PGNY - Earnings call transcript Q2 2022

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Operator

Good afternoon, ladies and gentlemen, and welcome to today's Progyny Inc.

Second Quarter 2022 Earnings Call. At this time, all participants have been placed on a listen-only mode. [Operator Instructions] It is now my pleasure to turn the floor over to your host, Vice President of Investor Relations, James Hart. Sir, the floor is yours.

James Hart

good and Tom, you, afternoon, everyone. Thank our to second quarter call. conference Welcome today With and CEO of Mark Peter Progyny; Anevski, CFO. me are Michael Livingston, Sturmer, President;

We we remarks your some will call questions. the for before begin with open prepared

business, our and expected we the third clients, activity today's of existing of press contains that XXXX, that COVID-XX, are our quarter statements limited into including including reproductive statements statements the business factors, and industry markets on outlook, services uncertainties, and growth, assumptions and forward-looking of Progyny's impact to further the future remind outlook financial to our and as clients this expansion not call about variance described operations; other but full-year economic certain plans performance, subject regulations, and and release and begin, our objectives offered; opportunities, investments, I'd risks, was our important general utilization including, for Before related industry plans new mix; clients, to those issued size expansion ability growth; laws retain regulations, member our of to, you our of strategy, afternoon. opportunity, These including nonhistorical our business, and other rates upsell business like long-term expectation market for conditions our including and impact and rights. and and statements laws restricting acquire other to in market both including the and forward-looking

and of we business, events these about our operations. and trends We believe current that results forward-looking condition have expectations future on our largely affect financial may projections based financial statements and

section these obligation any entitled expectations actual forward-looking and changes we XX-K with materially most our SEC, risks cause undertake Risk to differ to the of recent from other this these reports after filed Factors we believe reflect are in and call. factors statements the important could reasonable, Descriptions Although that revise and these including periodic that discussed current occur in in to are XX-Q. results our statement no

we expenses, call, adjusted such the comparable the like compensation. the available operating margin, EBITDA, stock-based and excluding to investors.progyny.com. also financial GAAP measures, During measures at non-GAAP with is gross now stock-based which the also turn I'd margin, adjusted compensation most in Reconciliations over press call are as will excluding to to EBITDA available refer Pete. release,

Peter Anevski

that today. for pursuing in as essential of short XX% can reason fertility of that $XX.X of of XX% as is for utilization their endures our Thanks, the Jamie. a fertility nature quarter pause periods very EBITDA a a treatment delay outcome. even patients significant solid ever margin highest see EBITDA we goals. and that of that have during or family-building whether they to demonstrating have There activity data strong reflect growth Thanks, grew reflecting many economic quarterly to I'll be for The a while factor need historical adjusted moment essential in well become in that time-sensitive is joining million, uncertainty. healthy fertility why care had the desire record point. the to services successful this of members report same or treatment strength the believe underscore necessary critical we the realize is member by our the quarter not -- its $XXX further Progyny even us a is million, second results over The revenue to also we highest period, affirming XX.X%. We're continues the everyone, at a level to to for levels adjusted expect Over quarter second to expanding level pleased with would XXXX. both

to at a looking treatment to majority continue right be. overcomes recession when a more people the over when economically strong time fertility so, financial against pay what the backdrop sensitive add was do to and family for majority durability the them even any care sense even it's overall which presumably needed Another when to that of the seen have pursue We've significant decade was though with would happened healthy this short years pandemic. they cash during past reason the place ago remained the also patient a the take concerns This their trend people of two child volumes of as great covered that global consistent very the have over term. often than to who have is may much market time vast a a

we've although to a related be a impact seen on potential investors -- our strong. continues the the become economy softening for and any companies inflation we in seen we've and thus year, Although all with focus major how aren't this engagement benefit far. Member has seeing business

with if in positive discussions and employers already do. they provide to the change if renewal keeping think don't way terms in it they today providers, seeing adding have continue of aren't coverage productive it We either the and about they we benefit, or

This consistent prior-years, customers all sizes, family-building expand enthusiasm and solutions among given two for their with our portion surprising coverage fact, planning next a In employer healthy fertility employers factors. are of to isn't year. of

and we our heart favorable the age the clients employees. market one, With lows now focused overall XXs to continues and That tight, every and data the the areas most particular, are acquisition employers level in person. to surprising with for upsells. ranges one headwinds short, of the the to unemployed does client first policy, to XXs, their designed We presence compensation remains relative expansion acquisitions, this we current point, this one to to record doesn't that grow that selling goes we survey to new of for in expand season renewal; and respect trends is to fertility employed are that now sought-after season. of of of fertility on year-ago growth: so at millennial essential to program A pursue time. experienced remainder these the be and size age early retain health selling needs are year's patient, very tighter be which our activity supportive for In through benefits. the existing and than fertility believe a season priority, two, over happens most and late new positive to cohort focused their job much the strong survey unemployment recent remains as a the seeing recent their more of benefits, from macro reflected fertility expectations momentum a amongst We've inflationary and as up common Mercer with to on site workforce. pipeline that benefits to and in continue meet in from and employees an to through each reveal selling generation of at health population we're as of benefits historic expect share listings component And reproductive for their continue second, built this be to build First, begin with agreements clients; priorities commitments for top at clients that market -- three, it pipeline of whose in despite the to we're labor as engagement the our season. two continuing women's of for the our active well extremely alone highlights fertility, the date isn't monetary a opportunities received

are competing As with prospect's the plan. prior who opportunities seasons, selling this is the year, against basis incumbent carrier the often solely majority the participating of of being overall in we on of a health we manager pursued

in more expect sophisticated see to buyers some a you with market, to becoming process. use would an growing As choosing RFP are

in-depth using the believe of it leadership our of and with benefits RFP, an the scale, Progyny of as Although provides solution. more an opportunities of majority advantage our fertility expertise review reveals we superiority aren't depth a

the the their companies typically early strong for open number receive a of eagerness majority early that demand the point make a is season. and we to reinforcing of decisions reflect robust grow, launch, expect indication a referred continuing the in enrollment. We client benefits is only preparation fall, I trends most record also begin to commitments to believe their in client's the that we time come certain and macro we've readiness family-building summer the received fertility year, of of is as in for commitments, and a when decision, decisions for finalize usual, to as late number will this which this While And but earlier. this the not which

Some that themes are season worth have emerged far so noting. this

break clients to continue in verticals. new adding ground First, by we new

who first brands state our logos leading hospitality in automobile client, industry, hotel first our including our Some us major wins program. are of early first and client first-time for and our even are manufacturing university that

While sorry, XX already the be broad are even further diversifying systems today more while industries, -- the clients XXXX. pleased than for I'm represent different extremely serve to of cross-section a we we

Second, from momentum we we're pleased to industries years. on previous in that year continued see this brought

us which For and of benefit. particularly for their example, a assessing sophisticated that benefit, buyers hospital important as exciting in year these given amongst this the awareness momentum care systems, what's are of of we're seeing most is medical the in some health early quality

reestablish competitiveness be specific the industry employer themselves benefit by leader. itself We adopter adding of order first benefit also adding maintain fertility a the as continue to in industry in These space. an to that companies by like to the companies their benchmark but see aspire a these new don't it, leader and separates companies once respond parity against

reveals those While the further A Progyny as provides for groundwork to more the respect In season, seen our in our lives we're pursuing companies absolute clients establishing seasons. some verticals serve, any wins results is levels on lends to to what lays future the are pleased and covered believe seen. already In with we this number we it with are prior to again. within grow We're that meet we coverage are achieved on the high. is to benefit over see believe selling Rx new to far, once bringing historically we to the pace continues we to of thus the new we've this industries the that third well. objective dynamic aren't pursue season. on what theme the we've benefit response economy. in importance it the early This opportunities that goal be comparable also light of version takeaway And opportunities in

program seeing existing resilience to the ensures now to our what strong in a as is This know the the The this helping expect renewal typical testament for understand in reduce which our the are the that even yet have next benefit we're second they've to that Clients clearly year, that the benefit as And their clients noteworthy realize point and integrity is rate health they their and quality with of to once of our frequent on efficiency XXX% year, care goals. both adverse are Progyny. present detailed consistent selling to again the At sign a we've management our their solution point sign we of our retention. their spend, it's account positive workforce economic renewals season. while look our been once seen family-building or around conditions as launched, also priority near communication rates Turning well a when they and fertility when validating sales horizon. improving in of aren't reporting process. another with how

new coverage Turning adding expansions. smart include These pursue additional client. cycles we year, and within year, we're or again, with services newer relationships like to multiple expanding now sales existing with their by to with populations adding Progyny Progyny any grow seeing expanding clients In Rx, clients. relationship the This upsells adding pathways services.

you we'll at the season our the a call season, where selling are. in complete with of point next As this But we're November. recap provide with in we usual, on pleased

of either outcome healthier babies. we've deliver means of offering significantly we the By most based the of in measure objectively members. know outperform of fewer publishing care have clinical And now, industry, seen to means and benefit faster, in demonstrating demonstrate and value that averages pregnant, fertility national outcomes leader the newer experience our understand value the measuring meaningful success. on. solutions clients while began in carriers outcomes critical report pregnancies level and or to get their one been comparing meaningfully healthier point best is we've since some enough we XXXX, our of activity you our by value their our the cases, fertility That clinical improving a traditional having outcomes not members or, miscarriages, across that in As every

only by the position standard a publishing and advances an is the sought quarter, only we Milliman, additional the to we of the having clients what fertility our provide solutions. publicly expect benefits Progyny's what study one not their that global should to to We further Progyny their This taken those the in results. should fertility from national to in a outcomes that of have and to outcomes, leader this the validation solution we're fertility industry This conduct step companies actuarial an respect raises set the for its compare methodology independent outcomes only of believe bar services engaging with as the provider calculate to use means them evaluation averages. regarding is program to leader

me for quarter. Mark? over talk the call to turn the the Let Mark to now results about

Mark Livingston

Thank quarter providing through everyone. expectations the XX% with I'll you, our quarter you the to second quarter the over Revenue $XXX our before million. start third for the taking grew results full-year. in afternoon, prior-year and by good Pete, you second and

the was the the launch primarily increase of new year-ago, a covered an as compared lives clients in quarter in in clients growth of to to the number number Our including due a quarter. of in

The our clients quarter while Rx, Progyny Approximately XX% driven $XX.X was line, covered now points of components year. again XX% revenue increased higher an of the pharmacy Medical the primarily the percentage was is in XX than million. in at the increase to with top number due in this clients approximately revenue last XX% the by time second integrated $XXX.X growth in Looking year million, over clients it revenue of solution. in our last at have to to which the the growth quarter was which lives, our pharmacy increased

XXX representing reflecting growth XX, average quarter. This approximately million an the covered XXX the year. June of the X.X had compared in quarter past of clients million X.X year, we of lives second As average to clients, during lives last an covered in lives of over and XX%

selling with last final includes accounts It we reflects a discussed that XX had were in in client handful launch group who we season for of the current our you quarter, the of companies June count XXXX As of won also that scheduled the the won benefit the season. quarter. the second in selling

go majority are expect plan start always live our their other we year for X the While of whose clients on on with January there companies, will that that's benefit vast new plan year as the starts employers health of most dates. the

results to launches. Accordingly, our you that XXXX smaller clients benefits. these case also to year to be these manage want encountered from a have tend sooner launch significant I'll to each year while their who benefit flexibility workforce also remind And incremental their than X fertility handful have in that. off-cycle of be we January who expect the but a there that's to We change year, wouldn't to plan contribution the this an early clients their

consistent treatments to from function our as last ART were to reflecting a the quarter XX,XXX cycles year. it metrics. sequential In in now those the slightly the what in in quarter later the treatment with and average a launched utilization the to versus members XX% of of variant the both quarter given strong higher healthy we first as second who in second the XXXX and the lives see. nearly cycles the journey that Turning and quarter, would start was with typically of growth QX, the expect first relates of is ART XX% performed in utilization journeys Omicron the to at cycles compared of the clients of along the impact quarter increase The of There pacing began second level prevalence year. their

ago. X.XX% Our of from I'll is a of most of clients female a time and to number to launches corresponds utilization our year. the this with due year This that new was rates vary quarter, results, what quarter-to-quarter compared which utilization X.XX%. the including you the timing will to rate remind factors, financial closely our

well second This that revenue That go-to-market to XX.X% Turning now basis XX.X% gross from quarter partially as to expense in due points quarter of margin points margin in in our million impact we of we compared margins. compensation, as to revenue period. G&A operating resources. noncash increase as that operating we The made to noncash to well $XX.X $XX.X on million, by in the a XX% compensation grew the the the were the $XX.X we've by increase and was expenses. XXX operating point offset increased realize our our in year last from line XX% realized, leverage reflects G&A decrease offset efficiencies due continue X.X% to this stock-based our have issued rapidly year-ago The basis Sales margin. reconciles XX.X% costs stock-based and from compared comp, increase our X.X% release of quarter quarter million. management efficiencies an a we impact stock adjusted noncash as period. Gross marketing second EBITDA Because primarily reflects this a strong the year-ago revenue. as XXX in the top comp, gross the performance in is in grow services. of today XX primarily of of press the as gross profit as to year-ago to our basis a yielding of of stock-based noncash delivery higher period care partially investments year-ago

reflecting the result a XXXX. Our highest second of of is expansion quarter in margin the basis margin from adjusted XXX XX.X% quarter quarterly EBITDA XX.X% point the ever this

our incremental EBITDA margin was revenue quarter, on adjusted XX.X%. This

a where capable booked capture million of $X.X income for lower was is as indicator as current $XX.X high or as quarter. period. million Net The on per quarter benefit period prior-year $X.XX for margin believe as expense in current $X.XX de the of in reflect business minimis to in expand a the year-ago to as provision margin the as continue that as recorded it higher income or the the in $X.XX useful net to comp revenue highlights compared that share second we share. our forward of the income per This tax well moving incremental share per We primarily period rate the is business. the we to stock EPS the tax year-ago in compared the compared

our to short-term integrations cash each those and impacts now cash have Turning clients days. was improvement beginning million partner new following current Also, are outset quarter use the during represented the $XX.X use of agreements, Rx compares rebate capital year, of the working in items, the as the reminder, to payment of including cash a new in by and reverse on Each flow the newest period the sheet. an which benefit. extended a Operating XX $X.X flow In the year-ago for including pharmacy period. balance business impacted to last economics who additional completion timing a those signed at period, was significant launched year. of million, agreements, we the this the terms,

as first on of Progyny our actual effect of result, particularly to year. as the the balance plus cash a reflected for are is accounts The the combination payments extended Rx expect growth quarters two of our which payment that we'll under rebate experience our business flows, negative timing the the grows, agreements sheet receivable. we'll us the owed on As terms,

no June including $XXX had equivalents securities cash and debt. capital total million XX, in cash, marketable working of we of million, and As $XXX

XXXX. third Turning our the now expectations to full-year quarter and for

revise first guidance in we to for to upward quarter the half our strong row. pleased are a With be for XXXX a second the results, position in

XX% reflecting expect For or to between of the to midpoint. for the growth between now be raising full-year, XX% are low the of and end we XX% at approximately $XXX $XXX range the and million million, revenue

raising our on to million now EBITDA also are $XXX We adjusted expect $XXX We million. guidance between profitability. of

tax and expect basis approximately the you $X.XX of diluted income benefit throughout to now discrete equity any earnings million activity from we benefit per million $XX.X on occurs, our items, shares. not related extent contemplate or activity. fully including that income, between projections tax we to income do share $XX.X net items compensation the continue between remind net million income XXX For I'll those any $X.XX To that XXXX. will that, tax to discrete

reflecting growth For quarter, $XXX we and the million of million, are revenue between XX% projecting between third and XX%. $XXX

EBITDA, $X.X fully approximately $XX.X earnings quarter third adjusted with of million the between $X.X $XX.X per XXX diluted income and $X.XX million $X.XX and net or For between million million between of expect to shares. million we share on basis along

over Let turn call the back closing for me now to some Pete remarks.

Peter Anevski

Mark. Thanks,

access heard concern Wade. not the close, or touch overturning suggests of clinics be treatment I become unintended their seen negatively the not legal consequence an which across IVF Roe I will around Before impacted. We've any U.S. a changing wanted we to whether practices the v. on analysis, of any will fertility in of or past have to seen heard or

Now results half in of in our that pleased with as we're first the season to and our as the year, of book selling made for quarter business. we've XXXX well the progress conclude,

is not that in as given headwinds care strong. increasingly defer been experiencing trends of life as later increasingly growing and that, to employers need access their offer the need I'd open questions. overall fertility that certainly, economic benefits for employees. same to are the Those like family on fertility growing, realizing we're continue With up investors' building Operator? macro call are impacting is to this your for the top minds people to and trends to industries, the our the there of be fueling some impact have While growth the level include

Operator

you. questions. today Please JPMorgan. the first line Anne, live. is is Anne open Samuel coming from is And now question for floor ahead. your The your Instructions] go from Thank [Operator

Anne Samuel

Thanks, congrats on some today. results great

and you look wondering those new catalyzing could about remarks what services. those that to some you're clients prepared was said expanding what's just if like your expansions You I with starting conversations? in talk see

Peter Anevski

or and -- the expand services by There or or each their smart Sure. the they're whether do they cycles cycles or didn't offering Thank they're the may benefit want that the have going populations add whether in benefits. past, you, company to we member, or Rx acquired it -- employee they their certain things generally have of they have not maybe expanding of going put sold purchased understanding, add be there enough under that reviewing in they not or not types they're number upsell want whether eligible now that smart do to of today so way. that they're to already, they each not a to covered the benefit. Those terms

Anne Samuel

quite and That's expanded just flow what then Thanks. pricing the drove better a maybe in margins adjusted some quarter. you are I just might seeing helpful. wondering your that And through bit was going that? forward? Thanks gross

Mark Livingston

Yes, sequentially, think quarter. margins I certainly we so we this were to highlighted gross up. expecting last And go

of new this built was that for year have that the the and last here we those launched of quarter revenues all second in quarter. company we the clients level we really So referenced

So that was expected. revenue incremental

gross to QX. go in naturally up we so And expected margins

expectations. So it's really sort of our

far terms forward. of As would pricing that pricing yes, in out goes, nothing impacts call going I as there's

Anne Samuel

if I sneak could maybe more. in and Great one just

be season if the year just next so been was has far. share Your might how you about you're commentary around selling be thinking to modeling? wondering positive and I we how willing should really

Peter Anevski

early, a sales for it's about think perspective of We talking to cadence from I can. a activity. dollar expectation want I November go that not the -- to call back normal and overall can't I Well,

of to is overall early think strong as relative I'll to still you, remaining the -- so pipeline, commitments commentary cetera. active middle the majority activity everybody, far October. relative I But the do remind really August I happen commitments through et to and date remind of

that's point so start the we think provide before commentary, at can I quantifying really And we XXXX. that this

Anne Samuel

Thanks guys. great. That's

Operator

live. question Thank Michael your ahead. is Michael, from go is next coming you. Bank Please of America. from Cherny line The

Unidentified Analyst

this Hi, [indiscernible] Mike. for questions. my for Thanks taking is on

but just looks the the Could you're seeing what's your break sales strong like in you pretty outstanding. growth, and significant revenue Just growth? in that accounts reported looking down at some quarter, receivable also growth driving pretty it you days results

Mark Livingston

tried the in And Yes, the with perspective. we associated an But quarters remarks, a and again, first our in increase in we collect that. in see my so our and deal and cash that to it in in was paid based -- that a I strong part rebates what's the couple okay year, it the receivables terms quarters we on of given an prepared essentially, there, that agreed, -- of we'll we're the payment of of books, highlight this with back. two were from for have plenty quarter were rebates allowing rebates economics we getting earning getting and

really paid we it's had year. what referencing for So we last what We're getting earned earned. now

-- really, then and -- So around all pharmacy. it's and centered the growth in

So what's when you see from last year really to driving it. that's this growth, and year, you'll see that

Peter Anevski

in the to correcting third start quarter. should itself see You it

Unidentified Analyst

helpful. talk cohorts? you're little bit that a utilization you question. trends Got it. seeing second then about Thanks. newer just And a That's Can on

Mark Livingston

because is cohort -- the the Yes, a each is each we makeup so There of client group is will different different utilization expect. different. as be demographic

in second quarter, the larger launched a here customers that one customer. was a we example, for retail some including So

given utilization expect rate their that be we would Now what would business of again, company, of that the our lower demographics is. book overall than average

people but again, otherwise, as cohorts rise effectively first their normally. -- And typically to begin journeys, these treatment are then them acting into and a get quarter past and the normal little so see bit we'll cohorts begin their they in

Unidentified Analyst

you. thank Great,

Operator

line from Sarah is The coming you. Barclays. from next Please question go your Sarah, Thank is ahead. live. James

Sarah James

I just you. had Thank a follow-up on front. utilization the

levels book, that started pre-COVID in the XQ, back to at not at more So guys your are if but they you mature look this earlier point?

Peter Anevski

they're and are the and the around -- of within impact it industries at Mark that back look normal. they're you clients overall, in, clients to industries back demographics pre-COVID by in, that the it averages. was the that to pre-COVID they're referring But if would were pre-COVID is impact to client normal newer the our of sorry, those what levels, our clients Yes, and or

Sarah James

mentioned base? your that kind you is out low think Where your do earlier mid-XXs. to that then and you caps pharmacy Great, client now sell-through of

Peter Anevski

wouldn't say I or all we there's caps upsell whether opportunities every not I'm I to or not in buy out, -- or terms that them. sell whether sure I not look, would of in -- the would try say matter one will time they'll upfront be a of there future. it of it's

upsell that do then and Rx in they around board ultimately original their activity anything continues. what that, is design else or come when terms Our an they success whether of first plan of it's indication on

begin in sort to I think wouldn't already already. the low or I high continue And guess We're caps the sorry, will that where XXs out. improve. XXs So to of it --

question I to it's or versus a where. not they'll But on come time whether on. come the that think of Just they is ever matter

Mark Livingston

be in And has 'XX our rate cumulative the just selling since low rate out take group It the effectively in the time. XX% is season, beginning of the to clear, was -- of that take XXs.

So improve to we continue on that.

Sarah James

we're second it's and don't I does have seasonality Great, looking normalize in where years, AR guys in one When first that clarification going past to normalize that in XQ, goes forward? you half it's said to comment. then mean start always you to and half? elevated on Because then going the had Or think more down at the your going seasonality. see

Peter Anevski

was -- had it We quarter, not two. just one

payment extended. got terms the So

will you're flow of correct that same up So itself in in as have that growth, to the the impact going have half you year. back every a year, cash step

in a payment result you a and payment quarters growth. those as have growth it's terms in to two of versus a the terms term that as of going on impact are that's XXX-day step-up function of one So

Mark Livingston

to means. what And normal on clear be just

saw that year this associated an quarters in last second and working two capital with the first quarter in investment of those we in year, the it's So growth.

don't to clear, the begin to continues we cap. itself year. somehow in back -- in reverses back expect making longer sizeable just -- making won't down But the So smaller -- investment doesn't working comes we you will be it no that be of extent again, a It's be to But it sizable up Rx that -- the as we'll see don't that there a to be mean or half in working capital. firstly. increase grow,

Sarah James

thank Helpful, you.

Operator

the your ahead. Davis And live. Securities. is go Please from you. Stephanie next from SVB question is Stephanie, line Thank coming

Stephanie Davis

at your on a little Hi Congrats guys, was to stock-based more question. labor hoping hiring looking your and I the and philosophy. thanks bit quarter. was comp for figure about I hear solid the

wondering and that's with this all, at if the out? shifted the growing of of in the the is market push/pull given Just number of macro RFPs to call sizable anything backdrop reflective

Peter Anevski

quarter. There we activity no year year stock in including a grant a a philosophy. change impacting the did full-year The function comp late more is of this that's that is last on basis,

versus relative comp portion sort stock comp haven't so award change compensation a level cash the that ties do We've the a and continue operating adopted matrix employees. in the stock to we under We compensation comp. of to the new of portion that of to been of that's

no our compensation, in in increase comp the did year. the to last grant So stock back ties change approach late of the we nor proportions

Stephanie Davis

of where some seeing either will that just pipeline greater the maybe a could of are -- large activity, each and you've or competing you and those in us on some Progyny the you to traction tell Okay. store [indiscernible]? RFPs subject been where head-to-head stick just Understood, then

Peter Anevski

sure I'll -- answer not let Michael I I'm that. mean

Michael Sturmer

continue of see in we constant see think Yes, already. the they come we to general, I health a case, perspective, certainly health competitive And of plan benefits plan all, as that continue the every against in the from decision again, own -- we'll up a first to sort point. from

we've RFP that close pipeline, be in consistency rates. our on comments, increase seen an and to opening seeing as of in And the metrics has been ahead our in While key impact comparability there that whether closes year. this referenced not activity, we're date, any

negative -- there noise in there's although not more marketplace, we're seeing the logo from again, slightly new impacts So our sales.

Peter Anevski

Right. segment or industry of in to across relatively we're And RFPs. that's or then outweighed specific and seeing terms that, it, like or relative benefits It's anything there's industries sprickled consultants equally. where no

Stephanie Davis

Okay, guys. great. Thank you

Operator

Berenberg. from And is is next line Weerasuriya Please go from Dev your Dev, live. ahead. you. the Thank question coming

Dev Weerasuriya

And hasn't base, of clip for provider asked, just that to are just question reconcile the years of dramatically I of market I'm I or so. supply number the through increased. things. what will around over on base that's couple five the what just gap? kind to The the XX% fertility pardon But understand, guess from One a I'm of that Hi, provider grow. expecting how call growing the hopping and cycles of here. kind ART of taking been volume what there. capacity me something the given we Thanks bridges at for is, where thoughts the with of have capacity guys' providers. continue you capacity that wanted repeating a and my talk kind about if is to last

Peter Anevski

their able our them The describe their manage productivity understand we Progyny all aren't that with including a per is it provider but significant the have in conversations to could way in limitations, they service And their across what doc hitting easiest all they it to patients, I'll as There businesses being variability call network. industry. they is way I don't differently, -- I members. manage relative the

not hearing, not we're getting challenge them of. feeling say relative a getting impact speak kind not So and an to our a with in treatment. capacity members I of we're we're docs having not to We're when scheduled any limitation hearing,

novo they -- the adding every and fellowships of have docs And they're country, up network. the docs their are relative to so as de year across opening and group clinics that part the

that experiencing it's So in you're the any we're indicate not hearing although some way. what numbers suggesting limitation, or might

Dev Weerasuriya

half way of double-click back and to bit a points want waiting I'll Could from provide to probably with lens year's what revenue. little may a all HX on historically now? that's aside weighted on let It's this Great, me just reemerging around to move guidance typically the just something maybe be some but later, that back year. lesser you last Okay. kind And the that why to reemerging coming color trend that extent. been

Peter Anevski

during the -- that's within weren't and to size of in started some that in first started the impact where of that Sure, So and they quarter, to primarily impact driven revenue as eligible and utilizing biggest right? for that that treatment. do and QX impact on their going which mix a this that but is year other in started half half not QX back they to literally so as QX those have naturally back is in exist is didn't to X, -- is on not the in impact front-loaded more to going the though, from QX standpoint the relative benefit have the QX, the full-year launched, going April step-up mix, QX it, more every larger half revenue they're not members this clients versus a number clients things new entire right? QX a many the The so usually thing than from by base is consultation

drive two factors the so half going And year the to the of first versus of those the half is the combination back of year.

Dev Weerasuriya

so you much. thank right, All

Peter Anevski

No problem.

Operator

questions James And further I and closing you. queue no does floor there this are today's back at conclude Q&A Hart time, to Thank the like session. would now in turn this remarks. for to

James Hart

are you, of for that lots companies there certainly thank this afternoon. announcing. us everyone, you joining and are that Thank know We

to this wrap Thank quick up that. get we'll so So you let back much. you and

in with any have look you Fall. speaking out. Otherwise, we'll If questions, forward reach you the please to

Operator

conclude and you, gentlemen. conference call. today's ladies does This Thank

at a for you your this your disconnect phone may You participation. Thank time, day. and have wonderful lines

Progyny (PGNY) 7 Aug 222022 Q2 Earnings call transcript