Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 31, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-39100 | |
Entity Registrant Name | Progyny, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 27-2220139 | |
Entity Address, Address Line One | 1359 Broadway | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10018 | |
City Area Code | 212 | |
Local Phone Number | 888-3124 | |
Title of 12(b) Security | Common Stock, | |
Trading Symbol | PGNY | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 90,276,226 | |
Entity Central Index Key | 0001551306 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 94,960 | $ 97,296 |
Marketable securities | 167,228 | 273,791 |
Accounts receivable, net of $54,081 and $46,636 of allowances at June 30, 2024 and December 31, 2023, respectively | 293,796 | 241,869 |
Prepaid expenses and other current assets | 26,259 | 27,451 |
Total current assets | 582,243 | 640,407 |
Property and equipment, net | 10,637 | 10,213 |
Operating lease right-of-use assets | 17,806 | 17,605 |
Goodwill | 15,606 | 11,880 |
Intangible assets, net | 1,479 | 0 |
Deferred tax assets | 67,881 | 73,120 |
Other noncurrent assets | 2,980 | 3,395 |
Total assets | 698,632 | 756,620 |
Current liabilities: | ||
Accounts payable | 151,747 | 125,426 |
Accrued expenses and other current liabilities | 73,628 | 60,524 |
Total current liabilities | 225,375 | 185,950 |
Operating lease noncurrent liabilities | 17,064 | 17,241 |
Total liabilities | 242,439 | 203,191 |
Commitments and Contingencies (Note 6) | ||
STOCKHOLDERS' EQUITY | ||
Common stock, $0.0001 par value; 1,000,000,000 shares authorized; 97,028,118 and 96,348,522 shares issued; 90,711,413 and 96,348,522 shares outstanding at June 30, 2024 and December 31, 2023, respectively | 9 | 9 |
Additional paid-in capital | 519,670 | 461,639 |
Treasury stock, at cost, $0.0001 par value; 6,932,685 and 615,980 shares at June 30, 2024 and December 31, 2023, respectively | (188,865) | (1,009) |
Accumulated earnings | 123,354 | 89,971 |
Accumulated other comprehensive income | 2,025 | 2,819 |
Total stockholders’ equity | 456,193 | 553,429 |
Total liabilities and stockholders’ equity | $ 698,632 | $ 756,620 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Allowances for accounts receivable | $ 54,081 | $ 46,636 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued (in shares) | 97,028,118 | 96,348,522 |
Common stock, shares outstanding (in shares) | 90,711,413 | 96,348,522 |
Treasury stock, shares outstanding (in shares) | 6,932,685 | 615,980 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statements of Operations | ||||
Revenue | $ 304,087 | $ 279,373 | $ 582,165 | $ 537,767 |
Cost of services | 235,806 | 218,732 | 451,478 | 418,486 |
Gross profit | 68,281 | 60,641 | 130,687 | 119,281 |
Operating expenses: | ||||
Sales and marketing | 16,421 | 15,384 | 31,875 | 29,666 |
General and administrative | 31,173 | 30,073 | 59,602 | 59,420 |
Total operating expenses | 47,594 | 45,457 | 91,477 | 89,086 |
Income from operations | 20,687 | 15,184 | 39,210 | 30,195 |
Other income, net: | ||||
Other income, net | 3,564 | 1,277 | 6,924 | 1,775 |
Interest income, net | 816 | 706 | 1,448 | 1,528 |
Total other income, net | 4,380 | 1,983 | 8,372 | 3,303 |
Income before income taxes | 25,067 | 17,167 | 47,582 | 33,498 |
Provision for income taxes | 8,582 | 2,176 | 14,199 | 829 |
Net income | $ 16,485 | $ 14,991 | $ 33,383 | $ 32,669 |
Net income per share: | ||||
Basic (in dollars per share) | $ 0.18 | $ 0.16 | $ 0.35 | $ 0.35 |
Diluted (in dollars per share) | $ 0.17 | $ 0.15 | $ 0.34 | $ 0.33 |
Weighted-average shares used in computing net income per share: | ||||
Basic (in shares) | 93,868,409 | 94,738,651 | 95,160,085 | 94,290,653 |
Diluted (in shares) | 97,839,576 | 100,615,919 | 99,456,335 | 100,391,573 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income (Loss) | ||||
Net income | $ 16,485 | $ 14,991 | $ 33,383 | $ 32,669 |
Other comprehensive (loss) income, net of tax | ||||
Unrealized gains on marketable securities before reclassifications | 1,915 | 1,191 | 4,313 | 1,916 |
Reclassification of gains on the sale of marketable securities into net income | (2,630) | (822) | (5,118) | (1,324) |
Net change on unrealized gains on marketable securities | (715) | 369 | (805) | 592 |
Foreign currency translation adjustments | (10) | (11) | 11 | (11) |
Total other comprehensive (loss) income, net of tax | (725) | 358 | (794) | 581 |
Total comprehensive income | $ 15,760 | $ 15,349 | $ 32,589 | $ 33,250 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Treasury Stock | Additional Paid in Capital | Accumulated Earnings | Accumulated Other Comprehensive Income |
Balance at beginning of period (in shares) at Dec. 31, 2022 | 93,301,156 | |||||
Balance at beginning of period at Dec. 31, 2022 | $ 376,968 | $ 9 | $ (1,009) | $ 349,533 | $ 27,934 | $ 501 |
Increase (Decrease) in Stockholders' Equity (Loss) | ||||||
Issuance of employee equity awards, net of shares withheld (in shares) | 1,864,097 | |||||
Issuance of employee equity awards, net of shares withheld | (3,565) | (3,565) | ||||
Stock-based compensation | 62,846 | 62,846 | ||||
Other comprehensive income (loss), net of tax | 581 | 581 | ||||
Net income | 32,669 | 32,669 | ||||
Balance at end of period (in shares) at Jun. 30, 2023 | 95,165,253 | |||||
Balance at end of period at Jun. 30, 2023 | 469,499 | $ 9 | (1,009) | 408,814 | 60,603 | 1,082 |
Balance at beginning of period (in shares) at Mar. 31, 2023 | 94,319,215 | |||||
Balance at beginning of period at Mar. 31, 2023 | 424,401 | $ 9 | (1,009) | 379,065 | 45,612 | 724 |
Increase (Decrease) in Stockholders' Equity (Loss) | ||||||
Issuance of employee equity awards, net of shares withheld (in shares) | 846,038 | |||||
Issuance of employee equity awards, net of shares withheld | (2,150) | (2,150) | ||||
Stock-based compensation | 31,899 | 31,899 | ||||
Other comprehensive income (loss), net of tax | 358 | 358 | ||||
Net income | 14,991 | 14,991 | ||||
Balance at end of period (in shares) at Jun. 30, 2023 | 95,165,253 | |||||
Balance at end of period at Jun. 30, 2023 | $ 469,499 | $ 9 | (1,009) | 408,814 | 60,603 | 1,082 |
Balance at beginning of period (in shares) at Dec. 31, 2023 | 96,348,522 | 96,348,522 | ||||
Balance at beginning of period at Dec. 31, 2023 | $ 553,429 | $ 9 | (1,009) | 461,639 | 89,971 | 2,819 |
Increase (Decrease) in Stockholders' Equity (Loss) | ||||||
Issuance of employee equity awards, net of shares withheld (in shares) | 679,596 | |||||
Issuance of employee equity awards, net of shares withheld | (6,494) | (6,494) | ||||
Stock-based compensation | 64,525 | 64,525 | ||||
Repurchase of common stock (in shares) | (6,316,705) | |||||
Repurchase of common stock | (187,856) | (187,856) | ||||
Other comprehensive income (loss), net of tax | (794) | (794) | ||||
Net income | $ 33,383 | 33,383 | ||||
Balance at end of period (in shares) at Jun. 30, 2024 | 90,711,413 | 90,711,413 | ||||
Balance at end of period at Jun. 30, 2024 | $ 456,193 | $ 9 | (188,865) | 519,670 | 123,354 | 2,025 |
Balance at beginning of period (in shares) at Mar. 31, 2024 | 96,115,816 | |||||
Balance at beginning of period at Mar. 31, 2024 | 571,604 | $ 9 | (27,367) | 489,343 | 106,869 | 2,750 |
Increase (Decrease) in Stockholders' Equity (Loss) | ||||||
Issuance of employee equity awards, net of shares withheld (in shares) | 188,725 | |||||
Issuance of employee equity awards, net of shares withheld | (2,992) | (2,992) | ||||
Stock-based compensation | 33,319 | 33,319 | ||||
Repurchase of common stock (in shares) | (5,593,128) | |||||
Repurchase of common stock | (161,498) | (161,498) | ||||
Other comprehensive income (loss), net of tax | (725) | (725) | ||||
Net income | $ 16,485 | 16,485 | ||||
Balance at end of period (in shares) at Jun. 30, 2024 | 90,711,413 | 90,711,413 | ||||
Balance at end of period at Jun. 30, 2024 | $ 456,193 | $ 9 | $ (188,865) | $ 519,670 | $ 123,354 | $ 2,025 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest [Abstract] | ||
Net income | $ 33,383 | $ 32,669 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Deferred tax expense | 5,522 | 824 |
Non-cash interest income | (77) | 0 |
Depreciation and amortization | 1,470 | 1,068 |
Stock-based compensation expense | 64,088 | 62,561 |
Bad debt expense | 9,572 | 9,794 |
Realized gains on sale of marketable securities | (6,987) | (1,324) |
Foreign currency exchange rate loss (gain) | 30 | (7) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (61,496) | (34,686) |
Prepaid expenses and other current assets | 1,279 | (9,189) |
Accounts payable | 26,396 | 20,853 |
Accrued expenses and other current liabilities | 8,860 | 13,829 |
Other noncurrent assets and liabilities | 386 | 581 |
Net cash provided by operating activities | 82,426 | 96,973 |
INVESTING ACTIVITIES | ||
Purchase of property and equipment, net | (1,716) | (2,010) |
Purchase of marketable securities | (158,639) | (120,599) |
Sale of marketable securities | 271,099 | 79,813 |
Acquisition of business, net of cash acquired | (5,304) | 0 |
Net cash provided by (used in) investing activities | 105,440 | (42,796) |
FINANCING ACTIVITIES | ||
Repurchase of common stock | (183,723) | 0 |
Proceeds from exercise of stock options | 988 | 3,124 |
Payment of employee taxes related to equity awards | (8,172) | (7,426) |
Proceeds from contributions to employee stock purchase plan | 707 | 617 |
Net cash used in financing activities | (190,200) | (3,685) |
Effect of exchange rate changes on cash and cash equivalents | (2) | 0 |
Net (decrease) increase in cash and cash equivalents | (2,336) | 50,492 |
Cash and cash equivalents, beginning of period | 97,296 | 120,078 |
Cash and cash equivalents, end of period | 94,960 | 170,570 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Cash paid for income taxes, net of refunds received | 17,317 | 698 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES | ||
Additions of property and equipment, net included in accounts payable and accrued expenses | $ 158 | $ 438 |
Business and Basis of Presentat
Business and Basis of Presentation | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Basis of Presentation | Business and Basis of Presentation Description of Business Progyny, Inc. (together with its subsidiaries referred to as “Progyny” or the “Company”) was incorporated in the state of Delaware on April 3, 2008, and maintains its corporate headquarters in New York, NY. Progyny is a provider of a fertility benefits solution and pharmacy benefits solution and operates and manages in one operating segment. The fertility benefits solution consists of a significant service that integrates: (1) the treatment services (“Smart Cycles”) that the Company has designed, (2) access to the Progyny network of high-quality fertility specialists that perform the Smart Cycle treatments and (3) active management of the selective network of high-quality provider clinics, real-time member eligibility and treatment authorization, member-facing digital tools and detailed quarterly reporting supported by the Company’s dedicated client success teams, and end to end comprehensive concierge member support provided by Progyny’s in-house staff of Patient Care Advocates (“PCAs”) (collectively, the “care management services”). The Company enhanced its fertility benefits solution with the launch of Progyny Rx, its pharmacy benefits solution, effective January 1, 2018. Progyny Rx provides the Company's members with access to the medications needed during their fertility treatment. As part of this solution, the Company provides care management services, which include formulary plan design, simplified authorization, assistance with prescription fulfillment, and timely delivery of the medications by the Company’s network of specialty pharmacies, as well as medication administration training, pharmacy support services, and continuing PCA support. As a pharmacy benefits solution provider, Progyny manages the dispensing of pharmaceuticals through the Company’s specialty pharmacy contracts. The pharmacy benefits solution is only available as an add-on service to its fertility benefits solution. Basis of Presentation The accompanying interim unaudited consolidated financial statements include the accounts of Progyny, Inc. and its wholly owned subsidiaries. The interim unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities Exchange Commission (“SEC”) applicable to interim financial reporting. These interim consolidated financial statements have been prepared on a basis consistent with the annual consolidated financial statements and, in the opinion of management, include all adjustments necessary to fairly state the Company's financial position as of June 30, 2024, the results of the Company's operations for the three and six months ended June 30, 2024 and 2023 and the results of the Company's cash flows for the six months ended June 30, 2024 and 2023. Therefore, these unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related footnotes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, filed with the SEC on February 29, 2024 (the “Annual Report on Form 10-K”). The results for the three and six months ended June 30, 2024 are not necessarily indicative of the operating results expected for the year ending December 31, 2024 or any other future period. Additionally, the coronavirus (“COVID-19”) pandemic continues to evolve and due to the uncertainty of the pandemic, including variants, the Company’s customers and members, provider network, specialty pharmacy partners, employees, suppliers, vendors, and other business partners may continue to be impacted in future periods. A resurgence of COVID-19 could have a material adverse effect on the Company’s business, financial condition, results of operations and growth prospects. The Company will continue to assess these potential impacts to its business and will make adjustments to its operations as necessary. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP generally requires management to make estimates and assumptions that affect the reported amount of certain assets, liabilities, revenue, and expenses, and the related disclosure of contingent assets and liabilities. Such estimates include, but are not limited to, the determination of accrued receivables related to revenue recognition, accrued claims payable, allowance for doubtful accounts, stock-based compensation expense, lease liabilities, and accounting for income taxes. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies There have been no material changes in the Company’s significant accounting policies as compared to the significant accounting policies described in Note 2 of the Company’s Annual Report on Form 10-K. Revenue Recognition Revenue is recognized when control of the promised goods or services is transferred to clients in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The Company applies the following five-step model to recognize revenue from contracts with clients: • Identification of the contract, or contracts, with a client; • Identification of the performance obligations in the contract; • Determination of the transaction price; • Allocation of the transaction price to the performance obligations in the contract; and • Recognition of revenue when, or as, a performance obligation is satisfied. Progyny’s contracts typically have a stated term of three years and include contractual termination options after the first year, allowing the client to terminate the contract with 30 to 90 days’ notice. Fertility Benefits Solution Revenue Progyny primarily generates revenue through its fertility benefits solution, in which Progyny provides self-insured enterprise entities (“clients”) and their employees and partners (together, “members”) with fertility benefits. As part of the fertility benefits solution, Progyny provides access to effective and cost-efficient fertility treatments, referred to as Smart Cycles, as well as other related services. Smart Cycles are proprietary treatment bundles that include certain medical services available to members through Progyny’s proprietary, credentialed network of provider clinics. In addition to access to Progyny’s Smart Cycle treatment bundles and access to Progyny’s network of provider clinics, the fertility benefits solution includes other comprehensive services, which Progyny refers to as care management services, such as active management of the provider clinic network, real-time member eligibility and treatment authorization, member-facing digital tools throughout the Smart Cycle and detailed quarterly reporting all supported by client facing account management and end-to-end comprehensive member support provided by Progyny’s in house staff of PCAs. The promises within Progyny’s fertility benefits contract with a client represent a single performance obligation because Progyny provides a significant service of integrating the Progyny designed Smart Cycles and access to the fertility treatment services provided by provider clinics with the other comprehensive services into the combined fertility benefits solution that the client contracted to receive. Progyny’s fertility benefits solution is a stand-ready obligation that is satisfied over the contract term. Progyny’s contracts include the following sources of consideration, which are all variable: a per employee per month (“PEPM”) administration fee (in most, but not all contracts) and a fixed rate per Smart Cycle. The PEPM administration fee is allocated between the fertility benefits solution and the pharmacy benefits solution based on standalone selling price, estimated using an expected cost-plus margin method. The Company allocates the variable consideration related to the fixed rate per Smart Cycle to the distinct period during which the related services were performed as those fees relate specifically to the Company’s efforts to provide its fertility benefits solution to its clients in the period and represents the consideration the Company is entitled to for the fertility benefits services provided. As a result, the fixed rate per Smart Cycle is included in the transaction price and recognized in the period in which the Smart Cycle is provided to the member. Progyny’s contracts also include potential service level agreement refunds related to outcome-based service metrics. These service level refunds, which are determined based on results of a full plan year, if met, are based on a percentage of the PEPM fee paid by clients. The Company estimates the variable consideration related to the total PEPM administration fee, less estimated refunds related to service level agreements, and recognizes the amounts allocated to the fertility benefits solution ratably over the contract term. Progyny’s estimates of service level agreement refunds have not historically resulted in significant adjustments to the transaction price. Clients are typically invoiced on a monthly basis for the PEPM administration fee. Progyny invoices its clients and members for their respective portions of the fixed rate per Smart Cycle bundle when all treatment services within a Smart Cycle are completed by the provider clinic. Once an invoice is issued, payment terms are typically between 30 to 60 days. The Company assesses whether it is the principal or the agent for each arrangement with a client, since fertility treatment services are provided by a third party—the provider clinics. The Company is the principal in its arrangements with clients and therefore presents revenue gross of the amounts paid to the provider clinics because Progyny controls the specified service (the fertility benefits solution) before it is transferred to the client. Progyny integrates the fertility treatment services provided by the provider clinics into the overall fertility benefits solution that the client contracted to receive. In addition, Progyny defines the scope of the potential services to be performed by the provider clinics and monitors the performance of the provider clinics. Furthermore, Progyny is primarily responsible for fulfilling the promise to the client and has discretion in setting the pricing, as Progyny separately negotiates agreements with the provider clinics, which establish pricing for each treatment service. Pricing of services from provider clinics is independent from the fees charged to clients. Pharmacy Benefits Solution Revenue For clients that have the fertility benefits solution, Progyny offers, as an add-on, its pharmacy benefits solution, which is a separate, fully integrated pharmacy benefit. As part of the pharmacy benefits solution, Progyny provides care management services, which include Progyny’s formulary plan design, prescription fulfillment, simplified authorization and timely delivery of the medications used during treatment through Progyny’s network of specialty pharmacies, and clinical services consisting of member assessments, UnPack It calls, telephone support, online education, medication administration training, pharmacy support services and continuing PCA support. The pharmacy-related promises represent a single performance obligation because Progyny provides a significant service of integrating the formulary plan design, prescription fulfillment, clinical services and PCA support into the combined pharmacy benefits solution that the client contracted to receive. The pharmacy benefits solution is a stand-ready obligation that is satisfied over the contract term. Progyny’s contracts include the following sources of consideration, all of which are variable: a PEPM administration fee (in most, but not all contracts) and a fixed fee per fertility drug. As described above, the PEPM administration fee, less estimated refunds related to service level agreements, is allocated to the pharmacy benefits solution and recognized ratably over the contract term. The Company allocates the variable consideration related to the fixed fee per fertility drug to the distinct period during which the related services were performed, as those fees relate specifically to the Company’s efforts to provide its pharmacy benefits solution to clients in the period and represents the consideration the Company is entitled to for the pharmacy benefits services provided. As a result, the fixed fee per fertility drug is included in the transaction price and recognized in the period in which the Company is entitled to consideration from a client, which is when a prescription is filled and delivered to the members. As stated above, clients are invoiced on a monthly basis for the PEPM administration fee. Progyny invoices the client and the member for their respective portions of the fixed fee per fertility drug, when the prescription services are completed by the specialty pharmacies. Once an invoice is issued, payment terms are typically between 30 to 60 days. The Company assesses whether it is the principal or the agent for each arrangement with a client, as prescription fulfillment and clinical services are provided by a third party—the specialty pharmacies. The Company is the principal in its arrangements with clients, and therefore presents revenue gross of the amounts paid to the specialty pharmacies. Progyny controls the specified service (the pharmacy benefits solution) before it is transferred to the client. Progyny integrates the prescription fulfillment and clinical services provided by the pharmacies and PCAs into the overall pharmacy benefits solution that the client contracted to receive. In addition, Progyny defines the scope of the potential services to be performed by the specialty pharmacies and monitors the performance of the specialty pharmacies. Furthermore, Progyny is primarily responsible for fulfilling the promise to the client and has discretion in setting the pricing, as Progyny separately negotiates agreements with pharmacies, which establish pricing for each drug. Pricing of fertility drugs is independent from the fees charged to clients. The Company does not disclose the transaction price allocated to remaining performance obligations because all of the transaction price is variable and is allocated to the distinct periods to which the services relate, as discussed above. The remaining contract term is typically less than one year, due to the client’s contractual termination options. There were no material contract asset or contract liability balances as of June 30, 2024 and December 31, 2023. Accrued Receivables and Accrued Claims Payable Accrued receivables are estimated based on historical experience for those fertility benefits services provided but for which a claim has not been received from the provider clinic at the end of the reporting period, which includes assumptions regarding the lag between authorization date and service date as well as estimates for changes and cancellations of services. At the same time, cost of services and accrued claims payables are estimated based on the amount to be paid to the provider clinic and expected gross margin on fertility benefits services. Estimates are adjusted to actual at the time of billing. Adjustments to original estimates have not been material. As of June 30, 2024 and December 31, 2023, accrued receivables were $67.6 million and $45.8 million, respectively. Accrued receivables are included within accounts receivable in the consolidated balance sheet. Accrued claims payable of $40.0 million and $30.3 million as of June 30, 2024 and December 31, 2023, respectively, are included within accrued expenses and other current liabilities in the consolidated balance sheet. Claims payable are generally paid within 30 days based on contractual terms. As of June 30, 2024 and December 31, 2023, unbilled receivables, which represent claims received and approved but unbilled at the end of the reporting period, were $76.5 million and $45.1 million, respectively. Unbilled receivables are typically billed to clients within 30 days of the approved claim based on the contractual billing schedule agreed upon with the client. Unbilled receivables are included in accounts receivable in the consolidated balance sheet. Accounts Receivable and Allowance for Doubtful Accounts The accounts receivable balance primarily includes amounts due from clients and members. The Company estimates the allowance for doubtful accounts based on the lifetime expected credit losses for the client and member receivable pools, respectively. Under this current expected credit losses model, the Company determines the allowance for doubtful accounts based on factors such as the age of the receivable balance, historical experience, current economic conditions, and reasonable and supportable forecasts of future economic conditions. An allowance for credit losses is applied at the time the asset is recognized. Expected credit losses are recorded as general and administrative expenses on the consolidated statements of operations . The following table provides a summary of the activity in this allowance (in thousands): Six Months Ended June 30, 2024 Balance at Beginning of Period Charged to Costs and Expenses Write-offs Balance at End of Period Allowance for doubtful accounts $ 46,636 $ 9,572 $ (2,127) $ 54,081 Cost of Services Fertility Benefits Services Fertility benefits services costs include: (1) fees paid to provider clinics within the Company’s network, labs and anesthesiologists; (2) costs incurred (including salaries, bonuses, benefits, stock-based compensation expense, other related costs, and an allocation of the Company's general overhead, depreciation and amortization) for those employees associated with care management service functions: Provider Account Management, PCA, Provider Relations and Claims Processing teams; and (3) related information technology support costs. Contracts with provider clinics are typically for a term of one Pharmacy Benefits Services Pharmacy benefits services costs include: (1) the fees for prescription drugs dispensed and clinical services provided during the reporting period by specialty pharmacy partners; (2) costs incurred (including salaries, bonuses, benefits, stock-based compensation expense, other related costs, and an allocation of the Company's general overhead, depreciation and amortization) for those employees associated with care management service functions: PCA, Provider Relations and Claims Processing teams; and (3) related information technology support costs. Contracts with the specialty pharmacies are typically for a term of one year. In the specialty pharmacy contracts, the contractual fees of prescription drugs sold includes the cost of the prescription drugs purchased and shipped to members by the Company’s specialty mail service dispensing pharmacies, net of any volume-related or other discounts. Vendor Rebates The Company receives a rebate on formulations purchased and dispensed by the Company’s specialty pharmacies. The Company’s contractual arrangements with pharmacy program partners provide for the Company to receive a discount (or rebate) from established list prices paid subsequent to dispensing when products are purchased indirectly from a pharmacy program partner (such as through a specialty pharmacy). These rebates are recognized as a reduction of cost of services when prescriptions are dispensed and are generally estimated and billed to manufacturers within 20 days after the end of each month. The effect of adjustments resulting from the reconciliation of rebates recognized to the amounts billed and collected has not been material to the Company’s results of operations. Accounting Pronouncements Issued but Not Yet Adopted In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The standard is intended to provide a better understanding of an entity's overall performance and business activities through improved disclosure about an entity's reportable segments, including more detailed information about reportable segment expenses. The new standard will be effective for the Company for the fiscal year beginning January 1, 2024 and for interim periods within the fiscal year beginning January 1, 2025. While the new standard requires additional footnote disclosure, the Company currently does not expect the adoption of the new standard to have a material effect on its consolidated financial statements. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The standard is intended to enhance the transparency and decision usefulness of income tax disclosures primarily through changes to the rate reconciliation and income taxes paid information. The new standard will be effective for the Company for the fiscal year beginning January 1, 2025. While the new standard requires further disaggregation of the income tax footnote, the Company currently does not expect the adoption of the new standard to have a material effect on its consolidated financial statements. |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Disaggregated revenue The following table disaggregates revenue by service (in thousands): Three Months Ended Six Months Ended 2024 2023 2024 2023 Fertility benefits services revenue $ 193,563 $ 172,738 $ 363,332 $ 329,883 Pharmacy benefits services revenue 110,524 106,635 218,833 207,884 Total revenue $ 304,087 $ 279,373 $ 582,165 $ 537,767 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The fair value of financial instruments is determined based on assumptions that market participants would use when pricing an asset or liability at the balance sheet date. Certain assets are categorized based on the following fair value hierarchy of market participant assumptions: Level 1 — Unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities. Level 2 — Inputs, other than quoted prices in active markets, that are observable either directly or indirectly. Level 3 — Prices or valuation techniques that require inputs that are both significant to the fair value of the asset or liability and supported by little or no market activity. The Company uses observable market data when available, and minimizes the use of unobservable inputs when determining fair value. As of June 30, 2024 and December 31, 2023, the Company had $96.4 million and $35.2 million, respectively, in financial assets held in money market accounts and $167.2 million and $273.8 million, respectively, held in marketable securities, including U.S. treasury bills. All were classified as Level 1 in the fair value hierarchy. The Company measured these assets at fair value. The Company classified these assets as Level 1 because the values of these assets are determined using unadjusted quoted prices in active markets for identical assets. As of June 30, 2024 and December 31, 2023, the Company did not have any assets or liabilities classified as Level 2 or Level 3 in the fair value hierarchy. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Leases | Leases In September 2019, the Company’s sublease agreement for the 25,212 square foot office in its corporate headquarters commenced in New York, NY and is scheduled to expire in May 2029. Pursuant to the sublease, the Company is obligated to pay the base rent of approximately $1.3 million per annum through the end of the fifth lease year and approximately $1.4 million per annum thereafter through the expiration date. In February 2023, the Company's lease agreement for the additional 24,099 square foot office in its corporate offices commenced in New York, NY and is expected to expire in the fourth quarter of 2035. In accordance with ASC 842, the Company recorded right-of-use assets and lease liabilities of $12.2 million and $12.1 million, respectively. Pursuant to the lease, the Company is obligated to pay the base rent of approximately $1.4 million per annum through the end of the fifth lease year and approximately $1.5 million per annum thereafter through the expiration date. The Company recognizes lease expense on a straight-line basis over the lease term. Lease expense for the three months ended June 30, 2024 and 2023 was $0.7 million and $0.6 million, respectively. For the six months ended June 30, 2024 and 2023, lease expense was $1.3 million and $1.0 million, respectively. Cash outflows from operating activities attributable to the operating leases for the six months ended June 30, 2024 and 2023 was $0.9 million and $0.6 million, respectively. Information related to the Company's leases is as follows (in thousands): Balance Sheet Location June 30, 2024 December 31, 2023 Operating Leases Right-of-use asset Operating lease right-of-use assets $ 17,806 $ 17,605 Short-term lease liabilities Accrued expenses and other current liabilities $ 2,802 $ 2,149 Long-term lease liabilities Operating lease noncurrent liabilities $ 17,064 $ 17,241 Other information Weighted-average remaining lease term, operating lease 9.0 years 9.6 years Weighted-average discount rate, operating lease 4.60% 4.60% Future minimum facility lease payments related to the Company's operating lease liabilities as of June 30, 2024 were as follows (in thousands): Year Ending December 31: Operating Lease Payments as of June 30, 2024 2024 $ 1,453 2025 2,992 2026 2,992 2027 2,992 2028 2,992 Thereafter 10,998 Total undiscounted lease payments $ 24,419 Less: imputed interest 4,553 Present value of lease liabilities $ 19,866 Less: current portion of operating lease liabilities 2,802 Operating lease noncurrent liabilities $ 17,064 February 2022 Lease Agreement As noted above, the Company commenced its lease for the 24,099 square foot office in its corporate offices in New York, NY in February 2023, pursuant to a lease agreement entered into by the Company in February 2022. The lease agreement also provides for additional space in the Company's corporate offices, including an additional 21,262 square foot office and continued occupancy of the 25,212 square foot office after the expiration of the current sublease. For the 21,262 square foot office, the lease commencement date, which is when the premises will become available to the Company for use, is currently expected to be in the fourth quarter of 2024. The Company is obligated to pay the base rent of approximately $1.3 million starting in the fourth quarter of 2025 for five years and approximately $1.4 million per year thereafter through the fourth quarter of 2035, the expected expiration date. For the current 25,212 square foot office, the Company is obligated to pay the base rent of approximately $1.6 million per year beginning in June 2029, which is the lease commencement, through the fourth quarter of 2035, the expected expiration date. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company records accruals for loss contingencies when it is probable that a liability will be incurred and the amount of the loss can be reasonably estimated. If the Company determines that a loss is reasonably possible, the Company discloses the matter, and the amount or range of the possible loss, if estimable, in the notes to the consolidated financial statements. From time to time, the Company is involved in certain claims and litigation arising in the normal course of business. The Company is not aware of any legal proceedings or claims, that the Company believes will have, individually or in the aggregate, a material adverse effect on the Company’s financial position or results of operations. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stockholders' Equity | Stockholders' Equity Share Repurchase Programs In February 2024, the Company’s Board of Directors authorized a share repurchase program of up to $100 million in shares of common stock (the “February 2024 share repurchase program”). In May 2024, the Company’s Board of Directors authorized an additional share repurchase program of up to $100 million in shares of common stock (the “May 2024 share repurchase program”). During the six months ended June 30, 2024, the Company repurchased a total of 6,316,705 shares of common stock under the share repurchase programs at an average price per share of $29.45 and a total cost of $187.9 million, inclusive of excise taxes and trading fees. As of July 2024, the February share repurchase program and the May 2024 share repurchase program were completed, and no amounts remained available for repurchase under the programs. In August 2024, the Company’s Board of Directors authorized an additional share repurchase program of up to $100 million in shares of common stock (the “August 2024 share repurchase program”). Repurchases under the program may be made in the form of open market repurchases, including through plans complying with Rule 10b5-1 under the Exchange Act, depending on stock price, market conditions, and other factors, as determined by the Company. There can be no assurance as to the number of shares to be repurchased by the Company under the August 2024 share repurchase program. Stock-based Compensation Expense The following table summarizes stock-based compensation expense, which was included in the statements of operations as follows (in thousands): Three Months Ended Six Months Ended 2024 2023 2024 2023 Cost of services $ 9,448 $ 8,812 $ 18,481 $ 17,026 Sales and marketing 7,911 6,883 15,414 13,451 General and administrative 15,677 16,058 30,193 32,084 Total stock-based compensation expense $ 33,036 $ 31,753 $ 64,088 $ 62,561 Accumulated Other Comprehensive Income Accumulated other comprehensive income consisted of the following (in thousands): Three Months Ended June 30, 2024 Three Months Ended June 30, 2023 Unrealized gains on marketable securities Foreign currency translation adjustments Total Unrealized gains on marketable securities Foreign currency translation adjustments Total Balance at beginning of period $ 2,739 $ 11 $ 2,750 $ 719 $ 5 $ 724 Other comprehensive income before reclassifications, net of tax (1) 1,915 (10) 1,905 1,191 (11) 1,180 Amounts reclassified from accumulated other comprehensive income, net of tax (3) (2,630) — (2,630) (822) — (822) Net current period other comprehensive (loss) income (715) (10) (725) 369 (11) 358 Balance at end of period $ 2,024 $ 1 $ 2,025 $ 1,088 $ (6) $ 1,082 Six Months Ended June 30, 2024 Six Months Ended June 30, 2023 Unrealized gains on marketable securities Foreign currency translation adjustments Total Unrealized gains on marketable securities Foreign currency translation adjustments Total Balance at beginning of period $ 2,829 $ (10) $ 2,819 $ 496 $ 5 $ 501 Other comprehensive income before reclassifications, net of tax (2) 4,313 11 4,324 1,916 (11) 1,905 Amounts reclassified from accumulated other comprehensive income, net of tax (3) (5,118) — (5,118) (1,324) — (1,324) Net current period other comprehensive (loss) income (805) 11 (794) 592 (11) 581 Balance at end of period $ 2,024 $ 1 $ 2,025 $ 1,088 $ (6) $ 1,082 ________________________________ (1) Represents unrealized gains of $2.6 million, net of tax expense of $0.7 million, for the three months ended June 30, 2024 and unrealized gains of $1.2 million, net of tax expense of $0, for the three months ended June 30, 2023 (2) Represents unrealized gains of $5.9 million, net of tax expense of $1.6 million, for the six months ended June 30, 2024 and unrealized gains of $1.9 million, net of tax expense of $0, for the six months ended June 30, 2023 (3) The effects on net income of amounts reclassified from accumulated other comprehensive income were as follows (in thousands): Details about Accumulated Other Comprehensive Income Component Three Months Ended Six Months Ended Affected Line Item in Statement of Operations 2024 2023 2024 2023 Gains on marketable securities $ 3,593 $ 822 $ 6,988 $ 1,324 Other income, net 3,593 822 6,988 1,324 Income before income taxes 963 — 1,870 — Provision for income taxes $ 2,630 $ 822 $ 5,118 $ 1,324 Net income |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2024 | |
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | |
Acquisitions | Acquisitions On June 17, 2024, the Company completed its acquisition of Apryl GmbH, a Berlin-based fertility benefits platform, to expand its global offering. The transaction was for a purchase price of €5.1 million, or $5.5 million based on the exchange rate on the acquisition closing date, and was accounted for using the acquisition method. As a result, tangible and intangible assets acquired and liabilities assumed were recorded at their estimated fair values as of the acquisition date. Any excess consideration over the fair value of the assets and liabilities assumed was recognized as goodwill and is subject to revision as the purchase price allocation is completed during the measurement period (up to one year from acquisition date). This acquisition did not have a material impact on the Company’s consolidated financial statements. |
Net Income Per Share
Net Income Per Share | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income Per Share Basic net income per share is calculated by dividing the net income by the weighted-average number of shares of common stock outstanding for the period. Diluted net income per share is computed by dividing the diluted net income by the weighted-average number of common shares outstanding for the period, including potential dilutive common shares assuming dilutive effect of outstanding common stock options, restricted stock units, common stock warrants, and shares issuable under the employee stock purchase plan. In periods when the Company has incurred a net loss, diluted net loss per share is the same as basic net loss per share because dilutive common shares are not assumed to have been issued if their effect is anti-dilutive. A reconciliation of net income and the number of shares in the calculation of basic and diluted net income per share is as follows (in thousands, except share and per share amounts): Three Months Ended Six Months Ended 2024 2023 2024 2023 Basic net income per common share: Numerator: Net income $ 16,485 $ 14,991 $ 33,383 $ 32,669 Denominator: Weighted-average shares used in computing basic net income per share 93,868,409 94,738,651 95,160,085 94,290,653 Basic net income per share $ 0.18 $ 0.16 $ 0.35 $ 0.35 Diluted net income per common share: Numerator: Net income $ 16,485 $ 14,991 $ 33,383 $ 32,669 Denominator: Weighted-average shares used in computing basic net income per share 93,868,409 94,738,651 95,160,085 94,290,653 Effect of dilutive securities Options to purchase common stock 3,558,853 4,964,878 3,748,342 5,276,642 Shares issuable under ESPP 3,040 1,647 4,523 105 Warrants to purchase common stock 288,081 538,316 290,035 537,118 Restricted stock units 121,193 372,427 253,350 287,055 Total effect of dilutive securities 3,971,167 5,877,268 4,296,250 6,100,920 Weighted-average shares used in computing diluted net income per share 97,839,576 100,615,919 99,456,335 100,391,573 Diluted net income per share $ 0.17 $ 0.15 $ 0.34 $ 0.33 The following weighted-average outstanding shares of potentially dilutive securities were excluded from the computation of diluted income per share for the period presented because including them would have been antidilutive: Three Months Ended Six Months Ended 2024 2023 2024 2023 Options to purchase common stock 13,667,019 11,952,205 13,111,238 11,866,389 Restricted stock units 2,442,920 1,089,701 1,558,562 1,487,082 Total 16,109,939 13,041,906 14,669,800 13,353,471 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||
Net income | $ 16,485 | $ 14,991 | $ 33,383 | $ 32,669 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 6 Months Ended |
Jun. 30, 2024 shares | Jun. 30, 2024 shares | |
Trading Arrangements, by Individual | ||
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Allison Swartz [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On May 14, 2024, Allison Swartz, our General Counsel and Secretary, adopted a trading plan that is intended to satisfy the conditions under Rule 10b5-1(c) of the Exchange Act. Ms. Swartz’s trading plan is for the sale of up to 17,241 shares of our common stock in amounts and prices determined in accordance with a formula set forth in the plan. The plan terminates on the earlier of the date all shares under the plan are sold or May 14, 2025. | |
Name | Allison Swartz | |
Title | General Counsel and Secretary | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | May 14, 2024 | |
Expiration Date | May 14, 2025 | |
Arrangement Duration | 365 days | |
Aggregate Available | 17,241 | 17,241 |
Beth Seidenberg [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On June 25, 2024, Beth Seidenberg, a director of the Company, adopted a trading plan that is intended to satisfy the conditions under Rule 10b5-1(c) of the Exchange Act. Ms. Seidenberg’s trading plan is for the sale of up to 283,999 shares of the Company’s common stock in amounts and prices determined in accordance with a formula set forth in the plan. The plan terminates on the earlier of the date all shares under the plan are sold or June 24, 2025. | |
Name | Beth Seidenberg | |
Title | director | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | June 25, 2024 | |
Expiration Date | June 24, 2025 | |
Arrangement Duration | 364 days | |
Aggregate Available | 283,999 | 283,999 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying interim unaudited consolidated financial statements include the accounts of Progyny, Inc. and its wholly owned subsidiaries. The interim unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities Exchange Commission (“SEC”) applicable to interim financial reporting. These interim consolidated financial statements have been prepared on a basis consistent with the annual consolidated financial statements and, in the opinion of management, include all adjustments necessary to fairly state the Company's financial position as of June 30, 2024, the results of the Company's operations for the three and six months ended June 30, 2024 and 2023 and the results of the Company's cash flows for the six months ended June 30, 2024 and 2023. Therefore, these unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related footnotes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, filed with the SEC on February 29, 2024 (the “Annual Report on Form 10-K”). The results for the three and six months ended June 30, 2024 are not necessarily indicative of the operating results expected for the year ending December 31, 2024 or any other future period. Additionally, the coronavirus (“COVID-19”) pandemic continues to evolve and due to the uncertainty of the pandemic, including variants, the Company’s customers and members, provider network, specialty pharmacy partners, employees, suppliers, vendors, and other business partners may continue to be impacted in future periods. A resurgence of COVID-19 could have a material adverse effect on the Company’s business, financial condition, results of operations and growth prospects. The Company will continue to assess these potential impacts to its business and will make adjustments to its operations as necessary. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP generally requires management to make estimates and assumptions that affect the reported amount of certain assets, liabilities, revenue, and expenses, and the related disclosure of contingent assets and liabilities. Such estimates include, but are not limited to, the determination of accrued receivables related to revenue recognition, accrued claims payable, allowance for doubtful accounts, stock-based compensation expense, lease liabilities, and accounting for income taxes. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. |
Revenue Recognition | Revenue Recognition Revenue is recognized when control of the promised goods or services is transferred to clients in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The Company applies the following five-step model to recognize revenue from contracts with clients: • Identification of the contract, or contracts, with a client; • Identification of the performance obligations in the contract; • Determination of the transaction price; • Allocation of the transaction price to the performance obligations in the contract; and • Recognition of revenue when, or as, a performance obligation is satisfied. Progyny’s contracts typically have a stated term of three years and include contractual termination options after the first year, allowing the client to terminate the contract with 30 to 90 days’ notice. Fertility Benefits Solution Revenue Progyny primarily generates revenue through its fertility benefits solution, in which Progyny provides self-insured enterprise entities (“clients”) and their employees and partners (together, “members”) with fertility benefits. As part of the fertility benefits solution, Progyny provides access to effective and cost-efficient fertility treatments, referred to as Smart Cycles, as well as other related services. Smart Cycles are proprietary treatment bundles that include certain medical services available to members through Progyny’s proprietary, credentialed network of provider clinics. In addition to access to Progyny’s Smart Cycle treatment bundles and access to Progyny’s network of provider clinics, the fertility benefits solution includes other comprehensive services, which Progyny refers to as care management services, such as active management of the provider clinic network, real-time member eligibility and treatment authorization, member-facing digital tools throughout the Smart Cycle and detailed quarterly reporting all supported by client facing account management and end-to-end comprehensive member support provided by Progyny’s in house staff of PCAs. The promises within Progyny’s fertility benefits contract with a client represent a single performance obligation because Progyny provides a significant service of integrating the Progyny designed Smart Cycles and access to the fertility treatment services provided by provider clinics with the other comprehensive services into the combined fertility benefits solution that the client contracted to receive. Progyny’s fertility benefits solution is a stand-ready obligation that is satisfied over the contract term. Progyny’s contracts include the following sources of consideration, which are all variable: a per employee per month (“PEPM”) administration fee (in most, but not all contracts) and a fixed rate per Smart Cycle. The PEPM administration fee is allocated between the fertility benefits solution and the pharmacy benefits solution based on standalone selling price, estimated using an expected cost-plus margin method. The Company allocates the variable consideration related to the fixed rate per Smart Cycle to the distinct period during which the related services were performed as those fees relate specifically to the Company’s efforts to provide its fertility benefits solution to its clients in the period and represents the consideration the Company is entitled to for the fertility benefits services provided. As a result, the fixed rate per Smart Cycle is included in the transaction price and recognized in the period in which the Smart Cycle is provided to the member. Progyny’s contracts also include potential service level agreement refunds related to outcome-based service metrics. These service level refunds, which are determined based on results of a full plan year, if met, are based on a percentage of the PEPM fee paid by clients. The Company estimates the variable consideration related to the total PEPM administration fee, less estimated refunds related to service level agreements, and recognizes the amounts allocated to the fertility benefits solution ratably over the contract term. Progyny’s estimates of service level agreement refunds have not historically resulted in significant adjustments to the transaction price. Clients are typically invoiced on a monthly basis for the PEPM administration fee. Progyny invoices its clients and members for their respective portions of the fixed rate per Smart Cycle bundle when all treatment services within a Smart Cycle are completed by the provider clinic. Once an invoice is issued, payment terms are typically between 30 to 60 days. The Company assesses whether it is the principal or the agent for each arrangement with a client, since fertility treatment services are provided by a third party—the provider clinics. The Company is the principal in its arrangements with clients and therefore presents revenue gross of the amounts paid to the provider clinics because Progyny controls the specified service (the fertility benefits solution) before it is transferred to the client. Progyny integrates the fertility treatment services provided by the provider clinics into the overall fertility benefits solution that the client contracted to receive. In addition, Progyny defines the scope of the potential services to be performed by the provider clinics and monitors the performance of the provider clinics. Furthermore, Progyny is primarily responsible for fulfilling the promise to the client and has discretion in setting the pricing, as Progyny separately negotiates agreements with the provider clinics, which establish pricing for each treatment service. Pricing of services from provider clinics is independent from the fees charged to clients. Pharmacy Benefits Solution Revenue For clients that have the fertility benefits solution, Progyny offers, as an add-on, its pharmacy benefits solution, which is a separate, fully integrated pharmacy benefit. As part of the pharmacy benefits solution, Progyny provides care management services, which include Progyny’s formulary plan design, prescription fulfillment, simplified authorization and timely delivery of the medications used during treatment through Progyny’s network of specialty pharmacies, and clinical services consisting of member assessments, UnPack It calls, telephone support, online education, medication administration training, pharmacy support services and continuing PCA support. The pharmacy-related promises represent a single performance obligation because Progyny provides a significant service of integrating the formulary plan design, prescription fulfillment, clinical services and PCA support into the combined pharmacy benefits solution that the client contracted to receive. The pharmacy benefits solution is a stand-ready obligation that is satisfied over the contract term. Progyny’s contracts include the following sources of consideration, all of which are variable: a PEPM administration fee (in most, but not all contracts) and a fixed fee per fertility drug. As described above, the PEPM administration fee, less estimated refunds related to service level agreements, is allocated to the pharmacy benefits solution and recognized ratably over the contract term. The Company allocates the variable consideration related to the fixed fee per fertility drug to the distinct period during which the related services were performed, as those fees relate specifically to the Company’s efforts to provide its pharmacy benefits solution to clients in the period and represents the consideration the Company is entitled to for the pharmacy benefits services provided. As a result, the fixed fee per fertility drug is included in the transaction price and recognized in the period in which the Company is entitled to consideration from a client, which is when a prescription is filled and delivered to the members. As stated above, clients are invoiced on a monthly basis for the PEPM administration fee. Progyny invoices the client and the member for their respective portions of the fixed fee per fertility drug, when the prescription services are completed by the specialty pharmacies. Once an invoice is issued, payment terms are typically between 30 to 60 days. The Company assesses whether it is the principal or the agent for each arrangement with a client, as prescription fulfillment and clinical services are provided by a third party—the specialty pharmacies. The Company is the principal in its arrangements with clients, and therefore presents revenue gross of the amounts paid to the specialty pharmacies. Progyny controls the specified service (the pharmacy benefits solution) before it is transferred to the client. Progyny integrates the prescription fulfillment and clinical services provided by the pharmacies and PCAs into the overall pharmacy benefits solution that the client contracted to receive. In addition, Progyny defines the scope of the potential services to be performed by the specialty pharmacies and monitors the performance of the specialty pharmacies. Furthermore, Progyny is primarily responsible for fulfilling the promise to the client and has discretion in setting the pricing, as Progyny separately negotiates agreements with pharmacies, which establish pricing for each drug. Pricing of fertility drugs is independent from the fees charged to clients. The Company does not disclose the transaction price allocated to remaining performance obligations because all of the transaction price is variable and is allocated to the distinct periods to which the services relate, as discussed above. The remaining contract term is typically less than one year, due to the client’s contractual termination options. There were no material contract asset or contract liability balances as of June 30, 2024 and December 31, 2023. |
Accrued Receivables and Accrued Claims Payable | Accrued Receivables and Accrued Claims Payable Accrued receivables are estimated based on historical experience for those fertility benefits services provided but for which a claim has not been received from the provider clinic at the end of the reporting period, which includes assumptions regarding the lag between authorization date and service date as well as estimates for changes and cancellations of services. At the same time, cost of services and accrued claims payables are estimated based on the amount to be paid to the provider clinic and expected gross margin on fertility benefits services. Estimates are adjusted to actual at the time of billing. Adjustments to original estimates have not been material. As of June 30, 2024 and December 31, 2023, accrued receivables were $67.6 million and $45.8 million, respectively. Accrued receivables are included within accounts receivable in the consolidated balance sheet. Accrued claims payable of $40.0 million and $30.3 million as of June 30, 2024 and December 31, 2023, respectively, are included within accrued expenses and other current liabilities in the consolidated balance sheet. Claims payable are generally paid within 30 days based on contractual terms. As of June 30, 2024 and December 31, 2023, unbilled receivables, which represent claims received and approved but unbilled at the end of the reporting period, were $76.5 million and $45.1 million, respectively. Unbilled receivables are typically billed to clients within 30 days of the approved claim based on the contractual billing schedule agreed upon with the client. Unbilled receivables are included in accounts receivable in the consolidated balance sheet. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts The accounts receivable balance primarily includes amounts due from clients and members. The Company estimates the allowance for doubtful accounts based on the lifetime expected credit losses for the client and member receivable pools, respectively. Under this current expected credit losses model, the Company determines the allowance for doubtful accounts based on factors such as the age of the receivable balance, historical experience, current economic conditions, and reasonable and supportable forecasts of future economic conditions. An allowance for credit losses is applied at the time the asset is recognized. Expected credit losses are recorded as general and administrative expenses on the consolidated statements of operations |
Cost of Services | Cost of Services Fertility Benefits Services Fertility benefits services costs include: (1) fees paid to provider clinics within the Company’s network, labs and anesthesiologists; (2) costs incurred (including salaries, bonuses, benefits, stock-based compensation expense, other related costs, and an allocation of the Company's general overhead, depreciation and amortization) for those employees associated with care management service functions: Provider Account Management, PCA, Provider Relations and Claims Processing teams; and (3) related information technology support costs. Contracts with provider clinics are typically for a term of one Pharmacy Benefits Services Pharmacy benefits services costs include: (1) the fees for prescription drugs dispensed and clinical services provided during the reporting period by specialty pharmacy partners; (2) costs incurred (including salaries, bonuses, benefits, stock-based compensation expense, other related costs, and an allocation of the Company's general overhead, depreciation and amortization) for those employees associated with care management service functions: PCA, Provider Relations and Claims Processing teams; and (3) related information technology support costs. Contracts with the specialty pharmacies are typically for a term of one year. In the specialty pharmacy contracts, the contractual fees of prescription drugs sold includes the cost of the prescription drugs purchased and shipped to members by the Company’s specialty mail service dispensing pharmacies, net of any volume-related or other discounts. Vendor Rebates The Company receives a rebate on formulations purchased and dispensed by the Company’s specialty pharmacies. The Company’s contractual arrangements with pharmacy program partners provide for the Company to receive a discount (or rebate) from established list prices paid subsequent to dispensing when products are purchased indirectly from a pharmacy program partner (such as through a specialty pharmacy). These rebates are recognized as a reduction of cost of services when prescriptions are dispensed and are generally estimated and billed to manufacturers within 20 days after the end of each month. The effect of adjustments resulting from the reconciliation of rebates recognized to the amounts billed and collected has not been material to the Company’s results of operations. |
Accounting Pronouncements Issued but Not Yet Adopted | Accounting Pronouncements Issued but Not Yet Adopted In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The standard is intended to provide a better understanding of an entity's overall performance and business activities through improved disclosure about an entity's reportable segments, including more detailed information about reportable segment expenses. The new standard will be effective for the Company for the fiscal year beginning January 1, 2024 and for interim periods within the fiscal year beginning January 1, 2025. While the new standard requires additional footnote disclosure, the Company currently does not expect the adoption of the new standard to have a material effect on its consolidated financial statements. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The standard is intended to enhance the transparency and decision usefulness of income tax disclosures primarily through changes to the rate reconciliation and income taxes paid information. The new standard will be effective for the Company for the fiscal year beginning January 1, 2025. While the new standard requires further disaggregation of the income tax footnote, the Company currently does not expect the adoption of the new standard to have a material effect on its consolidated financial statements. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Schedule of Accounts Receivable and Allowance for Doubtful Accounts | The following table provides a summary of the activity in this allowance (in thousands): Six Months Ended June 30, 2024 Balance at Beginning of Period Charged to Costs and Expenses Write-offs Balance at End of Period Allowance for doubtful accounts $ 46,636 $ 9,572 $ (2,127) $ 54,081 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following table disaggregates revenue by service (in thousands): Three Months Ended Six Months Ended 2024 2023 2024 2023 Fertility benefits services revenue $ 193,563 $ 172,738 $ 363,332 $ 329,883 Pharmacy benefits services revenue 110,524 106,635 218,833 207,884 Total revenue $ 304,087 $ 279,373 $ 582,165 $ 537,767 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Schedule of Lease Information | Information related to the Company's leases is as follows (in thousands): Balance Sheet Location June 30, 2024 December 31, 2023 Operating Leases Right-of-use asset Operating lease right-of-use assets $ 17,806 $ 17,605 Short-term lease liabilities Accrued expenses and other current liabilities $ 2,802 $ 2,149 Long-term lease liabilities Operating lease noncurrent liabilities $ 17,064 $ 17,241 Other information Weighted-average remaining lease term, operating lease 9.0 years 9.6 years Weighted-average discount rate, operating lease 4.60% 4.60% |
Schedule of Future Minimum Facility Lease Payments | Future minimum facility lease payments related to the Company's operating lease liabilities as of June 30, 2024 were as follows (in thousands): Year Ending December 31: Operating Lease Payments as of June 30, 2024 2024 $ 1,453 2025 2,992 2026 2,992 2027 2,992 2028 2,992 Thereafter 10,998 Total undiscounted lease payments $ 24,419 Less: imputed interest 4,553 Present value of lease liabilities $ 19,866 Less: current portion of operating lease liabilities 2,802 Operating lease noncurrent liabilities $ 17,064 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock Based Compensation Expense for Employees | The following table summarizes stock-based compensation expense, which was included in the statements of operations as follows (in thousands): Three Months Ended Six Months Ended 2024 2023 2024 2023 Cost of services $ 9,448 $ 8,812 $ 18,481 $ 17,026 Sales and marketing 7,911 6,883 15,414 13,451 General and administrative 15,677 16,058 30,193 32,084 Total stock-based compensation expense $ 33,036 $ 31,753 $ 64,088 $ 62,561 |
Schedule of Accumulated Other Comprehensive Income | Accumulated other comprehensive income consisted of the following (in thousands): Three Months Ended June 30, 2024 Three Months Ended June 30, 2023 Unrealized gains on marketable securities Foreign currency translation adjustments Total Unrealized gains on marketable securities Foreign currency translation adjustments Total Balance at beginning of period $ 2,739 $ 11 $ 2,750 $ 719 $ 5 $ 724 Other comprehensive income before reclassifications, net of tax (1) 1,915 (10) 1,905 1,191 (11) 1,180 Amounts reclassified from accumulated other comprehensive income, net of tax (3) (2,630) — (2,630) (822) — (822) Net current period other comprehensive (loss) income (715) (10) (725) 369 (11) 358 Balance at end of period $ 2,024 $ 1 $ 2,025 $ 1,088 $ (6) $ 1,082 Six Months Ended June 30, 2024 Six Months Ended June 30, 2023 Unrealized gains on marketable securities Foreign currency translation adjustments Total Unrealized gains on marketable securities Foreign currency translation adjustments Total Balance at beginning of period $ 2,829 $ (10) $ 2,819 $ 496 $ 5 $ 501 Other comprehensive income before reclassifications, net of tax (2) 4,313 11 4,324 1,916 (11) 1,905 Amounts reclassified from accumulated other comprehensive income, net of tax (3) (5,118) — (5,118) (1,324) — (1,324) Net current period other comprehensive (loss) income (805) 11 (794) 592 (11) 581 Balance at end of period $ 2,024 $ 1 $ 2,025 $ 1,088 $ (6) $ 1,082 ________________________________ (1) Represents unrealized gains of $2.6 million, net of tax expense of $0.7 million, for the three months ended June 30, 2024 and unrealized gains of $1.2 million, net of tax expense of $0, for the three months ended June 30, 2023 (2) Represents unrealized gains of $5.9 million, net of tax expense of $1.6 million, for the six months ended June 30, 2024 and unrealized gains of $1.9 million, net of tax expense of $0, for the six months ended June 30, 2023 (3) The effects on net income of amounts reclassified from accumulated other comprehensive income were as follows (in thousands): Details about Accumulated Other Comprehensive Income Component Three Months Ended Six Months Ended Affected Line Item in Statement of Operations 2024 2023 2024 2023 Gains on marketable securities $ 3,593 $ 822 $ 6,988 $ 1,324 Other income, net 3,593 822 6,988 1,324 Income before income taxes 963 — 1,870 — Provision for income taxes $ 2,630 $ 822 $ 5,118 $ 1,324 Net income |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of Net Income and Number of Shares in the Calculation of Basic and Diluted Net Income per Share | A reconciliation of net income and the number of shares in the calculation of basic and diluted net income per share is as follows (in thousands, except share and per share amounts): Three Months Ended Six Months Ended 2024 2023 2024 2023 Basic net income per common share: Numerator: Net income $ 16,485 $ 14,991 $ 33,383 $ 32,669 Denominator: Weighted-average shares used in computing basic net income per share 93,868,409 94,738,651 95,160,085 94,290,653 Basic net income per share $ 0.18 $ 0.16 $ 0.35 $ 0.35 Diluted net income per common share: Numerator: Net income $ 16,485 $ 14,991 $ 33,383 $ 32,669 Denominator: Weighted-average shares used in computing basic net income per share 93,868,409 94,738,651 95,160,085 94,290,653 Effect of dilutive securities Options to purchase common stock 3,558,853 4,964,878 3,748,342 5,276,642 Shares issuable under ESPP 3,040 1,647 4,523 105 Warrants to purchase common stock 288,081 538,316 290,035 537,118 Restricted stock units 121,193 372,427 253,350 287,055 Total effect of dilutive securities 3,971,167 5,877,268 4,296,250 6,100,920 Weighted-average shares used in computing diluted net income per share 97,839,576 100,615,919 99,456,335 100,391,573 Diluted net income per share $ 0.17 $ 0.15 $ 0.34 $ 0.33 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following weighted-average outstanding shares of potentially dilutive securities were excluded from the computation of diluted income per share for the period presented because including them would have been antidilutive: Three Months Ended Six Months Ended 2024 2023 2024 2023 Options to purchase common stock 13,667,019 11,952,205 13,111,238 11,866,389 Restricted stock units 2,442,920 1,089,701 1,558,562 1,487,082 Total 16,109,939 13,041,906 14,669,800 13,353,471 |
Business and Basis of Present_2
Business and Basis of Presentation (Details) | 6 Months Ended |
Jun. 30, 2024 segment | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |
Number of operating segments | 1 |
Significant Accounting Polici_4
Significant Accounting Policies - Revenue Recognition (Details) | 6 Months Ended |
Jun. 30, 2024 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Revenue from contract with customer, term (in years) | 3 years |
Remaining contract term related to remaining performance obligations (in years) | 1 year |
Minimum | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Revenue contract termination, notice period (in days) | 30 days |
Customer payment terms (in days) | 30 days |
Maximum | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Revenue contract termination, notice period (in days) | 90 days |
Customer payment terms (in days) | 60 days |
Significant Accounting Polici_5
Significant Accounting Policies - Accrued Receivable and Accrued Claims Payable (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | |
Accounting Policies [Abstract] | ||
Accrued receivables | $ 67.6 | $ 45.8 |
Accrued claims payable | $ 40 | 30.3 |
Claims payable, payment period (within) | 30 days | |
Unbilled receivables | $ 76.5 | $ 45.1 |
Period in which unbilled receivables are billed to clients (within) | 30 days |
Significant Accounting Polici_6
Significant Accounting Policies - Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at beginning of period | $ 46,636 | |
Charged to Costs and Expenses | 9,572 | $ 9,794 |
Write-offs | (2,127) | |
Balance at end of period | $ 54,081 |
Significant Accounting Polici_7
Significant Accounting Policies - Cost of Services (Details) | 6 Months Ended |
Jun. 30, 2024 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Contract term with specialty pharmacies (in years) | 1 year |
Billing terms (in days) | 20 days |
Minimum | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Contract term, clinics (in years) | 1 year |
Maximum | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Contract term, clinics (in years) | 2 years |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenues [Abstract] | ||||
Total revenue | $ 304,087 | $ 279,373 | $ 582,165 | $ 537,767 |
Fertility benefits services revenue | ||||
Revenues [Abstract] | ||||
Total revenue | 193,563 | 172,738 | 363,332 | 329,883 |
Pharmacy benefits services revenue | ||||
Revenues [Abstract] | ||||
Total revenue | $ 110,524 | $ 106,635 | $ 218,833 | $ 207,884 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Level 1 | Fair value, recurring | ||
Assets, Fair Value Disclosure [Abstract] | ||
Financial assets held in marketable securities | $ 96,400,000 | $ 273,800,000 |
Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Assets classified as level 2 or level 3, fair value | 0 | |
Liabilities classified as level 2 or level 3, fair value | 0 | |
Level 3 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Assets classified as level 2 or level 3, fair value | 0 | |
Liabilities classified as level 2 or level 3, fair value | 0 | |
Money market funds | Level 1 | Fair value, recurring | ||
Assets, Fair Value Disclosure [Abstract] | ||
Financial assets held in money market accounts | $ 167,200,000 | $ 35,200,000 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||||||
Oct. 01, 2025 USD ($) | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Mar. 31, 2030 USD ($) | Jun. 30, 2029 USD ($) | Dec. 31, 2023 USD ($) | Feb. 28, 2023 USD ($) ft² | Feb. 28, 2022 ft² | Sep. 30, 2019 ft² | |
Lessee, Operating Lease, Description [Abstract] | |||||||||||
Operating lease right-of-use assets | $ 17,806 | $ 17,806 | $ 17,605 | ||||||||
Present value of lease liabilities | 19,866 | 19,866 | |||||||||
Lease expense | 700 | $ 600 | 1,300 | $ 1,000 | |||||||
Cash outflows from operating activities attributable to operating leases | 900 | $ 600 | |||||||||
Corporate Headquarters Lease, New York, New York, September 2019 | |||||||||||
Lessee, Operating Lease, Description [Abstract] | |||||||||||
Leased area (in square feet) | ft² | 25,212 | ||||||||||
Corporate Headquarters Lease, New York, New York, September 2019 | Forecast | |||||||||||
Lessee, Operating Lease, Description [Abstract] | |||||||||||
Operating lease, base rent per annum | $ 1,600 | ||||||||||
Corporate Headquarters Lease, New York, New York, September 2019 | Through fifth lease year | |||||||||||
Lessee, Operating Lease, Description [Abstract] | |||||||||||
Operating lease, base rent per annum | 1,300 | 1,300 | |||||||||
Corporate Headquarters Lease, New York, New York, September 2019 | After fifth lease year | |||||||||||
Lessee, Operating Lease, Description [Abstract] | |||||||||||
Operating lease, base rent per annum | 1,400 | 1,400 | |||||||||
Corporate Headquarters Lease, New York, New York, February 2023 | |||||||||||
Lessee, Operating Lease, Description [Abstract] | |||||||||||
Leased area (in square feet) | ft² | 24,099 | ||||||||||
Operating lease, base rent per annum | $ 1,500 | ||||||||||
Operating lease right-of-use assets | 12,200 | ||||||||||
Present value of lease liabilities | $ 12,100 | ||||||||||
Corporate Headquarters Lease, New York, New York, February 2023 | After fifth lease year | |||||||||||
Lessee, Operating Lease, Description [Abstract] | |||||||||||
Operating lease, base rent per annum | $ 1,400 | $ 1,400 | |||||||||
Corporate Offices Lease Two, New York, New York, Commencing 2024 | |||||||||||
Lessee, Operating Lease, Description [Abstract] | |||||||||||
Leased area (in square feet) | ft² | 21,262 | ||||||||||
Corporate Offices Lease Two, New York, New York, Commencing 2024 | Forecast | |||||||||||
Lessee, Operating Lease, Description [Abstract] | |||||||||||
Operating lease, base rent per annum | $ 1,300 | $ 1,400 | |||||||||
Operating lease, base rent per annum, first term, period (in years) | 5 years |
Leases - Operating Leases and O
Leases - Operating Leases and Other Information (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Assets and Liabilities, Lessee [Abstract] | ||
Right-of-use asset | $ 17,806 | $ 17,605 |
Short-term lease liabilities | $ 2,802 | $ 2,149 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued expenses and other current liabilities | Accrued expenses and other current liabilities |
Long-term lease liabilities | $ 17,064 | $ 17,241 |
Lessee Disclosure [Abstract] | ||
Weighted average remaining lease term, operating lease (in years) | 9 years | 9 years 7 months 6 days |
Weighted-average discount rate, operating lease | 4.60% | 4.60% |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
2024 | $ 1,453 | |
2025 | 2,992 | |
2026 | 2,992 | |
2027 | 2,992 | |
2028 | 2,992 | |
Thereafter | 10,998 | |
Total undiscounted lease payments | 24,419 | |
Less: imputed interest | 4,553 | |
Present value of lease liabilities | 19,866 | |
Less: current portion of operating lease liabilities | 2,802 | $ 2,149 |
Operating lease noncurrent liabilities | $ 17,064 | $ 17,241 |
Stockholders_ Equity - Narrativ
Stockholders’ Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2024 | Aug. 01, 2024 | May 31, 2024 | Feb. 29, 2024 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Repurchase of common stock | $ 161,498 | $ 187,856 | |||
February 2024 Share Repurchase Program | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock repurchase program, authorized amount | $ 100,000 | ||||
Repurchase of common stock (in shares) | 6,316,705 | ||||
February 2024 Share Repurchase Program | Common Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Repurchase of common stock | $ 187,900 | ||||
Average cost per share (in USD per share) | $ 29.45 | $ 29.45 | |||
May 2024 Share Repurchase Program | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Authorized, additional amount | $ 100,000 | ||||
Repurchase of common stock (in shares) | 6,316,705 | ||||
May 2024 Share Repurchase Program | Common Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Repurchase of common stock | $ 187,900 | ||||
Average cost per share (in USD per share) | $ 29.45 | $ 29.45 | |||
August 2024 Share Repurchase Program | Subsequent event | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Authorized, additional amount | $ 100,000 |
Stockholders_ Equity - Stock-Ba
Stockholders’ Equity - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Share-based Payment Arrangement, Additional Disclosure [Abstract] | ||||
Total stock-based compensation expense | $ 33,036 | $ 31,753 | $ 64,088 | $ 62,561 |
Cost of services | ||||
Share-based Payment Arrangement, Additional Disclosure [Abstract] | ||||
Total stock-based compensation expense | 9,448 | 8,812 | 18,481 | 17,026 |
Sales and marketing | ||||
Share-based Payment Arrangement, Additional Disclosure [Abstract] | ||||
Total stock-based compensation expense | 7,911 | 6,883 | 15,414 | 13,451 |
General and administrative | ||||
Share-based Payment Arrangement, Additional Disclosure [Abstract] | ||||
Total stock-based compensation expense | $ 15,677 | $ 16,058 | $ 30,193 | $ 32,084 |
Stockholders_ Equity - Accumula
Stockholders’ Equity - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | $ 571,604 | $ 424,401 | $ 553,429 | $ 376,968 |
Other comprehensive income before reclassifications, net of tax | 1,905 | 1,180 | 4,324 | 1,905 |
Amounts reclassified from accumulated other comprehensive income, net of tax | (2,630) | (822) | (5,118) | (1,324) |
Net current period other comprehensive (loss) income | (725) | 358 | (794) | 581 |
Balance at end of period | 456,193 | 469,499 | 456,193 | 469,499 |
Other income, net | 3,564 | 1,277 | 6,924 | 1,775 |
Income before income taxes | 25,067 | 17,167 | 47,582 | 33,498 |
Provision for income taxes | 8,582 | 2,176 | 14,199 | 829 |
Net income | 16,485 | 14,991 | 33,383 | 32,669 |
Reclassification out of AOCI | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Unrealized gains | 2,600 | 1,200 | 5,900 | 1,900 |
Provision for income taxes | 700 | 0 | 1,600 | 0 |
Total | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | 2,750 | 724 | 2,819 | 501 |
Balance at end of period | 2,025 | 1,082 | 2,025 | 1,082 |
Unrealized gains on marketable securities | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | 2,739 | 719 | 2,829 | 496 |
Other comprehensive income before reclassifications, net of tax | 1,915 | 1,191 | 4,313 | 1,916 |
Amounts reclassified from accumulated other comprehensive income, net of tax | (2,630) | (822) | (5,118) | (1,324) |
Net current period other comprehensive (loss) income | (715) | 369 | (805) | 592 |
Balance at end of period | 2,024 | 1,088 | 2,024 | 1,088 |
Unrealized gains on marketable securities | Reclassification out of AOCI | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Other income, net | 3,593 | 822 | 6,988 | 1,324 |
Income before income taxes | 3,593 | 822 | 6,988 | 1,324 |
Provision for income taxes | 963 | 0 | 1,870 | 0 |
Net income | 2,630 | 822 | 5,118 | 1,324 |
Foreign currency translation adjustments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | 11 | 5 | (10) | 5 |
Other comprehensive income before reclassifications, net of tax | (10) | (11) | 11 | (11) |
Amounts reclassified from accumulated other comprehensive income, net of tax | 0 | 0 | 0 | 0 |
Net current period other comprehensive (loss) income | (10) | (11) | 11 | (11) |
Balance at end of period | $ 1 | $ (6) | $ 1 | $ (6) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Provision (benefit) for incomes taxes | $ 8,582 | $ 2,176 | $ 14,199 | $ 829 |
Acquisitions (Details)
Acquisitions (Details) - Jun. 17, 2024 € in Millions, $ in Millions | EUR (€) | USD ($) |
Apryl GmbH | ||
Business Acquisition [Line Items] | ||
Purchase price | € 5.1 | $ 5.5 |
Net Income Per Share - Schedule
Net Income Per Share - Schedule of Reconciliation of Net Income and Number of Shares in the Calculation of Basic and Diluted Net Income per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Numerator: | ||||
Net income | $ 16,485 | $ 14,991 | $ 33,383 | $ 32,669 |
Denominator: | ||||
Weighted-average shares used in computing basic net income per share (in shares) | 93,868,409 | 94,738,651 | 95,160,085 | 94,290,653 |
Basic net income per share (in dollars per share) | $ 0.18 | $ 0.16 | $ 0.35 | $ 0.35 |
Numerator: | ||||
Net income | $ 16,485 | $ 14,991 | $ 33,383 | $ 32,669 |
Denominator: | ||||
Weighted-average shares used in computing basic net income per share (in shares) | 93,868,409 | 94,738,651 | 95,160,085 | 94,290,653 |
Effect of dilutive securities (in shares) | 3,971,167 | 5,877,268 | 4,296,250 | 6,100,920 |
Weighted-average shares used in computing diluted net income per share (in shares) | 97,839,576 | 100,615,919 | 99,456,335 | 100,391,573 |
Diluted net income per share (in dollars per share) | $ 0.17 | $ 0.15 | $ 0.34 | $ 0.33 |
Options to purchase common stock | ||||
Denominator: | ||||
Effect of dilutive securities (in shares) | 3,558,853 | 4,964,878 | 3,748,342 | 5,276,642 |
Shares issuable under ESPP | ||||
Denominator: | ||||
Effect of dilutive securities (in shares) | 3,040 | 1,647 | 4,523 | 105 |
Warrants to purchase common stock | ||||
Denominator: | ||||
Effect of dilutive securities (in shares) | 288,081 | 538,316 | 290,035 | 537,118 |
Restricted stock units | ||||
Denominator: | ||||
Effect of dilutive securities (in shares) | 121,193 | 372,427 | 253,350 | 287,055 |
Net Income Per Share - Potentia
Net Income Per Share - Potentially Dilutive Securities (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total (in shares) | 16,109,939 | 13,041,906 | 14,669,800 | 13,353,471 |
Options to purchase common stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total (in shares) | 13,667,019 | 11,952,205 | 13,111,238 | 11,866,389 |
Restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total (in shares) | 2,442,920 | 1,089,701 | 1,558,562 | 1,487,082 |