Progyny, Inc. (NASDAQ:PGNY), a leader in fertility and women’s health benefits, saw its stock price soar by 16.9% after the company reported impressive fourth-quarter results that significantly surpassed analyst expectations, coupled with an optimistic outlook for 2025.
For Q4 2024, Progyny posted adjusted earnings per share (EPS) of $0.42, well above the consensus estimate of $0.10. The company also reported revenue of $298.43 million for the quarter, exceeding the forecasted $275.01 million and reflecting a 10.6% year-over-year increase.
The company’s strong performance was attributed to the growth in its client base, which increased to 473 by the end of 2024, compared to 392 at the close of 2023. Additionally, the number of covered lives also saw a notable uptick, contributing to the company’s revenue growth.
Looking ahead, Progyny offered robust guidance for the first quarter of 2025, forecasting revenue between $300 million and $318 million, well above the consensus estimate of $280.5 million. For the full year, the company expects to generate between $1.175 billion and $1.225 billion in revenue, surpassing analysts’ projections of $1.16 billion.
“We’re pleased to report that 2024 ended on a strong note, with continued improvement in the pacing of member engagement compared to earlier in the year,” said Pete Anevski, CEO of Progyny.
While the company reported a slight decline in net income, which was $10.5 million, or $0.12 per diluted share, for Q4 2024, compared to $13.5 million, or $0.13 per diluted share, in the same quarter last year, the decrease was mainly due to a higher income tax provision.
Progyny also reported a 10% increase in adjusted EBITDA for the quarter, reaching $47.5 million, with an adjusted EBITDA margin of 15.9%, which was in line with the prior year.
The combination of strong quarterly results and an optimistic outlook for 2025 clearly resonated with investors, as reflected in the stock’s significant price increase following the earnings announcement.
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