Progyny(US:PGNY)2021-08-08 09:41Financial Data and Key Metrics Changes - Revenue in Q2 2021 nearly doubled to $128.7 million, reflecting a 99% increase compared to the same quarter last year [12][28] - Adjusted EBITDA increased nearly fivefold to $18.5 million, with an adjusted EBITDA margin of 14.4%, up 850 basis points from the previous year [12][33] - Net income was $18.7 million, or $0.19 per share, compared to a net loss of $1.1 million, or $0.01 per share, in the year-ago period [33] Business Line Data and Key Metrics Changes - Medical revenue grew to $92.3 million, while pharmacy revenue increased to $36.4 million, both doubling from the second quarter last year [29] - ART cycles performed in Q2 reached a record 7,340, more than double the number from the same period last year [12][30] - Average members for the quarter grew over 30% to 2.8 million, compared to 2.1 million in the same quarter last year [12][29] Market Data and Key Metrics Changes - The company had 182 clients as of June 30, 2021, representing an average of 2.8 million covered lives, reflecting a 31% growth in lives over the last year [29] - The female utilization rate increased to 0.47% from 0.32% a year ago, although the previous year's rate was impacted by the pandemic [30] Company Strategy and Development Direction - The company aims to expand market share through new client acquisition, retain existing clients, and deepen relationships through upsells [18] - The management believes that the current competitive position is the strongest ever, with a robust market opportunity and positive macro factors supporting growth [10][39] - The company is focused on achieving exceptional client retention and expanding service offerings for 2022 [9][39] Management's Comments on Operating Environment and Future Outlook - Management noted a slight reduction in expected utilization for Q3 due to a drop in appointment scheduling, which they believe is a short-term anomaly [11][12] - The company expects Q3 revenue to be between $121 million to $130 million, reflecting a growth of 22% to 31% over the prior year [35] - For the full year, revenue guidance has been adjusted to $510 million to $530 million, indicating growth of 48% to 54% over the prior year [36] Other Important Information - The company has maintained a high level of member satisfaction, reflected in an industry-leading NPS score [16] - The management highlighted the importance of proven outcomes in fertility treatment, which significantly outperform national averages [14] Q&A Session Summary Question: Can you provide more color on utilization and its recovery? - Management indicated that utilization is rebounding but has not fully recovered yet, with expectations for improvement in the back half of the year [44][45] Question: Are you seeing more clients without fertility benefits looking to add them? - The company noted that about two-thirds of new clients have had some level of benefit in the past, with a significant number still lacking coverage [46] Question: What is the reason for the drop in revenue per ART cycle? - The drop is attributed to a change in the mix of services provided, rather than a fundamental change in pricing [50][52] Question: What are the expectations for same-store member growth next year? - Management expects to see normalized levels of same-store growth, similar to previous years [53] Question: How does the current utilization disruption impact future revenue guidance? - The guidance reflects a slight reduction in expected utilization, with the company projecting a 2% to 5.5% decrease for the full year [55] Question: Can you provide insights on geographic market performance? - The company observed inconsistent performance across markets, with some areas seeing a drop in scheduling while others are improving [66] Question: How often do you see abrupt changes in scheduling? - Abrupt changes in scheduling are rare outside of COVID, and the recent drop is viewed as a short-term anomaly [69]