PGNY - Earnings call transcript Q4 2024

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Operator

Good day, ladies and gentlemen, and welcome to the Progeny Inc. Fourth Quarter Earnings Conference Call. [Operator Instructions].

It is now my pleasure to turn the floor over to your host, James Hart. The floor is yours.

James Hart

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

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

and quarter our acquire clients and plans, goals our number Before future to financial underlying anticipated and and of and law. both benefits financial solution, our operations drivers strategy, new the our views of outlook mix, your we federal include the and first our retain management's other responses information, today reflect for business potential our comments the only to and including our you and today expected statements statements clients which upsell guidance, and begin, XXXX, market market clients the for and remind and sales and our as position, under rates our and opportunity I'll are operating assumptions client securities forward-looking existing covered lives full that year questions of and XXXX and ability related launches of such concerning the expectations utilization to impact and season our

those from our these and uncertainties materially important business other differ factors. in due associated as may to results or implied by with contained statements Actual forward-looking risks well as

risks, undertake future of as as call that material of both on new Please update important these be other result assumptions release, and of statements on can are on factors impact assumptions today's discussion our to Any refer results. information found no uncertainties, website. SEC Investor to our which forward-looking this could statements a make actual or the obligation filings Relations today, events. For and we of a our press that and based we

comparable diluted share. we press and available such about EBITDA More adjusted adjusted per the in incremental non-GAAP including financial adjusted GAAP at margin most measures, revenue on measures refer leases, release, to financial reconciliations these as are non-GAAP also non-GAAP is investors.progyny.com. EBITDA earnings During call, available the which will EBITDA, margin, information with the

I call to over turn like now would Pete. to the

Peter Anevski

Thanks, ranges. Jamie, From QX. EBITDA to XXXX to QX guidance revenue relative report progressed, the the our and quarter, to to see on as pacing We're that in improvement with ended us. the we note high for and end pleased when a seen had positive in everyone, last spoke we for we November, continued an of in thanks, joining adjusted member you engagement above of what

concluded covered more another sales product we and representing addition, million the With yet XX% X.X year In menopause. with strong lives newest million incremental or adopting overall, of lives covered yielding an one new XX than in new our new X.X logos. more and and development of services those adding postpartum sales logos of season, maternity,

season strategy and XX% menopause. of partner, partners, go-to-market pregnancy sales ahead. national partner the launch retention our execution And of adding Cigna our ever of including of with further The as first in health clients, presence services for health of plan expansion our plan our the advancement our our multiple strengthening lastly, postpartum newest strategy, product the the

our All remain growth as positioning digital As the well for invest as fueling we ahead. our past we our the fully to support us intact, for setting expansion. a been to ahead, strong have look tailwinds continue of products that year in in year existing us up assets future

what value our their to increasingly world to people around all to need, how recognizing for and are solutions. and can sponsors. we bottom And addressing health defer importance both plan patients, later continue in -- the the the and well-being. family constituents the continue providers ecosystem, employees' underserved areas health. bar all to the women's the achieve the see solution and are which life to buildings of a the in in for key We continuing increases impact lines by their raise Employers

journey What is point, that plan that premier management. the though to many at achieving to now being as and the the individual solution entering time last is care, year to building. we're of customizable the delivering engineered recognize are our right our every plan member And family are the starts To solutions flexible how because by design for be and unique. to allowing we tenth creating to care designs and claimed that? be unique flexible our we doing that delivered promises right value-based ensure We patient, we're solutions that person. us through every it on each actually have benefit approach And

also are active that the an ninth clinical network, collaboration year, than of the empowering deliver care for straight to we're averages. We the national enabling pioneered management to outcomes perform benefit while level significantly across effectively, us how providers journey. And more that's reporting unparalleled also better our throughout

building, Now comprehensive only those every model sample. to ones at opposed become we small by the applying high-touch And for treatment successfully who that clinically-based offering results every member our on reporting that health. solution to include collaborative women's outcomes a a more same we're as in the others we've care reporting pioneered addressing scale only broadened family report

our on routinely so when plan At address. health health is solution. concluded, could road ago, map that journey laid us in to time, product from years couple a expand multiyear capitalize solve a or experience of that to to were telling other us to gaps, simultaneously strengths heard a our allow as and to unique, platform were had thoughtfully once and they would Progyny we these existing profitably they their same the their we enhancing family point out who we Progyny felt gaps these well. our members return clients the of disappointed women's for And opportunities, while Because

add existing services into our our to for both expand to able to in was clients. invest new step to systems to product and new that areas people The sense make features organization, us or in ways first quickly and be

In penetration both ahead book the across covered runway taken. in in more of offering there solutions existing postpartum our our well just we these as the the launch and an XX% year menopause. us remains million with to in X.X a rest in need was of saw And the incredible newest clients of maternity our X total market adopting XXXX, of of these programs services first step or and approach second as XX% approximately healthy those services, of our with we've response business. further The our affirming of of lives

in through our investing aspects of set Turning our care best-in-class acquisitions. seamlessly existing integrating with digital We're tools concierge our model all to solution of experience. a comprehensive recent delivery a enhance to high-touch

ecosystem from aspects employers women's complements first benefits global newer of the their capabilities dive amplify while where health. to to acquisition last our parenting Our can our help navigation and all second And acquisition adds benefit summer a bump. we pertaining solution into further

parenting times have and add often, the better to the position administrative the and burden extraordinarily child, is employer providing for a and expecting education employee support anxiety parental new both their and often process lead that employer results the patent. what's to journey isn't complexity complex, and measurable can experience these the improve the stress And another services anyone to For ease strains is employee an member services strengths or creating an eventual delivering the Unfortunately, fragmentation work. This we while access. unused to is Benefit where to yet how of within and aware go ecosystem, and opportunity the our client. the existing many the to return to because the employee to available leverage both ROI due

Where into but member employer's also compelling. our a pearl of Progyny's our as long-term own, to [ services stringer offering, employee's their that family and to This on navigate is road linked easier ones the both can clinical, opportunities and began entire very identify is map including be hole together family-friendly tying attractive the the bump well an making together provide as complementary product model benefits, valuable by coherent that fits we on for is it deeply we more where even existing benefit in focusing building. more strategy, that are ] solutions into our all

realize these create engagement believe across for management by linked fully user what else patients, investments a platform a digital personalized all integrate anyone and than the providers we we'll with will value front-end In care services to better in to make and XXXX, additional high-touch surrounded market. our acquisitions be their clients, experience

the control. to areas X outcomes to of the in With member that is our extending its these most matter employers, solution, experience, cost addition and lead it's new Progyny components

were that already the we're and over pipeline, which only pleased selling the point, the early seeing received, includes we've we're this but including At commitments active season activity in we've stages, engagement its today, in last from for positioned past the the with the early in seen with so not-nows far, very our where year we've you is million Day verticals in market at we lives track in every our we seeing our success. feel outlined at August. what had target consistent Investor well X selling back to with of With least adding record new maintain season, we're carried

the women's companies organizations amongst for again our choice the and work pipeline. the once health with companies preferred of caliber is in the world. ad-driven And demonstrates how successful today, solution Progyny sophisticated in active We in This the the most world. and is most given of in progressing choice our we the the believe provider

With Mark? over the in through call that, detail. now to Mark the walk you results more I'll turn to

Mark Livingston

our quarter in year $XXX.X everyone. Revenue Thanks, provide good Pete, I'll afternoon, and then fourth quarter grew for and and for the begin XX% full to our XXXX. expectations million. the results with

ninth the lives quarter due to of our and full the $X.XX the year number growth. an X% in as in increase revenue compared primarily in the of year, was representing The year both For to year clients period. ago to covered the growth billion, grew straight

previously the to for as periods compared rate was consumption in discussed year growth in earlier lower year the of we the you. The to variability due that with QX

As to in had quarter. an of X,XXX the X.X we clients of average lives December ago. representing fourth year of quarter a XXX and compares clients the million least covered covered in at with an X.X XXX average lives million lives, XX, This

the of in lives to a recent the average increased won small clients we quarter, early XX,XXX, third launches that most season. compared selling number nearly As by from reflecting

base As were expected, the existing lives XQ. our versus flat within

time we X.X and last at these of covered year, progression this had the contract. million clients XXX lives metrics, under Recapping

has selling that most lives. and season included million over be lives with under will lives and entered clients what incremental in of previously a substantial majority XX. member XXXX for of newest The base our accounts live have our grown of the March and client. gone large our new despite and clients loss we've million already X.X we've clients And as stated XXXX XXX affirms produced now Our an X.X new This recent XX contract.

to the components to Pharmacy to for the revenue top Turning line the increased XX% million. revenue $XXX quarter quarter. the The increased $XXX and impacted that in to year grew Medical million in and our X.X% million X.X% the fourth quarter growth this was year of revenue in the grew million. to factors fourth in $XXX components in both overall $XXX growth. the X% same due to full

Turning quarter now fourth the X.XX% ago Female engagement was slight with a the member utilization metrics. QX. our in we from reported and a the to in X.XX% year increase quarter consistent

more For higher last in quarter our fourth our both growth reported than highest a ago, year, reflecting ART several performed at the slightly we total than X.XX%, lower and the female the quarterly years. cycles yielding XX,XXX the multiyear over quarter, arc range although year. for More year X.XX% utilization than the ever, was X% the of cycles the were in the XX,XXX full end year during

usual fourth to the reflects unique per cycles ART in press Our quarter, average includes up X.XX table today in which an the female from report X.XX utilizer release of XQ.

in lower year, the when cycles member time know address. of the the the due to can in deeply than members utilizer full pursue unique that ART to right was nature period. which the the mostly consumption of periods per areas year. vary reflecting personal We activity lower for to care still earlier we were For it's period XXXX, from

overall our this with need have underlying doesn't to demonstrates bearing the we variability creating our are However, the conference pursue witnessing for as the utilization on in the services. consistency the we we last for at desire that short-term a lessening of or with to shift aren't that month, investors. presented our JPMorgan We rate long-term any medical value people's respect services macro believe

XQ to Gross our a and $XX.X ago. year year increased now profit from margins million. yielded gross margin, a the XX% a from Turning quarter operating to improvement This fourth XX.X% expenses. slight last

to at X% reflecting a Sales prior points increased X.X% the period. of full a year from the million. modest per utilizer in For gross decrease the of in impact year, of the from was cycles margin improvement expense $XXX and this ago reflected in XXXX QX The in profit year. unanticipated decline XX.X% year the gross marketing earlier slight revenue

For success. was as revenue as the the prior and equal to our our go-to-market plan full to acquisition we've we leverage the health first expand relationships, investments by to partnership continue national year, ever through made such period offset and be X.X% marketing of sales client partner at retention and with channel Cigna resources gained our

of slightly than higher quarter the XX.X% this a quarter, was year G&A revenue fourth ago.

operations. to revenue. in the year, to that XX.X% full The realize is our due to back-office G&A efficiencies improved slightly continue of year the For we improvement the in

EBITDA gross and XX% to adjusted a both margin growth the $XX.X yielding XX.X%. and of the increased adjusted million, year. With increased line the in fourth In of profit, quarter, the quarter dollars the EBITDA top higher

increased a million, full year, period. to the For adjusted of comparable margin the X% prior XX% to EBITDA $XXX.X yielding year

the million Net $X.XX income to million full The On $XX.X year was per This quarter, year compared the the decrease which both higher in or ago to than profitability. the due share net or was and $X.XX of net $X.XX in which the periods, or $X.XX million ago XXXX. $XX.X in in year taxes both compares operating for share, or million per to income Adjusted a the year basis, diluted $X.XX income share was more compared period. per the provision EPS diluted $X.XX quarter. in $XX.X quarter in $XX share per to which period. income in was primarily higher offset

$X.XX year, compared $X.XX as adjusted was For in the to EPS XXXX.

which $XXX our period generated On we basis, from amended benefited flow pharmacy million operating now year $XX.X in period. Operating previously a cash sheet. of quarter Turning million $XX.X the to the ago compared in year flow million a $XXX ago below the million, to XXXX cash disclosed and flow our fourth with cash year was full from the agreement as balance partners.

ongoing result, from reflecting cycle DSO a XXXX, days XX improved management. to with revenue our respect discipline As our

cash of full flow we conversion as taxes adjusted an see mid-XX% a XXXX. expect We in operating even increase expect year cash EBITDA to in to

the approximately solution. also to a these as through incremental projects acquisitions invest integrating full investing OpEx As with these in We our Pete anticipate services reflected above $XX the incremental have solutions spend discussed flowing CapEx dollars to X member to in for in experience planning which fully in is million what year XXXX multiple amount our of to digital added cumulatively XXXX, our further similar we're also and recent while reflect amount we to our guidance. the want

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

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

range end our today's the the at of release, the at press reflects low X.XX% the As and at you end. high of X.XX% the table see for year in utilization can fact full

consumption, unique at of we high end cycles utilizer assume X.XX terms at and low of our the the per end. In are X.XX the range ART

engagement those in to member we While million quarter at quarter in see possibility projecting in to to we've further a assumptions, basis revenue variability assumptions as engagement between the due reflecting $XXX are first X% XXXX. we'll XX%. historical we to improvement unexpected continued seasonally of in in million times first experienced reflect patterns member see in variability These the on compared certain that XXXX. growth the to With adjusted $XXX

members expected X% still $X.XXX contribution growth not certain disclosed did revenue for between These of client project X%. extended the through include $X.XXX is met from XXXX, large billion we period who previously ranges for reflecting transition renew criteria. XXXX, and but to billion of for the For an providing who Progyny

when only, For we're in first the million the in that that which the estimated $XX between the half to balance ends. of in is with estimating quarter year program, million Approximately $XX X/X of period transition revenue is of the XQ. first

profitability. to Turning

EBITDA income in and with basis share on earnings XX $XX to fully million along $X.XX of We $XX to between diluted shares. $XX.X EPS equates expect million net million. $X.XX adjusted $X.XX quarter, or the in million million and of the $X.XX This between $XX diluted of adjusted to approximately per

$X.XX year, for shares approximately EBITDA $X.XX we XX and million diluted share year. the adjusted full basis on earnings $X.XX expect the million. of million million of of and full For diluted equates to to $X.XX $XXX share between to income $XXX million for fully and adjusted net per the diluted earnings per between and $XX $XX.X This

that, the provide can questions. you With we'd instructions? Operator, for please now the open to like call

Operator

[Operator from Anne question First Samuel comes Instructions] with JPMorgan.

Anne McCormick

hoping we that great you I think just quarter. off? year about could of rolling Amazon the guidance a provided? lives the of on Congrats as just within then to the about range the cadence to think you maybe that impact the was speak And how

Mark Livingston

Yes.

million we're from about over be it be program first And my QX the will X/X year. the way to in million first About $XX the balance prepared that of the in in the yes, QX. remarks, so half. of $XX after works, over So expecting will revenue with the half

So transition in or a won't We our the order be impact criteria lives on you able is. participate meet in the for the it's the utilization of to be program. to there benefit be to base had eligible reflecting numbers do employees different math what of they in just that as care can because will certain

Anne McCormick

the about government government given all lives recent then to maybe one kind how access you're you higher contract. Pete. you're to And within level movement maybe IVF. also the lately, your about hoping was of thinking the -- Great. executive just just to could one for thinking expand I just And you, how then speak order

Peter Anevski

Sure.

we it the in detail might the we as as really that. So executive obviously, executive believe is right direction much to well affordability. the the where But relative IVF what relative around overall. it's order recommendations protecting both it that's the more talks and do out. U.S., about nothing beyond order, industry come else believe, there's access positive to in isn't policy recommendations, in There for

Operator

comes with Partners. Leerink from The next question Michael Cherny

Michael Cherny

from new Maybe sense job, obviously, a talk exactly we positive to be the of some us as Obviously, them you see I of existing nice terms services. the what and how well should adoption, contributing through rate, profit just about revenue? give with Nice, ancillary contribution of the Can well. revenue those can both from op preannouncement And especially the as if customer base. should as a perspective? flow early in a both

Peter Anevski

Yes.

So might you get as new give employer color share activity that, more what they're be doing And in more as the market. with in as around us contribution can't get color until the brand to more sponsors. is with data activity the conjunction some through we'll Part soon -- and I marketing yet them around our of tactics of member happens, that we more. success

Michael Cherny

other size, profitability that assets a I shift Or think you for modeling year. costs on over hard, maybe revenue maybe assume know how And contribution million one just leveraged? the just do the because that what but anyway could trapped Mark, guess fair. customers, be first but I of you Anyway million of and question be. EBITDA $XX -- half get the just customer can I Amazon-related no, sense a of to to in it's dedicated any Okay, there. to the other you've contribution? gone about $XX you said should kind And either of

Mark Livingston

No. Yes.

we speak said their the far to standpoint, I guess, lower from the at was all perspective of the EBITDA all is go, book when would business. I As into of what we the that contribution say for at this that announced that's trapped really, year. profitability an factored And From than guidance stage, costs there's first of nothing this departure there. as and had a no,

see So can as balance how year, you see you the for us. reflected between QX of that's just

Operator

question next The Genuity. Close with Canaccord Richard comes from

Unknown Analyst

a I just the Close. John dig guess for Penny into little to bit year here. guidance Richard more on full

female Is it then a them this like there take to rate below having So higher it's or conservatism rate? to utilization utilization just Any 'XX Or would large the the just client is 'XX variability there leaving commentary from like anything be like away literally past the great. 'XX. year. from

Mark Livingston

a dilution Look, see begin lower being people their and of they're have mature leave of typically journeys going a utilization when you client as a clients the sort through utilization replaced you're year, who rate, first of their doesn't It's of from replaced in dilutive course is that and by there's the in have something really their Yes. clients, the new to year, level of trade-off effect. the mean by It August. had on mature some underlying covered all newer the It client Investor data there. kind I of just sort and back other clients. that Day any that being

So some of I here. what think, that we're is seeing dynamic,

Unknown Analyst

All one follow-up. I guess right. And Great.

what integrate give exactly You expecting investments to further mentioned what some be need investments you realize bump Can of the by end detail you're and value. XXXX. benefit made and the to just

Peter Anevski

that for terms new the All provides of member areas the services global are the our about benefit the around different all navigation benefit platform offering of engages as when as member products that globally of the Yes. bump, we experience are all our that offering, offering, terms also the those investment. assets in et be entire an not will overall around existing of including but integrating well only offered in and talked with cetera, the the benefit bump product investments expanded

Operator

with The Scott comes from Schoenhaus KeyBanc. next question

Scott Schoenhaus

guiding this. you're through Amazon and business. your the good you're and the million, the we guiding thanks low full has Can ex your Amazon I Can that's this you to for about results. impact you you to us But guidance the understand about case. just single-digit better from even I the growth and utilization mature a here. to year about business Team, where $XX just Obviously, compressing. it walk talked with kind on low want question parse of margin standpoint to years, talked be platform. see from just -- the for to margins at next investments know seem several single-digit if the you that growth on talk through

Mark Livingston

I Look, revenues largest around XXXX. we goes, far growth now given think we've client represented obviously, XXXX. They like revenue Yes. of in that XX% numbers as the have, as you

So if trying do teens underlying the from you growth them understand you clients removing the we've into brings on. math, up of to the including brought business, the of is and That back new now the what a growth perspective.

how So it. looking we're part of at

And sort the making as alluded we're then as capitalized our far in profitability some and remarks, that it of to goes, we prepared investments of are investments.

them going you're But P&L, some the bit. that the they're just through CapEx run So go CapEx. of up to and scale in also similar those see a said as we of

apples-to-apples those looked If and out be things in on would of basis, our expanding you an at remove margins sort XXXX.

Scott Schoenhaus

back to material visibility? services business visibility model services your in That's adding more as you that about And Did want at allowed would fixes you and ] really saw XXXX, XXXX follow-up the any in additional that helpful. one air pockets I to think pockets look If beyond, you we you're add you business? all less is think other that get help have just any [ better where here. you in squeeze there into your of engagement. for could --

Peter Anevski

sure really more not types of getting about what relative services I'm visibility. thinking you're to

described of the have what we with what terms and -- we have have terms we offerings expanded of of in that we services acquisition the Benefit in mean, now bump. I also So

on what when provide them need, we make And they're certain personal engage saw insight. sure else with the care. to to short when as and that going the of that as with progress through relative in not variability than to journey that in the them periods to going we relates don't we other our talked with not they decisions it treatment of we're when I'm they're we medical engage going they're terms members, deferring they're when in -- more So the care And in when we not we XXXX, are they're that, decision that about pausing, choosing both the might get as XXXX. saw time engaging it, to they're

So there. not more insight really

Scott Schoenhaus

Yes. insight, on I better could just meant great. that's portal the but more app drive maybe member engagement

Operator

Jailendra is Singh Securities. next Trust Up with

Jailendra Singh

wanted actually I the topic. to Yes. on stay same

So new clearly, member last data with have as maybe talked you some gained in more to and track like back and Like call as potentially spending you you reengaging time look see transcripts and understanding analyze around members. call, softened trends and any about why earnings of from then there welding be share, early you trends really but in that are wondering QX was trends, understand can I helpful. then. additional if and that since I would consumption quarterly there's QX improved learnings your any observations can

Peter Anevski

answer really. Yes. The is not short

around returning as patterns why they're -- seeing now. of and going get into they're beginning for of discussions of it, about time, as decisions And a don't to And a historical that going engagement journey you detailed I saw talked so journey the data, again, timing to around analyze the really as make we than reduction even that the when population period and what we more discussion about on. is short that usually we're their

But and line treatment continue the as to journey said their bottom care for that is I again, before, do sense them. for people when their and it choose them makes it's and pursue right

little And a be other we to that vis-a-vis bit But than saw patterns. in that more seasonal X of insight. so not that, it slowdown just quarter, happened normal

Jailendra Singh

that.... Okay. quick on follow-up My

Peter Anevski

the years, talked we've I and we're be on all So literally adding entire given logos time years, million out growth over our utilization at There's there's in utilization that happening cumulatively, delivering interim this an overall important, Important, average that versus about variability deliver but and the we we you that variance I the short-term understand But right? you growth each only to you think, what been terms that each shareholders, through is the that and revenue models is guys going of just is right, $XX of slide, value you if of around in really think to your although the variability, and variability make, to year. a growth. continue And it. and in -- JPM, it's want a it, reality on we had to of when utilization period lives -- overall right? and basis value, want is I think, though, look over any about over if I to based and at year, understand in average terms

Jailendra Singh

in I It of -- QX, growth, pharmacy QX. a line quick growth XXXX, And outperform that should fertility benefit with was mean just for there but QX as in sorry, you fertility business. -- be did about model in follow-up benefit Great. in similar talk on any business terms always side? And behind services outperformance should driver that benefit growth particular we

Peter Anevski

Well, it QX. medical little in revenue better a than grew

of of a ahead that function is for drugs Some the you of treatment the quarter. that order next

just function is Some a that of timing. of

So when perfectly correlated of it's it's of suspended. the to terms never medical in the treatment timing

Operator

The Lutz of next Allen question comes from with America. Bank

Allen Lutz

One for Pete.

that difference about that's for able base you prospect talk is. kind products, opportunity you're clients your here? selling that to existing new clients just phase And renewal, and XX% as are about face come the of new little products? to bit? that are because when new the effectively sort of over of that kind unpack -- something roll what mentioned is is You XX% where Or the in products. up you're of basically, of Can a but existing you're it meeting new the clients adopting interesting using where you Is

is renewal? most sense when get unpack of trying new around XX% that a Anything Just helpful. can they're when there those contract would of adding be there's services you to existing a clients,

Peter Anevski

Yes.

of things. couple a So

versus have want, business new whenever added you you at to the considering million point. the the add Yes, said, X.X is on don't pretty XX% of that the size that we buying lives in of renewal. existing with may can be book you business the of some of add you book what that decision significant the You is of which the a service clients. are service

to still first you it the year-end hugely a is slightly products. suite market. add? on taking overall likelihood know if so relative anything I But Mike, to may And have don't XX%, full we of the successful have think higher of

Michael Sturmer

add add that And with Yes. book this strategy client I they as echo adoption them year. their base, services year. frequently be in discuss or the current that clients, might the continued comments, look well. well meet think for into and and their priorities all about where rate certainly strategy Pete's in existing that and the their for existing factors when the we were right. is benefit But all those No, excited only progress thing year on upcoming new I pretty our as that's year, we we'll to on as would

Allen Lutz

Mark for And then guidance on the one framework here.

of about basis As the on it bit per then to an cycles we -- fem prior this part versus little think that about as utilizer. utilization apples-to-apples guidance loss a years, think at these unique kind large makes rate guidance the customer female the of year look and we difficult

about guidance, maybe you you're XXXX As can in about as take just back XXXX? guiding framework if talk we anything, just and what's changed, a versus the about thinking for think step

Mark Livingston

I guided approach to approach say the our is on Yes. as our for we QX call. more for the how here would we akin year November that did

We down more start but to begin QX can not the have a their we obviously, clients. is KPIs pretty people as first QX typically variety data as complete, with trending. of new as and of QX, into are a There natural the all well in journey see insight from quarter, decent the where amount to step

there. new of a sort tracking experience existing I bit clients So a out mean, clients we're versus and yes, new of projecting of that. lot little have a But in we at level

it about story we're we've slightly last the incorporating that better, our be been guidance but to sure It's some be to short, see at in happens longer -- that careful looking we've ranges now. of trending data that the we variability seen So year. we're

Operator

from question Sarah Next with James Cantor. comes

Sarah James

assume of the forward any of We demand the do seeing half you happens that know 'XX. ustritype benefit are change, of their are a in mentality? Amazon employees first you of that of any of And pull aware sort

Peter Anevski

pull For it. way forward did I It the see the probably not lost, client we in that is QX. can any we easiest answer

of Our the higher, that versus client growth slightly overall in business. rate QX was excluding book

the you're you as greater thinking So about it. pull-through, about it was thinking if will, you're there way no

Sarah James

the that Okay. couple last in And you do with then that, quarters any in assume you? of of XXXX, clients that

Peter Anevski

No.

remarks, able way QX. of that talked that the relative client There's at end client journey XXXX, that already on us it's for that, whole at bunch of limited we that a of the the our benefit. prepared with continuation could First, that are end that of and are continue more about to employees relative as criteria a to then number in -- themselves avail to those

we on And based to dollars so market anticipated what the called out criteria. those had relative

Sarah James

then cost really revenue per about And type we that? How we is be seeing think it small selling the the the Should model? your some as much noticeable the flowing margin? to it cycle model? the of a of to just Or how So in services of metric? the through think additional you're is that Great. ratio impacting impact too Is or of to about tailwind in clients. that should services

Peter Anevski

to too it's a questions, to as as one we Yes. And on a activity more previous in more will. for going impact. I that now, minute. is occur Right there it able before are give to color and as of to that's said level and it, relative but take small have soon insight those of creating the of a get has awareness meaningful to clients, we

share, we future quarters will. to more have in we so as And

Mark Livingston

they add of Once reporting all just I'd the that investors cognizant really and the terms is And that of we're helpful guys in significant. the future. take them modeling when into consideration we're consistency that, in metrics. as metrics as for we'll become and them well of The guiding some you to

Operator

from with The Constantine question Instructions] [Operator JMP. next comes Citizens Davides

Constantine Davides

largely just for. guess, Pete, wondering of and the for is sense us -- of can maybe I'm scale financial or can about kind white talk And a growth is some service I what bump, opportunity. most that give space customers benefit for this suitable if you kind of you what that today? asset

Peter Anevski

many employers any and can around postpartum, many the to those benefits that extent, benefit to extent It's, are in you're trying touch ways, cetera, it's our And whether and family whether around described things. et financial I family offer whether around The you on get parenting I it's is focused buyers relative unleve, the it's it that building whether obviously you the as color anybody buyers their There's solutions, it's it's the to I that that pregnant, benefits buy not the once building. asset. to employees described buyers. to scale it, give family as all whether it's pregnant, once

you're navigate services state offering types a of really so And really, from even available to when and/or doing cetera. service return is that that, appreciate you're the that as about might life possible their as programs, then be fully that good et thinking and building of employee everything make it of to all amplify they're those as easy could journey and work. family it's their to as happening

if anybody are think so of categories. all in you offering And -- all employers, it, those services about

it's effectively so And all employers.

Constantine Davides

rolling years. assembling done over wondering activity? those impact And how newer sense are guys on also you're here job some the I the you out a to Great. year, can follow-up partnerships -- And a just with for starting of couple this Cigna? have sales initiatives of channel just And informing you of guess, if partnerships us a nice then give one last network namely

Michael Sturmer

don't our been partnerships to helping or we service through our provide number they of fundamental to specifics around of They are go a part of around not. benefit sales have different well good out of Sure. market. areas contributed we spike credibility a sort those support easier the as of that, have But for requires sales and Cigna Partnerships how really employers. plan that paths our and a other do expect health for we All just including new into partnership value our would the and services provides all pieces. through to contracting going trend. dive our deep partnerships, process partnerships partners our continue It and also season.

position. also, benefit But in buying sit position core benefit do the influence health a or plans

year. They And trend it this partnerships. do a so But benefit these partnerships plan that's partnerships we're plan health particularly will over new and some -- long-term expect we time. from continue new evolve And sales into excited health of again, perspective. more time. as the from investment We to take a new again, about benefit continuing our integrate that

Operator

And our from Larsen evening BTIG. David question last comes with this

Jenny Shen

the and Shen are I if competitive This pricing. pricing environment a very some From for you them our knowledge, are late-stage on was is we've wondering Dave. there could and good quarter. several space, aggressively. heard in on talk of Congrats Jenny privates the that about

on Just thoughts be helpful. dynamic any that would

Michael Sturmer

what the -- do control Sure. obviously pricing a We perspective. can't from we can't competitors

to market, business existing business. our out the it's opportunities As or or go we whether -- existing

value trend ability is we both well -- are Our are demonstrating control and predict which includes costs broader in employers. our in in is and as value, dollars jobs our sit, for portion where and which to on which price the the as to focused -- bigger of ability

fundamentally we fundamentally there. deliver and the focused there And value so focused on that we're

are those with short-term catch those and that As like we on value over things And of things before, are in say we've undercutting dealt have time continue up our clients. and broader focused said strategies that, and again, the that competitors. for and to sort to with multiyear deliver ultimately value market price that and seen we're

Peter Anevski

Yes. And part all won the QX as reported we and competitors against results, them, hearing jumbo processes we account for competitors those you're we one when reported our every every were -- to and the about dynamics the RFP of those those. that of extent

factor so your just And into that thinking.

Jenny Shen

remarks, bit is talked about opportunities I the quick you And what opportunity? Okay. and just do sneak other And that you know if I talk progressing? about a it mentioned Can business you in could follow-up. international how prepared in see? M&A a you your

Michael Sturmer

in and we're able we able all as excited that to and services a to with international of helps we're the continue round how the about it very into to them again, expansion again, Sure. full work that's solutions business. And And our bring acquisition excited And again, that for and and to And we're their employers Solutions. offer sure and our large to We're of make services. market we employers our view our that, services go about area project now. that the population. factors broad that entire within complete global Global where out to sort solutions global of

Operator

back James for There to like are now in closing Hart would turn floor the questions I no further queue. remarks. to

James Hart

John, thank and us you, Thank for you, joining afternoon. everyone, this

to course, If forward Otherwise, April. at conferences we're you feel the in we seeing to free questions, out. please in reach or earnings any of you next month have look attending

Operator

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

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

Progyny (PGNY) 27 Feb 252024 Q4 Earnings call transcript