NASDAQ$PGNY

Progyny Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Progyny's Q3 2023 performance was marked by record quarterly revenue and substantial growth in key financial metrics.

Progyny reported record quarterly revenue of $280.9 million, a 37% increase year-over-year. The company also raised its full-year revenue and earnings guidance, driven by a strong sales season that added 1.3 million new covered lives. Adjusted EBITDA increased by 43%, reflecting the company's ability to scale operations effectively.

  • Revenue reached a record $280.9 million, up 37% compared to the prior year period.
  • The company secured over 85 new client commitments, expected to add 1.3 million new covered lives.
  • Adjusted EBITDA increased by 43%, with margins continuing to expand.
  • Net income increased by 20% to $15.9 million, or $0.16 per diluted share.

Headline financials

Total Revenue

$281M

Previous: $205M+36.8%
EPS (adj)

$0.16

Previous: $0.13+23.1%
Total Clients

392

Previous: 282+39.0%
ART Cycles

15.0K

No prior period
Utilization Rate - All

0.6%

Previous: 0.5%+14.3%
Utilization Rate - Female

0.5%

Previous: 0.4%+11.4%
Average Members

5.4M

Previous: 4.5M+21.1%
Capital Expenditures

-$2.96M

Previous: -$2.52M-17.6%
Free Cash Flow

$12.9M

Previous: $10.7M+21.0%
Net Income

$15.9M

Previous: $13.2M+20.3%
Operating Income

$18.2M

Previous: $11.3M+61.6%
Gross Profit

$62.6M

Previous: $46M+36.2%
Cash & Equivalents

$158M

Previous: $72.5M+118.0%
Total Assets

$727M

Previous: $510M+42.3%
Stock-Based Comp

$31.3M

Previous: $23.3M+34.1%

Revenue & EPS history

Progyny · Revenue · Quarterly

$281M

Q3 2023+36.8%vs Q3 2022
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

Progyny provided financial guidance for both the full year and the three-month period ending December 31, 2023.

Tailwinds

  • Full Year 2023 Revenue is projected to be $1,087 million to $1,095 million, reflecting growth of 38% to 39%
  • Full Year 2023 Net income is projected to be $58.3 million to $60.0 million, or $0.58 to $0.59 per diluted share
  • Full Year 2023 Adjusted EBITDA is projected to be $186.0 million to $188.5 million
  • Fourth Quarter of 2023 Revenue is projected to be $268.3 million to $276.3 million, reflecting growth of 25% to 29%
  • Fourth Quarter of 2023 Adjusted EBITDA is projected to be $42.2 million to $44.7 million

Headwinds

  • Fourth Quarter of 2023 Net income is projected to be $9.7 million to $11.4 million, or $0.10 to $0.11 per diluted share
  • Financial guidance for 2024 will be provided when year end results are reported in February
  • Modified services to align with the government plan design, which will yield a lower contribution from this population for 2024
  • Net income and Adjusted EBITDA ranges do not reflect any estimate for other potential activities and transactions
  • Net income and Adjusted EBITDA ranges do not contemplate any discrete income tax items, including the income tax impact related to equity compensation activity

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 Q3 2023

Historical avgQ3 2023

-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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