The following is a summary of the Progyny, Inc. (PGNY) Q1 2024 Earnings Call Transcript:
Financial Performance:
Progyny reported Q1 2024 revenue of $278.1 million, marking a growth rate of 8% primarily due to an increase in the number of clients and covered lives compared to a year ago.
The company recorded an adjusted EBITDA of $50.3 million and a net income of $16.9 million or $0.17 per diluted share.
Gross profit grew by 6% to $62.4 million, yielding a 22.4% gross margin, consistent with the margin from the first quarter of 2023.
A revenue of around $300 million to $310 million is expected in Q2 2024, resulting from a steady utilization rate.
Business Progress:
Progyny anticipates an additional 200,000 covered lives by early Q3 2024, taking the total to 6.7 million lives.
The company is developing new partnerships with some of the top U.S. health plans to expand their market reach.
Progress is seen in the launch of new reproductive services in menopause, maternity, and postpartum care along with surrogacy and adoption programs.
They reported a strong start to the 2024 selling season, with early commitments from leading brands in various industries.
Progyny reported changes in service utilization trends, which vary between states, possibly due to political sentiments around fertility treatment.
They are expecting a modest increase in utilization towards the second half of the year.
The company sees no impact from the upcoming federal election as there appears to be bipartisan support for reproductive health.
More details: Progyny IR
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