Page 1

Smarter Fertility Benefits Progyny , Inc. Announces Third Quarter 2021 Results November 4 , 2021 NEW YORK , Nov. 04 , 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 September 30 , 2021 ( " the third quarter of 2021 " ) as compared to the three - month period ended September 30 , 2020 ( " the third quarter of 2020 " or " the prior year period " ) . " Our selling season for 2022 launches is now largely complete , and although we set a high bar for what we wanted to achieve this year , we fully met those expectations , receiving commitments from more than 85 new clients who represent an estimated 1.2 million new covered lives , " said David Schlanger , Chief Executive Officer of Progyny . " Because of our sustained track record of producing industry - leading outcomes and achieving extraordinarily high member satisfaction rates , we believe Progyny has become both the provider of choice and the established industry leader for fertility benefits solutions for many of the most prominent companies in the world , as evidenced by the record results we achieved in the recently concluded selling season . " Record Number of New Clients and New Covered Lives Added for 2022 Reports Third Quarter Revenue of $ 122.3 Million ; Expects Full Year 2021 Revenue Growth Between 47 % and 49 % Expects Full Year 2022 Revenue Growth of Approximately 50 % David Schlanger to Become Executive Chairman and Pete Anevski Named CEO Effective in 2022 " To put our latest selling season into perspective , we added more new clients one year and nearly as many new covered lives - as what we had , in aggregate , when we went public just two years ago , " said Pete Anevski , Progyny's President and Chief Operating Officer . " We believe this strong result affirms our competitive differentiation as compared to other solutions , while further attesting to our ability to scale our operations and successfully address our market opportunities . " Financial Highlights " This quarter , revenue grew by 24 % , margins expanded significantly as compared to the prior year period , and we generated a substantial amount of operating cash flow . As previously disclosed , appointment volumes at the start of the third quarter were modestly lower than historical patterns , which we continue to believe reflected unusual - and temporary - behavior among a small subset of our members , " said Mark Livingston , Progyny's Chief Financial Officer . " While this impacted member utilization and revenue for the quarter , utilization improved over the course of the quarter from its low point , although not at the rate that was needed to meet the higher end of the guidance ranges we gave in August . Importantly , in the fourth quarter , utilization continues to improve to levels that are above where we exited the third quarter . " 3rd Quarter ( unaudited ; in thousands , except per share amounts ) Revenue Gross Profit Gross Margin Net Income Net Income per Diluted Share¹ Adjusted EBITDA² Adjusted EBITDA Margin² 3Q 2021 3Q 2020 $ 122,284 $ 98,928 $ 28,492 23.3 % $ 16,796 $ 0.17 $ 16,479 13.5 % $ 20,836 21.1 % $ 4,822 $ 0.05 $ 10,049 10.2 % 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 . Revenue was $ 122.3 million , a 24 % increase as compared to the $ 98.9 million reported in the third quarter of 2020 , primarily as a result of the increase in our number of clients and covered lives . • Fertility benefit services revenue was $ 85.3 million , a 17 % increase from the $ 73.1 million reported in the third quarter of 2020 . • Pharmacy benefit services revenue was $ 37.0 million , a 43 % increase as compared to the $ 25.8 million reported in the third quarter of 2020 .