seasonal patterns [7][8] - Revenue per utilizing member is expected to be 7% lower than previously anticipated due to fewer ART cycles per utilizer [8] Market and Client Data - As of June 30, the company had 463 clients with at least 1,000 lives, representing 6.4 million covered lives, a 20% YoY increase [18] - The company expects to end 2024 with 6.5 million to 6.6 million covered lives, slightly below previous expectations due to a net reduction of approximately 100,000 lives in Q2 [19][56] - Early commitments for the 2025 selling season are pacing ahead of last year, with a high take rate for Progyny Rx and new products like menopause and maternity support [13][14] Strategy and Industry Competition - The company is focused on expanding market share through new client acquisition, maintaining high retention rates, and developing new channel partnerships [11][16] - Recent partnerships include Meritene Health, a subsidiary of Aetna, and the acquisition of April, a Berlin-based fertility benefits platform, to expand global offerings [16][17] - The company continues to differentiate itself in the market through comprehensive fertility solutions and cost containment for clients [22] Management Commentary on Operating Environment and Outlook - Management adjusted full-year revenue guidance lower by approximately 5% at the midpoint, citing lower-than-expected ART cycles per female utilizer and a net reduction in covered lives [6][9] - The company expects Q3 revenue of $290 million to $303 million and full-year revenue of $1.165 billion to $1.2 billion, reflecting 9% growth at the midpoint [26] - Management emphasized transparency in providing guidance and remains confident in the long-term strength of the business despite near-term variability [10][28] Other Important Information - The company announced an additional $100 million share repurchase program, bringing the total authorization to $260 million [25] - An Investor Day is scheduled for August 12 in New York City, featuring client panels and discussions on market opportunities [28] Q&A Session Summary Question: What is driving the volatility in ART cycles and utilization? [30][31] - Management noted that the deviation from historical patterns in ART cycles per female utilizer is not due to a decline in demand but rather a slower rate of growth than expected [32] - Factors such as higher clinical success rates, different treatment paths, or member preferences could be contributing to the trend [8] Question: How is the company thinking about the impact of economic conditions on covered lives? [33][34] - Management stated that the net reduction in covered lives in Q2 was due to normal client reporting activity and not indicative of broader economic trends [34] Question: What is the comfort level with the revised revenue guidance? [37] - Management expressed confidence in the low end of the guidance range but acknowledged the difficulty in predicting unknown variables [37] Question: How is the 2025 selling season progressing? [43] - Early commitments are pacing ahead of last year, with strong demand for new products and high retention rates among existing clients [43] Question: Are there any state-by-state trends impacting revenue? [49][75] - Management noted no significant state-by-state variances impacting revenue trends [75] Question: How are conversations with benefits consultants evolving? [77][78] - Management highlighted positive trends in conversations with benefits consultants, with increased focus on diversity, equity, and inclusion (DEI) initiatives [78] Question: What is driving the increase in revenue per ART cycle? [73][81] - The increase is attributed to higher utilization of non-ART services by members, which impacts the overall revenue per ART cycle calculation [81]

Progyny (PGNY) reported $304.09 million in revenue for the quarter ended June 2024, representing a yearover-year increase of 8.9%. EPS of $0.43 for the same period compares to $0.15 a year ago. The reported revenue represents a surprise of -1.41% over the Zacks Consensus Estimate of $308.43 million. With the consensus EPS estimate being $0.36, the EPS surprise was +19.44%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street ...

Progyny (PGNY) came out with quarterly earnings of $0.43 per share, beating the Zacks Consensus Estimate of $0.36 per share. This compares to earnings of $0.15 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 19.44%. A quarter ago, it was expected that this provider of fertility and family building benefits would post earnings of $0.14 per share when it actually produced earnings of $0.39, delivering a surprise of 178.57%. Over ...

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 the United States may access the conference call by dialing 1.866.825.7331 and using the passcode 265484. International participants may access the call by dialing 1.973.413.6106 and using the same passcode. An audio replay of the call will be available through Tuesday, August 13, 2024 and may be access ...

Dublin, July 12, 2024 (GLOBE NEWSWIRE) -- The "Assisted Reproductive Technology Global Market Opportunities and Strategies to 2033" report has been added to ResearchAndMarkets.com's offering. Where is the largest and fastest-growing market for assisted reproductive technology? How does the market relate to the overall economy; demography and other similar markets? What forces will shape the market going forward? This report answers all these questions and many more. 0 Going forward, the technological develo ...