Shares of leading fertility benefits manager Progyny (PGNY -19.09%) were down 19% as of 4 p.m. ET on Wednesday, according to data provided by S&P Global Market Intelligence.

The upstart healthcare company reported its results for the third quarter yesterday, missing analysts' expectations on the top line, delivering only 2% growth during the third quarter. Making matters worse, Progyny didn't assuage the market's fears by guiding for Q4 sales growth of only 1.5% at the midpoint, prompting many Wall Street experts to lower their price targets on the stock.

Progyny's worrisome quarter

During the third quarter, Progyny grew its member count by a promising 19% to 6.4 million lives covered. However, due to sequentially lower utilization rates between Q2 and Q3 -- which CEO Peter Anevski says the company has never seen before -- the company's revenue growth was nowhere near expectations.

The loss of one of its largest customers (believed to be Amazon) also played a role in this sales miss, but management believes it only accounted for 1.4 percentage points' worth of the decline in growth. Since Progyny's revenue growth rates have slowed from triple digits as recently as 2020 to barely positive today, the market seems somewhat justified in sending the company's shares down 79% from their all-time highs.

Despite this slowdown, however, Progyny remains the leader in its fertility niche. With the Centers for Disease Control and Prevention (CDC) estimating that 1 in 5 couples struggle with infertility across the United States -- up from 1 in 8 in 2019 -- Progyny's offerings grow more necessary by the day.

Trading at 22 times this year's earnings and 9 times next year's, Progyny could be a steal for investors if it can continue growing its member count, return to average utilization rates, and maintain its status as the best-in-class provider.