Progyny reported GAAP earnings per share (EPS) of USD 0.13 for Q3 FY2022, which ended September 30, 2022, higher than analyst estimates of USD 0.03 per share but lower than its Q3 FY2021 EPS of USD 0.17.

Revenue for the quarter amounted to USD 205.4 million, representing 68% YoY growth. Revenue growth was driven by an increase in the number of new clients and covered lives. Net income for the quarter decreased 21% YoY to USD 13.2 million, primarily due to higher non-cash stock-based compensation expenses.

On a segmental basis, revenue from fertility benefit services grew 52% YoY to USD 129.3 million in Q3, driven by the growth in the number of B2B clients (up 50% YoY to 282 enterprises) and average members (up 56.9% YoY to 4.5 million). Moreover, revenue from pharmacy benefit services also rose 106% YoY to USD 76.1 million.

Progyny reported a gross margin of 22.4% and an adjusted EBITDA margin of 17.0%, an increase from the 23.3% and 13.5% recorded during the corresponding quarter in FY2021, respectively. Adjustments to the earnings figure primarily related to stock-based compensation, depreciation, taxes, amortization, and interest.

Management guidance for revenue for Q4 FY2022 ranges between USD 202.4 million and USD 212.4 million (implied growth of 59.0% to 67.0%), net (loss) income ranges between USD (0.7) million and USD 1.6 million (Q4 FY2021: net income of USD 15.1 million) and adjusted EBITDA ranges between USD 28.4 million and USD 31.4 million (implied growth of 88.1% to 107.9%). 

For FY2022, revenue is expected to range between USD 775 million and USD 785 million (implied growth of 55.0% to 57.0%), net income between USD 26.3 million and USD 28.5 million (FY2021: net income of USD 65.8 million), and adjusted EBITDA between USD 121 million and USD 124 million (implied growth of 79.8% to 84.2%).