• Revenue (Q4 2024): $298.4 million, up 11% year-over-year.
• Full Year Revenue (2024): $1.17 billion, up 7% year-over-year.
• Medical Revenue (Q4 2024): $188 million, up 9.4% year-over-year.
• Pharmacy Revenue (Q4 2024): $111 million, up 13% year-over-year.
• Gross Margin (Q4 2024): 21.3%, slight improvement from the previous year.
• Adjusted EBITDA (Q4 2024): $47.5 million, up 10% year-over-year, with a margin of 15.9%.
• Net Income (Q4 2024): $10.5 million or $0.11 per diluted share.
• Adjusted EPS (Q4 2024): $0.42, compared to $0.32 in the previous year.
• Operating Cash Flow (Q4 2024): $52.2 million, compared to $37.7 million in the previous year.
• Clients and Covered Lives (End of 2024): 530 clients and 6.7 million covered lives.
• ART Cycles (Q4 2024): More than 15,800 cycles, highest quarterly total ever.
• Female Utilization (Q4 2024): 0.48%, consistent with the previous year.
• Cash and Equivalents (End of 2024): $228 million, with no debt.

• Warning! GuruFocus has detected 2 Warning Sign with PGNY.

Release Date: February 27, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Progyny Inc (NASDAQ:PGNY) reported revenue and adjusted EBITDA for the fourth quarter above the high end of their guidance ranges.
• The company added 1.1 million new covered lives and more than 80 new logos, with 40% of these new clients adopting new services in maternity, postpartum, and menopause.
• Progyny Inc (NASDAQ:PGNY) retained 99% of its clients and expanded its partner network, including adding Cigna as its first national health plan partner.
• The company reported its ninth consecutive year of growth, with full-year revenue increasing by 7% to $1.17 billion.
• Progyny Inc (NASDAQ:PGNY) continues to invest in digital assets and product development, positioning itself for future expansion and maintaining strong market presence.

Negative Points

• The company experienced a decrease in net income for both the quarter and the year, primarily due to a higher provision for income taxes.
• Progyny Inc (NASDAQ:PGNY) lost a large client, which impacted their growth projections for 2025.
• There was a slight decrease in female utilization for the year, attributed to periods of lower consumption earlier in the year.
• The company anticipates variability in member engagement in 2025, reflecting potential challenges in maintaining consistent utilization rates.
• Progyny Inc (NASDAQ:PGNY) expects increased cash taxes and incremental capital expenditures in 2025, which may impact overall profitability.

Q & A Highlights

Q: Can you discuss the impact of Amazon's departure on your revenue guidance for 2025? A: Mark Livingston, CFO: We expect $37 million to $40 million in revenue from Amazon in the first half of the year, with about 75% of that in Q1. The program will end after the first half, and we won't reflect lives or utilization in our numbers due to different eligibility criteria for the transition program.

Q: How are you approaching the recent executive order to expand access to IVF, and what are your thoughts on your government lives contract? A: Peter Anevski, CEO: The executive order is a positive step for IVF in the U.S., focusing on access and affordability. There are no further details yet, but we see it as beneficial for the industry. Regarding government contracts, we continue to monitor developments closely.

Q: Can you provide insights into the contribution of ancillary services to revenue and profitability? A: Peter Anevski, CEO: These services are new, and we are currently engaging in member marketing with employer sponsors. We can't provide specific contribution details yet, but we will share more as we gather data.

Q: How does the departure of a large client affect your female utilization rate and overall guidance? A: Mark Livingston, CFO: The departure of a mature client with higher utilization rates results in a dilutive effect as they are replaced by new clients with typically lower first-year utilization. This dynamic is reflected in our guidance.

Q: What investments are needed to integrate Benefit Bump, and what are your expectations by the end of 2025? A: Peter Anevski, CEO: Investments focus on integrating the member experience across all assets, including navigation services from Benefit Bump and expanded global offerings. We aim to enhance the overall benefit offering and member engagement.

Q: Can you elaborate on the impact of channel partnerships on sales activity, particularly with Cigna? A: Michael Sturmer, President: Partnerships contribute significantly to our sales strategy, providing credibility and easier contracting paths. We expect continued benefits from new partnerships, including Cigna, which will evolve over time.

Q: How do you view the competitive environment and pricing dynamics in the market? A: Michael Sturmer, President: We focus on demonstrating broader value, including cost control and trend prediction, rather than competing on price alone. Short-term pricing strategies by competitors are not sustainable, and we emphasize long-term value.

Q: What is the status of your international business and opportunities for growth? A: Michael Sturmer, President: We are excited about expanding our global services, which complement our offerings for large employers. This expansion allows us to provide comprehensive solutions for entire employee populations.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.