Progyny, Inc. reported its financial results for the three and nine months ended September 30, 2024, showing a modest increase in revenue but a decline in net income compared to the same periods in 2023. For the third quarter of 2024, revenue reached $286.6 million, a 2% increase from $280.9 million in Q3 2023. For the nine months ended September 30, 2024, total revenue was $868.8 million, up 6% from $818.7 million in the prior year. The growth in revenue was attributed to increases in both the fertility benefits solution and the pharmacy benefits solution, driven by a rise in the number of clients and covered lives.

Despite the revenue growth, gross profit for the third quarter decreased to $59.2 million from $62.6 million in the same quarter of 2023, reflecting a 5% decline. The gross margin also fell to 20.7% from 22.3% year-over-year, primarily due to increased personnel-related costs in care management services. For the nine-month period, gross profit increased to $189.9 million from $181.9 million, with a slight decrease in gross margin to 21.9%.

Operating income for the third quarter was $12.5 million, down from $18.2 million in Q3 2023, while for the nine months, it rose to $51.7 million from $48.4 million. Net income for the third quarter was $10.4 million, a decrease from $15.9 million in the prior year, and for the nine months, net income was $43.8 million, down from $48.6 million. Basic net income per share for the third quarter was $0.12, compared to $0.17 in 2023.

The company’s total current assets decreased to $546.3 million as of September 30, 2024, from $640.4 million at the end of 2023, while total assets fell to $660.0 million from $756.6 million. Cash and cash equivalents also declined to $91.5 million from $97.3 million, and marketable securities dropped significantly to $144.2 million from $273.8 million.

In terms of strategic developments, Progyny completed the acquisition of Apryl GmbH, a Berlin-based fertility benefits platform, for approximately $5.5 million in June 2024. The company also initiated share repurchase programs, repurchasing 9.1 million shares for $249.8 million during the nine months ended September 30, 2024. The company’s provision for income taxes increased significantly to $21.7 million for the nine months, up from $5.9 million in the previous year, primarily due to higher operating profits and reduced tax benefits from equity compensation.