Progyny, Inc. · NASDAQ:PGNY
Progyny — J.P. Morgan 2022 Virtual Healthcare Conference
22 slides from Progyny's conference presentation, January 2022
Slide 1: J.P. Morgan 2022 Virtual Healthcare Conference
J.P. Morgan 2022 Virtual Healthcare Conference January 2022 1 PROPRI ETARY & CONFIDENTIAL | NOT FOR DISTRIBUTION
Slide 2: Safe Harbor Statement
Safe Harbor Statement Forward-Looking Statements This presentation includes forward-looking statements that are based on our management’s beliefs and assumptions and on information currently available to management. We intend such forward-looking statements to be covered by the safe harbor provision
Slide 3: Progyny's Investment Thesis
Progyny’s Investment Thesis • The fertility market is: • Progyny fills the gaps • We have a six-year trend since • Large and rapidly growing unaddressed by the traditional inception of strong top-line carriers, producing: growth and margin expansion, • Supported by multiple tailwinds • Better outcom
Slide 4: Fertility Market Growth at 9.4% CAGR over last 10 Years
Fertility Market Growth at 9.4% CAGR1 over last 10 Years Growth of 9.4% CAGR1 in Assisted Reproductive Technology cycles has been aided by ongoing favorable tailwinds: Percent of Large Employers with a Fertility Benefit3 • Over the last ten years, people deferring family building: 2015 Today 2023 (E
Slide 5: The Fertility Marketplace Potential
The Fertility Marketplace Potential • Infertility is a highly prevalent disease, affecting 1 in 8 Share of Actual ART Market Share couples, or 12.5%, of the population in child-bearing (2021) Market Opportunity years • The current size of the fertility market has been understated because of insuffic
Slide 6: Despite Our Rapid Growth, We Remain in Earliest Stages of Penetrating our Core Market
Despite Our Rapid Growth, We Remain in Earliest Stages of Penetrating our Core Market Large, Self-Insured Employers Covered Lives • There are 8,000 companies in the US • The companies in our target market with at least 1,000 employees represent ~75M covered lives • Only ~3% are our clients today • W
Slide 7: Progyny Member Utilization Resilient During COVID
Progyny Member Utilization Resilient During COVID Progyny’s Quarterly Female Utilization Rate • As compared to other areas of healthcare, Consistent range of utilization in all but two of the past Progyny’s utilization rates largely thirteen quarters recovered sooner and with more velocity, 0.60% du
Slide 8: Progyny Was Built to Solve Gaps in Fertility Coverage
Progyny Was Built to Solve Gaps in Fertility Coverage Traditional carriers and other alternatives continue to fall short: Inferior pregnancy success High medical costs from Patient stress, mental health rates in fertility preventable IVF-related costs and employee high-risk pregnancies and absenteei
Slide 9: Progyny Redefined the Market
Progyny Redefined the Market Progyny redefined fertility benefit management by leading with the member experience, partnering with world class providers, managing all aspects of a comprehensive solution, and delivering superior outcomes - at scale! Coordinated Member Experience • Flexible, easy to u
Slide 10: Progyny Leads the Market in Patient Outcomes
Progyny Leads the Market in Patient Outcomes Greater Pregnancy Success Healthier Pregnancies and Babies • Outcomes vary considerably by 16% better 26% better 25% better 72% better clinic pregnancy rate miscarriage live birth IVF multiples per IVF transfer1 rate1 rate2 rate2 • Although our In-Network
Slide 11: The Value Created by Favorable Outcomes
The Value Created by Favorable Outcomes Healthier Better Rx Healthier babies Happier, more pregnancies experience supported Fewer NICU stays due to low birth weight employees Greater success Fewer treatments of pregnancy require less Fewer C-sections Reduced stress due to medication supported journe
Slide 12: Progyny Has Become the Provider of Choice for Fertility Benefits Management
Progyny Has Become the Provider of Choice for Fertility Benefits Management Covered Lives (in 000s) 4200 Progyny at launch in 2016: • 5 clients • 2 industries 2800 • 110K covered lives 1400 Reflects locations of covered lives in 2016 0 2016 2017 2018 2019 2020 2021 2022 12
Slide 13: Progyny Has Become the Provider of Choice for Fertility Benefits Management
Progyny Has Become the Provider of Choice for Fertility Benefits Management Covered Lives (in 000s) 4200 Progyny at IPO in 2019: • 80 clients • 20 industries 2800 • 1.4M covered lives 1400 Reflects locations of covered lives in 2016 Reflects incremental locations of covered lives added from 2017 - 2
Slide 14: Progyny Has Become the Provider of Choice for Fertility Benefits Management
Progyny Has Become the Provider of Choice for Fertility Benefits Management Covered Lives (in 000s) 4200 Progyny today: • 265 clients • 30+ industries 2800 • 4M covered lives 1400 Reflects locations of covered lives in 2016 Reflects incremental locations of covered lives added from 2017 - 2019 0 201
Slide 15: Our Growing List of Clients Reflects the Universal Need for Fertility
Our Growing List of Clients Reflects the Universal Need for Fertility We have built a significantly diversified client base, reflecting a broad-cross section in terms of: • Company sizes • Number of industries • Geographic locations 15
Slide 16: Success with New Client Acquisition and Retention
Success with New Client Acquisition and Retention Client Adds Each Selling Season Client Retention 300 We have consistently New clients added each selling season Record 85 new achieved a near 100% 250 2021 Renewed clients each year clients added client retention each year 200 for 2022, 2020 represen
Slide 17: Expansion Opportunities with Existing Clients
Expansion Opportunities with Existing Clients We have multiple pathways to grow with our existing clients: Via organic growth: Via the upselling of new services: • Many of our clients continue to • One-third of our clients added services expand their workforce, adding to our for 2022, including: cov
Slide 18: Progyny Rx Launched in 2018
Progyny Rx Launched in 2018 For every client who takes Progyny Rx, the revenue New Client Take Rate of Progyny Rx opportunity is 50% bigger By Selling Season 2022 • Integrated pharmacy experience with single authorization 2021 • Avoids missed or delayed treatment cycles • White glove service reduces
Slide 19: We are Scaling the Business Rapidly and Profitably
We are Scaling the Business Rapidly and Profitably Revenue ($mm) Adjusted EBITDA2 ($mm) $800 ~50% • Strong rate of $80 2022 revenue revenue growth growth1 ~265% • Nearly 100% client $60 CAGR in Adj. EBITDA since 20183 $600 retention • Profitable today with $40 expanding margins $400 • Highly scalabl
Slide 20: Significant Runway for Ongoing Growth
Significant Runway for Ongoing Growth New services and adjacencies Expanding beyond US University/school system Revenue Opportunity employers Government and union employers Ongoing penetration above our current 3% of 8,000 large self- insured US companies Time 20
Slide 21: J.P. Morgan 2022 Virtual Healthcare Conference
J.P. Morgan 2022 Virtual Healthcare Conference January 2022 21 PROPRI ETARY & CONFIDENTIAL | NOT FOR DISTRIBUTION
Slide 22: Appendix: Reconciliation of GAAP to Non-GAAP Financial Measures
Appendix: Reconciliation of GAAP to Non-GAAP Financial Measures Reconciliation of Anticipated Net Income to Anticipated Adjusted EBITDA for the Year 1 Year Ended December 31, Ended December 31, 2021 (in thousands) 2016 2017 2018 2019 2020 Low High Net (loss) income from continuing operations $ (11,8
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