Financial Data and Key Metrics Changes - Second quarter revenue grew 9.5% year-over-year to $332.9 million, primarily due to an increase in the number of clients and covered lives [20] - Adjusted EBITDA grew 6% to $58 million, with an adjusted EBITDA margin of 17.4%, a slight decline from the previous year [28] - Net income was $17.1 million, or $0.19 per diluted share, compared to $16.5 million, or $0.17 per diluted share in the prior year [28] Business Line Data and Key Metrics Changes - Fertility benefits revenue increased 11% year-over-year to $214 million, while pharmacy revenue increased 8% to $119 million [26] - Nearly 17,000 ART cycles were performed in the quarter, a 9% increase over the second quarter last year [26] - Female utilization was 0.48%, slightly above the second quarter of the previous year [25] Market Data and Key Metrics Changes - As of June 30, the company had 542 clients with at least 1,000 lives, representing an average of 6.74 million covered lives, compared to 463 clients and 6.41 million covered lives a year ago [21] - The company expects to approach 6.8 million covered lives following additional client launches [22] - The diversity of clients across various industries provides insulation from sector-specific activities [24] Company Strategy and Development Direction - The company aims to expand market share through new client acquisition, maintain high client retention, and attract partners to enhance distribution reach [6][7] - Recent acquisitions, such as Benefit Bump, have been integrated to enhance service offerings [12] - The company is focused on expanding its product portfolio and enhancing member experience through technology and partnerships [18] Management's Comments on Operating Environment and Future Outlook - Management noted healthy member engagement levels consistent with historical patterns and raised full-year guidance due to strong first-half results [5][34] - The company anticipates continued growth in ART cycles and has modestly increased full-year utilization assumptions [32] - Management expressed confidence in achieving revenue growth of 5.8% to 8.8% for the full year, excluding the impact of a large former client [34] Other Important Information - The company generated $55.5 million in operating cash flow in the second quarter, highlighting strong cash flow conversion [29] - The company has no debt and entered into a revolving credit facility for additional liquidity [30] - The integration of new services, such as pelvic floor therapy, is expected to enhance overall women's health offerings [15] Q&A Session Summary Question: Is the commentary around the selling season and early commitments on a gross basis? - Management confirmed it is on a gross basis, excluding the large client contribution from both years [36] Question: Are smaller clients signing up for multiple services while larger clients take longer to decide? - Management clarified that the sales year started slower but caught up in June and July, with large clients also closing deals [40][41] Question: Is there a difference in expected revenue based on the demographics of new clients? - Management indicated that the demographics yield a higher expected revenue based on the industries of new clients [60][71] Question: How is the growth of Progyny Rx compared to fertility benefits? - Management stated that growth in Progyny Rx is more about timing and expects it to be close to medical by the end of the year [44] Question: Can you provide insights on the mix of services and pricing? - Management noted that there was nothing significant to call out regarding the mix this quarter compared to prior periods [76] Question: Has the company ever had clients that left and then returned? - Management confirmed that there have been instances of clients returning, although no specific names were mentioned [81]