NASDAQ$PGNY

Progyny Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Progyny's Q1 2024 financial results reflected revenue growth driven by increased clients and covered lives, but were impacted by unfavorable treatment mix shift and national conversations regarding fertility treatments. The company also returned value to shareholders through share repurchases.

Progyny's Q1 2024 revenue increased by 7.6% to $278.1 million, driven by growth in clients and covered lives. Net income was $16.9 million, or $0.17 per diluted share. The company repurchased 723,577 shares for $26.4 million during the quarter.

  • Revenue increased by 7.6% year-over-year to $278.1 million.
  • Net income was $16.9 million, or $0.17 per diluted share.
  • Adjusted EBITDA increased by 8% year-over-year to $50.3 million.
  • The company had 451 clients as of March 31, 2024, compared to 379 clients as of March 31, 2023.

Headline financials

Total Revenue

$278M

Previous: $258M+7.6%
EPS (adj)

$0.17

Previous: $0.18-5.6%
Capital Expenditures

-$850K

Previous: -$1.25M+32.1%
Free Cash Flow

$16M

Previous: $16.4M-2.3%
Net Income

$16.9M

Previous: $17.7M-4.4%
Operating Income

$18.5M

Previous: $15M+23.4%
Gross Profit

$62.4M

Previous: $58.6M+6.4%
Stock-Based Comp

$31.1M

Previous: $30.8M+0.8%

Revenue & EPS history

Progyny · Revenue · Quarterly

$278M

Q1 2024+7.6%vs Q1 2023
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Progyny · $281M total across 2 segments · Q3 2023

  • Fertility Benefit Services
    $175M+35.4%
  • Pharmacy Benefit Services
    $106M+39.0%

Forward guidance

The Company is providing the following financial guidance for the full year ending December 31, 2024 and the three-month period ending June 30, 2024:

Tailwinds

  • Revenue is projected to be $300.0 million to $310.0 million, reflecting growth of 7% to 11%
  • Net income is projected to be $15.7 million to $17.8 million, or $0.16 to $0.18 per diluted share
  • Adjusted EBITDA is projected to be $52.0 million to $55.0 million
  • Adjusted earnings per diluted share is projected to be $0.39 to $0.41
  • Revenue is now projected to be $1,230 million to $1,270 million, reflecting growth of 13% to 17%

Headwinds

  • Net income is projected to be $68.4 million to $75.4 million, or $0.68 to $0.75 per diluted share
  • Adjusted EBITDA is projected to be $216.0 million to $226.0 million
  • Adjusted earnings per diluted share is projected to be $1.61 to $1.68
  • Utilization is now slightly lower than the record levels we saw in 2023
  • Guidance has always been based on the utilization we are currently seeing, which informed our previous view of 2024

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

-1.1%

Avg return

Earnings day

-0.3%

Avg return

5 days after

-0.2%

Avg return

30 days after

38%

11 / 29 earnings

Positive

+26.4%

Q2 2022

Best reaction

-20.5%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.5%+25.4%+38.2%
Q4 2025-20.5%-20.0%-22.4%
Q3 2025+24.3%+33.6%+33.4%
Q1 2025-9.7%-6.5%-7.2%
Q4 2024-1.5%-5.2%-4.3%
Q3 2024-18.5%-19.3%-12.9%
Q2 2024-17.7%-14.7%-6.4%
Q1 2024-14.4%-14.6%-14.2%
Q4 2023-13.1%-9.7%-4.3%
Q3 2023-4.3%-2.1%+17.8%
Q2 2023+4.9%-2.8%-8.6%
Q1 2023+9.3%+5.9%+16.8%
Q4 2022+22.9%+18.4%+7.7%
Q3 2022-2.6%+2.0%-13.8%
Q2 2022+26.4%+25.5%+15.4%
Q1 2022-7.1%-15.6%-23.1%
Q4 2021+11.5%+13.0%+31.6%
Q3 2021+2.5%+5.8%-22.2%
Q2 2021-12.8%-17.1%+4.3%
Q1 2021-3.2%-8.7%+18.4%
Q4 2020-15.5%-14.9%-14.4%
Q3 2020-0.3%+7.0%+38.7%
Q2 2020+0.4%+8.4%-0.9%
Q1 2019-2.4%+4.8%-13.7%
Q1 2020+21.8%+18.8%+2.1%
Q4 2017-3.7%-6.3%-8.3%
Q4 2019-12.2%-15.5%-39.0%
Q4 2018-0.2%-5.0%-7.0%
Q3 2019+0.5%+0.3%-6.5%
Q2 2019
Q3 2018
Q2 2018
Q1 2018

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