Progyny Tops EPS Forecast, Eyes Growth

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$0.32 in Q4 2023 [3][6]. - Adjusted EBITDA for the quarter was $47.5 million, reflecting a 9.9$43.2 million in the previous year [3]. - Operating cash flow improved to $52.2 million, a 38.5$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].