NASDAQ$PGNY

Progyny Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Progyny's Q2 2024 financial results were announced, revealing record quarterly Adjusted EBITDA and strong cash flow conversion rate. The board authorized a repurchase of $100 million of common stock.

Progyny reported an 8.8% increase in revenue, reaching $304.1 million, driven by growth in clients and covered lives. The company achieved record quarterly Adjusted EBITDA of $54.5 million, a 15% increase year-over-year. Net income rose to $16.5 million, or $0.17 per diluted share.

  • Revenue increased by 8.8% to $304.1 million compared to Q2 2023.
  • Fertility benefit services revenue grew by 12% to $193.6 million.
  • Adjusted EBITDA increased by 15% to $54.5 million, with an Adjusted EBITDA margin of 17.9%.
  • The Board authorized an additional $100 million share repurchase program.

Headline financials

Total Revenue

$304M

Previous: $279M+8.8%
EPS (adj)

$0.43

Previous: $0.15+186.7%
Capital Expenditures

-$1.72M

Previous: -$2.01M+14.6%
Free Cash Flow

$14.8M

Previous: $13M+13.8%
Net Income

$16.5M

Previous: $15M+10.0%
Operating Income

$20.7M

Previous: $15.2M+36.2%
Gross Profit

$68.3M

Previous: $60.6M+12.6%
Stock-Based Comp

$33M

Previous: $31.8M+4.0%

Revenue & EPS history

Progyny · Revenue · Quarterly

$304M

Q2 2024+8.8%vs Q2 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 revising its expectations for the second half of the year to reflect a lesser-than-historical rate of increase in revenue per utilizing member given the variation we're presently seeing.

Tailwinds

  • Full Year 2024 Revenue is projected to be $1.165 billion to $1.20 billion, reflecting growth of 7% to 10%.
  • Full Year 2024 Net income is projected to be $55.4 million to $62.4 million, or $0.57 to $0.64 per diluted share, on the basis of approximately 98 million assumed weighted-average fully diluted-shares outstanding
  • Full Year 2024 Adjusted EBITDA is projected to be $199.0 million to $209.0 million
  • Full Year 2024 Adjusted earnings per diluted share is projected to be $1.53 to $1.61
  • Third Quarter of 2024 Revenue is projected to be $290.0 million to $303.0 million, reflecting growth of 3% to 8%

Headwinds

  • Third Quarter of 2024 Net income is projected to be $10.7 million to $13.2 million, or $0.11 to $0.14 per diluted share, on the basis of approximately 96 million assumed weighted-average fully diluted-shares outstanding
  • Third Quarter of 2024 Adjusted EBITDA is projected to be $47.5 million to $51.0 million
  • Third Quarter of 2024 Adjusted earnings per diluted share is projected to be $0.35 to $0.38
  • Lower revenue per utilizing member is currently being observed.
  • May be due to higher clinical success rates and other factors that impact timing and treatment paths.

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 2024

Historical avgQ2 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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