NASDAQ$PGNY

Progyny Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Progyny's Q4 2023 earnings reflect revenue growth, gross margin expansion, and a significant increase in net income.

Progyny's Q4 2023 saw a 26% increase in revenue, gross margin expansion by 30 basis points, and a near quadrupling of net income. The company exceeded $1 billion in annual revenue for the first time in 2023, with cash flow from operations more than doubling.

  • Revenue increased by 26% compared to Q4 2022, reaching $269.9 million.
  • Gross margin expanded by 30 basis points compared to the prior year period.
  • Net income nearly quadrupled compared to Q4 2022, reaching $13.5 million.
  • Adjusted EBITDA increased by 31% compared to Q4 2022, reaching $43.2 million.

Headline financials

Total Revenue

$270M

Previous: $214M+26.0%
EPS (adj)

$0.13

Previous: $0.03+333.3%
Total Clients

392

Previous: 288+36.1%
ART Cycles

15.1K

Previous: 12.2K+23.5%
Utilization Rate - All

0.5%

Previous: 0.5%+5.9%
Utilization Rate - Female

0.5%

Previous: 0.5%+4.3%
Average Members

5.4M

Previous: 4.6M+19.4%
Capital Expenditures

-$681K

Previous: $721K-194.5%
Net Income

$13.5M

Previous: $3.41M+295.2%
Operating Income

$13.8M

Previous: $3.31M+317.4%
Gross Profit

$56.9M

Previous: $44.5M+27.9%
Stock-Based Comp

$28.8M

Previous: $29.3M-1.7%

Revenue & EPS history

Progyny · Revenue · Quarterly

$270M

Q4 2023+26%vs Q4 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 anticipates having more than 460 clients, representing an estimated 6.7 million covered lives in 2024. The company projects revenue between $1.285 billion and $1.315 billion for full year 2024.

Tailwinds

  • Revenue is projected to be $1,285 million to $1,315 million, reflecting growth of 18% to 21%
  • Net income is projected to be $68.1 million to $73.6 million, or $0.66 to $0.71 per diluted share
  • Adjusted EBITDA is projected to be $224.0 million to $232.0 million
  • Adjusted earnings per diluted share is projected to be $1.54 to $1.59
  • Revenue is projected to be $285.0 million to $292.0 million, reflecting growth of 10% to 13% for Q1 2024

Headwinds

  • Net income is projected to be $12.4 million to $13.7 million, or $0.12 to $0.13 per diluted share for Q1 2024
  • Adjusted EBITDA is projected to be $49.0 million to $51.0 million for Q1 2024
  • Adjusted earnings per diluted share is projected to be $0.33 to $0.35 for Q1 2024
  • First quarter range reflects a short-term shift in treatment mix as compared to customary levels, resulting in an approximately $15 million headwind to revenue.
  • Net income, Adjusted Net Income and Adjusted EBITDA ranges do not reflect any estimate for other potential activities and transactions, nor do they 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 Q4 2023

Historical avgQ4 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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