Why Progyny Stock Crashed Today

Core Insights - Progyny's shares fell by 19% following disappointing Q3 results, missing analysts' expectations for revenue growth [1][2] - The company reported only 2% growth in Q3 and projected a mere 1.5% growth for Q4, leading to lowered price targets from Wall Street experts [2] - Despite a 19% increase in member count to 6.4 million, lower utilization rates contributed to the revenue shortfall, a situation not previously encountered by the company [3] Financial Performance - Progyny's revenue growth has significantly slowed from triple digits in 2020 to nearly flat today, with a notable decline attributed to the loss of a major customer, likely Amazon, which impacted growth by 1.4 percentage points [4] - The company's shares have decreased by 79% from their all-time highs, reflecting market concerns over its growth trajectory [4] Market Position - Progyny remains a leader in the fertility benefits sector, with increasing relevance as CDC data indicates that 1 in 5 couples in the U.S. face infertility issues, up from 1 in 8 in 2019 [5] - The stock is currently trading at 22 times this year's earnings and 9 times next year's, suggesting potential value for investors if the company can stabilize growth and utilization rates [6]