Progyny at KeyBanc Forum: Strategic Growth and Challenges

On Wednesday, 19 March 2025, Progyny (NASDAQ: PGNY) participated in the KeyBanc Annual Healthcare Forum 2025, where CEO Pete Nevsky discussed the company’s strategic direction. The conversation highlighted both the recovery from utilization variability in 2024 and the company’s conservative financial guidance. Progyny’s expanded service offerings and recent acquisition were also in focus, alongside the challenges of competitive pricing models.

Key Takeaways

• Progyny observed unusual utilization variability in 2024, with recovery seen in late Q4 and Q1.
• The company achieved a 99% client retention rate, indicating strong client satisfaction.
• Expanded service offerings have been adopted by 20% of existing clients and 40% of new clients.
• The acquisition of BenefitBump aims to enhance member experience and expand revenue.
• Progyny plans to expand its market reach, particularly in the middle market.

Financial Results

Progyny’s financial performance showed resilience amidst challenges:

• Utilization rate guidance for the full year is between 102% and 104%.
• ART cycles per utilizer are guided to a range of 0.89 to 0.91 for the year.
• Q4 improvements in ART cycles per utilizer exceeded expectations.
• Client retention rate stood at 99%, with only five clients lost.
• 20% of the client base and 40% of new clients adopted expanded offerings.

Operational Updates

Progyny has made significant strides operationally:

• New contracts cover 1.1 million lives across various industries.
• Success with "jumbo accounts" (80,000+ employees) was notable.
• BenefitBump acquisition enhances member experience and benefit navigation.
• The company serves approximately 300,000 federal employees.
• Plans to add 50 million lives to its addressable market are underway.

Future Outlook

Progyny’s future plans include:

• Expanding into the middle market to increase market reach.
• Enhancing services for federal employees and globally expanding product offerings.
• Developing a new digital experience to boost member engagement.
• Short-term margin impacts expected due to investments in integration and expansion.

Q&A Highlights

Key insights from the Q&A session included:

• Recovery from ART cycle variability was noted, with a positive trend continuing into Q1.
• Employer clients are increasingly interested in integrated solutions.
• The executive order to expand IVF access is seen as a positive development.
• Progyny remains committed to full-cycle coverage, opposing limited coverage plans.
• GLP-1 drugs are a budget consideration but have not affected client conversations.

In conclusion, Progyny’s participation at the KeyBanc Forum underscored its strategic focus and market opportunities. For a detailed analysis, readers are encouraged to refer to the full transcript below.

Full transcript - KeyBanc Annual Healthcare Forum 2025:

Scott Schoenhaus, Healthcare Technology Analyst, KeyBanc: Welcome, everyone. My name is Scott Schoenhaus. I’m the Healthcare Technology Analyst here at KeyBanc. I have the pleasure to have Pete Inefsky, CEO, Progyny on our fireside chat. Thank you, Pete, for attending here.

So we’ll just keep this really casual, Pete, maybe introduce yourself a little bit about Progyny. I think most people on this call know the company, and then we can dive into Fireside questions. If audience members, you have a question, you can submit it through the portal, and I’ll be able to ask Pete. But, yeah, Pete, I’ll kick it off to you.

Pete Nevsky, CEO, Progyny: Sure. So first of all, thank you so much for having me. You know, my name is Pete Nevsky. I’m Progyny’s CEO. Progyny is a fertility and family building company as well as a women’s health company, supporting employees and members of plant sponsors through different major milestones in their life.

And, we’re excited to to provide a industry leading member experience throughout all the journeys, of doing that. And then all the other things around supporting them for return to work, etcetera, is is all the different types of products that we offer.

Scott Schoenhaus, Healthcare Technology Analyst, KeyBanc: Great. So let’s provide some context and look back at the last year and maybe the strong fourth quarter results in the first few guidance. But let’s take a step back, Pete. You know, in 2024, there was sort of air pockets of demand, I think mostly around egg retrievals. You saw some weird anomalies around the behavior of the employees at your at some of your employers.

And that seemed to recover here in the fourth quarter and so far year to date in the first quarter. Maybe, Pete, explain, if you can, what you’re seeing year to date, what the strength has been, we can talk clinically if you can and what’s baked around your full year guidance based on what you’re seeing and put it in context with obviously that weird anomaly that happened in 2024?

Pete Nevsky, CEO, Progyny: Sure. So, and I’ll try to hit on all of that and if I miss anything, please feel free to follow-up. What happened in ’twenty four was we saw more than unusual variability in utilization, mostly around care consumption, and specifically as it relates to progression to treatment for those that go through the process of initial consultation with, a reproductive endocrinologist and then, ultimately, go on treatment. So what we’ve generally saw historically was as the year progresses, the largest proportion of people that are starting on their journey, happens in the first quarter. And as the year progresses, the art cycles per utilizer grows seasonally from the first quarter to the second quarter, second quarter to the third quarter, third quarter to the fourth quarter.

And we had put out and published data around that in that history, so that people had that context. What we saw for the first time in ’twenty four was we saw a decline in q three of our cycles per utilizer, and we’ve never seen that before, in terms of that seasonality that I’m describing. And really, what that suggests is that, you know, a small percent, but nonetheless enough, that changed the normal trajectory and pattern of behavior. People didn’t progress to treatment, and therefore, the average number of RCEV was butylyzed or declined, and that impacted our revenue expectations versus actual reported results. What we saw in q four when we reported our q three results, which was the November, as we saw the beginning of the return of our cycles to utilize are increasing again.

And we had called that out, on our earnings call, that that’s what we were seeing. But we also said that given the variability in consumption we saw all year, we our guidance didn’t reflect that return. Our guidance, in fact, reflected either flat, on the high end or down on the low end, of our sectors for utilizing continuing, and that’s where our guidance reflected. The good news is, what we ended up ultimately seeing was not only the improvement that we were already seeing when we guided and reported, in early November, but that improvement, in fact, continued throughout the end of the quarter where we ended up, improving our service per utilizer versus Q3, and therefore, the financial results ended up beating both our guidance as well as expectations that were out there. As we continue to q one, what we’re seeing is the continued improvement that we saw in q four.

You have to seasonally adjust it because q one is always lower. Our cycle was penalized for the same reason that I said, in ’24 and every year with a large proportion of utilizes begin their journey. Yeah. But nonetheless, the improvement, we’re we’re see seeing continued improvement in our cycles per utilized are seasonally adjusted for q one. We guided, similarly like we did in q four, where we guided both the full year, as well as the quarter.

It’s showing not that improvement, but sorta, you know, steady state, if you will, versus versus what we’re seeing seasonally adjusted. And, and we put those numbers out there, you know, in in conjunction with our financial guidance, for for the full year. So for overall utilization rate, a range of one zero two to one zero four, as a percent, as well as our side of the preutilizer for the full year of 0.89 to 0.91 as a range.

Scott Schoenhaus, Healthcare Technology Analyst, KeyBanc: Got it. And if we look clinically, when we’re talking about ART cycles, but if we look clinically, have you seen a mix shift in fourth quarter and so far year to date back towards egg retrievals, egg freezings. If we could talk maybe clinically, Pete, on like what you’re exactly seeing on the procedural side.

Pete Nevsky, CEO, Progyny: Yeah. I would say, and one of the things you alluded to was one of the egg freezing overall is roughly only ten percent of the cycles, just to put in perspective. But when we saw the drop in Q3, it was more pronounced than egg freezing. It wasn’t the only thing that dropped and dragged it down, but it was it was part of the answer. We saw the mix of egg freezing and overall mix be more consistent with historical patterns in Q4 and seeing that continue in Q1 so far, right, is what I would say around that.

So the drop in egg freezing that we saw, you know, was most pronounced in Q3 and back to normal levels, you know, within our Q4 results.

Scott Schoenhaus, Healthcare Technology Analyst, KeyBanc: Yeah. You had a pretty strong selling season this last fall, despite a big loss on the tech side of a legacy customer. Can you talk to us about last year’s selling season, what employers were looking for? Maybe talk about we can also tack on the the question on your expanded service offerings and how they’re doing in the marketplace. But, yeah, just talk to us about last selling season, what you were seeing in the market, like what kind of were they once again diverse wins across mid size to large employers across different industries.

Maybe just talk about last year’s selling season a little bit.

Pete Nevsky, CEO, Progyny: Yeah. So, so just to recap, we sold ADOR self insured new logos, defined as a thousand employees or more, and representing 1,100,000 cover lives. They’re across industries. I believe they were across 30 of the 45 industries, you know, approximately. Donald is accurate to the 30, but but 30 ish, of the 45 industries that we now have clients in.

And they range that we run everything from large to small, across the book of business, pretty pretty proportionate to our overall mix of of clients. And I think we put that out once a year, I believe, when we report q ’1. We put out the distribution of of clients by size. You’ll see that detail, but but they were across the board, large and small. The nice thing about the success of the sales year was, you know, the majority of the time when we don’t win clients, they’re not nows, they’re not losses to other competitors, whether they’re the standalone competitors or whether they’re, you know, the payers, but they’re mostly not nows.

So they’re not really losses. They’re just deferrals of a decision. Right? But when a decision was made, in particular, we saw success with jumbo accounts. You know, I define as 80,000 employees or more.

And with those accounts, we won virtually every one of them against, you know, every competitor. As you might imagine, when there are competitors I’m sorry. When an when an account is of that size, everybody gets invited to participate. Everyone’s pursuing that bid.

Scott Schoenhaus, Healthcare Technology Analyst, KeyBanc: Yeah.

Pete Nevsky, CEO, Progyny: Well, everybody’s pursuing it, and everybody gets invited to it, and it’s a pretty lengthy detail process. Right? So that was positive relative to Were those

Scott Schoenhaus, Healthcare Technology Analyst, KeyBanc: jumbo were those jumbo accounts not now as, like, last year?

Pete Nevsky, CEO, Progyny: Some were, some weren’t.

Scott Schoenhaus, Healthcare Technology Analyst, KeyBanc: Okay.

Pete Nevsky, CEO, Progyny: So so they they always vary. And and sometimes they’re they’re not nows from two years ago, also not just not just last year. So, so there there was a mixed bag of of brand new and some literally from prior year not nows and some from two years ago not nows, and three years ago even sometimes. Right? You know, the different, you know, companies and and benefit managers have two or three year plans around their benefits.

And a lot of times, they’ll evaluate things earlier, and they’ll and they’ll be making a decision down the road, and that’s part of their plan. They don’t always, disclose that when they’re evaluating the benefit. They’re just evaluating the benefit, and then they’ll you you ultimately find out whether or not it’s something that they’re gonna decide on in the current year or something that they’re gonna decide on in in subsequent years. The other, positive that came out of the sales season was, we had significant success with upsells. And traditionally, upsells are around the fertility and family building benefit where they’re adding a

Scott Schoenhaus, Healthcare Technology Analyst, KeyBanc: small sample. Yeah.

Pete Nevsky, CEO, Progyny: Yeah. They’re adding a small cycle or they’re maybe adding fertility preservation they didn’t have or maybe they’re adding, pharmacy if they didn’t have it, etcetera. Now adoption and surrogacy, etcetera, those kind of services. But also now, include our expanded product offering. Right.

Scott Schoenhaus, Healthcare Technology Analyst, KeyBanc: Male infertility.

Pete Nevsky, CEO, Progyny: Well, male fertility is is included in part of your your fertility and family building, but Okay. It’s the, you know, menopause products or the pregnancy and postpartum products Yeah. That are out there. So it was the first year market that we’re selling those.

Scott Schoenhaus, Healthcare Technology Analyst, KeyBanc: And And you had success on the upsell on those?

Pete Nevsky, CEO, Progyny: Well, we had yeah. We had tremendous success. So overall, 20% of our book of business has one or more of those offerings and that represent roughly 1,500,000 lives across those offerings. And of our newest clients, 40% of those bought one or more of those offerings. Leads.

So it was really successful both in new sales, but also in the existing book of business in the first year in market and selling those. So that was also really positive. So, and the last piece, that’s important is is from a client retention perspective, despite the loss of the one customer that you referred to, we still had 99% retention. We only lost five clients in total. And that’s pretty amazing if you think about, in general, if you think about health care and any any company or any industry, you know, that retention rate, which we’ve experienced, you know, since our beginning of ’99, ’90 ’9 plus, percent retention was really positive.

And the other really positive thing is we didn’t have clients cutting the bed at the back in any way. Right? And so that’s also really important as an indication of of of what clients are thinking about and how much they appreciate the value of the bed at the back.

Scott Schoenhaus, Healthcare Technology Analyst, KeyBanc: Yeah. I want a follow-up there on, the sort of, your additional services and offerings. You know, you acquired benefit bump as well as I think parent and child well-being offering. Maybe talk about what services you it seems to me like your you keep continuing to add on more and more services. Is it because the employer market is looking for a one stop shop for, women’s health or, you know, family building benefit and you wanna be more more of these service offerings.

Is it for a competitive advantage for the ability to expand revenue opportunities? Maybe dive into because we have seen sort of accelerated either through M and A organically building out more and more services on the Progyny platform?

Pete Nevsky, CEO, Progyny: Yes, it’s a great question. So, and the answer is what you said. So employers are looking for more solutions for across their employee population that could be addressed by one vendor partner. Right? And they do that for two reasons.

It’s not just because one of the reasons, but this isn’t just it. It’s not just because it’s more convenient and efficient for them as benefit managers to deal with one partner across these different products, but it’s really about the member experience itself. And if you think about your own experience when your employer offers you a lot of benefits, right, to the extent that you can, offer many different solutions under one umbrella makes it a lot easier to engage with one care advocate in understanding all those benefits, make it makes it a lot easier in engaging with one, digital app and navigating those benefits, etcetera. And and and it and it dovetails into what BenefitBump, does for us and our employer clients. Right?

And it is, by the way, also strategic for us as it relates to revenue expansion, and and having a more diversified product offering and also having, helping with client retention and having being stickier in terms of having more services with those clients. Right? But but going back to benefit bump, benefit bump is does two things. Right? Or really a a few things.

But they’re a a a benefit navigator. What they do is is is they ingest everything an employer has for their employees, whether they’re offered through us or whether they’re offered through other vendors or whether they’re even offered through state programs or other things that somebody could could also use. And it helps the employee, navigate and amplify everything their company is doing for them, and that’s a positive for the employer because they offer these benefits for a reason. They’re designed to help the employee out. They’re designed to help the employee as they’re going through the journey starting with what you’re thinking about having a baby to the point where you get pregnant, whether you do it, you know, naturally, flag of a better term, or you need the help assist reproductive technologies.

Once you’re pregnant then supporting you through that pregnancy, postpartum, and then as you mentioned, you know, other services like parent child services, and then also down to, you know, when you’re, at the end of your reproductive journey and you’re you’re potentially in menopause or on the male side in terms of needing testosterone support, etcetera. All of these types of services, right, are the services that are available to the employee, including financial support. You’re gonna you’re planning to have a baby. You can go on parental leave. What does the parental leave process look like?

What is your financial support during parental leave? What is your company offering you? What others what what else is available out there, you know, in terms of maybe, you know, state funding or anything like that? All these types of things as you navigate this journey, all really designed ultimately to help you through the journey, but also to ultimately help you also return to work is what all this stuff is designed to do. And so to the extent that you can help employers amplify everything they’re doing already and help the the employee navigate all of these things in an efficient way, that’s a really positive thing for employers to offer their employees.

Scott Schoenhaus, Healthcare Technology Analyst, KeyBanc: Makes sense. So I wanna get to the regulatory environment. And maybe first, let’s talk about your federal exposure and the Doge cuts. So I know last year when you talked about opportunities on the federal landscape and it was mostly winning contracts and really through the consulting, it wasn’t anything deeply clinical. I know that eventually that would have been a nice tailwind.

What are your thoughts on pursuing the federal market given DOGE and the new administration’s efforts to try to cut and gut the federal department? And then secondly, on the reverse side, we have an executive order that’s trying to expand national access for IVF. And who knows what that really means. It means lowering the cost of the providers, if it just means a more broader federal mandate for employers to have to offer IVF services. But maybe let’s start with the federal impact on your side and the opportunities or maybe the more cautious optimism around that end market.

And then let’s talk about the other side of the point.

Pete Nevsky, CEO, Progyny: Yeah. So I think there’s all more positive than negative in everything you just said. So let’s start with our federal program that we do today. We service, roughly 300,000 federal employees. And as you said, it’s it’s mostly, case management and and not clinical in nature in terms of their journey through us.

But nonetheless, we support them in the way that we can. And the thinking is is is strategically to to continue to work with the federal government and ultimately expand either the number of lives or the services or both across the federal population. Even if the dose cuts and and the activity that’s going on reduce the size of the federal, employee population, the reality is they’re still gonna be the largest employer in the country ultimately. You know, who knows how big the cuts are gonna be, but but when you’re starting out with sort of non medic non Medicare, you know, five and a half million employees as a population, however much it gets reduced, it’s still gonna be, you know, one of the largest populations. There’s still an opportunity for us.

Yeah. You know, and that will continue to work and continue to do a good job and and continue to try and expand that that relationship. Last year was the first year we had that relationship. This is beginning the second year. And so, hopefully, as as we continue that relationship, we’ll be able to expand it.

As it relates to the executive order, you you you hit on it. There’s two things that the executive order asked for recommend policy recommendations on. And it’s, one, protecting access to IVF and two, making it more affordable for people. Right? And and if if if, you know, if you know anybody who’s gone who’s gone through the process, it’s a very expensive process.

And if you don’t have coverage and very difficult process, if you don’t have coverage, the significant majority of people can’t afford to do it on their own and just don’t. And so the idea of addressing affordability, and also protecting access is positive. Nobody knows yet how far that will go. Policy recommendations by themselves are generally only gonna cover the, federal employees. Maybe there could be some tax credits that are out there for people to help them from an affordability standpoint if they’re gonna go through it.

And maybe that’s possibly a policy that’ll be, possibly addressed, but again, would would would require some legislative action. But anything else that would cover and mandate coverage for everybody, not just federal employees, including tax credits or anything else, any other assistance, would require legislative action. And maybe that’s what the recommendations will be. We’ll see. But nonetheless, we view it as positive, and in the right direction relative to the first administration ever even addressing the issue in the area.

And I think overall, it’s smart because if you and the data just came out, for national birth rates. National birth rates continue to decline not only in The US, but around the world. And it’s a geopolitical issue. And the reality is that it’s really important, for access to IVF, especially when it’s not affordable by most people who who suffer from it. It’s the reason why in The US, only two point four, two point five percent of babies come from IVF, whereas in other countries around the world where there is broad comprehensive coverage, it’s more like ten percent.

Right? Yep. And so and so that’s the reality of it. And so it’s positive that that there’s an administration that’s addressing the issue.

Scott Schoenhaus, Healthcare Technology Analyst, KeyBanc: Yep. Okay. I wanna talk about the competitive market here, Pete, a little bit. So there’s some competitors that are in the market, as you know, that have a slightly different model. They have a take rate based model where for like the first six to nine months, it’s a $2,000 cap for the employer for employee and they’re trying to get you not to use IVF clinical services until you reach that nine month whatever timeframe.

Are you seeing from your conversations with employer clients that that’s the model that should be the new model or that they’re looking to sort of cap upfront costs a little bit per employee. Are you going to kind of maybe be more flexible in your offering to meet your meet this these competitors that way? As much as you want to answer this question, I think there’s just a lot of investors have a lot of questions about where fertility benefits managers market is, twelve months, twelve twenty four months, has pricing come down? You know, like, just help us walk through that.

Pete Nevsky, CEO, Progyny: Sure. Sure. So from the beginning, we addressed those types of issues that were already out there that were, predominant in the payer plan designs. Right? Yes.

And from the beginning, we highlighted that those are really bad plan designs for a number of reasons.

Scott Schoenhaus, Healthcare Technology Analyst, KeyBanc: Personally, they are bad plan designs.

Pete Nevsky, CEO, Progyny: For a number of reasons. And if you don’t experience it personally, you understand it. And what happens is when you give people dollar maximums, right, there’s two things you’re doing. You’re not covering, you’re limiting coverage. And and this is the only medical condition I know of why we’re doing that.

Right? And your when you do that, you create really bad decisions by the employee as they’re going through the journey because they operate in a in mentality of economic scarcity. And so they make bad decisions around, the procedures they do within the IVF journey, that affect both the success of a live birth as well as whether or not they’re gonna have a healthier pregnancy in the form of singletons versus, being pregnant with with twins or high order multiples, which create the risk of premature babies, high risk pregnancy for the for the mother who’s carrying the the, the fetuses, and then ultimately, if there are premature babies, those that end up in an EQ and all the stress, anxiety, cost that comes with that. Right? So that’s not new.

The fact that some of our competitors are are continuing to willing and be willing to do that is not something we’re interested in. Because from the beginning, we didn’t believe that was right. And at the end of the day, if you’re gonna claim to be a women’s health company, you should be fighting for coverage, not acquiescing and allowing for limited coverage as if that’s a good solution. Right? That’s our strong opinion.

That’s been our strong opinion. It’ll always be our strong opinion. We believe in providing people with a full cycle and full cycles of treatment where where arbitrary dollar amounts don’t limit and affect your decision of what you’re gonna do when you’re on each treatment journey so that you can, at a minimum, make the right decisions, every time on that journey. And and that’s our belief in doing it the right way, especially when when you say your mission is to be a a family building and women’s health company.

Scott Schoenhaus, Healthcare Technology Analyst, KeyBanc: Yeah.

Pete Nevsky, CEO, Progyny: And by the way, just for the record, we win when decisions are made and we pretty much get invited to every opportunity way more than we lose. And so at the end of the day, if that were a trend Right. We would be having a problem.

Scott Schoenhaus, Healthcare Technology Analyst, KeyBanc: Yep. And you’re not seeing any shift in those conversations with your employer clients. Okay.

Pete Nevsky, CEO, Progyny: Nope. We and every time the topic comes up, we educate them on all the reasons why that’s a bad idea.

Scott Schoenhaus, Healthcare Technology Analyst, KeyBanc: Okay. Got it. And you said earlier, you mean, last selling season, you said that they were, you know, increasing their, let’s call it, dollar spend, the cycles. Can you expect that to continue?

Pete Nevsky, CEO, Progyny: Has continued every year. Last year was no different. Every single year, you know, 20 to 30% of our client base adds cycles or adds other services like egg freezing if they don’t have it, like adopting a surrogacy if they don’t have it, like pharmacy if they don’t have it, etcetera, and other nuances within it. So, you know but those are sort of the big ones, and that happens every season. Last season was no different, and we didn’t have cutbacks, and people weren’t looking to limit more, which is really positive, I think, for all the members that we that we manage.

Scott Schoenhaus, Healthcare Technology Analyst, KeyBanc: Got it. And if I could go back to your guidance, when we strip out the client impact that you noted in the first half where I think you said 75% of it is going to hit in the first quarter, you strip all that out. What on your ex that client, you’re seeing normal behavior in terms of what you’ve historically seen as much as you can say there’s an average historical kind of behavior. Ex those employees or sorry, yes, ex those members, you’re seeing kind of normal year to date behavior on the rest of your book of business. Is that fair to say, Pete, in terms of like, you know?

Pete Nevsky, CEO, Progyny: Yeah. That’s fair. Okay. That’s fair.

Scott Schoenhaus, Healthcare Technology Analyst, KeyBanc: Let’s see. I could I could spend an hour with you guys, but we’re getting closer to the time here. But I guess, maybe just talk to us like is there a segment of the employer population that you feel like you’re under penetrated in? So we know that you’re very much penetrated in tech. You have probably dot market dominance in there.

Maybe did you do you have the financial industry? Are you is that a big area where you have a large, you know, opportunity to attack? Maybe talk about, like, certain industries where you’d love to be in that you’re not currently in, if you could.

Pete Nevsky, CEO, Progyny: Well, we’re we’re in the biggest industries in a meaningful way. But that said, we’re only 7% penetrated across our adjustable market. Right? Yeah. And so the good news is although some of our biggest industries in tech is no longer our biggest industry, are some of the biggest industries that you might expect, like health care, like consumer goods, retail, and tech, the reality is that there’s still plenty of room to go relative to every industry that we’re in.

And the industries where that are the smallest for us are also smaller industries. We’re in 45 different industries. So there isn’t an industry where I stare at the size of the industry and wonder why we’re not penetrated there yet. But the good news is there’s opportunity in every industry to continue to grow, where we have 6,700,000 covered lives against a 5,000,000 life addressable market. And that doesn’t include the market that we’re expanding into, which is middle market, which will add another 50,000,000 lives of addressable market for us as we as we develop that product, and and go to market with it.

But but overall, even in the current addressable market, which is commercial, labor, and federal government, 5,000,000 covered lives, we only have 6,700,000 covered lives right now across, you know, you know, little more than 530 clients. So so I I think that’s the positive, but there’s not industries you stare at relative to the size of the industries themselves where they haven’t started buying. Right?

Scott Schoenhaus, Healthcare Technology Analyst, KeyBanc: Yeah. Yeah. Okay. When you’re talking to, like, the human resources or the benefit managers of these companies, has anything you talked about the strength and demand for fertility in general and for your product offering, but has any conversations come up around restricted budgets or more budget dollars towards another benefit like GLP one or anything that would have changed versus last year?

Pete Nevsky, CEO, Progyny: No. The way the way the dialogue, the last year, the most recent selling season two years ago and even five years ago, there’s always competing factors around budgets. Right? GLP bonds are the latest sort of competing factor, but there’s always competing factors around budgets. But the conversations generally aren’t this or that, as a conversation, but they are you know, we are aware of, again, more so through what benefit consultants tell us versus direct conversations with prospects.

They are considering what they’re doing with GLP ones. Right? And a lot of times, it’s not as simple as do I offer them or not? It’s I’m offering them already, and I’m gonna adjust my plan design, and and there’ll be some cutbacks in terms of what we’re doing. Right?

So they sort of go go both ways relative to what companies are doing with GLP ones and what their policies around them, etcetera. But but either way, they’re they’re not, you know, behind the scenes. They may be for some of them, you know, budget decision, and I’m gonna do one versus the other this year versus next year, but ultimately, it all gets addressed. But they’re not with us sort of direct conversations that say, I’m weighing this versus that. But it but there it does take some mind share for sure.

Scott Schoenhaus, Healthcare Technology Analyst, KeyBanc: Yeah. I guess as my last question here, you know, you talked on the last earnings call about investments being made, and will impact margins for this year. Pete, can you just dive into that? That’s my that’s a little bit of last question here, and and we’ll

Pete Nevsky, CEO, Progyny: wrap up. Sure. Sure. The the the investments that we’re making are a combination of the integration of the companies we’ve acquired, both April, that we acquired midyear last year, and benefit bump that we acquired beginning of this year, as well as the product expansion globally, that we’re investing in, similar to the product expansion that we have in The US, as well as creating a a integrated digital experience for members around all these products and services, as they engage with these benefits.

Scott Schoenhaus, Healthcare Technology Analyst, KeyBanc: Amazing. Well, that should driving hopefully and drive more engagement and hopefully we can track that on our app tracker and looking forward to that. But Pete and I know James is in the background. Thank you. Thank you both for this fireside chat.

Again, I could go on probably for hours with you guys, but I appreciate the access and thank you all for investors for joining the fireside.

Pete Nevsky, CEO, Progyny: Yeah. Well, we appreciate the opportunity. Again, thank you so much, Scott, and and everybody for joining, and and look forward to continued dialogue. Bye bye.

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