Q2 2024 Progyny Inc Earnings Call Transcript
Key Points
- Second-quarter revenue grew 9% year-over-year to $304.1 million, marking the first quarter to exceed $300 million in revenue.
- Progyny Inc (PGNY) added new clients and covered lives, with a 20% growth in covered lives compared to the previous year.
- Gross profit increased by 13% from the second quarter last year, with a gross margin improvement of 80 basis points.
- Adjusted EBITDA grew 15% in the quarter, with an adjusted EBITDA margin of 17.9%, up 90 basis points from the previous year.
- The company has nearly 470 clients representing approximately 6.5 million covered lives, with expectations to end the year with 6.5 to 6.6 million covered lives.
- Revenue guidance for the second half of the year has been adjusted lower by approximately 5% at the midpoint due to lower-than-expected ART cycles per utilizing member.
- The company experienced a net reduction of approximately 100,000 covered lives in the quarter, impacting the top line by approximately $10 million.
- Pharmacy revenue growth was lower at 4% compared to medical revenue growth of 12%, partly due to lower ART cycles per utilizing member.
- The company is facing variability in ART cycles per utilizing member, which is impacting revenue projections.
- There is uncertainty around the factors causing the lower-than-expected ART cycles per utilizing member, making future projections challenging.
Good afternoon, everyone. Welcome the Progeny Inc. second-quarter 2024 earnings conference call. (Operator Instructions)
It is now my pleasure to turn the floor over to your host, James Hart. Sir, the floor is yours.
Thank you, Matt, and good afternoon, everyone. Welcome to our second-quarter conference call. With me today are Pete Anevski, CEO of Progeny; Michael Sturmer, President; and Mark Livingston, CFO. We will begin with some prepared remarks before we open the call for your questions.
Before we begin, I'd like to remind you that our comments and responses to your questions today reflect management's views as of today only and will include statements related to our financial outlook for both the third-quarter and full-year 2024 and the assumptions and drivers underlying such guidance; the demand for our solutions, our expectations for our selling season for 2025 launches; the timing of client decisions, our expected utilization rates and mix; the expected benefits of our pharmacy program
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