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Jun 30, 2020
Progyny Q2 2020 Earnings Report
Progyny demonstrated resilience with double-digit revenue growth and strong profit margins amidst the COVID-19 pandemic.
Key Takeaways
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.
Progyny
Progyny
Progyny Revenue by Segment
Revenue by Segment
Fertility Benefit Services Revenue
CapyFin.comPharmacy Benefit Services Revenue
CapyFin.com 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%.
Positive Outlook
- 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
Challenges Ahead
- 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
Revenue & Expenses
Visualization of income flow from segment revenue to net income