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Sep 30, 2023
Progyny Q3 2023 Earnings Report
Progyny's Q3 2023 performance was marked by record quarterly revenue and substantial growth in key financial metrics.
Key Takeaways
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.
Progyny
Progyny
Progyny Revenue by Segment
Revenue by Segment
Fertility Benefit Services Revenue
CapyFin.comPharmacy Benefit Services Revenue
CapyFin.com Forward Guidance
Progyny provided financial guidance for both the full year and the three-month period ending December 31, 2023.
Positive Outlook
- 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
Challenges Ahead
- 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
Revenue & Expenses
Visualization of income flow from segment revenue to net income