Progyny (PGNY) Investor Day 2024 summary

Strategic vision and business fundamentals

• Positioned for significant growth by expanding from fertility into broader women's health, including maternity and menopause, with a focus on underfunded and overlooked areas of care.

• Advancing go-to-market strategy to capture opportunities in large, untapped markets and new client segments, supported by partnerships with health plans and benefit consultants.

• Multi-year targets set to double revenue and achieve 2.5x Adjusted EBITDA by 2028, driven by a 20% CAGR and margin expansion.

• Growth levers include deeper penetration of existing clients, new client acquisition, product innovation, and expansion into smaller employer segments and global markets.

• Emphasis on maintaining high client retention, satisfaction, and expanding product attachment rates, with nearly 100% retention and 80%+ client NPS.

Product and market expansion

• Expanded product suite covers family building, pregnancy, postpartum, menopause, and plans to address additional women's health needs such as sexual and pelvic health.

• New products are evidence-based, personalized, and integrated with a robust provider network, aiming to close care gaps and improve outcomes.

• Menopause and maternity offerings leverage a curated, credentialed network and virtual care, with case rate-based pricing models.

• Early adoption of new products has reached over 1 million covered lives, with expectations for these adjacencies to contribute 8%-10% of revenue by 2028.

• Ongoing focus on DEI, global expansion, and addressing diverse family-building pathways, including support for LGBTQ+ and international populations.

Financial performance and guidance

• Targeting $2.4B+ in revenue and $500M+ Adjusted EBITDA by 2028, representing ~20% and ~25% CAGRs respectively from 2024.

• Achieved consistent margin expansion and strong cash flow conversion, with a 75%+ conversion rate from Adjusted EBITDA.

• Gross margins are stable across client sizes, and new products are expected to deliver higher margins, supporting a 400-500 basis point improvement by 2028.

• Sales and marketing investments will increase to drive awareness and adoption of new products, especially in less urgent care areas like menopause.

• Capital allocation priorities include share repurchases, core business investment, new product development, and selective acquisitions.