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Smarter Fertility Benefits Progyny , Inc. Announces First Quarter 2021 Results May 6 , 2021 NEW YORK , May 06 , 2021 ( GLOBE NEWSWIRE ) -- Progyny , Inc. ( Nasdaq : PGNY ) , a leading benefits management company specializing in fertility and family building benefits solutions in the United States , today announced its financial results for the three - month period ended March 31 , 2021 ( " the first quarter of 2021 " ) as compared to the three - month period ended March 31 , 2020 ( " the first quarter of 2020 " or " the prior year period " ) . Reports Record First Quarter Revenue of $ 122.1 Million , Reflecting 51 % Growth Issues Revenue Guidance of $ 126.0 to $ 131.0 Million for the Second Quarter of 2021 , Reflecting Growth of 95 % to 103 % Continues to Demonstrate Leverage in Operating Model Through Increased Profitability " Progyny had a solid first quarter , with record revenue reflecting strong utilization as well as the continued expansion of our client base and covered lives , " said David Schlanger , Chief Executive Officer of Progyny . " With the increasing emphasis companies are placing on their diversity , equity and inclusion initiatives , fertility has become one of the more impactful ways for employers to demonstrate their focus in these areas . We believe Progyny is exceptionally well - positioned to benefit from this ongoing macro - trend , given that we not only generate industry - leading outcomes , but we also provide personalized , culturally - competent care that addresses the historic inequities that have existed . " " In the first quarter , our profitability and margins continued to expand , reflecting both the operational efficiencies we have realized as we continue to scale the business , as well as favorable comparisons to the prior year period , which reflected a modest impact from COVID - 19 at that time , " said Mark Livingston , Progyny's Chief Financial Officer . First Quarter Highlights : ( unaudited ; in thousands , except per share amounts ) Revenue Gross Profit Gross Margin Net Income Net Income per Diluted Share¹ Adjusted EBITDA² Adjusted EBITDA Margin² 1Q 2021 $ 122,133 $ 28,907 23.7 % $ 15,166 $ 0.15 $ 17,263 14.1 % 1Q 2020 $ 81,024 $ 16,602 20.5 % $ 3,629 $ 0.04 $ 6,693 8.3 % 1. Net income per diluted share reflects weighted - average shares outstanding as adjusted for potential dilutive securities , including options and warrants to purchase common stock , as well as restricted stock units . 2. Adjusted EBITDA and Adjusted EBITDA margin are financial measures that are not required by , or presented in accordance with , U.S. GAAP . Please see Annex A of this release for a reconciliation of Adjusted EBITDA to net income , the most directly comparable financial measure stated in accordance with GAAP for each of the periods presented . We calculate Adjusted EBITDA margin as Adjusted EBITDA divided by revenue . Financial Highlights 1st Quarter Revenue was $ 122.1 million , a 51 % increase as compared to the $ 81.0 million reported in the first quarter of 2020 , primarily as a result of the increase in our number of clients and covered lives . In addition , revenue in the prior year period was negatively impacted by the previously reported short - term pause in treatments due to COVID - 19 . • Fertility benefit services revenue was $ 88.9 million , a 50 % increase from the $ 59.4 million reported in the first quarter of 2020 . • Pharmacy benefit services revenue was $ 33.3 million , a 54 % increase as compared to the $ 21.6 million reported in the first quarter of 2020 . Gross profit was $ 28.9 million , an increase of 74 % from the $ 16.6 million reported in the prior year period , primarily due to the higher revenue . Gross margin was 23.7 % , an increase of 320 basis points from the prior year period , due to favorable new terms with our pharmacy program partners , the net impact of regular contract renewals with our providers , as well as continued efficiencies gained across our care management services . Gross margin in the year ago period was also affected by our decision to keep all care management staff in place , despite the pause in treatments caused by COVID - 19 at that time . Net income was $ 15.2 million , an increase of 318 % , or $ 0.15 income per diluted share , as compared to $ 3.6 million , or $ 0.04 income per diluted share ,