Progyny Inc (PGNY) 2023 Q3 法說會逐字稿

Good day, everyone, and welcome to the Progyny, Inc. Third Quarter 2023 Earnings Call. (Operator Instructions) It is now my pleasure to turn the floor over to your host, James Hart. Sir, the floor is yours.

大家好，歡迎參加 Progyny, Inc. 2023 年第三季財報電話會議。 （操作員指示）現在我很高興將發言權交給主持人詹姆斯哈特。先生，地板是你的了。

Thank you, Matthew, and good afternoon, everyone. Welcome to our third quarter conference call. With me today are Pete Anevski, CEO of Progyny; Michael Sturmer, President; and Mark Livingston, CFO. We will begin with some prepared remarks before we open the call for your questions.

謝謝你，馬修，大家午安。歡迎參加我們的第三季電話會議。今天和我在一起的有 Progyny 執行長 Pete Anevski；麥可‧斯特默，總裁；和財務長馬克·利文斯頓。在開始詢問您的問題之前，我們將首先發表一些準備好的評論。

Before we begin, I'd like to remind you that our comments and responses to your questions today reflect management's views as of today only and will include statements related to our financial outlook for both the fourth quarter and full year 2023 and the assumptions and drivers underlying such guidance, including the impact of our sales season and client launches and our expected utilization rates and mix; our anticipated number of clients and covered lives for 2024; the expected benefits of our pharmacy program partner agreements, including future conversion of adjusted EBITDA to operating cash flow; the potential benefits of our solution; our ability to acquire new clients and retain and upsell existing clients; our market opportunity and our business strategy, plans, goals and expectations concerning our market position; future operations and other financial and operating information, which are forward-looking statements under the federal securities law.

在開始之前，我想提醒您，我們今天對您的問題的評論和答复僅反映了管理層截至今天的觀點，並將包括與我們第四季度和2023 年全年財務前景以及假設和驅動因素相關的聲明此類指導的基礎，包括我們的銷售季節和客戶啟動的影響以及我們的預期利用率和組合；我們預計 2024 年的客戶數量和覆蓋範圍；我們的藥局計畫合作夥伴協議的預期收益，包括未來將調整後的 EBITDA 轉換為營運現金流；我們的解決方案的潛在好處；我們獲取新客戶以及保留和追加銷售現有客戶的能力；我們的市場機會以及有關我們市場地位的業務策略、計劃、目標和期望；未來營運以及其他財務和營運訊息，根據聯邦證券法屬於前瞻性陳述。

Actual results may differ materially from those contained in or implied by these forward-looking statements due to risks and uncertainties associated with our business as well as other important factors. For a discussion of the material risks, uncertainties, assumptions and other important factors that could impact our actual results, please refer to our SEC filings and today's press release, both of which can be found on our Investor Relations website. Any forward-looking statements that we make on this call are based on assumptions as of today, and we undertake no obligation to update these statements as a result of new information or future events.

由於與我們業務相關的風險和不確定性以及其他重要因素，實際結果可能與這些前瞻性陳述中包含或暗示的結果有重大差異。有關可能影響我們實際結果的重大風險、不確定性、假設和其他重要因素的討論，請參閱我們向SEC 提交的文件和今天的新聞稿，這兩份文件都可以在我們的投資者關係網站上找到。我們在本次電話會議中所做的任何前瞻性陳述均基於截至目前的假設，我們不承擔因新資訊或未來事件而更新這些陳述的義務。

During the call, we will also refer to non-GAAP financial measures, such as adjusted EBITDA and adjusted EBITDA margin on incremental revenue. More information about these non-GAAP financial measures, including reconciliations with the most comparable GAAP measures, are available in the press release, which is available at investors.progyny.com. I would now like to turn the call over to Pete.

在電話會議中，我們還將參考非公認會計原則財務指標，例如調整後的 EBITDA 和調整後的 EBITDA 增量收入利潤率。有關這些非 GAAP 財務指標的更多信息，包括與最具可比性的 GAAP 指標的調整表，請參閱新聞稿，該新聞稿可在 Investors.progyny.com 上獲取。我現在想把電話轉給皮特。

Thank you, Jamie, and thanks, everyone, for joining us this afternoon. We're pleased to report that Progyny had a very strong third quarter, both in terms of our financial performance as well as in the continued execution of our go-to-market activities. Those activities, which include new client acquisition, the retention of existing clients and the further diversification of our business by expanding into new industries while also adding new channel partners, have positioned us for another year of strong growth in 2024 with 1.3 million new covered lives sold as well as a near 100% retention rate for the eighth year in a row.

謝謝傑米，謝謝大家今天下午加入我們。我們很高興地報告，Progyny 第三季的業績非常強勁，無論是在我們的財務業績還是在持續執行我們的上市活動方面。這些活動包括獲取新客戶、保留現有客戶以及透過擴展到新行業並增加新通路合作夥伴來進一步實現業務多元化，這些活動使我們能夠在2024 年實現又一個強勁增長，新增覆蓋人口達130萬人銷量連續第八年接近 100% 的保留率。

Before I get into the details of the sales season, let me begin with the highlights of our financial performance. We had record quarterly revenue of $281 million, reflecting 37% growth over the prior year period, as well as record adjusted EBITDA, which increased 43% over the third quarter of 2022 to $50 million. This yielded an adjusted EBITDA margin of 17.8%, which was an 80 basis point increase over the prior year period. As we've seen throughout 2023, our results this quarter once again reflect that member engagement remains healthy, demonstrating the importance of companies offering this benefit as members pursue the treatments they need in order to achieve their family building goals.

在詳細介紹銷售季節之前，讓我先介紹一下我們財務表現的亮點。我們的季度營收達到創紀錄的 2.81 億美元，較上年同期成長 37%；調整後的 EBITDA 創紀錄，較 2022 年第三季成長 43%，達到 5,000 萬美元。調整後 EBITDA 利潤率為 17.8%，較上年同期成長 80 個基點。正如我們在 2023 年全年所看到的，我們本季的結果再次反映出會員參與度保持健康，這表明公司在會員尋求所需治療以實現家庭建設目標時提供這種福利的重要性。

As the prevalence of infertility continues to rise with more people now needing assistance than ever before and with millennials routinely citing family building benefits as one of the most relevant factors when deciding where they want to work, we've seen how fertility and family building solutions have increasingly become important to employers as they look to meet their recruitment, satisfaction and retention goals. Progyny's continued focus on value to our clients and member satisfaction remains the foundation for our ability to lead and grow the market through a combination of a unique plan design, active management of the member experience and the collaborative relationships we forged with the providers in our proprietary network. We continue to distinguish ourselves as a provider of choice for fertility and family building solutions amongst the world's largest leading brands.

隨著不孕症盛行率持續上升，現在需要援助的人比以往任何時候都多，而且千禧世代在決定去哪里工作時經常將家庭建設福利作為最相關的因素之一，我們已經看到了生育和家庭建設解決方案如何當雇主尋求實現招聘、滿意度和保留目標時，這些對雇主來說變得越來越重要。 Progyny 持續專注於客戶價值和會員滿意度，這仍然是我們透過獨特的計劃設計、對會員體驗的積極管理以及我​​們與供應商在專有領域建立的合作關係來領導和發展市場的能力的基礎。網路。我們繼續在全球最大的領先品牌中脫穎而出，成為生育和家庭建設解決方案的首選供應商。

We are pleased with this year's sales season, highlighted by adding 1.3 million new lives from over 85 new client commitments, demonstrating the market's continued adoption of family building solutions and further solidifying our leadership position. Because a small number of these clients both sold and launched in this sales year, we expect over 460 clients and approximately 6.7 million covered lives in 2024. And to put this into perspective, at the time of our IPO just 4 years ago, we had 87 clients and approximately 1.4 million -- I'm sorry, 1.5 million covered lives, which means we have more than quadrupled our clients and covered lives since 2019.

我們對今年的銷售季感到滿意，超過 85 個新客戶承諾增加了 130 萬個新生命，這表明市場對家庭建築解決方案的持續採用，並進一步鞏固了我們的領導地位。由於少數客戶在本銷售年度出售並推出，我們預計到 2024 年將有超過 460 名客戶和約 670 萬人受保。從這個角度來看，在 4 年前我們首次公開募股時，我們有87 名客戶和大約140 萬人——抱歉，承保了150 萬人的生命，這意味著自2019 年以來我們的客戶和承保人的數量增加了四倍多。

Even with this sustained track record of success and once our newest clients have all gone live, we still remain at a very early stage of penetrating our market opportunity with just a mid-single-digit share of either the 8,000 companies or the 100 million covered lives in our current addressable market. The clients we added for 2024 reflect an exceptionally diverse cohort representing a wide range of industries, including chemicals manufacturing, hospitality, health care, energy, transportation, software and telecommunications to name just a few. And our book of business now represents approximately 45 different verticals.

即使我們擁有持續的成功記錄，並且一旦我們的最新客戶全部上線，我們仍然處於滲透市場機會的早期階段，在 8,000 家公司或覆蓋的 1 億公司中僅佔有中個位數的份額生活在我們當前的目標市場中。我們在 2024 年新增的客戶群極為多元化，涵蓋各個產業，包括化學品製造、飯店、醫療保健、能源、運輸、軟體和電信等。我們的業務範圍現在代表大約 45 個不同的垂直領域。

We continue to see strong momentum through the flywheel effect where our initial win in an industry lays the groundwork for future success within that vertical as the other brands in that industry look to reestablish parity with the early adopters. A good example of this is the labor market where we won our first client just a year ago and have had strong second year success winning new clients across different types of Taft-Hartley populations. As just one final anecdote of this dynamic, a year ago, we won our first professional sports team client. And this year, we've not only won additional sports teams, we also won our first professional sports league.

我們繼續透過飛輪效應看到強勁的勢頭，我們在行業中的初步勝利為未來在該垂直領域的成功奠定了基礎，因為該行業的其他品牌希望與早期採用者重新建立平等關係。勞動市場就是一個很好的例子，我們在一年前贏得了第一個客戶，並且在第二年就取得了巨大的成功，贏得了不同類型塔夫脫-哈特利人群的新客戶。作為這種動態的最後一個軼事，一年前，我們贏得了第一個職業運動隊客戶。今年，我們不僅贏得了更多的運動隊冠軍，還贏得了我們的第一個職業運動聯賽。

We also continued to see a broad range in the size of the newest clients, spanning from 1,000 to well over 100,000 lives, which further demonstrates that fertility has become a relevant benefit for any employer regardless of the size of their operations or the industry in which they operate. This season, we also expanded into our first federal government population, representing approximately 300,000 covered lives. Government plans are a large and attractive new channel for us, particularly as those groups continue to look to enhance their benefits and keep parity to the benefits that their corporate counterparts provide. Given the stringent requirements that any provider must meet in order to be approved to serve the federal market, we believe the flywheel effect has the potential to be even more impactful within government than what we've seen amongst corporate employers, which should make this an accelerator to our long-term growth.

我們也繼續看到最新客戶的規模範圍很廣，從 1,000 人到遠超過 100,000 人不等，這進一步表明，生育能力已成為任何雇主的相關福利，無論其業務規模或所在行業規模如何。他們運作。本季度，我們也擴展到了第一批聯邦政府人口，代表了約 30 萬人。政府計畫對我們來說是一個龐大且有吸引力的新管道，特別是當這些團體繼續尋求提高其福利並與企業同行提供的福利保持平等時。鑑於任何提供者都必須滿足嚴格的要求才能獲得批准為聯邦市場提供服務，我們相信飛輪效應在政府內部的影響力可能比我們在企業雇主中看到的影響更大，這應該使這成為一個我們長期發展的加速器。

At this point, the federal government has defined a fertility benefit more narrower than what we typically see. To meet these requirements, we modified our usual scope of services and are expecting to see meaningfully lower financial contribution per engaged member from this population in 2024. We are excited about this unique opportunity as there could be increased contribution over time if the coverage is broadened and additional lives are won, similar to what we see with our corporate clients.

目前，聯邦政府對生育福利的定義比我們通常看到的要窄。為了滿足這些要求，我們修改了通常的服務範圍，並預計到2024 年該人群中每位參與會員的財務貢獻將大幅降低。我們對這個獨特的機會感到興奮，因為如果覆蓋範圍擴大，隨著時間的推移，貢獻可能會增加並贏得了更多的生命，這與我們在企業客戶身上看到的情況類似。

Setting aside this unique client, the remainder of our newest clients have continued to select robust levels of coverage, offering 2 or 3 Smart Cycles on average, consistent with what we've historically seen. This year, we've also achieved our strongest ever adoption rate for Progyny Rx with 98% of the newest clients taking the pharmacy benefit. This comes on the heels of last year's 97% take rate. We believe our extraordinary success in selling the integrated solution is due to the significant combined cost savings we deliver with integrated medical and Rx services as well as our superior member experience that eliminates the risk of treatment delays while also guiding the patient through a complex medication protocol. Once all of these newest clients launch in combination of the existing clients who added the Rx benefit for 2024, we anticipate that approximately 93% of our clients will have the integrated solution.

除了這個獨特的客戶之外，我們的其餘最新客戶繼續選擇強大的覆蓋範圍，平均提供 2 或 3 個智慧自行車，這與我們歷史上看到的情況一致。今年，我們也實現了 Progyny Rx 有史以來最高的採用率，98% 的新客戶享受了藥品福利。繼去年 97% 的錄取率之後。我們相信，我們在銷售整合解決方案方面取得的非凡成功是由於我們透過整合醫療和處方服務實現了顯著的綜合成本節約，以及我們卓越的會員體驗，消除了治療延誤的風險，同時也指導患者完成複雜的用藥方案。一旦所有這些最新客戶與現有了 2024 年 Rx 權益的現有客戶結合起來，我們預計約 93% 的客戶將擁有整合解決方案。

Our new sales activity is a critical focus for us and is the largest contributor to our incremental growth each year. Retaining existing clients and adding new services are also significant priorities, and we're extremely pleased to have achieved a near 100% retention rate for the eighth straight year in a row while also expanding the services that we're providing to our clients. We believe our sustained success with retaining an extraordinarily high rate of our clients and lives underscores the demonstrable value that our solution delivers year after year, especially when you consider that our clients include many of the most analytical and data-driven companies in the world.

新的銷售活動是我們的重點，也是我們每年增量成長的最大貢獻者。保留現有客戶和增加新服務也是重要的優先事項，我們非常高興連續第八年實現接近 100% 的保留率，同時也擴大了我們為客戶提供的服務。我們相信，我們在保留極高客戶率和生活率方面取得的持續成功突顯了我們的解決方案年復一年提供的明顯價值，特別是當您考慮到我們的客戶包括世界上許多最具分析性和數據驅動力的公司時。

Further evidence of the value inherent in our services, we continue to see existing clients looking to expand their Progyny benefit for 2024 with more than 20% of clients increasing their programs in some way for next year, either by adding more Smart Cycles; taking Progyny Rx; covering more services, such as donor tissue or fertility preservation; or expanding their adoption of surrogacy benefits in recognition of the many different pathways to parent. Of course, employers typically have many priorities with respect to their health plan and benefit strategies, and this year was more magnified in this regard. In 2023, we've seen companies evaluating a number of areas from their concerns on overall medical cost trends, which resulted in increasing evaluations of health plans and benefit strategies as well as the rise of demand around GLP-1 and the overall ongoing macroeconomic uncertainty.

我們繼續看到現有客戶希望在2024 年擴大Progyny 福利，這進一步證明了我們服務的內在價值，超過20% 的客戶在明年以某種方式增加了他們的計劃，要么增加更多智能自行車，要么增加更多智慧自行車；服用 Progyny Rx；涵蓋更多服務，例如捐獻組織或生育力保存；或擴大他們對代孕福利的採用，以認識到父母有許多不同的途徑。當然，雇主通常在健康計畫和福利策略方面有許多優先事項，今年在這方面更加重要。 2023年，我們看到企業出於對整體醫療成本趨勢的擔憂而對多個領域進行評估，這導致對健康計劃和福利策略的評估增加，以及圍繞GLP-1的需求上升和整體持續的宏觀經濟不確定性。

Even with these competing factors, we've seen that fertility has remained a significant priority, and we are entering next year with meaningful tailwinds behind us. As in every year, a portion of the prospects in our pipeline and the sales years are not now due to the competing priorities that I discussed previously. This year is no different, and we have a healthy number of opportunities remaining in our active pipeline that are carrying over into next year. We've gained considerable expertise over the years at effectively managing multiyear sales cycles. And in fact, in each of our previous selling seasons, most of our earliest wins have been conversions of what had once been a not-now prospect, and we would expect the same for 2024.

即使有這些相互競爭的因素，我們仍然看到生育率仍然是一個重要的優先事項，並且我們將帶著有意義的順風進入明年。就像每年一樣，我們的管道和銷售年份中的部分前景現在並不是由於我之前討論過的競爭優先事項而造成的。今年也不例外，我們的活躍管道中還有大量機會，這些機會將延續到明年。多年來，我們在有效管理多年銷售週期方面積累了豐富的專業知識。事實上，在我們之前的每個銷售季節中，我們最早的大部分勝利都是對曾經不存在的前景的轉換，我們預計 2024 年也會如此。

Accordingly, we're excited to be entering next year with a very healthy pipeline of advanced opportunities, which, of course, will be in addition to whatever new pipeline that we build through all of our traditional methods, including the channel partners who play a key role in broadening our reach and improving sales efficiency. Earlier this year, we discussed the new partnerships we forged with a number of leading organizations: Evernorth, Children's Hospital Association, Quantum Health, in addition to our existing relationships with CVS point solutions. And though we are only in the early initial stages with our newest partnerships, we're pleased with the progress we've made and feel well positioned as we look into 2024.

因此，我們很高興明年能帶著非常健康的高級機會管道進入，當然，這將是我們透過所有傳統方法建立的任何新管道的補充，包括發揮作用的通路合作夥伴。在擴大我們的影響力和提高銷售效率方面發揮關鍵作用。今年早些時候，除了我們與 CVS 單點解決方案的現有關係外，我們還討論了與許多領先組織建立的新合作夥伴關係：Evernorth、兒童醫院協會、Quantum Health。儘管我們的最新合作夥伴關係僅處於初期階段，但我們對所取得的進展感到滿意，並在展望 2024 年時感到自己處於有利位置。

To add to this already strong list, we're pleased to announce that we recently signed a partnership with [Vista Health], who has selected Progyny to be its preferred vendor for fertility and family building benefits, giving us access to the customers in their portfolio, which includes the clients of one of the largest health plans in southeastern Pennsylvania. As with our other distribution partner relationships, when [a Vista Health] client is looking to add fertility to their benefit coverage, Progyny will be the preferred fertility solution and will collaborate with them during the sales process. We're excited about the potential of this new relationship and view this partnership as enhancing our market presence even further with health plans in 2024 while also demonstrating the strength of our competitive position and our differentiation in the market.

為了在這個已經很強大的名單上再添一筆，我們很高興地宣布，我們最近與[Vista Health] 簽署了合作夥伴關係，後者選擇Progyny 作為其生育和家庭建設福利的首選供應商，使我們能夠接觸到他們的客戶投資組合，其中包括賓州東南部最大的健康計畫之一的客戶。與我們的其他分銷合作夥伴關係一樣，當 [Vista Health] 客戶希望在其福利覆蓋範圍中增加生育能力時，Progyny 將成為首選的生育解決方案，並將在銷售過程中與他們合作。我們對這種新關係的潛力感到興奮，並認為這種合作關係將透過 2024 年的健康計畫進一步增強我們的市場影響力，同時也展現了我們的競爭地位和市場差異化的實力。

With that, let me now turn the call over to Mark to discuss the quarter in more detail and provide our expectations for the balance of the year.

現在，讓我將電話轉給馬克，更詳細地討論本季度，並提供我們對今年剩餘時間的預期。

Thank you, Pete, and good afternoon, everyone. I'll first take you through our third quarter results and then provide our expectations for the remainder of the year. Revenue in the third quarter was $280.9 million, reflecting growth of 37%. The growth versus the prior year was primarily due to an increase in the number of clients and covered lives as compared to a year ago. As of September 30, we had 392 clients with at least 1,000 lives, representing an average of 5.4 million covered lives over the third quarter, which was consistent with what we told you to expect on our call in August. This compared to 282 clients and an average of 4.5 million covered lives a year ago, reflecting 21% growth in lives over the prior year. I'll remind you that we added a significant number of lives in the year ago period, more than 200,000, primarily through early and off-cycle launches, whereas a lesser number of lives were added in the current period.

謝謝你，皮特，大家下午好。我將首先向您介紹我們第三季的業績，然後提供我們對今年剩餘時間的預期。第三季營收為 2.809 億美元，成長 37%。與前一年相比的增長主要是由於與上一年相比客戶數量和承保人壽的增加。截至 9 月 30 日，我們有 392 名客戶，擁有至少 1,000 條生命，代表第三季平均覆蓋 540 條生命，這與我們在 8 月的電話會議上告訴您的預期一致。相比之下，一年前有 282 名客戶，平均覆蓋 450 萬人，人數比前一年增長了 21%。我要提醒您的是，我們在去年同期增加了大量生命，超過 200,000 條，主要是透過早期和非週期發布，而本期增加的生命數量較少。

And while we have separately seen an impact from workforce reductions at some of our clients this year, the level we saw was both consistent with what we had expected, and this impact has continued to be fully offset by other clients that have been expanding their headcount either through hiring or M&A. In fact, this offsetting dynamic is consistent with what the labor department has been reporting throughout the year with an average of well over 200,000 jobs added each month and unemployment remaining steadily below 4%. Looking at the components of the top line. Medical revenue grew 35% over the third quarter last year to $175.1 million, again, due to our growth in clients and covered lives, while pharmacy revenue increased 39% in the quarter to $105.8 million.

雖然我們今年已經分別看到一些客戶裁員的影響，但我們看到的水平與我們的預期一致，而且這種影響繼續被其他一直在擴大員工人數的客戶所完全抵消。透過招募或併購。事實上，這種抵銷動態與勞工部全年報告一致，每月平均新增就業人數遠超過 20 萬個，失業率穩定維持在 4% 以下。查看頂行的組件。由於我們的客戶和核保人壽的成長，醫療收入比去年第三季成長了 35%，達到 1.751 億美元，而藥品收入在本季成長了 39%，達到 1.058 億美元。

Turning now to our member engagement metrics. More than 15,000 ART cycles were performed during the third quarter, reflecting a 35% increase as compared to the third quarter last year. The female utilization rate, which most closely corresponds to our financial results, was 0.49% this quarter, an increase from 0.44% a year ago and in line with the levels we've seen throughout the first 9 months of 2023. We believe the level of engagement we're seeing is reflective of both the high-priority members continue to place on achieving their family building goals as well as the increasing need for treatment given the growing prevalence of infertility as a medical condition. Nonetheless, I'll remind you that utilization rates can vary from period-to-period due to a number of factors, including the time of year, the timing of new client launches, demographic mix and plan design.

現在轉向我們的會員參與度指標。第三季進行了超過 15,000 次 ART 週期，與去年第三季相比增加了 35%。與我們的財務表現最接近的女性利用率，本季為 0.49%，高於一年前的 0.44%，與我們在 2023 年前 9 個月看到的水平一致。我們認為這一水平我們所看到的參與度反映了高優先級成員繼續致力於實現家庭建設目標，以及鑑於不孕症作為一種疾病的日益流行，對治療的需求不斷增加。儘管如此，我要提醒您，由於多種因素的影響，利用率可能會因時期而異，包括一年中的時間、新客戶推出的時間、人口結構和計劃設計。

Turning now to our margins and operating expenses. Gross profit increased 36% from the third quarter last year to $62.6 million, yielding a 22.3% gross margin, which was comparable to the prior year period even as we continue to invest in our care management services. Year-to-date, gross margin has expanded by 70 basis points over the first 3 quarters of 2022, reflecting the efficiencies that we continue to realize through our growing economies of scale. As we look over the remainder of the year, I'll remind you that the third quarter margin is typically higher than what we see in the fourth quarter as Q4 reflects the incremental headcount that we bring on board in support of the significant step-up in covered lives expected as of January 1.

現在談談我們的利潤率和營運費用。毛利較去年第三季成長 36%，達到 6,260 萬美元，毛利率為 22.3%，即使我們繼續投資於護理管理服務，毛利率仍與去年同期相當。年初至今，毛利率較 2022 年前 3 季成長了 70 個基點，反映出我們透過不斷成長的規模經濟不斷提高效率。當我們展望今年剩餘時間時，我會提醒您，第三季度的利潤率通常高於我們在第四季度看到的水平，因為第四季度反映了我們為支持重大升級而增加的員工人數截至1月1 日的預期承保壽命。

Sales and marketing expense was 5.3% of revenue in the third quarter, a slight improvement from the 5.4% in the year ago period as the investments we've made to increase our go-to-market resources and channel partner relationships continue to be offset by the leverage we gained through our client acquisition and retention activities. G&A costs were 10.5% of revenue this quarter as compared to 11.5% in the year ago period. The 100 basis point improvement is primarily due to the efficiencies that we continue to realize in our back office operations, further demonstrating the inherent nature of our expanding margins on G&A as functions -- on our G&A functions as we grow.

第三季銷售和行銷費用佔收入的 5.3%，比去年同期的 5.4% 略有改善，因為我們為增加市場資源和通路合作夥伴關係而進行的投資繼續被抵消透過我們透過客戶獲取和保留活動獲得的影響力。本季的一般管理費用佔收入的 10.5%，而去年同期為 11.5%。 100 個基點的改善主要歸功於我們在後台營運中不斷實現的效率，進一步證明了我們在G&A 職能上不斷擴大利潤率的固有性質——隨著我們的發展，我們的G&A 職能上的利潤率不斷提高。

With our strong top line performance and the operating efficiencies we've realized, adjusted EBITDA grew 43% this quarter to $50 million and adjusted EBITDA margin increased by 80 basis points to 17.8%. Over the first 3 quarters of the year, adjusted EBITDA margin on incremental revenue was 20.8%. We continue to believe this measure highlights our rate of margin capture as we expand the business and is useful as a forward indicator of where the business is capable of moving. Third quarter net income was $15.9 million or $0.16 per diluted share. This compared to net income of $13.2 million or $0.13 per share in the year ago period. Higher income and EPS as compared to the year ago -- to a year ago primarily reflect the operating efficiencies realized on our higher revenues, which was only partially offset by higher stock comp expense and higher tax expense in the current period.

憑藉我們強勁的營收業績和已實現的營運效率，本季調整後 EBITDA 成長了 43%，達到 5,000 萬美元，調整後 EBITDA 利潤率成長了 80 個基點，達到 17.8%。今年前 3 季度，增量收入的調整後 EBITDA 利潤率為 20.8%。我們仍然相信，這項指標突顯了我們在業務擴展時的利潤獲取率，並且可以作為業務發展能力的前瞻性指標。第三季淨利為 1,590 萬美元，或攤薄後每股收益 0.16 美元。相比之下，去年同期淨利潤為 1,320 萬美元，即每股 0.13 美元。與去年同期相比，收入和每股盈餘增加主要反映了我們收入增加所實現的營運效率，而本期較高的股票補償費用和較高的稅收費用僅部分抵消了營運效率。

Turning now to our cash flow and balance sheet. Operating cash flow during the quarter was $54.2 million, which compares to $20.9 million generated in the year ago period. The improvement reflects our higher profitability as well the timing of certain working capital items in both periods. Over the first 9 months of the year, operating cash flow of $151 million compares to $29 million generated over the same period last year with the improvement due primarily to our increased profitability as well as the amended rebate agreement terms that we discussed with you last quarter. As of September 30, we had total working capital of $418 million, reflecting over $335 million in cash, cash equivalents and marketable securities and no debt.

現在轉向我們的現金流和資產負債表。本季營運現金流為 5,420 萬美元，而去年同期為 2,090 萬美元。這項改善反映了我們更高的獲利能力以及這兩個時期某些營運資金項目的時間安排。今年前 9 個月，營運現金流為 1.51 億美元，而去年同期為 2,900 萬美元，這一改善主要是由於我們盈利能力的提高以及我們上季度與您討論的修改後的回扣協議條款。截至 9 月 30 日，我們的營運資金總額為 4.18 億美元，其中現金、現金等價物和有價證券超過 3.35 億美元，無債務。

Now turning to our expectations for the fourth quarter and full year 2023. Given the strong results we've achieved over the first 3 quarters of the year, we're pleased to be in a position to raise our guidance again for the third consecutive quarter. For the full year, we now expect revenue to be between $1.087 billion to $1.095 billion, representing growth of 38% to 39%. We are also raising our guidance on profitability. We now expect 2023 adjusted EBITDA of between $186 million to $188.5 million. For net income, we expect between $58.3 million to $60 million or between $0.58 and $0.59 earnings per share on the basis of approximately 101 million fully diluted shares. Our net income projections do not contemplate any discrete tax items, including any income tax benefit related to equity compensation activity. To the extent that activity occurs, we will continue to benefit from those discrete tax items. With this guidance, we are expecting to see the continued expansion of our margins in 2023 with adjusted EBITDA margin on incremental revenues in excess of 20%.

現在轉向我們對 2023 年第四季和全年的預期。鑑於我們在今年前三個季度取得的強勁業績，我們很高興能夠連續第三個季度再次提高我們的指導。我們目前預計全年營收將在 10.87 億美元至 10.95 億美元之間，成長 38% 至 39%。我們也提高了獲利能力指引。我們目前預計 2023 年調整後 EBITDA 為 1.86 億美元至 1.885 億美元之間。對於淨利潤，我們預計在約 1.01 億股完全稀釋股票的基礎上，每股收益將在 5830 萬美元至 6000 萬美元之間，即每股收益在 0.58 美元至 0.59 美元之間。我們的淨利潤預測未考慮任何離散稅項，包括與股權補償活動相關的任何所得稅優惠。只要活動發生，我們將繼續從這些離散稅項中受益。根據這項指導，我們預計 2023 年我們的利潤率將持續擴大，增量收入的調整後 EBITDA 利潤率將超過 20%。

For the fourth quarter, we are projecting revenue of between $268.3 million to $276.3 million, reflecting growth of between 25% and 29%. For fourth quarter adjusted EBITDA, we expect between $42.2 million to $44.7 million, along with net income of between $9.7 million and $11.4 million or between $0.10 and $0.11 earnings per share on the basis of approximately 102 million fully diluted shares.

我們預計第四季的營收將在 2.683 億美元至 2.763 億美元之間，成長率在 25% 至 29% 之間。對於第四季度調整後的EBITDA，我們預計在4,220 萬美元至4,470 萬美元之間，淨利潤在970 萬美元至1,140 萬美元之間，或基於約1.02 億股完全稀釋股票計算，每股收益在0.10 美元至0.11 美元之間。

With that, we'll open it up to the call for questions. Operator, can you please provide the instructions?

這樣，我們就可以接受提問了。接線生，您能提供一下說明嗎？

(Operator Instructions) Your first question is coming from Anne Samuel from JPMorgan.

（操作員說明）您的第一個問題來自摩根大通的 Anne Samuel。

Congrats on the quarter. I was hoping maybe you could provide a little bit more color on the government clients. You said that they differ slightly in their benefit versus your other clients. And was just hoping you could help us understand maybe how that differs from a coverage standpoint and then just how to think about the difference in revenue contribution for those 300,000 lives versus your more traditional clients.

恭喜本季。我希望你能為政府客戶提供更多的資訊。您說他們的利益與您的其他客戶略有不同。只是希望您能幫助我們了解從覆蓋角度來看這有何不同，然後如何考慮這 300,000 人的收入貢獻與您的更傳統客戶的差異。

Sure. This is Michael. So a couple of things on that. First off, federal plans are governed by OPM, and they've recently -- this is first year, expanded into fertility coverage. In doing that, the expansion was really focused around on the pharmacy side and some light coverage on the medical side for IUI. As for the services that we're providing, the medical and the pharmacy is not flowing through us. And so the services that we're providing for the governmental group is primarily focused around our PCA and case management as well as services validation. And so for those 2 reasons, to your question, the contribution is really going to be a fraction of what we would normally expect.

當然。這是邁克爾。關於這一點有幾點。首先，聯邦計畫由 OPM 管理，他們最近（這是第一年）擴展到生育覆蓋範圍。在這樣做的過程中，擴張實際上集中在藥房方面，以及 IUI 醫療方面的一些少量報告。至於我們提供的服務，醫療和藥局並沒有經過我們。因此，我們為政府團體提供的服務主要集中在我們的 PCA 和案例管理以及服務驗證。因此，出於這兩個原因，對於你的問題，貢獻實際上只是我們通常預期的一小部分。

All of that said, we're really excited to be at the ground floor of these new added benefits within the federal government. As you know, it's a high bar for us -- it's a high bar to get over to begin contracting in this space. And we do see continued opportunity as they evaluate their benefits against other employers over the course of the coming years, and that provides opportunity for expansion not dissimilar to what we see on our employer business and services expanding over the years.

綜上所述，我們非常高興能夠成為聯邦政府內這些新的附加福利的底層。如你所知，這對我們來說是一個很高的門檻——要克服這個門檻，才能開始在這個領域進行收縮。我們確實看到了持續的機會，因為他們在未來幾年內評估自己相對於其他雇主的福利，這提供了擴張的機會，與我們多年來看到的雇主業務和服務的擴張沒有什麼不同。

Your next question is coming from Scott Schoenhaus from KeyBanc.

您的下一個問題來自 KeyBanc 的 Scott Schoenhaus。

So another strong selling season. If you back out the 300,000 lives from the federal contract, you're getting to the kind of the same selling season we saw last year, just really strong ability to win new clients. What are you seeing in the marketplace? Are you having to be more competitive in the market with new competitors entering this year versus last year? Just wanted to kind of understand the selling season this year. You saw another really strong year there. So trying to get more color there.

又一個強勁的銷售季節。如果你從聯邦合約中取消 30 萬條生命，你就會進入我們去年看到的同樣的銷售季節，只是贏得新客戶的能力非常強。您在市場上看到了什麼？與去年相比，今年有新競爭對手進入，您是否必須在市場上更具競爭力？只是想了解今年的銷售季節。你在那裡看到了又一個非常強勁的一年。所以試圖在那裡獲得更多的顏色。

Yes. So I'll start, and then I'll let Michael add any comments. It was not more competitive. In fact, I would argue it might have been a little less competitive. Our overall largest competitor remains the -- all the payers throughout the country. And then we also do see competition from the [VC-backed] competitors. Positives relative to the competitive environment were -- known losses to competitors were actually way lower than last year. And there were more not-nows, if you will, overall than -- as opposed to sort of known losses. Again, each year, we continue to grow our market share. And even against our competitors collectively, we believe we do a good job in terms of continuing to penetrate the market and expand and grow market share. But the environment wasn't any more impacted, if you will, and in some places, arguably, slightly less from competitors.

是的。那麼我就開始吧，然後我會讓邁克爾添加任何評論。這並沒有更具競爭力。事實上，我認為它的競爭力可能會稍微低一些。我們最大的競爭對手仍然是全國各地的所有付款人。然後我們也確實看到了來自[創投支持的]競爭對手的競爭。與競爭環境相關的積極因素是——競爭對手的已知損失實際上遠低於去年。如果你願意的話，總的來說，與已知的損失相比，現在的損失更多。同樣，我們的市場份額每年都在持續增長。即使與我們的競爭對手一起對抗，我們相信我們在繼續滲透市場、擴大和增加市場份額方面做得很好。但如果你願意的話，環境並沒有受到更多的影響，在某些地方，可以說，來自競爭對手的影響略小。

Overall, I think the very positive selling season, as you pointed out, given the backdrop of both the continued uncertainty in the macroeconomic environment, given concerns of some clients around overall medical trends, given concerns with some clients as a result of those medical trend costs, seemingly evaluating their overall health plans and their overall PBMs and what they're doing overall with their medical plans on a heightened basis, if you will, this year and even as they reviewed sort of alternatives, whether it's the GLP-1s that are out there or other things, we're really pleased with the selling season.

總的來說，正如您所指出的，考慮到宏觀經濟環境持續不確定性、考慮到一些客戶對整體醫療趨勢的擔憂、考慮到一些客戶對這些醫療趨勢的擔憂，我認為銷售季節非常積極。成本，似乎評估了他們的整體健康計劃和整體PBM，以及他們在加強的基礎上對醫療計劃所做的整體工作，如果你願意的話，今年甚至在他們審查各種替代方案時，無論是GLP- 1在那裡或其他東西，我們對銷售季節非常滿意。

Yes. The only thing I would add is from a priority perspective, the strength of the selling season also represents the priority that employers continue to put on family building and on these benefits. So happy for how that turned out this year.

是的。我唯一要補充的是，從優先考慮的角度來看，銷售季節的強勁也代表了雇主繼續優先考慮家庭建設和這些福利。對今年的結果感到非常高興。

Your next question is coming from Jailendra Singh from Truist Securities.

您的下一個問題來自 Truist Securities 的 Jailendra Singh。

First, a quick clarification follow-up on Anne's question on government plan. Are you implying that margins on that contract could be relatively higher even at a smaller revenue base or similar? And my main question is around 4Q guidance. Just trying to understand why fourth quarter guidance implies a sequential step down on both revenue and margins. I can't recall if you guys ever had a year where revenues declined from Q3 to Q4. And with some pull-forward, some intra-year launches happening this year as well, I thought it will actually go up. Just curious us on that trend.

首先，對安妮關於政府計劃的問題進行快速澄清。您的意思是，即使收入基礎較小或類似，該合約的利潤率也可能相對較高？我的主要問題是關於第四季的指導。只是想了解為什麼第四季的指導意味著收入和利潤率的連續下降。我不記得你們是否經歷過從第三季到第四季收入下降的一年。隨著一些拉動，今年也發生了一些年內的發布，我認為它實際上會上升。我們只是對這種趨勢感到好奇。

Yes. So I'll do the first question, and I'll give Mark -- I'll let Mark handle the second question, Jailendra. Regarding your first question, yes, margins will be higher, but revenue will be lower. And that's sort of how you have to think about it relative to the overall contribution to the financial picture. It's probably the easiest way I could describe that. Mark, do you want to take the second?

是的。所以我會回答第一個問題，然後我會讓馬克——我會讓馬克處理第二個問題，Jailendra。關於你的第一個問題，是的，利潤率會更高，但收入會更低。這就是你必須如何考慮它對財務狀況的整體貢獻。這可能是我能描述的最簡單的方式。馬克，你想拿第二個嗎？

Yes. So on the sequential guide, one of the things that you have to keep in mind that there are seasonal impacts that we see each year on, let's call it, a same client basis. When you get into the end of the year, there are a number of clinics that close for routine maintenance, annual cleaning. Members actually will defer their treatments to avoid going through their treatments during the holiday periods and for other reasons. So there is a seasonal decline. That hasn't been as evident in prior years because we had so many launches in Q2 and Q3 of large clients, for example, in last year, that ramped up as they're going into Q4. So it's been a little bit masked, I think, by that. So that's really on the revenue side, and that obviously impacts EBITDA margins as well.

是的。因此，在順序指南中，您必須記住的一件事是，我們每年都會看到季節性影響，我們稱之為相同的客戶基礎。當你進入年底時，有許多診所會關閉以進行日常維護和年度清潔。實際上，會員會推遲治療，以避免在假期期間或其他原因進行治療。所以會出現季節性下降。這在前幾年並不那麼明顯，因為我們在第二季和第三季推出了許多大客戶，例如去年，隨著進入第四季度，情況有所增加。所以我認為這有點被掩蓋了。所以這確實是在營收方面，這顯然也會影響 EBITDA 利潤率。

And the thing I would, again, point out, which was in the script, but that we build up our staff in Q4 as we're preparing to enter 1/1. We do a huge step-up in members. And so the activity is very strong as we really begin the year. So we have to bring all those teams on, especially the member-facing teams, throughout Q4 to be trained and prepared to do that. So we see a step down in EBITDA each year. And I think if you go back and look at the last couple of years, you'll see that the sequential change from Q3 to Q4 that we're now guiding to is pretty comparable to what we've seen in the last 2 years.

我想再次指出的是，這在劇本中，但我們在第四季度建立了我們的員工，因為我們正準備進入 1/1。我們在成員方面做了巨大的提升。因此，當我們真正開始新的一年時，活動非常活躍。因此，我們必須讓所有這些團隊，特別是會員導向的團隊，在整個第四季度接受培訓並做好準備。因此，我們看到 EBITDA 逐年下降。我認為，如果你回顧過去幾年，你會發現我們現在指導的從第三季到第四季的連續變化與我們過去兩年所看到的非常相似。

Okay. And one follow-up, if I can, around utilization trends. I understand there could be some variability. But it has been pretty strong this year, 10 basis points year-over-year, I mean, which is pretty meaningful. Just wondering how do you think about this trend -- this metric longer term? Should we assume or consider 2023 trends as a new baseline? Or you think there could be some variability even in the near term?

好的。如果可以的話，還有一個關於利用率趨勢的後續行動。我知道可能會有一些變化。但今年它相當強勁，同比增長了 10 個基點，我的意思是，這非常有意義。只是想知道您如何看待這個趨勢——這個長期指標？我們是否應該假設或考慮 2023 年趨勢作為新的基準？或者您認為即使在短期內也可能會出現一些變化？

It's early to comment on utilization for next year. I will tell you that every year, as you add your existing client base -- as you combine your existing client base with the new client adds, the new client adds usually add slightly less utilization as an overall population than the existing clients. But there's usually some organic growth with the existing clients, which is why it's been a balancing act. As we continue to grow, you're going to see maybe a little less impact on that. But overall, I wouldn't say that this is the new baseline. Every year, we look at utilization levels. We look at it early in the year and we guide to what we're seeing at that time and then obviously, adjust as we have this year to the extent that we see any strength or changes in that. But I think it's early to comment on what -- whether or not this is a new baseline or not relative to where we're at.

現在評論明年的使用率還為時過早。我會告訴您，每年，當您添加現有客戶群時，當您將現有客戶群與新添加的客戶結合時，新添加的客戶總體上的利用率通常略低於現有客戶。但現有客戶通常會出現一些有機成長，這就是為什麼這是一種平衡行為。隨著我們的不斷發展，您會發現對此的影響可能會減少。但總的來說，我不會說這是新的基線。每年，我們都會關注利用率水準。我們在今年早些時候進行了研究，並根據當時所看到的情況進行指導，然後顯然，我們會像今年一樣進行調整，直到我們看到其中的任何優勢或變化。但我認為現在評論這是否是一個新的基線或與我們所處的位置無關還為時過早。

Your next question is coming from Sarah James from Cantor.

你的下一個問題來自康託的莎拉詹姆斯。

I was hoping to drill into the selling season a little bit more. So first on the member adds. The 1.3 million is a lot better than consensus was looking for, but it also implies about 1,000 lives per client uptick to kind of reversing the dip in '23. How do you think about that trending forward? And then I was hoping you could also walk us through the math on the new client adds. I understand some of the 85 decided to start early, but I'm trying to bridge the 460 to where we are now and the 85 adds.

我希望能更深入地了解銷售季節。首先是成員添加。 130 萬比共識預期要好得多，但這也意味著每個客戶的生命增加了約 1,000 條，以扭轉 23 年的下降趨勢。您如何看待這股趨勢？然後我希望你也能向我們介紹新客戶所添加的數學知識。我知道 85 中的一些人決定提前開始，但我正在努力將 460 與 85 一起連接到我們現在的位置。

Yes. I'll do the second part of the question first -- where did that go? I'll do the second part of the question first. So relative to bridging the new client adds versus the expected clients for next year, what we've seen this year is much more normal than we've seen in prior years if you exclude last year. New client starts that are in -- during the year are small clients not having a big -- any meaningful sort of contribution to incremental revenue relative to existing clients, but in terms of client counts, do start earlier and this year was no different. So if you sort of just take the existing clients that we just reported that we're live with and take sort of the 85 and subtract the delta in the math of what we are saying for next year, that's roughly how many new clients with a small amount of lives each have already launched this year.

是的。我先做問題的第二部分──那去了哪裡？我先做問題的第二部分。因此，相對於將新客戶增加與明年的預期客戶聯繫起來，如果我們排除去年的話，我們今年所看到的情況比往年要正常得多。新客戶的啟動——在這一年中都是小客戶，沒有大客戶——相對於現有客戶，對增量收入有任何有意義的貢獻，但就客戶數量而言，確實開始得更早，今年也不例外。因此，如果你只是拿我們剛剛報告的現有客戶，並拿 85 名客戶，然後減去我們所說的明年的數學增量，這就是大約有多少新客戶擁有今年已經啟動了少量的生命。

As it relates to the average per client, we sort of say this every year in our sales years. It's not a perfect science relative to who you add in which year and whether they're bigger or smaller. We try and win all of them, and the averages sort of play out. I think the more relevant point for us in terms of where we're at relative to our addressable market is that there is plenty of opportunity relative to large and small clients that we can still go after and will. And so the averages will play out. Whether they bounce around plus or minus 1,000, as you pointed out, in a given year, we sort of don't focus on that as much as we focus on winning as many as we can.

由於它與每個客戶的平均數量有關，因此我們在銷售年份中每年都會這麼說。相對於您在哪一年新增的人員以及他們是大還是小，這並不是一門完美的科學。我們試著贏得所有比賽，平均成績也能發揮出來。我認為，就我們相對於我們的目標市場而言，對我們來說更相關的一點是，相對於大小客戶，我們仍然可以並且願意追求大量的機會。因此平均值將會發揮出來。正如您所指出的，無論它們在正負 1,000 左右反彈，在某一年，我們不太關注這一點，而是專注於盡可能多地贏得勝利。

Great. And the second question here is on your partnerships. It's really exciting to see the announcements ramp up this quarter. How should we think about the pipeline potential for future partnerships? And how do you think about that materiality to your revenue growth?

偉大的。第二個問題是關於你們的合作關係。看到本季公告的增加真是令人興奮。我們應該如何考慮未來合作關係的管道潛力？您如何看待這種對您收入成長的重要性？

Yes. I mean partners play a significant role in both pipeline activity as well as obviously closed and committed clients and business, and we would expect that trend to continue. We're excited about the partnerships that we added this year. It's early in sort of the first year. So we would expect those partnerships to continue to evolve and continue to increase in their impact. And then the new partnerships around [Vista Health] and the opportunity to partner with our first large regional health plan and importantly, collaborating with them to offer the Progyny solution to clients of all sizes relative to the prior question, we're excited about that. We sort of don't go into detail on partner by partner of what that impact will be. But we're pleased with the adds of these new partnerships, especially since -- especially on the health plan side, we really just started recently focusing in that area.

是的。我的意思是，合作夥伴在通路活動以及明顯封閉和忠誠的客戶和業務中都發揮著重要作用，我們預計這種趨勢將繼續下去。我們對今年增加的合作夥伴關係感到興奮。第一年還早。因此，我們預計這些夥伴關係將繼續發展並繼續擴大其影響力。然後是圍繞[Vista Health] 的新合作夥伴關係以及與我們的第一個大型區域健康計劃合作的機會，重要的是，與他們合作為各種規模的客戶提供與之前問題相關的Progyny 解決方案，我們對此感到興奮。我們不會逐一詳細介紹合作夥伴的影響。但我們對這些新合作關係的增加感到高興，特別是因為——尤其是在健康計劃方面，我們最近才開始關注該領域。

Your next question is coming from Richard Close from Canaccord.

您的下一個問題來自 Canaccord 的 Richard Close。

Pete, I was just wondering if you could talk a little bit about the not-now and your thoughts about that. I mean I know you talked about benefit changes in GLP-1s. And just curious in terms of how much of a change that was this year during the selling season and thought process as these not-nows go into the pipeline and opportunity to convert them next year.

皮特，我只是想知道你是否可以談談現在以及你對此的想法。我的意思是我知道您談到了 GLP-1 的益處變化。只是好奇今年的銷售季節和思考過程發生了多大的變化，因為這些非現在的產品進入了管道，並有機會在明年進行轉換。

Yes, this is Michael. So each year, there's always competing priorities and other priorities that employers are dealing with that get factored into the selling season and certainly factor into the not-nows. We sort of -- Pete referenced a few of those in the script. You referenced one on the GLP-1s. Obviously, there was upward pressure on medical cost inflation in general and then some of the macro uncertainties in the broader economic environment. Certainly, those all played a role in what is on the minds of employers and prioritize with employers. But as I said in a prior question, fertility also remains one of those priorities.

是的，這是邁克爾。因此，每年，雇主總是會面臨相互競爭的優先事項和其他優先事項，這些優先事項會納入銷售季節，當然也會納入非現在的因素。我們有點——皮特在劇本中引用了其中的一些內容。您引用了 GLP-1 上的一項。顯然，整體醫療費用通膨存在上行壓力，進而導致更廣泛的經濟環境存在一些宏觀不確定性。當然，這些都在雇主的想法和雇主的優先考慮中發揮了作用。但正如我在上一個問題中所說，生育率也仍然是這些優先事項之一。

And so specifically, in the sales season, we didn't hear specifically that any one of those individual things drove a not-now. Certainly, we didn't hear specifically that focus around GLP-1s drove a not-now. But some combination of all of those priorities lead towards sort of the decision to wait on adding a family building benefit until the next year. That said, as Pete referenced in the prepared remarks, much like prior years, those not-nows become a strong tailwind going into the next year. And certainly, we expect to see that trend continue as we go into 2024.

因此，具體而言，在銷售季節，我們沒有具體聽說任何一件單獨的事情會導致「不現在」。當然，我們並沒有特別聽到對 GLP-1 的關注會導致未來的發展。但所有這些優先事項的某種結合導致了某種程度的決定，即等到明年再增加家庭建設福利。也就是說，正如皮特在準備好的演講中所提到的那樣，就像往年一樣，那些非現在的事情將成為明年的強勁推動力。當然，我們預計進入 2024 年這一趨勢將持續下去。

Okay. And as a follow-up, I was curious on the partnerships. Can you just remind us in terms of is the go-to-market with those partners the same across the various partnerships that you discussed today? Or is there some nuance to different partnerships in terms of how you go to market?

好的。作為後續行動，我對合作關係感到好奇。您能否提醒我們，在您今天討論的各種合作關係中，與這些合作夥伴的進入市場是否相同？或者不同的合作夥伴在如何進入市場方面存在一些細微差別？

Yes. I mean they all have some general similarities to each other and sort of where and how we're positioned certainly from that last-mile contracting perspective. But each one also has a slightly different approach on where and how we fit into maybe other services that they're providing or where and how we fit into the medical coverage or the pharmacy side of the equation or from a more pure navigation perspective. So there's certainly similarities, but each one has nuances and differences in how we go to market. And we adjust and work with those partners as we launch and roll out to account for each of those different scenarios.

是的。我的意思是，它們彼此之間都有一些普遍的相似之處，以及從最後一哩承包的角度來看我們的定位和定位方式。但每個人對於我們在哪裡以及如何融入他們提供的其他服務，或者在哪裡以及如何融入醫療保險或等式的藥房方面，或者從更純粹的導航角度來看，也有稍微不同的方法。因此，肯定存在相似之處，但每種產品在進入市場的方式上都有細微差別和差異。當我們推出和推出時，我們會與這些合作夥伴進行調整併合作，以應對每種不同的情況。

Your next question is coming from Allen Lutz from Bank of America.

您的下一個問題來自美國銀行的艾倫·盧茨 (Allen Lutz)。

Pete, you mentioned that more than 20% of current customers are increasing their programs by some amount, adding things like more Smart Cycles and covering more solutions. But is there any way to frame how much that's contributing to revenue? And then my follow-up, you talked about with the not-nows. Is there a way to frame kind of the top of funnel or how much larger the overall pipeline has gotten year-over-year?

Pete，您提到超過 20% 的當前客戶正在一定程度地增加他們的計劃，添加更多智慧自行車等內容並涵蓋更多解決方案。但有什麼方法可以確定這對收入的貢獻有多大嗎？然後我的後續行動，你談到了「非現在」。有沒有一種方法可以建造漏斗頂部的框架，或者整個管道逐年變大了多少？

Sure. As it relates to the first question, the best way to frame it is this. Last year, for example, we talked about 25% of clients added something to their benefit coming into 2023. That was probably the last big year of sort of Progyny Rx as a contributor in revenue, which is the largest sort of revenue opportunity from an upsell perspective given now that our penetration overall is 93% -- or next year will be 93% of clients having Progyny Rx is probably a factor that will contribute to less contribution, not more, coming from upsell opportunity. We don't generally quantify the dollar value of it. We always talk about that the revenue contribution -- incremental revenue comes mostly from new client adds, second from upsell activity and third from any organic sort of growth. And next year will be no different, but we don't frame the dollars. But simply to say, overall, it will be less of a contribution than it was in the past year.

當然。由於它涉及第一個問題，因此最好的框架方式是這樣的。例如，去年，我們談到 25% 的客戶在 2023 年為他們的利益增加了一些東西。那可能是 Progyny Rx 作為收入貢獻者的最後一個重要年份，這是來自鑑於現在我們的整體滲透率為93 %（或明年將有93% 的客戶擁有Progyny Rx），追加銷售的角度可能是導致來自追加銷售機會的貢獻減少而不是增加的一個因素。我們通常不會量化它的美元價值。我們總是談論收入貢獻——增量收入主要來自新客戶的增加，其次來自追加銷售活動，第三來自任何有機成長。明年也不會有什麼不同，但我們不會限制美元。但簡單地說，整體而言，貢獻將低於去年。

As it relates to the overall not-nows or continued active pipeline going into next year, it's higher than what it was a year ago, which is really positive. Again, we don't quantify sort of how much higher, but I would say it's nicely higher and bodes well considering those generally are always the significant majority of early client wins in every year. And take sort of any year that you look at, they usually represent roughly 30% or so of sort of new client adds in a given year.

由於它與明年的整體非現在或持續活躍的管道有關，因此它高於一年前，這確實是積極的。再說一遍，我們沒有量化高出多少，但我想說，這個數字相當高，而且考慮到這些通常是每年早期客戶獲勝的絕大多數，這是一個好兆頭。從你觀察的任何一年來看，它們通常約佔某一年新增客戶的 30% 左右。

Your next question is coming from David Larsen from BTIG.

您的下一個問題來自 BTIG 的 David Larsen。

Congratulations on the good quarter. Can you talk about some of the ancillary services that you are getting into like family planning, for example, or just maternity care, like post birth? Just any color there would be very helpful. And any thoughts on the longer-term revenue contribution that could come from those areas?

恭喜季度業績良好。您能否談談您正在接受的一些輔助服務，例如計劃生育，或只是產婦護理，例如產後？任何顏色都會非常有幫助。對於這些領域可能產生的長期收入貢獻有何想法？

Sure. So we talked about adding preconception services, maternity support, postpartum, male infertility and menopause. Male infertility was live this year. The rest of those are -- will be live 1/1, if you will. Relative to contribution, most of the sales we had around those, because they were sort of announced throughout the year, were to existing clients, although we have some activity with new clients that was positive. I think the bigger contribution will be next year's sales year, and then the revenue contribution coming from that will be in the following year. That will be meaningful -- or more meaningful, if you will, versus what we expect in next year.

當然。所以我們討論了增加孕前服務、生育支持、產後、男性不孕和更年期。今年男性不孕症直播。如果你願意的話，其餘的將在 1/1 上線。相對於貢獻，我們圍繞著這些的大部分銷售（因為它們是全年宣布的）都是針對現有客戶的，儘管我們與新客戶進行了一些積極的活動。我認為更大的貢獻將是明年的銷售年，然後由此產生的收入貢獻將在下一年。與我們明年的預期相比，這將是有意義的——或者更有意義，如果你願意的話。

That's very helpful. And then the question that I keep getting asked from clients is what's the state of the economy? What's the risk of a potential slowdown here? Should the labor market soften a little bit? Can you just maybe give some more color on that? Like in terms of your new client wins, are they all roughly the same size? Or are more of those coming from sort of midsized, smaller businesses? Or is it held pretty steady in terms of the size of the new client wins? And then even if the labor market softened by, let's call it, 100 or 200 basis points, in my mind, I'm kind of like, so what? Your top line growth rate, if it slows by 1% or 2%, so what? It's still so robust. Just any thoughts there would be very helpful.

這非常有幫助。然後客戶不斷問我的問題是經濟狀況如何？這裡潛在的經濟放緩的風險是什麼？勞動市場是否應該稍微走軟？你能對此提供更多的顏色嗎？就像您贏得的新客戶一樣，它們的規模都大致相同嗎？還是更多的是來自中型、小型企業？或者說，就贏得的新客戶規模而言，它是否保持相當穩定？然後，即使勞動市場疲軟，我們稱之為100或200個基點，在我看來，我有點像，那又怎樣？如果您的營收成長率放緩 1% 或 2%，那又怎樣？它仍然如此堅固。任何想法都會非常有幫助。

Sure. And I think you're thinking about it the right way. If you remember a year ago this time, there was a lot of concern around announcements that were coming out. I call them headline risk at the time. Mostly, tech companies were announcing layoffs. The amount of actual layoffs they're announcing versus their existing client base was single-digit percentages collectively. And we had talked about across all the clients that we had, the number of client announcements for layoffs was, collectively at that time, around 100,000 or so lives. And we framed it the way you're framing it, which is in the grand scheme of things -- and a year ago, I forgot exactly what it was, but let's call it around 3.7-or-something million, but don't hold me exactly to that number. But either way, it was nothing relative to the overall population.

當然。我認為你正在以正確的方式思考這個問題。如果你還記得一年前的這個時候，人們對即將發布的公告有很多擔憂。我當時稱之為頭條風險。大多數情況下，科技公司都在宣布裁員。他們宣布的實際裁員數量與現有客戶群相比，總共只有個位數百分比。我們在我們擁有的所有客戶中談過，當時宣布裁員的客戶數量總共約為 100,000 人左右。我們按照你的方式來設計它，這是一個宏偉的計劃——一年前，我忘記了它到底是什麼，但我們稱之為大約 3.7 或大約 100 萬，但不要讓我準確地記住那個數字。但無論如何，這與總人口無關。

And we also talked about and predicted that even with the layoffs that were announced, whether they were announced like, again, where the tech companies announced them, they weren't announcements that were reduction in force. They were announcements that were, what we call, rightsizing where they had some reductions but they still grew overall. A lot of the bigger tech companies that are our clients have already talked about that they're adding employees, not declining employees, et cetera. And even for companies that may have -- not made large announcements, the net effect of it was nonexistent from a reduction in lives perspective versus our prediction from the beginning of the year. We said that any reductions that were going to happen, even if we didn't know about them, would be offset or more than offset by growth in organic lives. And that's sort of what's been materializing for us so far this year. So I think you're thinking about it the right way.

我們也討論並預測，即使宣布了裁員，無論它們是否像科技公司宣布的那樣宣布，它們都不是裁員的公告。我們所說的這些公告是對規模進行了一些縮減，但整體上仍然增長的公告。我們的許多大型科技公司的客戶已經談到他們正在增加員工，而不是減少員工，等等。即使對於那些可能沒有發布重大公告的公司來說，與我們年初的預測相比，從減少生命的角度來看，其淨效應也是不存在的。我們說過，任何即將發生的減少，即使我們不知道，也會被有機生命的成長所抵消或超過抵消。這就是我們今年迄今所實現的目標。所以我認為你正在以正確的方式思考這個問題。

Okay. Great. And just one last quick one. Quantum Health, why did you select them and not like, say, Accolade, for example?

好的。偉大的。還有最後一件事。 Quantum Health，你為什麼選擇它們而不是像 Accolade 這樣的公司？

We have a lot of alignment with how Quantum thinks about the market and how they go about their value prop and their approach. We had a significant number of mutual clients already aligned, and so that's always positive. But then more broadly, in general, for us it's picking -- it's having the right partners and continuing to have more channels and avenues for employers to acquire and add the fertility benefit. That's really what is most important to us, and we'll continue to sort of evaluate that as we continue to look at our partnerships going forward.

我們與量子對市場的看法以及他們如何對待他們的價值支柱和他們的方法有很多一致之處。我們已經有大量共同客戶達成一致，所以這總是積極的。但更廣泛地說，總的來說，對我們來說，它正在選擇——擁有合適的合作夥伴，並繼續為雇主提供更多管道和途徑來獲得和增加生育福利。這確實對我們來說是最重要的，當我們繼續關注我們未來的合作夥伴關係時，我們將繼續對此進行評估。

That concludes the Q&A portion of the call. I will now hand the conference back to James Hart for closing remarks. Please go ahead.

電話問答部分到此結束。現在我將把會議交還給詹姆斯·哈特致閉幕詞。請繼續。

Thank you, Matthew. And thank you, everyone, for joining us this afternoon. Please feel free to reach out at any time for any follow-ups that you have. Hopefully you all know how to contact me. Otherwise, just write to investors@progyny.com. Thanks so much. We look forward to speaking with you in the coming year.

謝謝你，馬修。感謝大家今天下午加入我們。如果您有任何後續事宜，請隨時與我們聯繫。希望大家知道如何聯絡我。否則，請寫信給investors@progyny.com。非常感謝。我們期待著來年與您交談。