Progyny Inc (PGNY) 2024 Q2 法說會逐字稿

Good afternoon, everyone. Welcome the Progeny Inc. second-quarter 2024 earnings conference call. (Operator Instructions)

大家下午好。歡迎召開 Progeny Inc. 2024 年第二季財報電話會議。（操作員說明）

It is now my pleasure to turn the floor over to your host, James Hart. Sir, the floor is yours.

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, Matt, and good afternoon, everyone. Welcome to our second-quarter conference call. With me today are Pete Anevski, CEO of Progeny; 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，馬特，大家下午好。歡迎參加我們的第二季電話會議。今天和我在一起的有 Progeny 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 third-quarter and full-year 2024 and the assumptions and drivers underlying such guidance; the demand for our solutions, our expectations for our selling season for 2025 launches; the timing of client decisions, our expected utilization rates and mix; 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管理層截至今天的觀點，並將包括與我們 2024 年第三季度和全年財務展望以及假設相關的聲明以及此類指導的驅動因素；對我們解決方案的需求、我們對 2025 年銷售旺季的預期；客戶決策的時間、我們預期的使用率和組合；我們的製藥計劃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、我們解決方案的潛在收益、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我們的業務策略、計劃、有關我們的市場地位、未來營運的目標和期望；以及其他財務和營運訊息，這些資訊屬於聯邦證券法規定的前瞻性聲明。

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.

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。

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. 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.progeny.com.

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聲明的義務。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。有關這些非公認會計原則財務指標的更多信息，包括與最具可比性的公認會計原則指標的調節，請參閱新聞稿，該新聞稿可在 Investors.progeny.com 上獲取。

I would now like to turn the call over to Pete.

我現在想把電話轉給皮特。

Thanks, Jamie, and thanks, everyone, for joining us afternoon. During the second quarter, we continued to make significant progress in many of the areas that are most impactful are building the long-term value of our business and laying foundation for our future growth in women's health. This includes our early success in the most recent selling season, the enthusiasm we're seeing for our newest services amongst existing clients, the advancement of new channel partner relationships, and the investments we're making to further enhance our already leading solutions in women's health and address even more of our clients and members' needs.

謝謝傑米，謝謝大家下午加入我們。第二季度，我們繼續在許多最有影響力的領域取得重大進展，這些領域正在建立我們業務的長期價值，並為我們在女性健康領域的未來成長奠定基礎。這包括我們在最近銷售季節取得的早期成功、現有客戶對我們最新服務的熱情、新通路合作夥伴關係的發展，以及我們為進一步增強我們在女裝領域已經領先的解決方案而進行的投資。並滿足我們客戶和會員的更多需求。

As it relates to our second-quarter results, while the rate of utilization ticked up modestly from the first quarter, consistent with our prior assumptions, and our second-quarter revenue and adjusted EBITDA within our guidance based on our current visibility to the remainder of the year, we now believe the second half will unfold differently than expected.

因為它與我們第二季度的業績相關，而利用率較第一季略有上升，這與我們之前的假設一致，並且我們第二季度的收入和調整後的EBITDA 在我們的指導範圍內，基於我們目前對剩餘業務的可見性今年，我們現在認為下半年的情況將與預期不同。

Accordingly, we are adjusting our revenue guidance lower by approximately 5% at the midpoint, with corresponding reductions to adjusted EBITDA as well. Given the year has continued to unfold differently than we had originally expected, we recognize there is frustration and disappointment and we share in those sentiments.

因此，我們將收入指引中位數下調約 5%，調整後的 EBITDA 也相應減少。鑑於這一年的情況繼續與我們最初的預期不同，我們認識到人們感到沮喪和失望，我們也有同樣的感受。

The transparency we provide to the market as to what we're seeing and how that informs our financial guidance carries the highest level of importance to us. And the planning models we build leverage a vast data set of past activity capturing appointment scheduling to care consumption so that we can provide what we believe to be the best, most predictive view of the future given the limited amount of actual visibility we have around care consumption at any given time.

我們向市場提供我們所看到的資訊以及這些資訊如何為我們的財務指導提供資訊的透明度對我們來說至關重要。我們建立的規劃模型利用了過去活動的大量資料集，捕捉預約安排到護理消費，以便在我們對護理的實際可見性有限的情況下，我們可以提供我們認為最好的、最具預測性的未來視圖任何給定時間的消費。

Unfortunately, given the inherent variability in any business that doesn't have an annuitized revenue stream, let alone one whose revenue is driven by utilization in an area where the timing and pursuit of care is so deeply specific to the individual, we can and are seeing variability more than expected from historical trends.

不幸的是，考慮到任何沒有年金收入流的企業都存在固有的可變性，更不用說那些收入是由某個領域的利用率驅動的企業，而護理的時間和追求對個人來說是非常具體的，我們可以而且正在這樣做。

In 2023, we saw this dynamic play out, albeit with a positive effect where a relatively small portion of the base was engaging more favorably than the historical pattern indicated. And as a result, we were able to raise our guidance multiple times last year. In 2024, we're seeing the opposite effect. I'll take a moment to walk you through what we're seeing.

2023 年，我們看到了這種動態的發揮，儘管產生了積極的影響，即相對較小的部分群體比歷史模式所顯示的更積極參與。因此，我們去年多次提高了我們的指導意見。2024 年，我們會看到相反的效果。我將花點時間向您介紹我們所看到的情況。

To be clear, member engagement has been healthy in 2024 at levels that are well within our historical norms, and that continues to be the case in Q3. However, where we're seeing a deviation from historical pattern is in the ART cycles for female utilizing member, resulting in a negative impact to our previous outlook.

需要明確的是，2024 年會員參與度一直保持健康水平，完全符合我們的歷史標準，並且在第三季度仍然如此。然而，我們發現女性使用會員的 ART 週期與歷史模式有偏差，這對我們先前的前景產生了負面影響。

We added a table in our press release this quarter to illustrate this dynamic more clearly for you. And the table shows how historically, we see an increase in the average number of our cycles per utilizer over the course of the year, reflecting the progression of our members collectively as they move through their fertility journeys.

我們在本季的新聞稿中新增了一個表格，以便為您更清楚地說明這一動態。表格顯示了從歷史上看，我們看到每位使用者的平均週期數在一年中增加，反映了我們的會員在生育旅程中的集體進展。

And while utilization as a percentage is thus far level with Q2, you can see from the table that we would ordinarily expect for average cycles per utilizer to increase to something like 0.56 in Q3 and then tick up a bit higher in Q4 as well. While it has increased over the first half of the year, we're anticipating a lower rate of increase than what we ordinarily would expect or none at all over the second half of the year. And this is driving approximately 7% lower revenue per utilizing member.

雖然到目前為止，利用率百分比與第二季持平，但從表中可以看出，我們通常預期每個利用率的平均週期會在第三季增加到0.56 左右，然後在第四季也會略有上升。雖然今年上半年有所增加，但我們預計下半年的成長率將低於我們通常的預期，或者根本沒有成長率。這導致每個使用會員的收入減少約 7%。

The obvious question then is why aren't we seeing the customary pattern in '24. There are a number of factors that could be causing this such as higher clinical success rates which will result in fewer treatments per utilizer, different treatment paths based on the members' medical need, or different timing of the treatment journey based on the member's preference. As paywall highlights, we aren't seeing or expecting a decrease in cycles per utilizer and because the rate of utilization is also expected to remain consistent with past patterns, we aren't viewing this as an indicator of a lesser demand odd.

那麼顯而易見的問題就是為什麼我們沒有看到 24 年的慣常模式。有許多因素可能導致這種情況，例如較高的臨床成功率將導致每個使用者的治療次數減少、根據會員的醫療需求提供不同的治療路徑，或根據會員的偏好安排不同的治療旅程時間。正如付費專區所強調的那樣，我們沒有看到或預期每個用戶的周期會減少，而且由於利用率預計也將與過去的模式保持一致，因此我們並不認為這是需求奇數減少的指標。

We also can't predict how long this lower average will last. So accordingly, we believe an outlook on the high end, showing we've consistently seen throughout the year and the low end showing a decline in both utilization rate and ART cycles for female utilizing member. At the midpoint, we estimate the impact of this to be approximately $55 million headwind to the revenue from our previous guidance.

我們也無法預測這種較低的平均值會持續多久。因此，我們相信高端前景，表明我們全年一直看到，而低端前景則顯示女性會員的使用率和 ART 週期都在下降。在中點，我們估計這對我們先前指導的收入產生約 5500 萬美元的逆風影響。

We're also making an adjustment to our forecast to reflect that a small number of clients reported well recovered lives this quarter, either from recent reductions or as employees from previous rounds of productions may be coming off of their co-recovery.

我們還對預測進行了調整，以反映少數客戶報告本季生活恢復良好，要么是由於最近的裁員，要么是前幾輪生產的員工可能正在從共同恢復中恢復過來。

To be clear, we aren't seeing any large-scale workforce reduction programs reported by any client. However, the collective impact across our full base this quarter was approximately 100,000 covered lives or approximately $10 million of headwind to the top line.

需要明確的是，我們沒有看到任何客戶報告任何大規模的裁員計畫。然而，本季我們整個基地的集體影響約為 10 萬人的生命，或對營收造成約 1,000 萬美元的不利影響。

While reductions aren't new, there are always some clients following headcount in any given year, we've historically seen growth from other clients act as an offset. Though a meaningful number of clients have increased their headcount this year, it hasn't been enough to fully mitigate the reductions.

雖然裁員並不是什麼新鮮事，但在任何一年中總會有一些客戶關注員工人數，但我們歷史上看到其他客戶的成長起到了抵消作用。儘管今年有大量客戶增加了員工人數，但這還不足以完全緩解裁員的影響。

Mark will walk you through the details of our guidance shortly. But I want to reemphasize that while the factors affecting our outlook today are beyond our ability to influence our control and we can never have perfect visibility into cap consumption within the utilization model, what is within our control is the transparency we provide to the market regarding the drivers of our business.

馬克很快就會向您詳細介紹我們的指南。但我想再次強調，雖然影響我們今天前景的因素超出了我們的控制能力，而且我們永遠無法完全了解利用率模型中的上限消耗，但我們可以控制的是我們向市場提供的透明度我們業務的驅動力。

Our hope is that doing so will allow investors to turn their focus back towards those areas that are within our control where we continue to successfully execute against our strategic priorities and why we believe in the long-term strength and trajectory of the business is in any way affected. Those areas include building the long-term value of the business and positioning Progyny as both an industry leader and a catalyst in raising the bar in the delivery of solutions for women's healthcare.

我們希望這樣做能讓投資人將注意力重新轉向我們控制範圍內的領域，在這些領域中，我們將繼續成功地執行我們的策略重點，以及為什麼我們相信業務的長期實力和發展軌跡在任何情況下都可以實現。這些領域包括建立業務的長期價值，並將 Progyny 定位為行業領導者和提高女性醫療保健解決方案交付標準的催化劑。

So turning now to those areas, beginning with our latest selling season since that has the greatest impact to our long-term growth, also demonstrating our leading industry position. Our goals are clear each season. First, we want to expand our market share through new client acquisition. Second, we seek not only to maintain our high rate of retention, but also to grow our relationships with existing clients through expansions and upsells. And lastly, we look to develop new partnerships to enhance our market presence and create efficiencies in our sales efforts.

因此，現在轉向這些領域，從我們最近的銷售季節開始，因為這對我們的長期成長影響最大，也證明了我們的行業領先地位。每個賽季我們的目標都很明確。首先，我們希望透過獲取新客戶來擴大我們的市場份額。其次，我們不僅尋求維持高保留率，而且還透過擴張和追加銷售來發展與現有客戶的關係。最後，我們希望發展新的合作關係，以增強我們的市場影響力並提高銷售工作的效率。

At this point of the season, we're pleased with our progress across all these areas. With respect to the first priority, adding new clients, we're now in the heart of the selling season. Employer demand remained strong with a consistent pipeline of opportunities compared to last year's selling season. We're also continuing to add to our new sales pipeline as companies are evaluating their benefit offering throughout the year.

在本賽季的這個階段，我們對所有這些領域的進展感到滿意。就首要任務而言，增加新客戶，我們現在正處於銷售季節的中心。與去年銷售季節相比，雇主需求依然強勁，機會源源不絕。隨著公司評估全年提供的福利，我們也將繼續增加新的銷售管道。

As usual, we anticipate that the majority of client decisions will be later this summer and early fall, as most companies look to finalize their benefits ahead of their open enrollment activities in Q4. I'm pleased to report that at this point in the season, commitments received to date are pacing ahead of where we were at this time last year.

像往常一樣，我們預計大多數客戶的決定將在今年夏末和秋初做出，因為大多數公司希望在第四季度的公開註冊活動之前最終確定其福利。我很高興地向大家報告，在本賽季的這個時候，迄今為止收到的承諾進度超過了去年這個時候。

And although this is just one indicator of demand, we believe these early commitments demonstrate that the appetite for family building and women's health solutions remain robust. As usual, we'll provide you with a recap of the complete selling season on our next call in November. But at this point in the season, we are pleased with where we are.

儘管這只是需求指標之一，但我們相信這些早期承諾表明人們對家庭建設和婦女健康解決方案的需求仍然強勁。像往常一樣，我們將在 11 月的下一次電話會議上為您提供完整銷售季的回顧。但在本賽季的這個時刻，我們對自己的處境感到滿意。

In any selling season, our goal is to meet or exceed the number of covered lives from the prior season. And although the majority of commitments for sales seasons are still ahead of us, we believe we're on pace to meet this objective.

在任何銷售季節，我們的目標都是達到或超過上一季的承保壽命。儘管銷售季節的大部分承諾尚未完成，但我們相信我們正在努力實現這一目標。

Consistent with our most recent seasons, our earliest wins for 2025 are coming from a wide range of industries, including financial services, hospitality, media, state and local government and labor unions just to name a few, which we continue to believe speaks both to the broad appeal for our solutions as well as our differentiation in the market.

與我們最近幾季的情況一致，我們 2025 年最早的勝利來自各個行業，包括金融服務、酒店、媒體、州和地方政府以及工會等等，我們仍然相信這兩者都說明了這一點我們的解決方案受到廣泛歡迎以及我們在市場上的差異化。

Our wins so far this season are broadly diverse in terms of size, ranging from 1,000 lives to in excess of $100,000. We're also continuing to see from our commitments to date, a high take rate on Progyny Rx, further validating the significance of our differentiation in terms of cost and member experience with that product.

本賽季到目前為止，我們的勝利在規模上差異很大，從 1,000 條生命到超過 100,000 美元不等。從我們迄今為止的承諾中，我們也繼續看到 Progyny Rx 的高接受率，進一步驗證了我們在該產品的成本和會員體驗方面差異化的重要性。

And from my perspective, a very promising development this year is that a meaningful number of wins are also choosing to take one or more of the newest products in our solution such as menopause, maternity, and postpartum support.

從我的角度來看，今年一個非常有前途的發展是，相當多的勝利者也選擇採用我們解決方案中的一種或多種最新產品，例如更年期、孕婦和產後支持。

Equally encouraging is that we're seeing the same dynamic with existing clients. At this point in the season, accounts representing approximately 1 million of our existing covered lives have chosen to offer one or more of these products to their employees in 2025.

同樣令人鼓舞的是，我們在現有客戶中看到了相同的動態。在本季度的這個時刻，代表我們現有覆蓋生活的約 100 萬客戶已選擇在 2025 年向其員工提供其中一種或多種產品。

And while we've always had multiple pathways to grow with existing clients, our newest products represent an exciting addition to our upsell and expansion activities. And while we don't expect meaningful revenue contribution from these products in 2025, we're encouraged by the interest and adoption rate for employers that we've seen to date.

雖然我們一直有多種途徑與現有客戶一起成長，但我們的最新產品為我們的追加銷售和擴張活動帶來了令人興奮的補充。雖然我們預計這些產品在 2025 年不會產生有意義的收入貢獻，但迄今為止雇主的興趣和採用率令我們感到鼓舞。

In terms of renewals more broadly, activity thus far has been consistent with our typical rate of near 100% retention. We're also not seeing any clients looking to reduce their benefit for next year, reflecting the value they're continuing to see as we improve the efficiency of their overall healthcare spend while also helping their workforce realize their family building roles.

就更廣泛的續約而言，迄今為止的活動與我們接近 100% 的典型保留率一致。我們也沒有看到任何客戶希望減少明年的福利，這反映了他們繼續看到的價值，因為我們提高了他們的整體醫療保健支出的效率，同時也幫助他們的員工實現了家庭建設的角色。

And lastly, with respect to our business development priorities, we continue to see significant opportunities for ongoing expansion through the development of additional channel partner relationships. Last quarter, we told you that we were advancing several new partner relationships, and we recently became the preferred partner to Meritain Health, a subsidiary of Aetna and the second largest TPA in the country with 1.5 million members adding to our existing agreements with CVS Health, Evernorth, and Vistia Health. In addition, we are progressing other channel partner opportunities and hope to be able to provide additional detail on future calls.

最後，關於我們的業務發展優先事項，我們繼續看到透過發展更多通路合作夥伴關係來持續擴張的重大機會。上個季度，我們告訴您，我們正在推進幾個新的合作夥伴關係，最近我們成為了Meritain Health 的首選合作夥伴，Meritain Health 是Aetna 的子公司，也是全國第二大TPA，擁有150 萬會員，這也是我們與CVS Health 的現有協議的基礎上的補充。此外，我們正在推進其他通路合作夥伴機會，並希望能夠在未來的通話中提供更多詳細資訊。

We believe continuing to add these channel partnerships are an important part of the go-to-market strategy since they act both as validation for our market-leading solutions as well as provide an alternative way to reach and contract with new prospects.

我們相信，繼續增加這些通路合作關係是進入市場策略的重要組成部分，因為它們既可以驗證我們市場領先的解決方案，也可以提供另一種方式來接觸新的潛在客戶並與其簽訂合約。

This quarter, we also enhanced our global offering through the acquisition of Apryl, a Berlin-based facility benefits platform, expanding the scope of services we can provide to multinational employers and their employee populations in over 100 countries. Apryl has created a platform customizable by country, totally sensitive education, support care navigation. And we're excited about the opportunities to broaden our support on a global scale.

本季度，我們也透過收購位於柏林的設施福利平台 Apryl 增強了我們的全球服務，擴大了我們可以為 100 多個國家的跨國雇主及其員工群體提供的服務範圍。Apryl 創建了一個可按國家/地區客製化、完全敏感的教育、支援護理導航的平台。我們很高興有機會在全球範圍內擴大我們的支持。

Let me now turn the call over to Mark to review the quarterly results before I come back with some closing remarks. Mark?

現在讓我把電話轉給馬克，讓他回顧一下季度業績，然後再發表一些結束語。標記？

Thank you, Pete, and good afternoon, everyone. I'll begin with the second-quarter results and then provide our expectations for the third quarter and the full year. Second-quarter revenue grew 9% over the prior year to $304.1 million, making this our first quarter to exceed $300 million in revenue less than two years since we crossed the $200 million milestone.

謝謝你，皮特，大家下午好。我將從第二季的業績開始，然後提供我們對第三季和全年的預期。第二季營收比上年成長 9%，達到 3.041 億美元，這是我們自突破 2 億美元這一里程碑以來不到兩年的時間裡第一個收入超過 3 億美元的季度。

Put this into perspective, after we launched our solution in 2015, it took us five years to reach our first $100 million quarter, while it's taken us less than two years to meet each of the next $100 million plateaus. This illustrates both the momentum that we see in the market as well as our ability to rapidly scale our operations while increasing margins and profitability at the same time.

換個角度來看，我們在2015 年推出解決方案後，花了五年時間才達到第一個1 億美元季度的目標，而我們只花了不到兩年的時間就達到了接下來的每一個1 億美元的平台期。這不僅說明了我們在市場上看到的勢頭，也說明了我們快速擴大業務規模、同時提高利潤和獲利能力的能力。

Revenue growth in the quarter was primarily due to an increase in the number of clients and covered lives as compared to a year ago. As of June 30, we had 463 clients with at least 1,000 lives, representing an average of 6.4 million covered lives. This compared to 384 clients and an average of 5.3 million covered lives a year ago, reflecting an approximately 20% growth in lives over the prior year.

本季營收成長主要是由於客戶數量和承保範圍較去年同期增加。截至 6 月 30 日，我們有 463 名客戶，擁有至少 1,000 條生命，平均覆蓋 640 萬人。相比之下，一年前有 384 名客戶，平均覆蓋人數為 530 萬人，人數比前一年增長了約 20%。

As expected, a handful of clients launched during the second quarter, adding approximately 100,000 new covered lives. However, as Pete mentioned, we also saw a number of our existing clients report lower lives as compared to March 31, which is likely due to recent turnover or from the lapsing of benefits coverage following prior workforce reductions.

正如預期的那樣，第二季推出了少數客戶，增加了約 10 萬個新的承保生命。然而，正如 Pete 所提到的，我們也看到一些現有客戶報告與 3 月 31 日相比生活品質下降，這可能是由於最近的人員流動或先前裁員後福利覆蓋範圍的失效。

This is not at all a new dynamic. With a base as large as ours, in any given quarter, we've always seen a certain number of clients reporting lives -- with a number of clients also increasing their lives. This really speaks to the advantage of having a diverse base that touches nearly every corner of the US economy.

這根本不是什麼新動態。憑藉像我們這樣龐大的基數，在任何特定季度，我們總是看到一定數量的客戶報告生活質量，許多客戶也增加了他們的生活品質。這確實說明了擁有幾乎涉及美國經濟每個角落的多元化基礎的優勢。

While we continue to see both pluses and minuses in this quarter, as usual, the net impact was a slight reduction within the existing base, and that moderated our sequential growth in members during the quarter. Following the close of the quarter, several additional clients representing the last handful of clients from the 2023 selling season launched their Progyny benefit, contributing an additional 75,000 lives.

雖然我們在本季度繼續看到優點和缺點，但與往常一樣，淨影響是現有基數略有減少，這減緩了本季度會員數量的連續增長。本季結束後，代表 2023 年銷售季最後一批客戶的另外幾位客戶推出了 Progyny 福利，為另外 75,000 人貢獻了生命。

Taking into account the launches that took place in July and over these first few days of August, we have nearly 470 clients today representing approximately 6.5 million covered lives. We expect to end the year with between 6.5 million and 6.6 million covered lives.

考慮到 7 月和 8 月的前幾天推出的產品，我們現在擁有近 470 名客戶，代表了約 650 萬的生活。我們預計到今年年底，將有 650 萬至 660 萬人得到保障。

Looking at the components of the top line. Medical revenue increased 12% over the second quarter last year to $194 million, due again to the growth in our clients in covered lives, while pharmacy revenue increased 4% in the quarter to $110 million. The lower growth in pharmacy is a reflection of the lower ART cycles per utilizing member, which Pete described earlier, as well as the benefit in the year-ago period from manufacturer-driven drug price increases, which did not occur over the first half of this year.

查看頂行的組件。醫療收入較去年第二季成長 12%，達到 1.94 億美元，這也得益於我們承保生命客戶的成長，而本季藥品收入成長 4%，達到 1.1 億美元。藥局成長較低反映了每個使用會員的 ART 週期較低（Pete 之前曾描述過），以及去年同期受益於製造商驅動的藥品價格上漲（今年上半年並未出現這種情況）。

Turning now to our member engagement metrics. Approximately 15,600 ART cycles were performed in the second quarter, reflecting a 5% increase versus the second quarter last year. The female utilization rate was 0.47%, a decrease as expected from the record 0.50% that we reported a year ago and a modest increase sequentially from the 0.46% in the first quarter of this year, reinforcing that the slight variability we saw earlier in the year was not indicative of a new macro trend. Over the back half of the year, we continue to expect that the rate of utilization will be consistent with historical levels, albeit somewhat lower than what we saw in 2023.

現在轉向我們的會員參與度指標。第二季進行了大約 15,600 次 ART 週期，比去年第二季增加了 5%。女性利用率為0.47%，低於我們一年前報告的創紀錄的0.50%，與今年第一季的0.46% 相比略有上升，這強化了我們在2019 年早些時候看到的輕微變化。今年下半年，我們繼續預期利用率將與歷史水準保持一致，儘管略低於 2023 年的情況。

Turning now to our margins. Gross profit increased 13% from the second quarter last year to $68.3 million, yielding a 22.5% gross margin, an increase of 80 basis points as compared to the year ago period as we continue to realize efficiencies in our care management resources even as we deliver cost containment for our clients.

現在轉向我們的邊緣。毛利比去年第二季成長 13%，達到 6,830 萬美元，毛利率為 22.5%，比去年同期成長 80 個基點，因為我們在交付服務的同時，繼續提高護理管理資源的效率為我們的客戶控制成本。

Sales and marketing expense was 5.4% of revenue in the second quarter, a slight improvement from the year-ago period as the investments we've made to expand our go-to-market resources were more than offset by the leverage we continue to gain through client acquisition and retention. G&A costs were 10.3% of revenue this quarter as compared to 10.8% in the year ago period. The 50 basis point improvement is primarily due to ongoing efficiencies in our back office operations, reflecting the inherent nature of our expanding margins on G&A as we grow revenue and lower noncash stock-based compensation.

第二季銷售和行銷費用佔收入的 5.4%，比去年同期略有改善，因為我們為擴大上市資源而進行的投資被我們持續獲得的槓桿所抵消。本季的一般管理費用佔營收的 10.3%，而去年同期為 10.8%。50 個基點的改善主要是由於我們後台營運的持續效率，反映了隨著我們收入的增長和非現金股票薪酬的降低，我們的一般管理費用利潤率不斷擴大的固有性質。

With the operating efficiencies we've realized, adjusted EBITDA grew 15% this quarter to $54.5 million. Adjusted EBITDA margin of 17.9% this quarter was up 90 basis points from the year ago period.

隨著我們實現的營運效率的提高，本季調整後的 EBITDA 成長了 15%，達到 5,450 萬美元。本季調整後 EBITDA 利潤率為 17.9%，比去年同期成長 90 個基點。

Net income was $16.5 million in the second quarter or $0.17 per diluted share. This compared to net income of $15 million or $0.15 per diluted share in the year-ago period. Adjusted earnings per diluted share for earnings, excluding the impact of stock-based compensation, taking into account any associated tax impacts, was $0.43 in the current period as compared to $0.36 in the second quarter of last year.

第二季淨利為 1,650 萬美元，攤薄後每股淨利為 0.17 美元。相比之下，去年同期淨利潤為 1500 萬美元，或稀釋後每股收益 0.15 美元。考慮到任何相關稅收影響，調整後每股攤薄收益（不包括股票薪酬的影響）為 0.43 美元，而去年第二季為 0.36 美元。

Turning now to our cash flow and balance sheet. Operating cash flow during the quarter was $56.7 million, which compares to $76 million generated in the year-ago period. The decrease is due to the previously disclosed impact of certain favorable working capital items in the prior year period as well as higher cash taxes in the current quarter. Over the first six months of the year, we've generated $82.4 million in operating cash flow, representing a 79% conversion of our adjusted EBITDA over the same period.

現在轉向我們的現金流和資產負債表。本季營運現金流為 5,670 萬美元，去年同期為 7,600 萬美元。減少的原因是先前揭露的上年同期某些有利的營運資金項目的影響以及本季​​現金稅的增加。今年前六個月，我們產生了 8,240 萬美元的營運現金流，相當於同期調整後 EBITDA 的 79%。

As of June 30, we had total working capital of approximately $357 million, including $262 million in cash, cash equivalents and marketable securities and no debt. The decrease in our cash position as compared to March 31 reflects our stock repurchasing activity during the quarter.

截至 6 月 30 日，我們的營運資金總額約為 3.57 億美元，其中包括 2.62 億美元現金、現金等價物和有價證券，無債務。與 3 月 31 日相比，我們的現金部位減少反映了我們本季的股票回購活動。

In 2Q, we repurchased 5.6 million shares for approximately $160 million. Since launching the buyback program in February, we've returned value to our shareholders through the repurchase of 6.8 million shares, completing the previous authorizations and reducing our shares outstanding by 6% since the start of the year. We're pleased to announce today that our Board has approved an additional $100 million program, giving us further flexibility to reduce shares outstanding and deploying our cash to what we believe provides a very attractive return.

第二季度，我們以約 1.6 億美元的價格回購了 560 萬股股票。自2月啟動回購計畫以來，我們已透過回購680萬股股票向股東回報價值，完成了前期授權，並將年初以來流通股數減少了6%。今天我們很高興地宣布，我們的董事會已批准一項額外的1 億美元計劃，使我們能夠進一步靈活地減少已發行股票，並將我們的現金配置到我們認為能提供非常有吸引力的回報的地方。

Turning now to our expectations for the third-quarter and full-year 2024. Taking into account the dynamics Pete described earlier, with a lower average number of ART cycles per female utilizer, we expect revenue of $290 million to $303 million for the third quarter. For the full year, we now expect revenue of between $1.165 billion to $1.2 billion, reflecting growth of 9% at the midpoint.

現在談談我們對 2024 年第三季和全年的預期。考慮到 Pete 先前描述的動態，每個女性用戶的平均 ART 週期數較低，我們預計第三季的收入為 2.9 億至 3.03 億美元。我們目前預計全年營收在 11.65 億美元至 12 億美元之間，中間成長率為 9%。

As you can see in the table at the back of today's press release, our range for the full year assumes that the rate of utilization will be 1.05% at the low end and 1.08% at the high end, consistent with historical levels. We are also assuming ART cycles per unique female utilizer of 0.95 at the low end and 0.96 at the high end as compared to 0.99 in the prior year.

正如您在今天新聞稿後面的表格中看到的，我們全年的範圍假設利用率低端為 1.05%，高端為 1.08%，與歷史水平一致。我們也假設每位女性使用者的 ART 週期在低端為 0.95，在高端為 0.96，而前一年為 0.99。

Turning to our profitability. We expect adjusted EBITDA of $47.5 million to $51 million in the third quarter and net income of $10.7 million to $13.2 million. This equates to $0.11 and $0.14 earnings per diluted share or $0.35 and $0.38 of adjusted EPS on the basis of approximately 96 million fully diluted shares.

轉向我們的獲利能力。我們預計第三季調整後 EBITDA 為 4,750 萬美元至 5,100 萬美元，淨利為 1,070 萬美元至 1,320 萬美元。這相當於每股稀釋每股收益 0.11 美元和 0.14 美元，或基於約 9,600 萬股完全稀釋股票計算的調整後每股收益 0.35 美元和 0.38 美元。

For the year, we now expect adjusted EBITDA of $199 million to $209 million, along with net income of $55.4 million to $62.4 million. This equates to $0.57 and $0.64 earnings per diluted share or $1.53 and $1.61 of adjusted EPS on the basis of approximately 98 million fully diluted shares.

我們目前預計今年調整後的 EBITDA 為 1.99 億美元至 2.09 億美元，淨利潤為 5,540 萬美元至 6,240 萬美元。這相當於每股稀釋每股收益 0.57 美元和 0.64 美元，或基於約 9,800 萬股完全稀釋股票計算的調整後每股收益 1.53 美元和 1.61 美元。

I'll remind you that our net income projections do not contemplate any discrete income tax items nor does it consider any impacts associated with the share repurchase program we announced today. At the midpoint of this guidance, we are expecting to see the continued expansion of our margins in 2024 with adjusted EBITDA margin on incremental revenue of over 18%.

我要提醒您的是，我們的淨利潤預測沒有考慮任何離散的所得稅項目，也沒有考慮與我們今天宣布的股票回購計劃相關的任何影響。在本指引的中期，我們預計 2024 年我們的利潤率將繼續擴大，調整後的 EBITDA 利潤率增量收入將超過 18%。

I'll now turn the call back over to Pete.

我現在將把電話轉回給皮特。

Thanks, Mark. I hope today's remarks and the upcoming Q&A give you a clear perspective about the strong state of our business overall, even with the change in our forecast, driven by the lesser-than-expected ART cycles per female utilizer, which is not material to the health of the business.

謝謝，馬克。我希望今天的演講和即將到來的問答能讓您清楚地了解我們整體業務的強勁狀況，即使我們的預測因女性用戶的 ART 週期低於預期而發生變化，這對女性用戶來說並不重要。企業的健康狀況。

If you aren't aware, we're hosting an Investor Day next week on Monday, August 12 here in New York City. We put together an exciting agenda, featuring a lot of Progyny team that you don't normally get to meet at investor events. Our goal is to give you looking to how we think about capitalizing on our market opportunities and what gets us excited about the future.

如果你不知道，我們將於下週 8 月 12 日星期一在紐約舉辦投資者日活動。我們制定了一個令人興奮的議程，其中包括許多您通常不會在投資者活動中見到的 Progyny 團隊。我們的目標是讓您了解我們如何考慮利用我們的市場機會以及什麼讓我們對未來感到興奮。

Several clients are participating, and we've created panels from the point of view from both providers and members. If you're interested in joining us, please send a note to James as registration is required and space is limited.

有幾個客戶參與其中，我們從提供者和會員的角度創建了小組。如果您有興趣加入我們，請發送資訊給 James，因為需要註冊且空間有限。

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

至此，我們將開始電話詢問您的問題。接線生，您能指點一下嗎？

(Operator Instructions)

（操作員說明）

Anne Samuel, JPMorgan.

安妮‧塞繆爾，摩根大通。

Hi, thanks so much for the question and thanks for the incremental disclosure in the release. Really helpful. I was hoping perhaps you could help us understand what might be driving some of this volatility in mix and utilization.

您好，非常感謝您提出這個問題，也感謝您在版本中逐步揭露。真的很有幫助。我希望您能幫助我們了解是什麼導致了混合和利用率的波動。

Just wondering like has anything changed within the benefit structure or coverage that might be leading to this shift? Have any best practices changed? The fertility clinics that might be leading to better outcomes or perhaps less prevalent, given the adoption of GLP-1. Just curious if you have any thoughts on what might be driving that.

只是想知道福利結構或覆蓋範圍內是否發生了任何可能導致這種轉變的變化？最佳實踐是否發生了變化？鑑於 GLP-1 的採用，生育診所可能會帶來更好的結果，或者可能不太普遍。只是好奇您是否對推動這一趨勢的因素有任何想法。

Sure, Annie. Thanks for the question. And the last part of your question, you came in and out, so I didn't catch it, but I got the spirit of the question. So --.

當然，安妮。謝謝你的提問。你問題的最後一部分，你進進出出，所以我沒聽清，但我明白了問題的實質。所以--.

Sorry, it was -- is there maybe higher success rates driven by perhaps less prevalence of PCS from GLP-1s?

抱歉，GLP-1 可能導致 PCS 盛行率降低，進而導致成功率更高嗎？

Yes. So right now, as I mentioned in my prepared remarks, we don't know exactly what's driving this. It's not a mix issue. It's a cycles per female utilizer and it's -- not that it's a decline, but it's the rate of growth that you would normally see seasonally as the year progresses is not what it has been traditionally, which is why we broke out not only the sort of full-year expectations, but the quarterly trends historically to give you some insight into that. And so as we sit here now, we don't know exactly what may be driving that.

是的。所以現在，正如我在準備好的發言中提到的，我們不知道到底是什麼推動了這一點。這不是混合問題。這是每個女性用戶的周期，並不是下降，而是隨著時間的推移，您通常會看到季節性的增長率，這與傳統的情況不同，這就是為什麼我們不僅爆發了這種增長全年預期，但歷史上的季度趨勢可以讓您對此有所了解。因此，當我們現在坐在這裡時，我們並不知道究竟是什麼推動了這種情況。

We also don't know whether or not it will persist. It's just that we're seeing it right now for Q3 as well as what we saw in and where our forecast is, therefore, continuing to project what we're seeing in terms of that lower rate of growth. But we don't know exactly why. And certainly, we'll do our best to continue to find out why to the extent that we can. But as we sit here now, we don't exactly know why.

我們也不知道它是否會持續下去。只是我們現在看到的是第三季的情況以及我們所看到的情況和我們的預測，因此，繼續預測我們所看到的較低成長率。但我們不知道具體原因。當然，我們將盡最大努力繼續找出原因。但當我們現在坐在這裡時，我們並不確切知道為什麼。

Great. Thanks. And then I was just wondering if perhaps you could just provide a little bit more color what are you seeing around lives. How are you thinking about the backdrop just going forward, just kind of given some of the more elevated unemployment and some of the more recent calls for recession?

偉大的。謝謝。然後我只是想知道你是否可以為你在生活中看到的東西提供更多的色彩。考慮到失業率上升和最近一些經濟衰退的呼聲，您如何看待未來的背景？

Yes. I think as Mark talked about in his comments, the net adjustment in lives, I think it just happens to be one quarter or more net down than up true-up, lack of a better term, that we normally get from our clients every quarter. They're reporting lives to us and lives go up and down, and they usually net out to either the same or plus or minus for the book of business. It just so happens this quarter that they netted out to a slightly fewer lines.

是的。我認為，正如馬克在他的評論中談到的那樣，生活中的淨調整，我認為它恰好是淨下降比真實上升四分之一或更多，缺乏更好的術語，我們通常每個季度從客戶那裡得到。他們向我們報告生活，生活起起落落，他們的淨值通常與商業帳簿相同或加或減。恰巧本季他們的淨勝球數略有減少。

But as we also talked about, we've heard of no actions of any kind from anybody that would be driving this. I think it's just normal -- it's just sort of normal activity. And I think overall continued, albeit most recent report, slower growth in job growth reported by the government, I think, should support any concerns anybody may have that there's further degradation in the base as we don't believe we'll have.

但正如我們也談到的，我們沒有聽到任何人採取任何可能推動這種情況的行動。我認為這很正常——這只是一種正常的活動。我認為，儘管是最新的報告，但總體而言，政府報告的就業成長放緩應該支持任何人可能擔心的基礎進一步惡化的擔憂，因為我們不相信我們會出現這種情況。

Michael Cherny, Leerink Partners.

邁克爾·切爾尼，Leerink Partners。

Afternoon, and thanks for taking the question. So we started the year with guidance that was below what you guys had hoped for. This is now the second tie-down that we've seen. Pete, I understand that some of the stuff is out of your control. But as you sit here at this point in time, what's your comfort level that the low end called $1.165 billion of revenue is the last cut that you need to make?

下午，感謝您提出問題。因此，我們年初的指導低於你們的期望。這是我們看到的第二次束縛。皮特，我知道有些事情是你無法控制的。但當您此刻坐在這裡時，對於 11.65 億美元的低端收入是您需要進行的最後削減，您的舒適程度如何？

It's why, Mike, we share the assumptions that are inherent in that low end. There's hopefully no more surprises this year. And therefore, I have a lot of comfort in that number. That said, it's very difficult to predict the unknown or even size of the unknown. Unfortunately, this is a year where we've had some surprises that are to the negative.

這就是為什麼，麥克，我們分享低端固有的假設。希望今年不會再有什麼意外。因此，我對這個數字感到非常安慰。也就是說，預測未知事物甚至未知事物的大小都是非常困難的。不幸的是，今年我們遇到了一些負面的意外情況。

Two of them sort of were short-lived and didn't continue. This third one is right now persisting. So it's the best answer I can give you without other unknown surprises that I can't predict, I feel really comfortable.

其中兩個是短暫的並且沒有繼續下去。第三個現在仍在持續。所以這是我能給你的最好的答案，沒有其他我無法預測的未知驚喜，我感覺很舒服。

And I know so much of your model is built on new member adds. It's very early for this, but as we think about heading into the end of the year, and you're obviously seeing a big difference between membership growth and ART cycle growth, how should we think about where your normalized revenue growth rates should be? Are you exiting the year at a run rate that is the, quote, new normal for this business?

我知道你們的模型很大程度上是建立在新成員添加的基礎上的。現在還為時過早，但當我們考慮進入年底時，您顯然會看到會員成長和 ART 週期成長之間存在巨大差異，我們應該如何考慮您的正常化收入成長率應該在哪裡？今年結束時的運行速度是否符合該業務的新常態？

Where are you seeing the various different moving pieces beyond obviously, the additional services? Which are a nice uptick. But to get back, I don't know if you want to call it growth acceleration, the growth normalization or whatever the new normal for this business should be. I'm taking away from next week, I apologize. But just trying to get down to the bottom of the growth opportunities.

除了明顯的附加服務之外，您在哪裡看到了各種不同的活動？這是一個不錯的上升。但回過頭來，我不知道你是否想將其稱為成長加速、成長正常化或該業務的新常態。我下週就要離開了，抱歉。但只是試著深入了解成長機會。

No, it's a fair question. So the biggest driver of growth is and will continue to be adding logos and lives. I'm happy to have Michael expand on where we're at. So far, I talked in my prepared remarks that we're pleased with where we are relative to adding logos and lives versus where we were at this time last year, but nonetheless, happy to give more color.

不，這是一個公平的問題。因此，成長的最大推動力現在是、並將繼續是添加徽標和生活。我很高興麥可能進一步闡述我們的現狀。到目前為止，我在準備好的演講中談到，與去年這個時候相比，我們對添加徽標和生活的相對情況感到滿意，但儘管如此，我們也很樂意提供更多色彩。

Beyond that, barring again any surprises or changes relative to volume and utilization, if you will, per unique member, that will still remain the single largest driver of growth for us as it has in the past.

除此之外，除非再次出現與數量和利用率相關的任何意外或變化，如果你願意的話，每個獨特的會員，這仍然是我們成長的最大驅動力，就像過去一樣。

Jailendra Singh, Truist Securities.

Jailendra Singh，Truist 證券公司。

Thank you and thanks for taking my question. Actually, I want to follow up on the last question from Michael about this long-term growth in the business. I know we are seeing three different issues this year in the first seven months. Of these two issues, we still don't know why those happened.

謝謝你，也謝謝你提出我的問題。實際上，我想跟進邁克爾關於業務長期成長的最後一個問題。我知道今年前七個月我們看到了三個不同的問題。對於這兩個問題，我們仍然不知道為什麼會發生。

And I understand the strong demand among employees and employees. But based on your experience thus far, does that change in terms of how you think about your approach to guidance in future? And also related to that, have you guys thought about any changes you can do in your business model, either in terms of provider contracting or per contracting, which can result in less variability in your results?

我也理解員工和員工的強烈需求。但根據您迄今為止的經驗，這是否會改變您對未來指導方法的看法？與此相關的是，你們是否考慮過可以在業務模式中進行任何改變，無論是在提供者合約方面還是在每個合約方面，這都可以減少結果的可變性？

Regarding the first part, we're certainly going to do a couple of things. One is continue to get as much additional information as we can to inform our models and guidance and also to the extent that we can get more real-time information through our providers and prove the data that we get that will inform us. That will be something that we're going to continue to work to enhance versus our current algorithms and models.

關於第一部分，我們肯定會做幾件事。一是繼續獲取盡可能多的附加信息來為我們的模型和指導提供信息，並且在一定程度上我們可以通過我們的提供者獲取更多實時信息，並證明我們獲得的數據將為我們提供資訊.與我們目前的演算法和模型相比，這將是我們將繼續努力增強的東西。

And considering the couple of surprises we had this year, in the future, our ranges will definitely get wider to sort of capture some of that. Regarding changing how we do business, it is a care consumption model. And without putting in some sort of minimums by client or anything else like that, it's hard to sort of mitigate the variability in actual consumption.

考慮到今年我們遇到的一些驚喜，在未來，我們的範圍肯定會擴大，以捕獲其中的一些。關於改變我們做生意的方式，這是一種關懷消費模式。如果顧客不設定某種最低限度或類似的東西，就很難減輕實際消費的變化。

So there isn't thinking around that as we sit here now. That doesn't mean things may not evolve. But as we sit here now, that's not the plan.

所以我們現在坐在這裡並沒有考慮這個問題。這並不意味著事情不會發展。但當我們現在坐在這裡時，這不是計劃。

Okay. And my follow-up on the 2025 selling season commentary. Last year, you guys called out several not now employers. Have you seen them coming back this year? And additionally, are you seeing any change in their behavior or the approach, either in terms of scope of coverage or benefits with respect to the benefit?

好的。還有我對 2025 年銷售季評論的後續報導。去年，你們召集了幾位現在不存在的雇主。今年你有看到他們回歸嗎？此外，您是否發現他們的行為或方法有任何變化，無論是在承保範圍還是在福利方面？

So relative to coverage, we're not seeing any change what employers are adopting in terms of the early commitments is consistent with prior year, where there's number of cycles, whether it's facility preservation in the form of egg freezing, whether it's Rx. I made the comment in my prepared remarks at the take rate Rx for new clients is really high as it has been in the past.

因此，相對於覆蓋範圍，我們沒有看到雇主在早期承諾方面採取的任何變化與去年一致，其中有周期數，無論是卵子冷凍形式的設施保存，還是 Rx。我在準備好的發言中發表了這樣的評論，新客戶的接受率與過去一樣非常高。

All of that is positive. There's also positive results relative to the take rate of some of the newer products that we have out there. So that's also positive. As it relates to the not-nows, the majority of the early commitments are not nows. And so yes, they do come back. They come back and they come back every year and they're the head start, for a lack of a better term, for the sales season. Because they've looked at the benefit in prior years and are making the decision earlier in the year.

所有這些都是積極的。我們現有的一些新產品的採用率也取得了正面的成果。所以這也是正面的。由於它與“非現在”相關，因此大多數早期承諾都不是“現在”。是的，他們確實回來了。他們每年都會回來，而且由於缺乏更好的術語，他們在銷售季節處於領先地位。因為他們已經考慮了前幾年的好處，並在今年早些時候做出了決定。

Stephanie Davis, Barclays.

史蒂芬妮戴維斯，巴克萊銀行。

I was hoping to follow up on some of the prior questions. Can you just dig in one level deeper as to what data you thought that maybe you anticipate this lower level of cycles per user in the back half of the year? And given that you do have cohort level data, what gives you confidence that this isn't a cohort maturation issue?

我希望能夠跟進之前的一些問題。您能否更深入地挖掘您認為可能在今年下半年每個用戶的周期水平較低的哪些數據？鑑於您確實擁有隊列水平數據，是什麼讓您確信這不是隊列成熟問題？

So the first part of the question, we look at where we're at this time in the quarter versus where we're at this time in the previous quarter and in the first quarter. And the reduction or the slower rate of growth in cycles per e-mail utilizing member is consistent with what we saw in Q2, which was a slower rate of growth than what we would normally expect off of Q1.

所以問題的第一部分，我們看看本季此時的情況與上一季和第一季此時的情況相比。每封電子郵件使用會員週期的減少或成長速度減慢與我們在第二季看到的情況一致，第二季的成長速度比我們通常預期的第一季要慢。

As it relates to maturation, I think it's really early, considering this is right now a new trend to conclude that. And I think we sort of do the math overall in terms of the impact. There's still cycles per utilizer growth. It's just not at the rate that we would expect with this normal seasonality that we see in the business.

由於它與成熟有關，我認為現在還為時過早，考慮到這是現在得出結論的新趨勢。我認為我們總體上是根據影響進行數學計算的。每個用戶的成長仍然存在周期。這並不是我們在業務中看到的正常季節性的預期速度。

Understood there. And then when you think about the bullishness on the selling season to date and kind of how it's coming ahead, do you have any thoughts on how government lives could contribute in this upcoming selling season now that you have a hunting license? Or how that mix of commercial versus government opportunities is shaping up in the pipeline?

那裡明白了。然後，當您想到迄今為止銷售季節的樂觀情緒以及未來的情況時，您是否有任何想法，既然您擁有狩獵許可證，那麼政府生活可以如何在即將到來的銷售季節中做出貢獻？或者商業機會與政府機會的組合是如何形成的？

Yes. So this is Michael. First, as Pete said in the remarks, certainly, we still have lots of decisions still to come. But as it relates to both commitments to date as well as what remains in that active pipeline, we certainly feel good about. And then to the partners question, yes, I mean, what the partnerships allow us to do is really -- the value prop stays the same as it relates to the partners and the areas where we consistently differentiate remains the same in those partners.

是的。這就是麥可。首先，正如皮特在演講中所說，當然，我們還有很多決定要做。但由於它涉及到迄今為止的承諾以及活躍管道中剩餘的內容，我們當然感覺良好。然後對於合作夥伴的問題，是的，我的意思是，合作夥伴關係讓我們真正能夠做的是——與合作夥伴相關的價值支撐保持不變，並且我們在這些合作夥伴中始終保持差異化的領域保持不變。

But it really -- the partnerships really provide us two things. One is another reference point for our differentiation and our leading solutions. The second part is it provides additional paths towards bringing employers on.

但實際上，合作夥伴關係確實為我們提供了兩件事。其中之一是我們的差異化和領先解決方案的另一個參考點。第二部分是它提供了吸引雇主的額外途徑。

And in particular, around the contracting process and the decision to sort of change, our partnerships really helped ease that last mile, if you want to think about it that way. So our prior partnerships continue to be valuable to us and great levers. And that's how we look at as we add partnerships going into the future and look for that same sort of impact and effect on new business.

特別是，在合約流程和做出某種改變的決定方面，我們的合作夥伴關係確實幫助緩解了最後一英里的困難，如果你想這樣考慮的話。因此，我們先前的合作關係對我們來說仍然很有價值，也是很好的槓桿。這就是我們在未來增加合作關係並尋找對新業務相同的影響和效果時的看法。

Allen Lutz, Bank of America.

艾倫·盧茨，美國銀行。

Pete, last quarter, you mentioned the Alabama Supreme Court ruling as a potential driver of utilization. Can you just provide an update on what you saw there in 2Q? Is there anything to call out on a state-by-state basis?

皮特，上個季度，您提到阿拉巴馬州最高法院的裁決是利用率的潛在推動因素。您能否提供您在第二季看到的最新情況？各州有什麼需要注意的嗎？

Yes. So we surmised last quarter that the short-term dip in utilization was caused by that. If you recall, we also talked about the fact that it returned back to normal levels. And that's consistent with what we reported for the full quarter for Q2 and also what we're seeing right now for Q3. So the good news is that it was a short-term dip and not something that persisted. We're not seeing anything today on a state-by-state basis that is of any meaning to call out.

是的。因此，我們推測上季利用率的短期下降就是由此造成的。如果你還記得的話，我們也討論過它恢復到正常水平的事實。這與我們報告的第二季度整個季度的情況以及我們現在看到的第三季度的情況一致。因此，好消息是，這是一次短期下跌，而不是持續下去。今天，我們在各州的基礎上沒有看到任何值得呼籲的事情。

Okay. Great. And then I want to follow up on some of the comments around the selling season a little bit stronger than last year. Can you talk about how quickly you think the fertility market is growing in 2024? Do you think it's changed at all relative to 2023? And do you think Progyny is taking share? Thanks.

好的。偉大的。然後我想跟進有關銷售季節的一些評論，這些評論比去年更強一些。能談談您認為 2024 年生育市場的成長速度嗎？您認為相對 2023 年，情況有什麼改變嗎？您認為 Progyny 正在搶佔市場份額嗎？謝謝。

So the first thing is I do think we continue to take share based on the rate of lives growth that we have every year versus the growth in the market. And relative to the -- how much the industry is growing in '24, it's hard to say it's anecdotal. Because when I say that, as companies take coverage, whether it's through carriers or through us or any of the other competitors that we have, the coverage is very different with different benefit plans, right?

因此，第一件事是，我確實認為我們將繼續根據每年的生命成長率與市場成長率來佔據份額。相對於 24 年該行業的成長速度，很難說這是軼事。因為當我這麼說時，當公司獲得保險時，無論是透過營運商還是透過我們或我們擁有的任何其他競爭對手，不同的福利計劃的保險範圍是非常不同的，對嗎？

The carriers have generally plans that are dollar maximums. So therefore, limited coverage and not comprehensive coverage. And many companies sort of depending on the dollar maximums or what they offer, don't offer coverage across the board or coverage for a number of cycles ultimately get successfully just based on the math of live success rates and the cost of IVF.

運營商通常都有最高金額的計劃。因此，覆蓋範圍有限，而不是全面覆蓋。許多公司有點取決於美元最高限額或他們提供的服務，不提供全面的保險或僅根據實時成功率和體外受精成本的數學計算最終成功的多個週期的保險。

So coverage comes in two forms. Overall, the thing I always point to is that if you look at the CDC data around art cycles that are reported every year, I think the last year has reported is '21 or '22 (inaudible)? '21 is the last year has -- the rate of growth over the last 10 years is roughly 10% a year compounded annual growth rate, juxtaposed against what's happening with live births, which are -- have been on a decline. We sort of look at that data point as what's happening in overall growth in terms of access to coverage.

因此，覆蓋範圍有兩種形式。總的來說，我總是指出的是，如果您查看每年報告的 CDC 藝術週期數據，我認為去年報告的是「21」或「22」（聽不清楚）？'21 是最後一年——過去 10 年的成長率約為每年 10% 的複合年增長率，與活產率相比，活產率一直在下降。我們將該數據點視為覆蓋範圍的整體成長情況。

Glenn Santangelo, Jefferies.

格倫桑坦傑洛，傑弗里斯。

Pete, I hate to beat the dead horse here. But as you sort of pointed out, in some of the other answers we've had different issues, whether it be the 4Q call, the 1Q call and now tonight. And so I guess, listening to your answers, it kind of sounds like each quarter, the issue was a little bit different, but one thing that we get questions about is it seems like the common thread throughout this year is that all the economic indicators are sort of trending down.

皮特，我討厭在這裡打敗死馬。但正如您所指出的，在其他一些答案中，我們遇到了不同的問題，無論是 4Q 電話、1Q 電話還是現在今晚。所以我想，聽聽你們的回答，聽起來每個季度的問題都有點不同，但我們收到問題的一件事是，今年的共同點似乎是所有經濟指標呈下降趨勢。

And so I guess the question is, why is it unreasonable to think that it's at least not in part to a weakening consumer. I mean, you seem pretty confident that you're not seeing any weakness in demand. And I'm just kind of curious as to what gives you the confidence to sort of say that when it seems like it could be a logical answer.

所以我想問題是，為什麼認為這至少不是部分原因是消費者疲軟是不合理的。我的意思是，您似乎非常有信心沒有看到需求出現任何疲軟。我只是有點好奇是什麼讓你有信心在看起來這可能是個合乎邏輯的答案時說出這樣的話。

Yes. Look, certainly, that could be one answer, right? So I'm not saying that's impossible. Here's what I'm saying. When I say demand is still there, if you look at the top of the funnel, i.e., unique utilizers and utilization rate, we're closer to the high end of historical utilization rates as opposed to the lower end of historical utilization rates.

是的。聽著，當然，這可能是個答案，對吧？所以我並不是說這是不可能的。這就是我要說的。當我說需求仍然存在時，如果你看看漏斗的頂部，即獨特的利用者和利用率，我們更接近歷史利用率的高端，而不是歷史利用率的低端。

And to me, that's a positive, especially when last year, we had -- was a record year, if you will, in terms of utilization rate, right? So that's sort of why I make that first comment. Other than that, over -- right now, what we're seeing it when we talk about the other issues. The other issues were mix, which was first half of Q1 that resolved itself, we called that out for one reason to talk about why the utilization rate versus the revenue that came with it in Q1, why that was lower, and that's why we called it out.

對我來說，這是積極的，特別是去年，就利用率而言，我們創下了創紀錄的一年，對嗎？這就是我發表第一條評論的原因。除此之外，現在，當我們談論其他問題時，我們看到了什麼。其他問題是混合問題，這是第一季上半年自行解決的問題，我們之所以提出這個問題，是為了討論為什麼第一季的利用率與隨之而來的收入相比，為什麼較低，這就是我們打電話的原因它出來了。

The second issue around the utilization rate and dip was temporary. And as I answered on the previous question, was already resolved. And so far, as we continue into Q3, doesn't appear to be a persistent issue. It appeared to be a short-term issue. This one is new and it is a -- as a percent, a small drop in cycles per utilizer, but the utilizers are still utilizing. It just happens to be impacting the future outlook.

關於利用率和下降的第二個問題是暫時的。正如我在上一個問題中回答的那樣，已經解決了。到目前為止，隨著我們進入第三季度，這似乎並不是一個持續存在的問題。這似乎是一個短期問題。這是一個新的問題，從百分比來看，每個用戶的周期略有下降，但用戶仍在使用。它恰好影響了未來的前景。

And because we're not seeing that correct itself yet, if it does correct itself, we are guiding to it, and that's why we're explaining it. So I could understand the perspective that that could be -- all of it could be looked at collectively as a softening a little bit around consumer demand. But I look at the top of the funnel and how many people are utilizing the benefit and is that changing as a starting point an indication of demand.

因為我們還沒有看到它自我糾正，如果它確實自我糾正，我們正在引導它，這就是我們解釋它的原因。所以我可以理解這種觀點——所有這些都可以被視為消費者需求的稍微軟化。但我會查看漏斗的頂部以及有多少人正在利用該優勢，並將這種變化作為起點來表明需求。

And then on top of it, the sales season and the demand from clients, the overall active pipeline, et cetera, and all those comments that I made, it tells me that there's demand from employees to their benefit offices. And that's why that demand continues.

除此之外，銷售季節和客戶的需求、整體活躍的管道等等，以及我發表的所有這些評論，它告訴我員工對他們的福利辦公室有需求。這就是這種需求持續存在的原因。

Okay. Maybe if I could just ask a quick follow-up to maybe tighten up our model. I thought, Mark, when we started the year at 5.4 million members, we added 1.3 million. I thought we were supposed to finish the year at around 6.7 million. And now it sounds like we're going to finish the year 6.5 million to 6.6 million.

好的。也許我可以要求快速跟進以加強我們的模型。我想，馬克，當我們年初擁有 540 萬會員時，我們增加了 130 萬。我原以為我們今年的銷售量應該要達到 670 萬左右。現在看來我們今年的產量將達到 650 萬到 660 萬。

Did we lose -- is there a difference of 150,000 members that seem to have fallen off somewhere? Or am I misremembering that? I'm just kind of wondering if you can sort of walk us through what the expectation was versus what it is now.

我們是否輸了——是否有15萬名會員似乎在某個地方流失了？還是我記錯了？我只是想知道您是否可以向我們介紹當時的期望與現在的情況。

Yes. So you're right in that we were saying we were going to be approaching 6.7 million. We talked about it even in our prepared comments today that we did have an unexpected net reduction in members this quarter. We put that at about 100,000. I think that's part of what you're seeing right there.

是的。所以你說得對，我們說我們將接近 670 萬。我們甚至在今天準備好的評論中也談到了這一點，即本季我們的會員數量確實出現了意外的淨減少。我們認為大約是 100,000。我想這就是你所看到的一部分。

Again, the clients that we expected to launch and we announced that we're going to launch, have all launched actually now that we're into the early part of August. So that isn't the factor. And to the extent that there is any type of organic growth across the balance of the year is sort of the difference between maybe it's 6.5 million or rounding up to 6.6 million or 6.6 million neighborhood. But it's really just what we've seen in this last quarter that's impacted that number you're looking at.

再說一次，我們預計推出的以及我們宣布將推出的客戶實際上已經全部推出，現在已經進入八月初。所以這不是因素。在今年餘下的時間裡，任何類型的有機增長都可能是 650 萬個或四捨五入到 660 萬個或 660 萬個社區之間的差異。但實際上，我們在上個季度所看到的情況影響了您所看到的數字。

Sarah James, Cantor Fitzgerald.

莎拉詹姆斯，康托費茲傑拉。

Thank you. I wanted to ask about quarterly progression. And then if I could, afterwards come back on for a clarification of something in the release. But when I look at your unique female utilizer guidance chart here, you've got flat from 2Q to 3Q. I was wondering if you could help us understand some of the moving pieces in that assumption because you've got a full quarter of the in account shrinkage now, but you also have a bunch of new accounts starting in 3Q, which is great, but usually comes with some utilization headwind. And then there's a different number of weekdays, which I'm not sure is material or not for your business model. So could you help us think through the scale of those moving pieces as you come to your guidance?

謝謝。我想問一下季度進度。然後，如果可以的話，之後我會回來對發布中的某些內容進行澄清。但當我在這裡查看你們獨特的女性用戶指導圖表時，你們從第二季到第三季持平。我想知道您是否可以幫助我們理解該假設中的一些變化因素，因為您現在的帳戶收縮了整整四分之一，但您也從第三季度開始有了一堆新帳戶，這很好，但是通常會帶來一些使用阻力。然後還有不同數量的工作日，我不確定這對您的商業模式是否重要。那麼，當您接受您的指導時，您能否幫助我們思考這些活動的規模？

Sure. Do you want to, Mark?

當然。你願意嗎，馬克？

Yes, I'll do it. And then, Pete, if you have color. So I think the important thing maybe is just to understand what the charts are. There's the lower chart, which is the one I think you're referencing is showing the quarterly progressions of ART cycles per unique female utilizers. So this is the component of what our utilizers are doing, how many art cycles will they complete in any one quarter.

是的，我會做的。然後，皮特，如果你有顏色的話。所以我認為重要的事情可能是理解圖表是什麼。下面的圖表，我認為您引用的圖表顯示了每個獨特女性用戶的 ART 週期的季度進展。因此，這是我們的用戶正在做的事情的一部分，他們在任何一個季度將完成多少個藝術週期。

And if you look at '22 and '23, you see them progress from 0.50, 0.51 into the second quarter, a higher level at 0.55 and then continue to progress through the balance of the year. And the dynamic there is people who begin with utilizers that aren't actually seeking ART -- I apologize. We have a fire alarm going off.

如果你看看 '22 和 '23，你會發現它們在第二季度從 0.50、0.51 進步，達到 0.55 的更高水平，然後在今年剩餘時間繼續進步。有些人從實際上並沒有尋求 ART 的用戶開始 - 我很抱歉。我們的火警警報響了。

So you're seeing a higher mix of initial consults in the first quarter of the year, which then progresses as the year goes on. What we've seen this year, and this is what we're highlighting is -- and you can see also the ART cycles per female utilizer actually does sort of increase a bit year after year.

因此，您會在今年第一季看到更多的初始諮詢，然後隨著時間的推移而不斷進展。我們今年所看到的，這就是我們要強調的 - 您還可以看到每個女性用戶的 ART 週期實際上確實逐年增加。

What we saw in Q2 is a much -- it's still an increase from 0.53 to 0.54, but a much lower increase than you can obviously see and perceive in prior years. And further, the reason that we're estimating a 0.54 here for the third quarter is because it's effectively what we're seeing at similar rates. So we've thought it was most prudent again, and it's always been our guidance philosophy to show and to base our estimates on what we're seeing.

我們在第二季度看到的情況是，仍然從 0.53 增加到 0.54，但增幅比您在前幾年明顯看到和感知的要低得多。此外，我們之所以估計第三季的成長率為 0.54，是因為這實際上與我們在類似比率下所看到的情況相同。因此，我們認為這再次是最謹慎的，我們的指導理念始終是根據我們所看到的情況進行展示和估計。

And you can see so from the low end of the guidance range, we have that stepping down a bit in Q4 to reflect the fact that there -- perhaps there may be other unforeseen factors that may continue to bring that down as the year goes on. And the high end of the range where we do allow for it to increase a little bit. But of course, as you can see versus '22 and '23, not as much as you would typically expect. So hopefully, that's helping.

您可以從指導範圍的低端看到，我們在第四季度略有下降，以反映這樣一個事實：隨著時間的推移，可能還有其他不可預見的因素可能會繼續降低指導範圍。在範圍的高端，我們確實允許它增加一點。但當然，正如您所看到的，與 '22 和 '23 相比，並沒有您通常預期的那麼多。希望這會有所幫助。

Sure. And then just to clarify, I guess a pretty good sized recast in that chart versus how you report the ART cycles per unique female utilizer higher up. And I just wanted to clarify, that's only the 300,000 member account. There's no other difference because the seasonality is quite different. One historically goes up in 4Q and other seems to come down. I want to make sure I understand that.

當然。然後澄清一下，我想該圖表中的重新調整大小與您如何報告每個獨特女性用戶的 ART 週期的方式相當不錯。我只是想澄清一下，這只是 30 萬會員帳戶。沒有其他區別，因為季節性差異很大。從歷史上看，一個在第四季度上升，另一個似乎下降。我想確保我理解這一點。

So yes, in the upper chart, the numbers that we've excluded from average members, and really, it's only for 2024, remember, that is associated with -- and that's a full-year average now. And that's only the members associated with the federal plan which has a different rate of utilization based on how they chose to -- I think we've talked about this, how they've chosen to design their benefit. The rate is -- the average members is a little bit lower than the 6.5 million to 6.6 million because it does factor in the full-year averages, including Q1 and Q2, which didn't have those earlier launches.

所以，是的，在上面的圖表中，我們從普通會員中排除了這些數字，實際上，這只是 2024 年的數字，請記住，這與現在的全年平均值相關。這只是與聯邦計劃相關的成員，根據他們的選擇，他們有不同的利用率——我想我們已經討論過這一點，他們如何選擇設計他們的福利。該比率是——平均會員人數略低於 650 萬至 660 萬，因為它確實考慮了全年平均水平，包括第一季和第二季度，而這兩個季度沒有早期推出的產品。

Got it. Is that what drove the recast for '23? Or is that something different?

知道了。這就是《23》重鑄的原因嗎？或者說有什麼不同嗎？

I don't think we're recasting '23. No. I think if you look, the ART cycles per unique female utilizer, if you look at in the upper chart, '22 is $0.96 that's the far right on the lower chart, same 0.96, and then 2023 is 0.99 for the full year. Same is on the chart below 0.99.

我認為我們不會重鑄《23》。不。我想如果你看一下，每個獨特的女性用戶的ART 週期，如果你看上圖，你會發現'22 是0.96 美元，位於下圖的最右邊，同樣是0.96，然後2023 年全年是0.99 。0.99 以下的圖表也是如此。

Full year versus quarterly on the bottom chart and the full year is all the way to the right.

底部圖表中全年與季度的比較，全年都在右側。

Got it. Maybe we can follow up a little bit more offline because I'm still getting some quarterly differences, but we can handle that later. Thank you.

知道了。也許我們可以在線下進行更多跟進，因為我仍然收到一些季度差異，但我們可以稍後處理。謝謝。

Richard Close, Canaccord Genuity.

理查德·克洛斯，Canaccord Genuity。

Maybe just to expand on Sarah's line of questioning here. Just looking at the bottom chart, and if you go back in time, I know you're only showing us '22 and '23 and so far in '24. But if you go back to earlier years, have you guys ever experienced anything like this where you've seen decreases in any quarters? I guess that's the first question.

也許只是為了擴大莎拉的提問範圍。只要看看下面的圖表，如果你回到過去，我知道你只向我們展示了 '22 和 '23 以及到目前為止的 '24。但如果你回到早年，你們是否經歷過類似的情況，即任何季度都出現下降？我想這是第一個問題。

Yes. If you look back -- depending on the year you look at, if you look at 2020, it was the first year of the COVID year. 2021 was a year that had a lot of variability because it was sort of the first still in COVID, but sort of coming out of it during the year. The last two full years were more indicative of pre-IPO activity versus sort of those two COVID years in terms of the seasonality and sequential improvement.

是的。如果你回顧過去──取決於你所看的年份，如果你看2020年，那是新冠疫情年的第一年。 2021 年是充滿變數的一年，因為它有點像新冠疫情的第一年，但在這一年裡有所緩解。就季節性和連續性改善而言，過去兩年更能體現首次公開募股前的活動，而不是新冠疫情期間的兩年。

Okay. And then I know you don't have reasons to explain the variance here or the decline. But is there -- if you can expand upon what you said earlier in terms of trying to find out, I mean, just what's the process in terms of trying to figure out what the change is. It seems like you'd really want to know that.

好的。然後我知道你沒有理由解釋這裡的差異或下降。但是，如果你可以擴展你之前所說的試圖找出變化的過程，我的意思是，試著找出變化是什麼。看來你真的很想知道這一點。

It's a combination of creating tools that could aggregate what our conversations with 30,000 people, utilizing the benefit in the quarter and start to understand whether or not that will tell you anything. It's a combination of analyzing the significant different volume of journeys and whether or not that was haunting combination of: do you see anything in any different area in the country or whether or not you see anything in any clinics and see if that will tell you anything?

它是一個創建工具的組合，可以匯總我們與 30,000 人的對話內容，利用本季度的收益，並開始了解這是否會告訴您任何資訊。它結合了分析顯著不同的旅行量以及這是否令人難以忘懷的組合：您是否在該國的任何不同地區看到任何東西，或者您是否在任何診所看到過任何東西，看看這是否會告訴您任何資訊？

It's also a combination of as the outcomes come in, which we don't have today for these cycles in Q2, and that will tell you anything. So it's sort of all of the above, but will take time. Because in real time, you don't know what's happening.

這也是結果的組合，我們今天沒有第二季這些週期的結果，這會告訴你任何事情。所以這就是上述所有內容，但需要時間。因為即時情況下，你不知道發生了什麼事。

Scott Schoenhaus, KeyBanc.

斯科特·舍恩豪斯，KeyBanc。

My first question is on: if we look at fertility benefit services average revenue per ART cycle, it really accelerated and spiked to levels we haven't seen in a few years. Can you give us some color on what's driving that?

我的第一個問題是：如果我們看看每個 ART 週期的生育福利服務平均收入，它確實加速並飆升至我們幾年來從未見過的水平。您能為我們介紹一下是什麼推動了這個趨勢嗎？

Sorry, the average per ART? Yes, I think what you're seeing there is if you have a -- again, for the number of people that are utilizing the service versus the number that are completing ART cycles, it's a greater proportion. There is revenue associated with that. So you're seeing a higher proportion of revenue for non-ART revenue to the cycles themselves, and that's going to push your average up. It is a factor of this ART cycle per utilizer.

抱歉，每個 ART 的平均分數是多少？是的，我認為如果你有一個——再次強調，對於使用該服務的人數與完成 ART 週期的人數而言，這個比例更大。有與此相關的收入。因此，您會看到非 ART 收入在周期本身中所佔的比例更高，這將推高您的平均收入。這是每個使用者的 ART 週期的一個因素。

Got it. My follow-up question is on this revenue mix. If we look at the state-by-state revenue mix declines, is there any states or regions that are a clear glaring signal or discrepancies between what you did a year ago? Or if we can even drill it down more simply like the pharmacy benefit services revenue, are the declines in that part of the business, can you see big discrepancies state by state versus a year ago? Thank you.

知道了。我的後續問題是關於這種收入組合的。如果我們觀察各州的收入組合下降情況，是否有任何州或地區與一年前的情況相比有明顯的明顯訊號或差異？或者，如果我們甚至可以像藥品福利服務收入那樣更簡單地深入研究，這部分業務是否有所下降，你能看到各州與一年前相比存在巨大差異嗎？謝謝。

As I mentioned before, I think somebody asked the same question. There isn't a state-by-state significant variance right now that we can see in call out. And Mark had talked about in his prepared remarks, what drove the difference in growth rate in pharmacy revenue versus medical revenue.

正如我之前提到的，我認為有人問過同樣的問題。目前我們在標註中沒有看到各州之間有顯著差異。馬克在他準備好的演講中談到了是什麼導致了藥品收入與醫療收入成長率的差異。

And it's really tied to the revenue per cycle. That didn't grow as much sequentially as Q1 to Q2, as I had in the past, and therefore, in prior year, did. And so you're going to comp off of a year that had more growth on top of it, manufacturer rate increases were in last year's were done by Q2 last year weren't by Q2 -- by the end of Q2 of this year. So a combination would impact it. But no, there isn't anything to call out state by state right now.

它確實與每個週期的收入相關。這一數字的成長幅度沒有像我過去那樣，像第一季到第二季那樣成長，因此，在前一年是這樣的。因此，您要對成長更多的一年進行比較，去年第二季製造商的成長率是在去年第二季完成的，而不是在今年第二季末完成的。所以組合會影響它。但不，現在沒有任何事情可以逐州進行。

David Larsen, BTIG.

大衛‧拉森，BTIG。

Can you maybe talk a little bit about your conversations with benefits consultants? Like we've had some discussions with a handful of them over the past two years and they highlighted to us that DEI -- diversity, equity, inclusion -- was an important consideration when companies and plans would sign up for these benefits and that was a driver of growth.

能談談您與福利顧問的對話嗎？就像過去兩年我們與其中一些人進行了一些討論一樣，他們向我們強調，當公司和計劃簽署這些福利時，DEI（多樣性、公平性、包容性）是一個重要的考慮因素，那就是增長的動力。

We're now heading into an election cycle. It's possible, obviously, that perhaps a more conservative leading administration will take power. I mean, has that entered into the conversations at all or not? And it gets back to this red-blue discussion. Thanks.

我們現在正進入選舉週期。顯然，一個更保守的領導政府可能會掌權。我的意思是，這是否已經進入對話？又回到了紅藍討論。謝謝。

Regarding the last piece, even if the more conservative party takes power, the former President Trump, the Republican nominee has already said, he supports facility in IVF. And on both sides of the aisle, there's been enough statements out there, there's support for IVF. So I don't think that will create an issue for the industry.

關於最後一塊，即使較保守的政黨上台，共和黨候選人、前總統川普已經表示，他支持試管受精。兩黨都發表了足夠的聲明，支持體外受精。因此，我認為這不會給該行業帶來問題。

Regarding conversations with the benefit consoles, I think the trend is positive relative to what's happening at benefit consultants. Over the last couple of years, they've effectively all created a center of excellence around family building benefits that wasn't in place before. That's an indication of the overall demand and how often the conversations are happening with existing clients or prospective clients of theirs. And for them to be equipped to be an adviser to these clients, we see that as a positive.

關於與福利控制台的對話，我認為相對於福利顧問的情況而言，這一趨勢是積極的。在過去的幾年裡，他們實際上都圍繞著家庭建設福利創建了一個以前沒有的卓越中心。這顯示了整體需求以及與現有客戶或潛在客戶進行對話的頻率。對他們來說，能夠成為這些客戶的顧問，我們認為這是一個正面的方面。

Michael, I don't know if want to add anything.

邁克爾，我不知道是否要補充什麼。

Yes. No. And then just also just from a sort of what's happening and how that plays itself out. I'd point back to Pete's comments in the prepared remarks. And we're not seeing -- we're not -- the active pipelines comparable to last year, to date, again, the closes are good.

是的。不。然後也只是從正在發生的事情以及它如何發揮作用來看。我想回顧一下皮特在準備好的發言中的評論。我們沒有看到——我們沒有——與去年相比，活躍的管道，到目前為止，再次，關閉情況良好。

Obviously, lots more to go. But you would start to see those things play out. And again, we're not seeing those things.

顯然，還有很多事情要做。但你會開始看到這些事情發生。再說一遍，我們沒有看到這些東西。

Okay. And then just one quick follow-up. The revenue per ART cycle increased a good amount sequentially. Is the mix back to where you thought it would be, meaning the revenue coming in per cycle and for each service is now high again? And it's simply the overall utilization in membership that's lower than sort of what was expected. Thank you.

好的。然後只是一個快速跟進。每個 ART 週期的收入連續大幅成長。組合是否回到了您預期的水平，這意味著每個週期和每項服務的收入現在再次很高？這只是會員的整體利用率低於預期。謝謝。

The revenue for ART cycle and the increase in Q2 is a function of the fact that utilizers who utilize services that are in ART cycles, right, are using other stuff that drives the math that makes it seem higher, right? So if there's fewer cycles, but other services and other utilization is done, but they're not ART cycles, right, that will drive the overall math. Because we're not really breaking out the two separately, right? That's what's driving that.

ART 週期的收入和第二季的成長是因為使用 ART 週期中的服務的用戶正在使用其他東西來驅動數學，使其看起來更高，對吧？因此，如果週期較少，但完成了其他服務和其他利用，但它們不是 ART 週期，對吧，這將推動整體數學計算。因為我們並沒有真正將兩者分開，對吧？這就是推動這一趨勢的原因。

Mix is normal, if you will, for lack of a better term. There isn't a significant mix change. We had that mix anomaly in the first six weeks of the year. And other than that, it's been relatively consistent with what we would expect at different times of the year. So that is normal.

如果你願意的話，混合是正常的，因為缺乏更好的術語。沒有顯著的混合變化。我們在今年的前六週就遇到了這種混合異常。除此之外，它與我們在一年中不同時間的預期相對一致。所以這是正常的。

But I just want to make sure you don't take away from that comment that the jump up is only around that. It's also around this other item, which is revenue per cycle -- I'm sorry, utilization by female utilizers of the number of our cycles per unique utilizer is down, therefore, other services because they are utilizing the benefit. They're utilizing it, goes into the same map of a lower volume of our cycle. So if that makes sense.

但我只是想確保你不會從這個評論中得出跳躍只是圍繞這個的觀點。這也圍繞著另一個項目，即每個週期的收入——抱歉，女性用戶對每個唯一用戶的周期數的利用率下降了，因此，其他服務因為她們正在利用這項福利。他們正在利用它，進入我們週期較低體積的同一張地圖。所以如果這是有道理的話。

There are no further questions in the queue.

隊列中沒有其他問題。

Okay. Thanks, everybody, for joining us this afternoon. As always, please feel free to reach out to me if you have any questions or follow-ups. Happy to assist in any way that we can. And again, if you're interested in coming to the Investor Day next week, send me an e-mail and I will confirm your registration.

好的。謝謝大家今天下午加入我們。一如既往，如果您有任何問題或後續事宜，請隨時與我聯繫。很樂意盡我們所能提供協助。再次強調，如果您有興趣參加下週的投資者日，請給我發送電子郵件，我將確認您的註冊。

Thank you. This concludes today's conference call. You may disconnect your phone lines at this time, and have a wonderful day. Thank you for your participation.

謝謝。今天的電話會議到此結束。此時您可以斷開電話線，度過美好的一天。感謝您的參與。