PGNY - Progyny trades higher after Q2 results beat lower end of FY22 revenue guidance raised

Progyny ( PGNY ) is trading ~18% higher post market after reporting a beat in Q2 consensus and raising the lower end of FY22 guidance.

PGNY's Q2 GAAP EPS of $0.09 beats by $0.05 and revenue of $195M (+51.6% Y/Y) beats by $4.49M.

The increase is primarily a result of an increase in the number of clients and covered lives, the benefits management company, specializing in fertility and family building benefits solutions, said in its earnings report.

Gross profit increased by 48% Y/Y to $43.9M with the increase in revenue.

The client volume is now back to the pre-COVID level, according to the company's earnings call.

Net income, however, decreased by 53% Y/Y to $8.8M, mainly due to a higher non-cash stock-based compensation expense. It was partially offset by the higher gross profit and operating efficiencies realized on higher revenues, as well as a tax provision in the current period as compared to a tax benefit in the prior year.

The company raised the lower end of its FY22 revenue guidance. The full-year revenue guidance is now between $750.0M and $775.0M, reflecting a growth of 50% to 55%. The consensus is $756.22M.

The Q3 revenue guidance of between $190.0M to $197.0M, reflecting a growth of 55% to 61%, is in-line with the consensus of $191.86M.

The managed healthcare company was in the BofA Securities' list of stocks that should benefit from a transforming world. It was the only publicly-traded provider of fertility benefits in the U.S.

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