Progyny Inc (PGNY) Q1 2025 Earnings Call Highlights: Record Revenue Growth and Strategic Expansions

In This Article:

  • Revenue: USD324 million, a 16.5% increase from the prior year.

  • Adjusted EBITDA: USD58 million, a 15% increase from the prior year.

  • Gross Margin: 23.4%, up from 22.4% in the prior year period.

  • Net Income: USD15.1 million or USD0.17 per diluted share.

  • Adjusted EPS: USD0.48, compared to USD0.39 in the prior year period.

  • Operating Cash Flow: Nearly USD50 million, almost double the prior year period.

  • Fertility Revenue: USD206 million, a 22% increase from the prior year.

  • Pharmacy Revenue: USD118 million, a 9% increase from the prior year.

  • ART Cycles: 16,160 cycles, a 9% growth over the prior year period.

  • Clients: 532 clients with at least 1,000 lives, up from 451 clients a year ago.

  • Covered Lives: 6.7 million average covered lives, up from 6.35 million a year ago.

  • Second Quarter Revenue Guidance: USD310 million to USD325 million.

  • Full Year Revenue Guidance: USD1.185 billion to USD1.235 billion.

  • Full Year Adjusted EBITDA Guidance: USD190 million to USD203 million.

Release Date: May 08, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Progyny Inc (NASDAQ:PGNY) reported double-digit growth in both revenue and adjusted EBITDA, achieving record quarterly results.

  • The company raised its full-year guidance, reflecting strong performance and consistent member engagement.

  • Progyny Inc (NASDAQ:PGNY) expanded its product portfolio and platform, enhancing its member experience and solidifying its position in women's health and family building.

  • The company saw a 19% increase in first-quarter revenue, excluding the impact of a large transitioning client, highlighting strong core business growth.

  • Progyny Inc (NASDAQ:PGNY) generated nearly USD 50 million in operating cash flow in the first quarter, nearly doubling the prior year period.

Negative Points

  • The average number of lives in the sales pipeline is lower compared to the previous year, potentially impacting future growth.

  • Adjusted EBITDA margin declined modestly due to incremental investments in platform and product expansion.

  • The company anticipates variability in member engagement and treatment activity, reflecting uncertainty in the macro environment.

  • Progyny Inc (NASDAQ:PGNY) expects gross margin expansion to be lower for the full year compared to Q1 due to additional hiring and investments.

  • The company faces potential risks from tariffs on pharmaceuticals, which could impact costs, although current tariffs have not yet affected them.

Q & A Highlights

Q: Historical seasonality of cycles per utilizer tends to show a step up in Q2 from Q1, but the guidance implies a similar rate. Is this due to uncertainty? A: Peter Anevski, CEO: Yes, the guidance reflects the uncertainty we're seeing, which is why it appears more conservative.