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Progyny $PGNY - 2021 JPM Healthcare Conference
This time around listening to the webcast.
CEO David Schlanger, President and COO Peter Anevski, and CFO Mark Livingston on the call. https://twitter.com/cameroniadeluca/status/1349385034097172480
This time around listening to the webcast.
CEO David Schlanger, President and COO Peter Anevski, and CFO Mark Livingston on the call. https://twitter.com/cameroniadeluca/status/1349385034097172480
Interesting Notes:
- Inequity to Access - Higher cost geographies have less access and LGBTQ and single mother by choice are overlooked
- TAM: ~$15B and ~8,000 self-insured employers
- No clients downsized programs in 2020
- Inequity to Access - Higher cost geographies have less access and LGBTQ and single mother by choice are overlooked
- TAM: ~$15B and ~8,000 self-insured employers
- No clients downsized programs in 2020
- Integrations with carriers are on a PRE-TAX basis; therefore fertility treatments are no different than any other benefits in a plan
**This is the differentiator from VC-backed start-ups that offer reimbursements to employees. Reimbursements are taxable income to the employee
**This is the differentiator from VC-backed start-ups that offer reimbursements to employees. Reimbursements are taxable income to the employee
- Many physicians (~30%) won't work with large carriers due to wasted treatment and dollars on both sides
- Next day delivery for RX
- NPS score of 78 (medical plans) and 80 (RX); most health plans are 0-15
- Only co w 5 yr history of proven outcomes that outperform nat'l avgs
- Next day delivery for RX
- NPS score of 78 (medical plans) and 80 (RX); most health plans are 0-15
- Only co w 5 yr history of proven outcomes that outperform nat'l avgs
- 20% unit cost savings on RX b/c of direct manufacturer contacts
- Largest database in the fertility industry
- Each physician's office gives data to $PGNY and returned a comparable scorecard to other clinics. Can see if Progyny needs to intervene (cont'd below)
- Largest database in the fertility industry
- Each physician's office gives data to $PGNY and returned a comparable scorecard to other clinics. Can see if Progyny needs to intervene (cont'd below)
**This leads to increased doctor word of mouth recommendation and clinical representation on medical advisory boards
- Employee genetic testing to ensure diseases arent passed on within embryos (this is crazy idk how this is possible)
- Employee genetic testing to ensure diseases arent passed on within embryos (this is crazy idk how this is possible)
- Business model makes sense, as employers grow, so does $PGNY's (more covered lives)
- New types of clients like universities, school systems, labor unions, governmental
- New types of clients like universities, school systems, labor unions, governmental
Q&A Session:
Covid:
"No real concern."
"We head into this selling season with a more robust customer group because we heard more 'not now' than before."
Covid:
"No real concern."
"We head into this selling season with a more robust customer group because we heard more 'not now' than before."
New Pharmacy Sign-ups:
"Last 3 sales years for new clients the pharmacy sign-ups alongside Progyny main services is growing" (2018 68%, 2019 75%, 2020 83%) - close 1 to 1
"Existing clients are adding little by little every year."
"Last 3 sales years for new clients the pharmacy sign-ups alongside Progyny main services is growing" (2018 68%, 2019 75%, 2020 83%) - close 1 to 1
"Existing clients are adding little by little every year."
Economic Uncertainty in 2021:
"For a significant portion of companies, their businesses are progressing just fine. Aggregate membership grew by 100,000 in 2020. Our companies that were strong last year will be strong in 2021. Our customer base is really well-positioned."
"For a significant portion of companies, their businesses are progressing just fine. Aggregate membership grew by 100,000 in 2020. Our companies that were strong last year will be strong in 2021. Our customer base is really well-positioned."
Competitive Landscape (start-ups and large carriers):
"For the most part, start-ups offer different services. They offer reimbursement expenses that are taxed. They don't have a benefit plan or network of physicians."
"Don't see carriers or VCs talking about outcomes."
"For the most part, start-ups offer different services. They offer reimbursement expenses that are taxed. They don't have a benefit plan or network of physicians."
"Don't see carriers or VCs talking about outcomes."
"Doing extremely well against VC-backed startups when going head-to-head."
Margin Expansion and EBITDA Conversion to Cashflow:
"Leverage in every line of the P&L. RX costs will continue to decrease. PCA and service teams, we see leverage as we grow. S&M costs are front-end loaded, first year or two. G&A will be levered as we grow."
"Leverage in every line of the P&L. RX costs will continue to decrease. PCA and service teams, we see leverage as we grow. S&M costs are front-end loaded, first year or two. G&A will be levered as we grow."
Basically, expensive now but will see a jump in revenues from these investments in each expense down the line.
"Ultiziation-based model, when services are used, we pay and bill for them concurrently. So the vast majority of what you're seeing on the P&L is cash."
"Ultiziation-based model, when services are used, we pay and bill for them concurrently. So the vast majority of what you're seeing on the P&L is cash."
Overall good color into some topics in the presentation.
The company is still fairly young just going public in late-2019 so this should be interesting as the years progress.
Cheers
The company is still fairly young just going public in late-2019 so this should be interesting as the years progress.
Cheers
