Progyny, Inc. Announces Fourth Quarter 2024 Results

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]