Progyny (PGNY) 12 Nov 242024 Q3 Earnings call transcript

Good day, and welcome to the Progyny, Inc.

Third Quarter Earnings Conference Call. [Operator Instructions]

It is now my pleasure to turn the floor over to your host, James Hart. James, the floor is yours.

good and Paul, you, afternoon, everyone. Thank our to third quarter call. conference Welcome today With President; CEO of and Pete Progyny; Anevski, Livingston, me are CFO. Michael Mark Sturmer, our

call remarks We we some begin questions. prepared will open with the for your before

rates upsell and both business strategy, for you full statements Before and assumptions acquire and market our ability utilization federal including our and/or financial operating related the reflect information, and our to views to responses we only clients under year today potential for today existing opportunity comments as securities questions our are future anticipated client that clients of our underlying and statements to and the your launches goals and financial solution, covered market drivers of and begin, and and the retain such like our position, clients, expected XXXX, impact operations management's our new forward-looking mix, our the and law. I'd lives benefits concerning XXXX sales fourth remind expectations quarter to and our will number season and plans, the outlook and of include which guidance, our of other

factors. contained Actual uncertainties due important by to well results associated as in risks with from may differ these materially other those as and implied or forward-looking statements our business

of information events. no could to impact based today's on a results, of as make discussion risks, we and and update other Investor found are can both these assumptions on actual material call uncertainties, factors we statements the our For which our that of statements refer and Relations SEC today, release, website. a that forward-looking to assumptions future new please this press Any filings as our or be obligation of important undertake on result

the non-GAAP refer and incremental financial adjusted More information financial as EBITDA to these the available will measures GAAP about revenue. is with at most measures release, reconciliations During non-GAAP the such on available which margin we investors.progyny.com. comparable also press in measures, call, including adjusted EBITDA are

like to now to would I the call Pete. turn over

thank everyone, afternoon. In quarter, at for Day, execute objectives this Thank against that the our for that you, joining outlined we laying strategic Jamie, to meeting continued recent will you growth you, accelerate and foundation I we the member while us enable Investor third respect to from third our members with long-term creating of treatment. on to value needs with expand the I'll continued and but for members historical clients activity, patterns want how progressed differently unfold begin quarter and those areas to through shareholders. which to us shortly,

about third forward, understand think areas. Consequently, this set below business what we are To in we're help seeing response we walk better through doing we're and I the August. how our in going to you ranges understand we're disappointing. is quarter what moving you results the several

different been unexpected what's in the respect with to activity and First, member XXXX.

reflecting variability we're our guidance. how Second, in this

leadership business role has fundamentally while unfolded also uniquely than large our expand market. to strong, growing how we the positioned but not in year the believe firmly only Third, despite expected, upon is a and differently

is actually related member with two which begin though I'll activity, components. separate

of given The period. our initial of who to percentage members which have utilization first overall includes million care pursue during the taken captures is consultations the X.X rate out action clinics, the fertility which

continued utilizing pursuing the in members at The utilization and to rate, are done volume to that that second of have With respect of also that XXXX. during is measure patterns, reflects we members see that are and care the with the levels types the services consistent the continue period. historical consumption, which has

equal to consistent X.XX%, was utilization expectations quarter both and level. QX's Third

doing not only so is towards at higher range, care, they're the it's X.XX% end solution. sustained our reflect emphasizing members range, of historical that that not need only fact, levels a that strong In pursuing within for the are

as component the are respect other simulation-related progression journey Challenges has than step activity given progressing, freeze in ales our days historically slowed the to down period. overall the to as and difference people seen, we've the are treatment second, fewer specifically of we've treatment The related differs in. which historical into critical slightly within First, a forecast we're to them stage to modestly the periods go consume the just And recent in a with lower translates once in taking longer seen people primarily aspects: is few from ART itself. average cycles to for agrees QX first patterns, console, consumption X meaningfully from even seeing consumption

per this a as QX is this not in to utilizer to QX XXXX. the QX, thus phenomenon activity The not determine whether evidence new far isn't relatively during a that trend we're or in data is there compared ART may seeing As new stimulation-related cycles be is trend. in best as modest we're average it growth a new enough seeing

of believe recent light In it's the comparison longer instructive cycle in to periods. at contracting look seemingly we more to the consumption data, art

seen example, pattern even volume more the years, consistent more egg growth to from though year has variable recently we've is many the in freezing over For X-year year. been long-term with the

could that prudent in the a pacing that how activity are to then, of However, fourth have presented quarter more guide saw we given we're has trend the the actually anticipated, we variability of be year we not consumption seeing below this though right we're return to both factoring our cycle presently improved than even unfavorable it's we the seeing QX, utilization in that art in And guidance. would believe expectation with levels and now.

side reflects we're understand. what inherently wide that more is seeing, the difficult that While to

may whatever we solely through their a member unique it and experience timing. That it's just member's them affect that focus or their on to ask for needs. them can as impact through navigate medical sensitive takes journeys whether time of that we timing those success, that get steps. Our members supporting options to on step we're every PCAs the journey, through members life events And because and and don't factors their help

pattern. this that unexpected We've a not are ruled out few causing things

year, any driving as members much, rates deliver meaningful of of supported this experience, First, upon that seeing reflect members health better successfully employments if member strength maxing fluctuations savings the to our benefit. know out thousands when seen the these at journeys, least We've our are of for have more, ability the And coverage our are a their aren't delivering business getting also don't, they backlog want tens they clinical we we they and we've and clinics, And despite our second, not in and members. way, them. at want success of for a higher achieving and clients.

our creates shareholders. we're That's constitutes, to key what for more members to our areas. ultimately value continuing providers, than deliver our ever those our clients, And our against strategic in our committed priorities and

our the of year, demonstrating season over important of and fertility most of adding one this fourth the million once and lives, health priorities, our year lives and selling to XX of straight commitments. X.X we're with This new over obviously family employers produced solution. In year's again solutions women's differentiation X is building the the importance is results, which client from new any pleased million

important This ways. year's of seasons to season a is similar number past in

a we experience robust continue to and skinnier employers the that take Our of aren't our to version affirming solution. cost savings integrated offer of an select offering newest deliver cycles, X mid-XX% of suddenly we better average Progyny the for saw coverage, or looking Rx, smart benefit, member rate levels affirming clients a through X and

software. need dozen is how nearly size industries of for wins diversification contributing see with continue X a anywhere financial our continues media, broad newest amongst This health care, emphasizes including over X,XXX lives. types lastly, all by manufacturing a broad universal we represent client and cross-section our automotive, truly distribution Our employers. sector consumer from services to to XXX,XXX goods, the and And our of logos energy, services,

distribution growth. fact, our the newest clients our and it the of diversity by as base ongoing In of to size for opportunities newly room is identical today, highlighting the is our

those our largest our seasons tend deepest year as diligence higher do A to notable year a position. slightly is assessments past in difference confidence our skew from this groups -- competitive amongst and the

last were pipeline of you was strong overall. we commitments and You'll ahead how recall previously the that told pacing year,

looking understand million X.X we in X.X the that million of may context at the we the lives So you year ago. be a achieved

million year's I'll approximately lives access our X.X to that medical benefit. included last you XXX,XXX remind without

over jumbo than opportunities jumbo So to higher XXX,XXX The in on active that X.X decision that lives want and a August, of Of pipeline, remained didn't open we lives remain like-for-like were we come gave basis, our in as represent new last visibility there year. a our our jumbo a decision, August. fully pipeline. all the opportunities and largest million to over number opportunities to in us them. a well of you ones who new deals of our and reflecting lives spoke made order are When

aren't or we project made. able decision So will to be a when whether

to This in now. make not have where sales They year competing may any prospects is final a they a sales the no or some were decision. of as to portion than just consider year different our had a and priorities position

sales in methods a our in a channel are new who the pipeline broadening role significant play efficiency. to year, including past, seen made partner pipeline through with in addition our very channel of enter and working next with relationships. This expanding year our strides traditional improving we'll which advanced As those generated opportunities, we've reach the partners healthy we with key

have recall in partner health This plan year, to additional excited TPAs. regional first national and we added signed to we're another ago. year our extremely first large our You'll regional a health how plan addition plan health

Progyny becoming some also populations. of our own are these groups serve to employee entrusting their clients And

It as proud excited the more demonstrable partnerships to more took share and are the we incredible testament value an is details This create. me of grow. that to

our As sales activity. includes and are, also important selling upsell partnership activities as season and our new renewals new

give as So me you there some well. updates let

an disclosed, this introspection no previously to with option made client Progyny. exercise requires their a always decision to a different. client's agreement conclude services we large and Every was As decision

into these remain of the workforce. We as clients positive the well to also from XXXX, impacts heard as XX% with clients given both our made their we who Progyny

some existing one way are expansions. adding are program clients Historically, Progyny to meant continue to deepen Progyny in retention our with so of to approximately and service, validated that looking their While is Rx. clients cycles increasing more our smart XXXX. year, in This see who upsells relationship XX% their we

menopause. clients are in adding those include and/or occur, maturity postpartum services our still now newer While who upsells those

Probably We're or XXXX. seen more extremely adopting our pleased of newest our them. with first the are these one existing clients of for reception we've of offered in XX% XX% clients programs in and year the we've these newer services

program digital million than our one X.X family our base covered beyond will or corporately of lives, more and XX% the at together, have than Taken of solution. more overall least

As year. contribution expect a even health usage these Progyny be with we've first these services, to We our year to our don't meaningful 'XX we patterns in aspects Nevertheless, from with willingness what from products will revenue next the market will their speaks for don't of have interest seen entrust programs. clients more the and adoption sense their be.

with quarter call turn in that, for the let and more detail Mark the Mark? the me the discuss to to year. expectations And over balance our of provide

and you, Thank third year. I'll the the provide our results afternoon, then begin Pete, for and quarter everyone. remainder our good of expectations with

offset ago, Third quarter million. clients year earlier. overall the was as lives to which in Pete the to covered was primarily over growth prior described of due to in the $XXX.X compared increase that then year lesser a rate consumption revenue X% by grew The

sequential we the let This moment you quarter. third dynamic told that to this through a record reported the expect, in had was the was a detail. Female in a So you from in X.XX% year on reported take but near X.XX% August. we a flat modest walk utilization third as that in quarter to decrease, the ago, X.XX% we me from greater basis

the highly seeing belief utilization underlying can to medical aren't to some or need, While for it consistent for our that modestly demographics either many what period, reinforcing family building. to in member change vary pursue with seen desire period continues from people we years, be we've

reflecting consumption was Pete of is quarter, that from year cycles cycles. pattern QX decline ago reported in X% were a ART in earlier, the of the period. under reflected performed ART Approximately just different XX,XXX The describing in

with care of the forecast of and rate the pursuing consumption guidance. the consistent, while challenge is our is creating So pattern different, respect to people

over year. help We've on female includes you per ART increase Today's press release the table utilizer to the an quarter a in page given cycles during utilizer how any last of historically from cycles diverged unique seen course the ART past see per unique patterns.

However, QX, QX, could in an to complete end believe guidance I'll what both contemplates in as though what end patterns, assume high the low we've decrease walk saw prudent we year, pacing in it's assumes improved level that in and saw similar our utilization through this consumption in moment. a of Thus even levels we occur. a in divergence you while another in those instead we decrease. of seen a QX. impacts to further past from we compared variance to far The a QX,

As reduction lives season, net of million million which XX, of batch reflecting third from September covered at Covered we offset to the client and the with ago. our quarter. average XXX from an last of covered a lives, had clients clients selling quarter. last existing of lives compares X.X by X,XXX XX, This launches an least nearly year X.X the clients versus lives slight year's average XXX over was during lives of XX,XXX a representing increased June

are the we different selling season, and continued most of again clients, are grown, workforce at given a that to others our dozen customer with coming X diverse industries. how important economy our of clients the to why pleased which highlights we've have results areas spans While newest have see reductions nearly recent many from so our of impact it once is that base further certain

[ top to respectively. pharmacy medical the and same over back components ] line at revenue the ago million, year this Turning to period grew $XXX of million rate the quarter, essentially $XXX the and

of revenue will Rx pharmacy As an XX% closely reach more annual moving the for approximately forward. aligned the rates medical should growth continue XXXX, in to and be Progyny basis penetration on

decline due in from expenses. quarter Gross well Turning a operating last cycles now point the unanticipated prior investments decreased the the profit in in XX.X% care from made XXX to quarter. of impact to X% basis as period a per our and to decline margin, management the year -- margins gross year yielding $XX.X utilizer as third the our million, services year

more the when cost margin unfolds is line expected. On first gross flexibility differently basis, XXXX, comparable a structure of than our the even months year-to-date the to demonstrating top of X

support we remainder the on typically sequential new the of I'll onboard X. a gross lives As Florida the headcount we to look as over see needed that margin starting decline January year, we remind you the in that's

loss as as lesser many year We following the impact client a expect large this a than of usual XXXX. new hires we are in disclosed previously onboarding

the Sales the channel our the relationships somewhat as revenue our and marketing the client the X.X% expense was period and X.X% go-to-market activities. and of offset gained leverage by in were ago in acquisition through to increase third quarter retention investments resources comparable to year we've partner

operations. XXXX, revenue our back-office to period, quarter, in G&A is continue in realize G&A ago costs in of of year this line the basis were with down XX.X% to months as year-to-date, though we compared first X XX efficiencies XX.X% reflecting that points the the the

which well $X.XX expense as XXXX. our in ago offset reduction ago as following the line reflects as XXX Net buyback income million $XX.X period. quarter EBITDA the year, our $XX.X the $XX.X and income third impact to adjusted higher or to period, in share. the EPS net compared basis million lower were diluted items reflecting While year XX.X%, last was in operating per current margin declined partially income The EBITDA in X% shares of adjusted compared per or the million share a by declined programs of the year to $X.XX This income OpEx to gross in outstanding lower tax lower only comparable margin. points was to

was the period. the generated year for year in $XX.X during of in our to cash capital cash Operating period. items higher million working favorable current $XX.X sheet. the the as reflects now in balance change well prior quarter payments and flow ago to The million compared income as period cash Turning flow certain the timing taxes

generated we've our representing cash the XX% the months of of X the over first conversion same adjusted EBITDA million Over of operating year, an $XXX flow, period.

in we repurchasing million. securities September the million and cash activity of In the quarter. equivalents capital cash reflects over decrease had June X.X in $XXX XX our our we position repurchased quarter, total during $XXX of third million, reflecting million for versus debt. cash, As XX, no shares stock approximately The and marketable working $XX.X

-- has launching in of This in the million program outstanding previous the XX%. value our program start through first to and of shares the as completes Since overall. the and February authorizations by our our activity shares we've XX.X returned shareholders reduced repurchase nearly including QX, year of the the

the year Turning now full quarter XXXX. expectations and to our for fourth

range also even end while compared unique today's the a that sequentially, of stays our end. per assumes assumes year what the QX. high as QX as an in to in end quarter full of X.XX% year X.XX% QX, at you far the pacing of though level see both seen The we've can assumes ART fourth lower which seen high As compared than activity volume of end, treatment for improved in we've table and assumes level point utilization of declines consumption at release, range low utilization this to in utilizer back the thus QX, the this cycles the press slightly low the at and in flat the

assume for the As $XXX.X With over of full year. the revenue expect million accordingly. I before, This to yet and those have another quarter. billion $X.XXX translates the said we fourth variance to $X.XXX of revenue we billion to it's assumptions, believe million prudent contemplated ranges occurs to $XXX.X

profitability. our to Turning

and million. $X.X adjusted adjusted basis $XX.X approximately $X.XX of the of fully diluted $X.XX and of and share million XX million quarter $X.XX million to diluted $X.X expect earnings per fourth This shares. income We of equates in on the to $XX.X $X.XX EPS or EBITDA to million net

For EBITDA $XX.X share million $X.XX per expect discrete the or our income $XXX net earnings year, diluted income to now tax $X.XX of equates the along $X.XX that approximately That to projections XX shares. $XXX million we any remind to of items. and million, contemplate do and basis adjusted million. income $X.XX of of $XX.X fully million adjusted I'll EPS you diluted on not with

Pete back closing turn remarks. call I'd for to to like over now the some

opportunities that the helped large Thanks, and Mark. despite positioned today's how results. remains to the has of hope awards growing strong uniquely understand our advantage take recent you fundamentally market I call business impacted our and

forward this provide our point and even practice, our in one we flow testament business when cash meaningful guidance results XXXX, to is to launching our financial past of report we'll X. we As and and business into generating the consistent insight January we expect the February, clients with profitability on continue in look which model. At we year-end into expect diversity the to of XXXX, strength Wars client, our strong a the have

your for Operator? we'll that, questions. up call open With the

Instructions] the coming question from [Operator first And is JPMorgan. from Anne today Samuel

a maybe from was insight causing visibility of bit offer or on and your utilization recurring some you with how to what speak around consumption? could PCAs any I hoping to on this Are understanding conversations going able trends perhaps they're get into little the be what's disruption? having you may that

consumption the which to question, So to understanding at of first our your contextualized is, we data. I utilization Anne, relative look part think, and date,

per time in utilization same both then utilizers, we what that right? QX that utilizer are in to point at rate overall scheduled compared quarter at cycles So we versus the the period. And scheduled ART point i.e., that and unique look look QX, now was versus in as at

the else. schedule type helping them to members' going talking it's as -- not of et their primarily are on, to helping They're around answer about timing needs, cetera. other PCAs, anything appointments, to conversations any relative or them I the activity to them Relative journey the their mentioned, questions,

needs I imagine, As way. if a prepared through they even the are. needs you but get that in aggregating not their happening helping in unique they what and occur fulfilling there's roughly their realistic, remarks, were given utilizers relative said don't current is it that might The quarter, them is XX,XXX they're just conversations those way to something

you conversation helpful. attribute would the of your you just maybe Some program. the kind all? wondering a national seen fertility your and disruption faith-based That's anything maybe the that? launched recently is to this? members like election, at of competitors asking think that's recent Are Do for And you've factoring the some of

part your our Well, programming anything around faith-based of heard of is question question? members that. was your that second I terms haven't a in from request else your sorry, I'm second like or hearing or the PCA what

not or election say It's to hard whether the impact had not. utilization on any or

overall talked that sides the earlier cycle have the as But of As we the they of on as fertility said you protecting is conversation. good did aisle, facility. in election point year, both the rightly the out, news part about

And so that's positive.

to So know. hard it's

anything We it. haven't around or in of heard that terms of it that heard impacting haven't

it So guessing comment I I'd be if further.

And just a more Did that I you squeeze spinning of maybe for core for benefit, health are benefit employers kind all of year, did a have of women's if could one enable you were health. comprehensive now that catalyze that benefit? a the uptick just you get lot fertility the been anticipating? in of more maybe your than to And looking conversations from curious -- we've But employers Great. women's that more. total hearing fulsome they this any really

add I then I'll will and comments Michael will I comment some needed. let if

Yes.

So thanks for question. the

new saw well from to it as in help turn That some strong to -- our as adoption a successful this perspective definitely business I'll rates interest certainly prospect goes a for there. it good Pete as both well products, contribute sales season additional year. and So itineraries our logo color. back new

Yes.

products the think the year. of they was is positive XX% that there the I didn't RFPs of data prior were But would the give -- look point addition if full is color than suite -- additional of if in bought suite for most solutions benefit. So got even that you RFP the a fuller if all a at the a greater simply that there fertility new buy other in to you've them clients activity, was looking I percent

and of clients think I that talking to overall, more a more the fulsome supportive more it's relative for you're about solution. looking demand So

Lutz will America. of be next Allen from The Bank question from

pressure Mark, to you one little under you have as going talk relates about driving that commentary management just gross care can this the the care management it think year? about about. for on then out you're or investments margin dealing services a exactly new we margin provide into and not you I whether talking that is called of you There's these shift investments? what client quarter, you what's to can you. to The offerings. services. the bit care we Can gross loss, management high-level And gross compression the drive with margin as next gross know was in investments increase XXXX? should management how you're in But or margin care XXXX,

Yes.

quarter, do we our have the to build launches each staff So in and this relates anticipation year, as in to prior we it of year. in begin the

And so did -- and that. we

part margin. showing gross sequentially decline that's what's just of in a So

for. from impact the contribution the level revenue, ART which not obviously is planned unexpected cycle other The was of of

as -- So comments, we're looking support growing services teams be we balance the the then at gross relates to and obviously and hiring next prepared and year. moderating my year, them, and was -- care in moderating we're management it margins although in that it around of will the

typically understand next out. middle membership guidance give a we'll early, on be our at our also and And pretty in be comment we'll has year. prepared all retention So looking always, now. We're comments, right seasons now next the turned planning as at and processes will how growing A our in costs to close of I XXXX, year where do least for for our we think, budgeting bit our year, our given eye we the selling of exactly turned season out February. in little our from with what

any to Great. about adding rounding? million. is us delta X.X members the sort one gets anything And million, a else churn client it that out. there other today, X.X million, that to X.X X.X mention just there Or call there? about, Is you bit the disclosed That's going you of a to X.X housekeeping loss minus question. little million it, on? then million -- Any called other of is versus gets

XXX,XXX that -- year. this it's about there's No, or so went Yes. still actually live

already the from they're selling million the of So part current season. X.X

your delta -- that's your is. what So much that's pretty

The from will Cantor Fitzgerald. next Sarah question be from James

continue just the numbers. lines on I'll of these checking

had XXX ], get account any I of there XX the losses? book, if delta [ not a XXX there's current those ], is any XX there. if clients to [ So commonality? I Are And so, account

of Yes. as they that new -- XX overall, then talked there's roughly and live There's roughly roughly And XXX,XXX clients. in went the lives again, XX, already about, terms losses.

X had we think I losses overall.

seeing Okay. offering having moderated Are you of type market And client? offer trend? anticipate do a more that can serve demand that utilization in the for that plans you can an

a trend. I'm you moderated on not sure to relative if could be specific more what you're to referring utilization

treatment It's not of literally. experience more rate. those, that. money there birth in ones dollar don't their when in from scarcity you the good of run middle about operating they're which or pull with And try we their mind, members maximum and and which where then benefits, that or to in are because but success probability skinnier operating out and preserve a portions out benefit, believe in dollars. of a of have back out maximum They're benefit world the benefit a there, of already, economic treatments sort talk you achieve are therefore, dollar particular a If effectively your forego

you as then about if clarify But to in we if thinking experience. So a good I'm I'm believe member something it's something happy answer else, can not the question.

technically harder maybe you're less cycles, having to cycles but Sure. make those one wants an to employer Yes. that offer really would wants global I just utilization to. used that not but to not offering, that think access, maybe so

Either in sort your I'm of support what the appropriate and are We restrict I sort believe access you of and and medical that. network, believe making of for employees network it. doctors making your believe that But benefit you Again, believe don't new believe don't decisions to benefit network network the treatment. not your arbitrarily necessary we the for sure need We type physician is. treatment. management appropriate decisions wouldn't the in. to in

will next The Cherny from from Michael question Leering be Partners.

materiality I Maybe is a tracking? I guidance $XXX trying bit as those any revenue about the 'XX start you next of products little again, form they against we're this year that How to think rate at should about menopause of over should then point and for time. how in about into run and ramp dive you And targets, to or your qualitatively for way, expected of maternity in we course can on. businesses is shape the way for at year? not But recall, the if there the you any 'XX the which get is services talked sell-through the about million the new think on of

sell-through, year-end think, -- was live being first X.X to both we million expectation. that of now number clients positive lives The and I market talked existing. with our relative across the Having the about, launching new

progress the take will over but utilization that are next create where years. -- we'll if those think you The those employers that what be couple -- that positive. It's I really the across the those at rate, of patterns over next be year not will, just of the we is benefits. see members will

of how lives international in terms there on for else how financially the recent that anything I of the flowing business? Got growth are made can a are acquisition the part know see contribution but you tiny, you I it. give that about there but was -- through it deal, know the that thinking anything into potential covered characteristics model? and there on Is adds? your that was are Is we And us you small do

the of addition global do the employees attribute recent opportunity fertility And doing timing acquisition, this an beyond are for multinational not for more to or the their for that, and space, this to a to investment, looking employers us us don't you even not reported it's of an the having recent -- the point, -- an that there something Yes, are recent employers relative in it's something but and family-building did I just U.S. with we relative It's lives with of offering think their numbers. given that in But opportunity investment were for as lives XXXX global in a to to continued more populations probably at said, employees. global.

from Glen Santangelo will next be question The from Jefferies.

you you. a like obviously commentary maybe across if a just aggressive. certainly competitive and lot more up clients I season of may And ago renewals the give some the Maven years started few get sort certainly questions have what to qualitative seems us was ones was starting quick could seeing of your it competitive Because around selling competitors we've several just you're additional signed you wondering for because to the back when less terms Caritas those of Pete, get landscape. you in on coming landscape intense.

terms just sort -- qualitative seeing then kind just of quick financial I there I'm a out helpful. so And would any of commentary of had you're in what follow-up. And be

and competitive comment the I'll on Yes. selling then take have season first, and environment. second I'll Michael part the

have right, growing As might clients years. imagine, it renewals, our relates base as of you over been

every right? this clients So lost year generally amount I renewal in notwithstanding -- we There every we question, we have past the large are as renewals and year, previous mentioned up X X-year terms. year, announced of only coming one that X season. each the significant And a

we So XX% from base. of a client renewal maintain perspective, still our

Yes.

we've the that been on And and then, years for a compete environment health you operated referenced as for every least at we've really companies. -- So in course, just each privately sale. with operating comp plan so BC of from sort couple a we held them from of overall, perspective, of

particularly health a good feel competitors our number new also, competitive rates earlier, or to then And of both from years. add view side. area that those I that as as And are positive say, especially health plans about of jumbo to position of should Pete an from some starting those well against shifting And them our a most it competitors, we we've earlier, year, we of competing some win there. bids. saw we consistent clients referenced competitive for would relates fared again, this where, that's there the referenced really you as been on to sort plans, partners including we when those the those you at -- sales look Sort perspectives, of imagine, as and

any get you it's appreciate 'XX, to worse. if X.X%, to I want Pete, is trended give sequential on don't a And where imagine your Maybe I 'XX point. follow much up XXXX. it hard in to this rates can be Okay. maybe But basis guidance around like question. Awesome. membership looks going up into at to I fiscal X% like just quickly the utilization mean, membership on fiscal given going

it 'XX. in revenue be to So fair least the growth reasonable assessment? us company fiscal a for thinking is that about Is at generating

think That plus assessment. for talked for the about point. always visibility definitive a, their clients withhold a didn't but seen for already 'XX utilization company. It's to, might seeing about variability having directional be sort we're it's this what including lives said, given, to into of and what to year, to we talked what Certainly, guide at no new growth prudent fair the us relative I this for relative the comments we've QX, any we've looking at

question Singh will Jailendra next be from from Securities. Truist The

to want QX. consumption to back go less in I the

is are timing driving any in First, the consumption I or understand called these seeing getting change structural guys if the out you're somehow to on out just that, there from QX Or want you QX? new able trying same trend the missed who QX? consumption? call? behaviors QX members lag QX recovery Just is same confirm in this you a the are thus engaging any and cut issue differences members far, figure you driving started in guidance are are to And or you're in for trends faster there to worn seeing between this and is to related or utilization in pickup consumption? Or

Yes.

first from have increase. an we So difference saw we've as seen never you decline, The QX, of didn't see seen per part increase big normally -- utilizer in QX, to in ART you would of recall, was utilization, cycles that a your QX in the see sequentially the now before. what question, we which if QX is

difference relative most a rate the saw that's saw QX what to we just So what QX and slower there of growth. was versus in we stark

across we impact As new begun to what have it the end far, relates commented QX already utilizers for their slightly the board, QX, have getting so cycle and journey. journey ART that those in as they're members that And the elongated.

as And so having QX of in QX by for members. to those into definition, elongated going get ended up opposed a to portion it's

consumption, are in Okay. have XXXX in business thoughts utilization volatility follow-up member what having then your developments? the given all have like And to lighter models adding recent you while on value such results to seen model arrangements employers and around my you member you That's exposure given Pete, helpful. where a and to having Are open nature much which clients today versus engagement still the is services. through demonstrative in utilization with

yes. with about there's is But we this but answer beyond but to about talk this are thinking not do point. it, short thinking mitigate we not different about at to anything more The much clients ways at variability, that point, utilization

Davis The from next be from Barclays. Stephanie question will

improved incidence having mix mean broader partners the prolonged to been is This this early of a but period of to such tech of quarters? just too consumption. of your efficacy talked -- transfers? utilization testing same new I Jailendra some potentially few kind GLP-X a it's a if Or the or higher want it's you impact typical that as I a in such any improving clinic to the call trends is seen reflective PCOS have see thread pull Have of trend, We like that's was. fertility? on PTT of to and driving and

the for thanks So question, Stephanie.

to we would in haven't to. the alluding clinics the favorable outcomes, Regarding higher heard two anything clinical think GLP-Xs more or are PGTA we testing, from last related points, which result which I

versus observed treatment lighter the A But also a the in of it's egg QX, we're I'll remarks, I short-term call of a reversal, beginning relates will, we too it, if few trend, consulted cycles my it the egg about on beginning Coast in not particularly. relative we're of seeing benefits, West utilizer to, now pleasing clinics have on a which you within related my but utilization phenomenon, talked more seeing differently of it per side, are also right call and seeing ART to now, it's that. of why reversal we're the to that, which to that some that, have pleasing within the again and and reversal early of at trends is comment you a QX, to guiding especially and least a overall As will, was observed of in timing. if what

Mark going question. for follow-up kind hate you're a have I Now of and to

keep year, philosophy? thinking a that But past maybe that 'XX? from guidance of to are to want taking are more you changing mind. given just some Or how look this learned I approach So at in the guidance as you lessons conservative you the

Well, really look, about XXXX, happening within that's itself. we business lessons but learned throughout I think certainly the the variability

point to set. is variability here we're current drive emphasis bit most the little seeing data this on so we're reliance a be greater ranges a on where doing that quarter should think And less incorporating and those what we

that's so right the going we're philosophy with our now. -- And that that's

be Scott will KeyBanc. Schoenhaus question next from The from

I were of year. cycles? this to into the sure to want more. you million year. country? kind this the about you you've distribution, added of XXX,XXX year. the is is middle in kind federal kind it Like million next give us you The color for it any on that what of more year, consulting the They're past Can to dig where just lives wanted industry the broad-based? season make Or of towards making of new middle stated the the any referenced progress more of selling were of more on country? the you then -- clients still added? there color And the only. for just last ART this cohort X.X Sort next selling million I ask I not doing added the are season, X.X lives Those added that full X.X want

anything. Michael Sure. and then will add I'll comment

still first were Regarding full is to are same as year benefit. the describe it. this what they lives your yes, XXX,XXX the don't the The way question, easiest include

terms a listed bunch -- of it dozen couple of distribution. in the from out on them distribution, question remarks. relates referring regarding distribution, relative industries. new also, the our to there a of size existing a small industry they're first. distribution business they in I you're to almost big size that's And They're of the what prepared As of perspective, book to across in terms to if the sales, across distribution reflect

prior similar well very as and makeup mean a of to I industry demographic perspective size as years said, from distribution from perspective. Yes. a Pete

sales of this And the year. As different necessarily again, outside in have we from did season jumbos a with of nice comments, makeup referenced season. the that, was a nothing

the Richard And next from question Close Genuity. will Canaccord be from

season. selling the on Congratulations

Just those? similarities well. anything -- losses those losses there's then you've as in there commonalities in gleaned you large the and or that back client any talked looking Is at about, that on the

answer X of short were no. The that are announced sort different reasons. is there's the there and There only including compalities. no we -- again, large and one There

to relative Sometimes was their being then acquired them. parent which the one acquired, being losses company of

commonalities. there X with any else them, So weren't is that anything the or they're benefit, the not of like to but no, dissatisfaction always relative really answer

half And of the beginning, now and what to -- last last guess, Okay. regional. new then Great. national respect that's I That's success relatively health in other good year then the with hear. plans and obviously, and there, to second

too customers employers it early those just As any you about those populations? terms on, tell? how consumption is difference in versus there of is utilization bringing or think in to Or

Yes.

clarify to of eating partnerships sort just the there. in difference So

they the partners about sort about health today, partnership. of a those, as would employer plan side, that through plans. to similarly how So employers, the they contract or an -- us. again, the we differences partnerships to as whether with bring really health Then think sort we function seen on partners more of utilization of to versus seen other we those we've the direct partner, on through those way go -- comes how in employers It the then of we'll function utilization talk clients. similar on we within utilization And again, from market depending have that really haven't a we

normal had that's house any any normal made sale or their impact them that a There's with there's way. no structural through it other in partner impact of client. there comment utilizing. would And no no client on direct some a that way, or account, employees not us well than onboarding for different trusted then just There's as whether as impact Yes. different nothing utilization, a to employees, a a we

be question David next will from The from BTIG. Larsen

When $XX,XXX a I a speaking, think I you couple were or couple benefit carrot, I sort and recently, was maybe broadly maybe at a health heard company or a the your competitors, kind of would describe max things like of from hearing I as conference Maven also low. which the things of a body, that wants was $XX,XXX $XX,XXX being

max because challenge. the time? to was the helpful money more thoughts I it, upsell that. they is product a them over described maybe cycles, you do have to you benefit grow IVF which Pete they'll less think your describe something be mean, collar so $X would And I or like or way how accounts, or product winning blue that? so it there basically seems Just you're to it, mix, the buy spend, fewer any consumption like me something program you explains then like can have a want that accommodate

there thoughts would be very any helpful. Just

Yes.

me Let clarify that.

full terms cycles. sure treatment adopting X-cycle full limited collar in that winning referred been accounts we're they've of X-cycle, constraint. an benefit, not the are not I'm So dollar They're same we blue the the by it, are They arbitrary adopting clients bundles. benefit. They're

to benefit a pick. of the I dollar you amount when maximum regardless refer So

person they spend limited benefit. the the against is lifetime much dollars their in can actual to with how employer their limited, You're as

in below they're birth even vendor XX% be treatment have enough live is $XX,XXX national a benefit, and one $XX,XXX medical money to Whether people they benefit, for offer a a the going close, a offers not most drugs not offering offering baby with they're the for right? $XX,XXX actual range. statistically maximum cycle in when are plus for enough because maximum rates not a company a So and to IVF,

especially the are an because if very going to And dramatically. And arbitrary inequitable reimbursements right? around an employer, not understand benefit your there, benefit. that benefit rates So country, get the national buying that mathematically, our you're clients is so dollar maximum

achieve lower, in people where of benefit and, drives, a you reimbursement rates the a preserve West of are for otherwise going the more have the the as position doctor's economic certain I dollars patient than so on said maximum dollar that help that before, But made middle are are scarcity, East things different making -- are on under have decisions reimbursement select would treatment, decisions attempts they're maximum as And dollar to to success. rates might in trying a the where where office from average higher. company Coast, those them by they're and benefit therefore, employees and behavior

if so but right concept way we side and a good to offering one you having we want the of it, an one, you to one do sort a do. the is is, upsell maximum, the do could offering benefit, And believe is have but not

Hart back That does remarks. closing conclude for today's Q&A. I now hand will the call to James

Thanks, at And Paul, me us follow-up. free look otherwise, this to reach the for hope to of out to afternoon. we to you any formative, year. start but the you forward joining speaking thanks, and everyone, feel at We for time the found any

Thank you. conference call. conclude This does today's

wonderful Have at a You for time. your day. disconnect lines this your Thank you may participation.