NASDAQ$PGNY

Progyny Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Progyny demonstrated resilience with double-digit revenue growth and strong profit margins amidst the COVID-19 pandemic.

Progyny, Inc. reported a 15% increase in revenue for the second quarter of 2020, despite the negative impact of COVID-19 on treatment volumes. The company's revenue reached $64.6 million, driven by growth in both fertility and pharmacy benefit services. While the company experienced a net loss of $1.8 million, patient return to treatment was faster than expected, and the company issued revenue guidance of $323.0 to $340.0 million for the full year 2020.

  • Revenue increased by 15% year-over-year to $64.6 million.
  • Fertility benefit services revenue grew by 1.3% to $46.3 million.
  • Pharmacy benefit services revenue surged by 75% to $18.3 million.
  • Net loss was $1.8 million, a decrease of $3.3 million from the prior year period.

Headline financials

Total Revenue

$64.6M

Previous: $56.2M+15.0%
EPS (adj)

-$0.02

Previous: $0.02-207.3%
Total Clients

134

Previous: 80+67.5%
Utilization Rate - All

0.3%

Previous: 0.5%-34.0%
Utilization Rate - Female

0.3%

Previous: 0.5%-30.4%
Capital Expenditures

-$791K

No prior period
Free Cash Flow

-$2.6M

No prior period
Net Income

-$1.81M

Previous: $1.52M-219.2%
Operating Income

-$1.82M

Previous: $2.35M-177.3%
Gross Profit

$12M

Previous: $11.5M+4.4%
Cash & Equivalents

$49.4M

No prior period
Total Assets

$178M

No prior period
Stock-Based Comp

$3.54M

No prior period

Revenue & EPS history

Progyny · Revenue · Quarterly

$64.6M

Q2 2020+15%vs Q2 2019
Beat estimate in 5 of 8 quarters(63%)
ActualEstimate

Revenue by segment

Progyny · $64.6M total across 2 segments · Q2 2020

  • Fertility Benefit Services
    $46.3M+1.3%
  • Pharmacy Benefit Services
    $18.3M+74.3%

Forward guidance

Progyny issued revenue guidance of $323.0 to $340.0 million for the full year 2020, reflecting growth of 41% to 48%. Revenue guidance of $88.0 to $95.0 million was issued for the third quarter of 2020, reflecting growth of 44% to 55%.

Tailwinds

  • Full Year 2020 Revenue is projected to be $323.0 million to $340.0 million, reflecting growth of 41% to 48%
  • Full Year 2020 Net income is projected to be $8.9 million to $13.1 million, or $0.09 to $0.13 per share
  • Full Year 2020 Adjusted EBITDA is projected to be $24.0 million to $28.0 million
  • Third Quarter of 2020 Revenue is projected to be $88.0 million to $95.0 million, reflecting growth of 44% to 55%
  • Third Quarter of 2020 Net income is projected to be $3.6 million to $5.3 million, or $0.04 to $0.05 per share

Headwinds

  • Member utilization remains at approximately 90% of the levels
  • Potential additional negative impacts to utilization in those areas of the country that are being more severely affected by COVID-19 at this time.
  • Some members will have trepidation about initiating treatment.
  • COVID-19 cases in some parts of the country have risen to their highest levels since the pandemic began
  • Impact of COVID-19 on financial outlook and member utilization rates

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 Q2 2020

Historical avgQ2 2020

-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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