Progyny, Inc. Common Stock Wells Fargo 21st Annual Healthcare Conference

Sure. Progyny is a fertility benefits administrator and women's healthcare company. We help companies who are looking to offer benefits to their employees to help build their family. We've been public for seven years now and have been offering the benefit for over 10, and we are the leading company in the space.

Sure. The one thing I'll say is we're not giving an update here Sure from what we gave as of the beginning of August.

My commentary will be really centered around that. We see seasonality every year. The summer is, in particular, August is a month where things typically slow a little bit. This year, as we were getting into preparing for the earnings call and looking ahead, we have about four to six weeks of visibility into authorizations that cover appointment windows. We have that level of visibility as we look. We can see some of September, which typically is a month where things sort of snap back. I think it's probably normal. I think a lot of things in our daily lives act that way as well. We called that out on the call because we were seeing that seasonal impact for August being just slightly more.

I think one thing that's important for investors to understand is, we obviously changed our guide a bit for the balance of the year, is we were taking a lot of things into consideration when we did that. As we got through the first half of the year, although our results for the first two quarters were within and sort of inching towards the higher end of guide, we weren't at the high end of the full year guide. Part of the adjustment we made in August was to acknowledge that we weren't anticipating that reduction versus the high to convert into the balance of the year. As far as the low end of the guide, we had actually reduced it in May, from where we stood at the beginning of the year, and we've just reset it back to where we were.

So look, it's a normal year for us. We consider it quite stable from a utilization and a normal human consumption pattern, and that's sort of what we are expecting the balance of the year to yield.

When you talk about the self-insured market, that is that 106 million TAM that we've identified through even since our IPO a few years ago, adding the federal marketplace, public marketplace to that. As best as we can tell and through the studies that the consultants do, maybe as much as half of the companies that comprise all of that membership have some type of a fertility benefit today. Many of which, and we certainly consider ourselves to be really one of the only comprehensive benefits for fertility. That includes even small pieces of offerings to their members. So within half of that base, we consider a significant amount of expansion still available to us for those companies that realize that offering a comprehensive benefit for fertility would ultimately be the most cost-effective way of putting their money into a benefit like that.

Then, of course, there's that second half. Each year that we've been here, in this market, we've seen a continual awareness and growth towards acceptance of fertility as a not a nice to have, but a must-have as part of a benefit program. We continue to see that grow. We highlighted, in the beginning of August around our selling season, that we have been seeing a lot more competitive wins as well as things in our pipeline that are brownfield, so somebody that's had some type of a benefit, a higher proportion of those than maybe we've seen in years past. Not to say that we're not still seeing greenfield wins and greenfield pipeline ahead of us. But we attribute that really to the increasing pressure around cost on the overall medical plans.

Employers are looking at these low double-digit increases and saying, "How can we be sure that we're going to be spending our money in the most effective way?" I think that's where Progyny's story really leans in well, which is why we're seeing maybe a higher proportion this year.