Image source: Shutterstock

Highlights

  • Progyny’s Q3 FY24 revenue grew 2.04% to USD 286.62 million.
  • Net income decreased 34.42% in Q3 FY24 due to higher operating expenses.
  • Progyny revises FY24 guidance, forecasting revenue between USD 1.135 billion and USD 1.150 billion.

 Progyny, Inc. (NASDAQ: PGNY) is a US-based fertility services provider. It uses a preferred network to help families achieve positive results.

In Q3 FY24, Progyny’s total revenue reached USD 286.62 million, a 2.04% increase from USD 280.89 million in the prior corresponding period (pcp).  However, net income decreased by 34.42%, to USD 10.42 million, compared to USD 15.89 million in pcp. The decline was attributed to higher costs of revenue and other operating expenses, despite the revenue growth.

Operating cash flows for Q3 FY24 decreased by 16.02%, reaching USD 126.94 million, down from USD 151.15 million in pcp. This decline was primarily due to the unfavorable impact of changes in net working capital, though it was partially offset by higher net income. Cash and cash equivalents also declined by 5.97% to USD 91.48 million, compared to USD 97.29 million in pcp. This drop was due to cash outflows from financing and investing activities, partially offset by cash inflows from operating activities.

Recent Business Update

 Company Outlook

The company has updated its financial guidance for the full year ending December 31, 2024. It expects revenue to be between USD 1.135 billion and USD 1.150 billion, reflecting a growth of 4% to 6%. Net income is projected to range from USD 49.9 million to USD 53.3 million, or USD 0.52 to USD 0.56 per diluted share. Adjusted EBITDA is forecasted in the range of USD 189.0 to USD 194.0mn.

For the fourth quarter, the company is targeting revenue in the range of USD 266.2 million to USD 281.2 million. Net income is expected to range from USD 6.1 million to USD 9.5 million, or USD 0.07 to USD 0.10 per diluted share. Adjusted EBITDA is forecasted to lie in the range of USD 37.8 to USD 42.8 million.

Top 10 shareholders

The top 10 shareholders of PGNY hold approximately 53.72% of the total shares, indicating concentrated ownership. BlackRock Institutional Trust Company, N.A. is the largest shareholder with around 10.99%. The Vanguard Group, Inc. is the second largest shareholder with a stake of about 9.12%.

Stock Information

The stock has experienced a significant correction, falling by 28.78% in the last three months and 60.31% over the past nine months. It is currently trading near the lower end of its 52-week range, which spans from a high of USD 42.08 to a low of USD 13.39. As of November 21, 2024, the stock's closing price stands at USD. 14.97.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is November 21, 2024. The reference data in this report has been partly sourced from EODHD/Others.