Release Date: February 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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.
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