Progyny Inc (PGNY) 2024 Q3 法說會逐字稿

Good day, and welcome to the Progyny, Inc., third-quarter earnings conference call. (Operator Instructions)

美好的一天，歡迎參加 Progyny, Inc. 第三季財報電話會議。（操作員說明）

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

現在我很高興將發言權交給主持人詹姆斯哈特。詹姆斯，地板是你的。

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

謝謝保羅，大家下午好。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，我們的總裁；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 2024 and the assumptions and drivers underlying such guidance, including the impact of our sales season and client launches and our expected utilization rates and/or mix, our anticipated number of clients and covered lives for 2025, 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2024 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推出的影響以及我們的預期利用率和/或組合、我們的預期客戶數量和2025 年的覆蓋壽命、我們解決方案的潛在優勢、我們獲取新客戶和保留客戶的能力並向現有客戶追加銷售、我們的市場機會以及有關我們的市場地位、未來運營和其他財務和運營信息的業務戰略、計劃、目標和期望，這些都是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 in 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，請參閱今天新聞稿中向 SEC 提交的文件，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.

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 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。

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

我現在想把電話轉給皮特。

Thank you, Jamie, and thank you, everyone, for joining us this afternoon. In the third quarter, we continued to execute against strategic objectives that we outlined for you at our recent Investor Day, laying the foundation that will enable us to accelerate growth while meeting the needs of our clients and members and creating long-term value for shareholders. I'll expand on those areas shortly, but I want to begin with third-quarter member activity, which continued to unfold differently from historical patterns with respect to how members progressed through treatment.

謝謝傑米，也謝謝大家今天下午加入我們。第三季度，我們繼續執行在最近的投資者日為您制定的策略目標，為我們加速成長奠定了基礎，同時滿足客戶和會員的需求，並為股東創造長期價值。我很快就會擴展這些領域，但我想從第三季的會員活動開始，在會員如何透過治療取得進展方面，該活動繼續以不同於歷史模式的方式展開。

Consequently, our third-quarter results are below the ranges we set in August. I understand this is disappointing. To help you better understand what we're seeing, what we're doing in response and how we think about the business moving forward, we're going to walk you through several areas. First, what's been different and unexpected with respect to the member activity in 2024. Second, how we're reflecting this variability in our guidance. Third, while despite how the year has unfolded differently than expected, we firmly believe the business is not only fundamentally strong, but also uniquely positioned to expand upon our leadership role in a large and growing market.

因此，我們第三季的業績低於我們八月設定的範圍。我知道這令人失望。為了幫助您更好地了解我們所看到的情況、我們正在採取的應對措施以及我們對業務發展的看法，我們將引導您了解幾個領域。首先，2024 年的會員活動有何不同和意外。其次，我們如何在指導中反映這種變化。第三，儘管今年的情況與預期不同，但我們堅信，該業務不僅基本面強勁，而且具有獨特的優勢，可以在龐大且不斷增長的市場中擴大我們的領導地位。

I'll begin with member activity, which is actually two separate though related components. The first is the overall utilization rate which captures the percentage of our 6.4 million members who have taken action to pursue care out of fertility clinics, which includes initial consultations during the given period. The second is the measure of consumption, which reflects the volume and types of services that the utilizing members have done also during the given period. With respect to the utilization rate, we continue to see that members are pursuing care at levels that are consistent with historical patterns, and that has continued in 2024. Third-quarter utilization was 0.47%, both consistent with our expectations and equal to Q2's level.

我將從會員活動開始，它實際上是兩個獨立但相關的組件。第一個是整體利用率，反映了我們 640 萬會員中採取行動尋求生育診所護理的百分比，其中包括在特定時期內進行初步諮詢。第二個是消費衡量標準，它反映了使用會員在給定時期內完成的服務的數量和類型。就利用率而言，我們繼續看到會員正在以符合歷史模式的水平尋求護理，並且這種情況在 2024 年仍在繼續。第三季利用率為 0.47%，既符合我們的預期，也與第二季的水平持平。

In fact, 0.47% is not only within the historical range, it's towards the higher end of that range, emphasizing that not only are members pursuing care, they're doing so at levels that reflect a strong sustained need for our solution.

事實上，0.47% 不僅在歷史範圍內，而且接近該範圍的高端，強調成員不僅在尋求護理，而且他們這樣做的水平反映了對我們解決方案的強烈持續需求。

Challenges with respect to forecast in our recent periods related to the other component consumption as we've seen activity in Q3 that differs meaningfully from historical patterns, primarily two aspects. First, the progression to treatment has slowed down modestly as people are taking slightly longer to go from the console, which is the first step in the critical journey to the treatment stage itself. The difference of even just a few days translates into lower overall consumption within a given period.

我們最近一段時間的預測面臨的挑戰與其他零件消耗有關，因為我們看到第三季的活動與歷史模式有很大不同，主要是兩個方面。首先，治療進展速度略有放緩，因為人們離開控制台的時間稍長，這是通往治療階段本身的關鍵旅程的第一步。即使只有幾天的差異也會導致特定時期內整體消耗量的降低。

And second, once people are progressing, we're seeing them consume fewer average stimulation-related ART cycles than we've historically seen, specifically for freeze (inaudible) and egg freezing. As this is a relatively new phenomenon during Q3, there isn't enough data to determine whether or not this is a new trend. The activity we're seeing thus far in Q4 is the best evidence that it may not be a new trend as we're seeing modest growth in average stimulation-related ART cycles per utilizer as compared to Q3 in 2024.

其次，一旦人們取得進步，我們就會看到他們消耗的平均刺激相關 ART 週期比我們歷史上看到的要少，特別是冷凍（聽不清楚）和卵子冷凍。由於這是第三季的一個相對較新的現象，因此沒有足夠的數據來確定這是否是一個新趨勢。到目前為止，我們在第四季度看到的活動是最好的證據，表明這可能不是一個新趨勢，因為與2024 年第三季相比，我們看到每個用戶的平均刺激相關ART 週期略有增長。

In light of the seemingly contrasting data, we believe it's more instructive to look at the recent ART cycle consumption in comparison to longer periods. For example, the three-year growth we've seen in egg freezing is consistent with the long-term pattern over many years, even though the volume more recently has been more variable from year to year.

鑑於看似對比鮮明的數據，我們認為，與較長時期相比，查看最近的 ART 週期消耗更具啟發性。例如，我們看到卵子冷凍的三年增長與多年來的長期模式是一致的，儘管最近每年的數量變化更大。

However, we're not factoring the improved levels of pacing in both utilization and ART cycle consumption that we're presently seeing in our fourth-quarter guidance. Instead, given how this year has presented more variability than we could have anticipated, we believe it's prudent to guide with the expectation of a return to the unfavorable trend that we saw in Q3, even though that would be below the activity we're actually seeing right now.

然而，我們沒有考慮到我們目前在第四季度指導中看到的利用率和 ART 週期消耗的節奏水平的提高。相反，考慮到今年的變化超出了我們的預期，我們認為謹慎的做法是預期會回到我們在第三季度看到的不利趨勢，儘管這將低於我們實際的活動現在就看到。

Well, that reflects to what that we're seeing, the why side is inherently more difficult to understand. Our PCAs are focused solely on member experience and success, supporting members through whatever their journeys entail based on their needs. And we help members navigate through every step of their unique journey, and we don't ask them to justify the time it takes for them to get through those steps. That's because we're sensitive to factors that can affect a member's timing whether it's medical options or life events that may impact that timing.

嗯，這反映了我們所看到的，原因方面本質上更難以理解。我們的 PCA 僅專注於會員體驗和成功，根據會員的需求支援會員完成他們的旅程。我們幫助會員完成他們獨特旅程的每一步，我們不會要求他們證明完成這些步驟所需的時間是合理的。這是因為我們對可能影響會員時間安排的因素很敏感，無論是可能影響該時間安排的醫療選擇還是生活事件。

We've ruled out a few things that are not causing this unexpected pattern. First, we know members have at least as much, if not more, coverage and that they are maxing out of their benefit. And second, we also aren't seeing a backlog at clinics. Members are getting the appointments they want when they want them. And despite the fluctuations we've seen this year, these don't, in any way, reflect upon the health and strength of our business and our ability to deliver for our members.

我們已經排除了一些不會導致這種意外模式的因素。首先，我們知道會員至少擁有同樣多（如果不是更多）的保險，並且他們正在最大限度地利用自己的福利。其次，我們也沒有看到診所積壓的情況。會員可以在需要時獲得他們想要的約會。儘管今年我們看到了波動，但這些波動並沒有以任何方式反映我們業務的健康狀況和實力以及我們為會員提供服務的能力。

We've successfully supported tens of thousands of member journeys, delivering a better experience, achieving higher clinical success rates and driving meaningful savings for our clients. That's what ultimately creates value for our key constituencies, our clients, our providers, our members and our shareholders. And we're more committed than ever to continuing to deliver against our strategic priorities in those areas.

我們已成功支援數以萬計的會員旅程，提供更好的體驗，實現更高的臨床成功率，並為我們的客戶帶來有意義的節省。這才是最終為我們的主要支持者、客戶、供應商、會員和股東創造價值的原因。我們比以往任何時候都更致力於繼續實現我們在這些領域的戰略重點。

In any year, the selling season is obviously one of the most important priorities, and we're pleased with this year's results, which produced 1.1 million new lives from over 80 new client commitments. This is our fourth straight year of adding over 1 million lives, demonstrating once again the importance of fertility family building and women's health solutions to employers and the differentiation of our solution.

在任何一年中，銷售季節顯然都是最重要的優先事項之一，我們對今年的結果感到滿意，80 多個新客戶承諾創造了 110 萬個新生命。這是我們連續第四年增加超過 100 萬人的生命，再次證明了生育家庭建設和婦女健康解決方案對雇主的重要性以及我們解決方案的差異化。

This year's season is similar to past seasons in a number of important ways. Our newest clients continue to select robust levels of coverage, offering an average of two or three Smart Cycles, affirming that employers aren't suddenly looking to offer a skinnier version of the benefit, and we saw a mid-90% take rate for Progyny Rx, affirming the better member experience and cost savings we deliver through our integrated solution.

今年的季節在許多重要方面與過去的季節相似。我們的最新客戶繼續選擇強大的承保水平，平均提供兩到三個智慧自行車，這表明雇主不會突然尋求提供更精簡的福利版本，我們看到 Progyny 的接受率達到 90% 左右Rx，肯定了我們透過整合解決方案提供的更好的會員體驗和成本節約。

Our wins represent a broad cross-section of nearly two dozen industries including energy, consumer goods, health care, media, financial services, automotive, manufacturing and software. This continues our sector diversification and emphasizes how truly universal the need for our services is amongst all types of employers. And lastly, we continue to see a broad distribution by client size with our newest logos contributing anywhere from 1,000 to over 100,000 lives. In fact, the distribution of our newest clients by size is newly identical to the base as it is today, highlighting the diversity of our opportunities and our room for ongoing growth.

我們的勝利代表了近二十個行業的廣泛領域，包括能源、消費品、醫療保健、媒體、金融服務、汽車、製造和軟體。這延續了我們的行業多元化，並強調了所有類型的雇主對我們服務的真正普遍需求。最後，我們繼續看到按客戶規模劃分的廣泛分佈，我們最新的徽標為 1,000 到超過 100,000 條生命做出了貢獻。事實上，我們最新客戶的規模分佈與今天的基礎相同，凸顯了我們機會的多樣性和持續成長的空間。

A notable difference this year from past seasons is a slightly higher skew amongst our largest year as those groups tend to do the deepest assessments and diligence, this reaffirms our confidence in our competitive position. You'll recall that we previously told you how commitments were pacing ahead of last year, and the pipeline was strong overall. So we understand that you may be looking at the 1.1 million lives in the context of the 1.3 million we achieved a year ago.

今年與過去幾季的一個顯著差異是，我們最大的一年中的偏差略高，因為這些群體往往會進行最深入的評估和盡職調查，這重申了我們對自己競爭地位的信心。您可能還記得，我們​​之前曾告訴您承諾的進度如何領先去年，並且總體上渠道很強勁。因此，我們理解，您可能會在我們一年前實現 130 萬人生活的背景下看待這 110 萬人的生活。

I'll remind you that last year's 1.3 million included approximately 300,000 lives without access to our medical benefit. So on a like-for-like basis, our new fully order lives are higher than last year. When we spoke to you in August, there were a number of jumbo opportunities in our pipeline, jumbo reflecting our largest deals that gave us visibility to well over 1.3 million new lives as of August. Of the jumbo opportunities that remained and made a decision, we want all of them. The ones who didn't come to a decision represent over 400,000 lives and remain open and active opportunities in our pipeline. So we aren't able to project whether or when a decision will be made.

我要提醒您的是，去年的 130 萬人中約有 30 萬人無法獲得我們的醫療福利。因此，與去年相比，我們新的滿訂單壽命高於去年。當我們在 8 月與您交談時，我們的管道中有許多巨大的機會，這些巨大的機會反映了我們最大的交易，這些交易使我們能夠了解截至 8 月超過 130 萬的新生命。在剩下並做出決定的巨大機會中，我們想要所有的機會。那些沒有做出決定的人代表了超過 40 萬條生命，並且在我們的管道中仍然存在開放和活躍的機會。因此，我們無法預測是否或何時會做出決定。

This is no different than any sales year where some portion of our prospects and the sales year as a not now. They may have had competing priorities to consider or they just were in a position to make a final decision. As we've seen in the past, we'll enter next year with a very healthy pipeline of advanced opportunities, which are in addition to the new pipeline generated through our traditional methods including working with channel partners who play a key role in broadening our reach and improving our sales efficiency.

這與任何銷售年度沒有什麼不同，其中我們的部分前景和銷售年度不是現在。他們可能需要考慮相互競爭的優先事項，或者他們只是能夠做出最終決定。正如我們過去所看到的，我們將在明年進入一個非常健康的高級機會管道，這是除了透過我們傳統方法產生的新管道之外的，包括與在擴大我們的業務方面發揮關鍵作用的管道合作夥伴合作。

This year, we made significant strides with expanding those channel partner relationships. You'll recall how we signed our first regional health plan partner a year ago. This year, we're extremely excited to have added our first national health plan in addition to another large regional health plan and additional TPAs. And some of these groups are also becoming our clients and trusting Progyny to serve their own employee populations. This is an incredible testament to the demonstrable value we create. We couldn't be more proud of that and are excited to share more details as the partnerships grow.

今年，我們在擴大通路合作夥伴關係方面取得了重大進展。您會記得一年前我們如何簽署我們的第一個區域健康計劃合作夥伴。今年，我們非常高興除了另一個大型區域衛生計劃和額外的 TPA 之外還添加了我們的第一個國家衛生計劃。其中一些群體也成為我們的客戶，並信任 Progyny 為自己的員工群體提供服務。這是對我們創造的明顯價值的令人難以置信的證明。我們對此感到無比自豪，並很高興隨著合作夥伴關係的發展分享更多細節。

As important as our new sales and new partnership activities are, our selling season also includes renewals and upsell activity. So let me give you some updates there as well. As we previously disclosed, a large client made a decision to exercise an option to conclude their services agreement with Progyny. Every client's decision always requires introspection and this was no different. We also heard from the 99% of our clients who remain with Progyny into 2025, given the positive impacts we made to both these clients as well as their workforce.

與我們的新銷售和新合作夥伴活動一樣重要，我們的銷售季節還包括續約和追加銷售活動。因此，讓我也向您提供一些最新情況。正如我們先前所揭露的，一家大客戶決定行使選擇權，與 Progyny 簽訂服務協議。每個客戶的決定總是需要反省，這也不例外。我們也聽到了 99% 的客戶在 2025 年仍留在 Progyny 的聲音，因為我們對這些客戶及其員工產生了正面的影響。

While retention is one validated to our service, so our upsells and expansions. This year, we continue to see existing clients, looking to deepen their Progyny relationship with approximately 30% of clients increasing their program in some way in 2025. Historically, that meant more Smart Cycles are adding Progyny Rx. While those still occur, upsells now include those clients who are adding our newer services in maturity postpartum and/or menopause.

雖然保留率是對我們服務的驗證，但我們的追加銷售和擴張也是如此。今年，我們繼續看到現有客戶尋求加深與 Progyny 的關係，其中約 30% 的客戶在 2025 年以某種方式增加了他們的計劃。從歷史上看，這意味著更多的智慧自行車正在添加 Progyny Rx。雖然這些情況仍然存在，但追加銷售現在包括那些在成熟產後和/或更年期添加我們新服務的客戶。

We're extremely pleased with the reception we've seen for these newer services in the first year we've offered them. Probably 20% of our existing clients and 40% of our newest clients are adopting one or more of these programs in 2025. Taken together, more than 1.5 million of our covered lives, or more than 20% of our base overall will have at least one additional program beyond the core fertility and family solution.

我們對提供這些新服務的第一年所受到的歡迎感到非常滿意。到 2025 年，我們現有客戶中的 20% 和新客戶中的 40% 可能會採用其中一項或多項計畫。總而言之，超過 150 萬人（即我們總人口的 20% 以上）將至少有一項除了核心生育和家庭解決方案之外的額外計劃。

As 2025 will be our first year in market with these services, we don't have a sense for what the usage patterns will be. We don't expect meaningful revenue contribution from these products next year. Nevertheless, the interest and adoption we've seen from our clients speaks to their willingness to entrust Progyny with even more aspects of their health programs.

由於 2025 年將是我們在市場上推出這些服務的第一年，因此我們不知道使用模式會是什麼樣子。我們預計明年這些產品不會產生有意義的收入貢獻。儘管如此，我們從客戶那裡看到的興趣和採用表明他們願意將其健康計劃的更多方面委託給 Progyny。

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

接下來，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。標記？

Thank you, Pete, and good afternoon, everyone. I'll begin with our third-quarter results and then provide our expectations for the remainder of the year. Third-quarter revenue grew 2% over the prior year to $286.6 million. The growth was primarily due to the increase in clients in covered lives as compared to a year ago, which was then offset by the lesser rate of consumption overall that Pete described earlier. So let me take a moment to walk you through this dynamic in greater detail.

謝謝你，皮特，大家下午好。我將從第三季的業績開始，然後提供我們對今年剩餘時間的預期。第三季營收較上年同期成長 2%，達到 2.866 億美元。這一增長主要是由於與一年前相比，承保壽險客戶數量有所增加，但隨後被皮特之前描述的總體消費率下降所抵消。因此，讓我花一點時間來更詳細地向您介紹這項動態。

Female utilization was 0.47% in the third quarter. This was a modest decrease, as we had told you to expect, from the near record 0.49% that we reported in the third quarter a year ago, but flat on a sequential basis from the 0.47% that we reported in August. While utilization can vary modestly from period to period, it continues to be highly consistent with what we've seen for many years, reinforcing our belief that we aren't seeing some underlying change in either medical need, member demographics or the desire for people to pursue family building.

第三季女性利用率為 0.47%。正如我們告訴您所預期的那樣，與一年前第三季接近創紀錄的 0.49% 相比，這一下降幅度較小，但與我們 8 月報告的 0.47% 環比持平。雖然不同時期的使用率可能略有不同，但它仍然與我們多年來所看到的情況高度一致，這增強了我們的信念，即我們沒有看到醫療需求、會員人口統計或對人們的渴望發生任何根本性變化追求家庭建設。

The different pattern of consumption in Q3 that Pete was describing earlier, is reflected in reported ART cycles. Approximately 14,900 ART cycles were performed in the quarter, reflecting a decline of just under 1% from the year ago period. So while the rate of people pursuing care is consistent, the pattern of consumption is different, creating the challenge with respect to our forecast and guidance.

Pete 先前描述的第三季的不同消費模式反映在報告的 ART 週期中。本季執行了大約 14,900 次 ART 週期，比去年同期下降了近 1%。因此，儘管人們追求護理的比例是一致的，但消費模式卻不同，這為我們的預測和指導帶來了挑戰。

Today's press release includes a table on the last page to help you see how ART cycles per unique female utilizer during the quarter diverged from past patterns. We've historically seen an increase in ART cycles per unique utilizer over the course of any given year. However, this year, in a complete divergence from past patterns, we instead saw a decrease in Q3. Thus far in Q4, even though we've seen an improved level of pacing in both utilization and consumption as compared to what we saw in Q3, we believe it's prudent to assume that another variance could occur. The high end of our guidance assumes similar levels to what we saw in Q3, while the low end contemplates a further decrease. I'll walk you through those impacts in a moment.

今天的新聞稿在最後一頁包含一個表格，可幫助您了解本季每個獨特女性用戶的 ART 週期與過去的模式有何不同。從歷史上看，我們發現在任何給定年份中，每個唯一用戶的 ART 週期都有所增加。然而，今年，與過去的模式完全不同，我們反而看到第三季出現下降。到目前為止，第四季度，儘管與第三季度相比，我們看到利用率和消費的節奏水平有所提高，但我們認為謹慎的假設可能會出現另一種差異。我們指導的高端假設與第三季的水平相似，而低端則考慮進一步下降。稍後我將向您介紹這些影響。

As of September 30, we had 468 clients with at least 1,000 lives, representing an average of 6.4 million covered lives over the third quarter. This compares to 392 clients and an average of 5.4 million covered lives a year ago. Covered lives increased nearly 50,000 versus June 30, reflecting the last batch of client launches from last year's selling season, which was offset by a slight net reduction of lives from our existing clients during the quarter. While we've continued to see the impact of workforce reductions at certain clients, others have grown, which further highlights how important it is to have a diverse customer base that spans many different areas of our economy and why we are so pleased with the results of our most recent selling season, given that our newest clients once again are coming from nearly two dozen industries.

截至 9 月 30 日，我們有 468 名客戶，擁有至少 1,000 條生命，代表第三季平均覆蓋 640 萬人。相比之下，一年前有 392 名客戶，平均覆蓋 540 萬人。與 6 月 30 日相比，承保生命增加了近 50,000 人，反映了去年銷售季節推出的最後一批客戶，但本季度現有客戶的生命略有減少，抵消了這一影響。雖然我們繼續看到某些客戶裁員的影響，但其他客戶的影響卻有所增加，這進一步凸顯了擁有橫跨我們經濟許多不同領域的多元化客戶群的重要性，以及為什麼我們對結果如此滿意鑑於我們的最新客戶再次來自近二十個行業，我們最近的銷售季節。

Turning back to the components of the top line this quarter, medical and pharmacy revenue grew at essentially the same rate over the year ago period to $179 million and $108 million, respectively. As the penetration of Progyny Rx will reach approximately 94% in 2025, the growth rates for medical and pharmacy revenue should continue to be more closely aligned on an annual basis moving forward.

回到本季營收的組成部分，醫療和製藥收入的成長速度與去年同期基本相同，分別達到 1.79 億美元和 1.08 億美元。由於 Progyny Rx 的滲透率將在 2025 年達到約 94%，因此未來醫療和製藥收入的成長率應繼續更加緊密地保持在年度基礎上。

Turning now to our margins and operating expenses. Gross profit decreased 5% from the third quarter last year to $59.2 million, yielding a 20.7% gross margin, a 160 basis point decline from the year -- prior year period due to investments made in our care management services as well as the impact of the unanticipated decline in cycles per utilizer in the quarter.

現在談談我們的利潤率和營運費用。毛利較去年第三季下降 5%，至 5,920 萬美元，毛利率為 20.7%，較上年同期下降 160 個基點，原因是我們對護理管理服務的投資以及本季度每個用戶的周期出現意外下降。

On a year-to-date basis, gross margin is more comparable to the first nine months of 2023, demonstrating the flexibility of our cost structure even when the top line unfolds differently than expected. As we look over the remainder of the year, I'll remind you that we typically see a sequential decline in fourth-quarter gross margin as we onboard the headcount that's needed to support the new lives starting on January 1. We expect a lesser impact than usual this year as we aren't onboarding as many new hires following the previously disclosed loss of a large client in 2025.

年初至今，毛利率與 2023 年前 9 個月更具可比性，證明了我們成本結構的靈活性，即使營收情況與預期不同。當我們展望今年剩餘時間時，我會提醒您，我們通常會看到第四季度毛利率連續下降，因為我們從 1 月 1 日開始增加了支持新生活所需的員工人數。我們預計今年的影響會比往年小一些，因為在先前披露的 2025 年失去一名大客戶之後，我們不會招募那麼多新員工。

Sales and marketing expense was 5.7% of revenue in the third quarter comparable to the 5.3% in the year ago period as the investments to increase our go-to-market resources and channel partner relationships were somewhat offset by the leverage we've gained through our client acquisition and retention activities.

第三季銷售和行銷費用佔收入的 5.7%，而去年同期為 5.3%，因為增加我們的市場資源和通路合作夥伴關係的投資在一定程度上被我們透過我們的客戶獲取和保留活動。

G&A costs were 10.6% of revenue this quarter, in line with the 10.5% in the year ago period, though year to date, G&A is down 50 basis points as compared to the first nine months of 2023, reflecting the efficiencies that we continue to realize in our back-office operations.

本季度的 G&A 成本佔收入的 10.6%，與去年同期的 10.5% 持平，儘管年初至今，G&A 與 2023 年前 9 個月相比下降了 50 個基點，反映了我們繼續提高效率在我們的後台運營中實現。

While our OpEx line items were comparable to the third quarter last year, adjusted EBITDA declined 7% to $46.5 million and adjusted EBITDA margin declined 160 basis points to 16.2%, reflecting the impact of the lower gross margin. Net income was $10.4 million or $0.11 per diluted share. This compared to net income of $15.9 million or $0.16 per share in the year ago period. The lower income in EPS as compared to a year ago reflects lower operating income as well as higher tax expense in the current period, which was only partially offset by the reduction in shares outstanding following our buyback programs in 2024. Turning now to our cash flow and balance sheet.

雖然我們的營運支出項目與去年第三季相當，但調整後 EBITDA 下降 7%，至 4,650 萬美元，調整後 EBITDA 利潤率下降 160 個基點，至 16.2%，反映了毛利率下降的影響。淨利潤為 1,040 萬美元，即稀釋後每股收益 0.11 美元。相比之下，去年同期淨利潤為 1,590 萬美元，即每股 0.16 美元。與去年同期相比，每股盈餘收入較低，反映出本期營業收入較低以及稅收費用較高，但我們 2024 年回購計畫後流通在外股票的減少僅部分抵銷了這一影響。現在轉向我們的現金流和資產負債表。

Operating cash flow during the quarter was $44.5 million which compares to $54.2 million generated in the year ago period. The change reflects the timing of certain favorable working capital items in the prior year period as well as higher cash payments for income taxes in the current period. Over the first nine months of the year, we've generated $127 million of operating cash flow, representing an 84% conversion of our adjusted EBITDA over the same period. As of September 30, we had total working capital of $338 million, reflecting over $235 million in cash, cash equivalents and marketable securities and no debt. The decrease in our cash position versus June 30 reflects our stock repurchasing activity during the quarter.

本季營運現金流為 4,450 萬美元，去年同期為 5,420 萬美元。這項變更反映了上一年期間某些有利的營運資金項目的時機以及本期所得稅現金支付的增加。今年前 9 個月，我們產生了 1.27 億美元的營運現金流，相當於同期調整後 EBITDA 的 84%。截至 9 月 30 日，我們的營運資金總額為 3.38 億美元，其中現金、現金等價物和有價證券超過 2.35 億美元，無債務。與 6 月 30 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 the third quarter, we repurchased 2.8 million shares for approximately $61.4 million. Since launching the program -- the first program in February and including the activity in Q4, we've returned value to our shareholders through the repurchase of nearly 12.4 million shares overall. This completes our previous authorizations and has reduced our shares outstanding as of the start of the year by 13%.

第三季度，我們以約 6,140 萬美元的價格回購了 280 萬股股票。自從啟動該計劃（2 月份的第一個計劃，包括第四季度的活動）以來，我們透過回購近 1,240 萬股股票為股東回報了價值。這完成了我們先前的授權，並使我們截至年初的流通股減少了 13%。

Turning now to our expectations for the fourth quarter and full year 2024, as you can see in the table in the back of today's press release our range for the full year assumes utilization of 1.05% at the low end, which assumes a slightly lower level of Q4 utilization than what we've seen thus far this year and 1.06% at the high end. The low end of the range also assumes that ART cycles per unique utilizer declines in the fourth quarter as compared to Q3, while the high end assumes consumption stays flat sequentially, even though at this point in Q4, we've seen an improved level of pacing in both activity and treatment volume as compared to Q3.

現在轉向我們對 2024 年第四季度和全年的預期，正如您在今天新聞稿後面的表格中看到的那樣，我們全年的範圍假設低端利用率為 1.05%，假設水平略低第四季度的利用率高於今年迄今的水平，最高為1.06%。該範圍的低端還假設第四季度每個唯一用戶的ART 週期與第三季度相比有所下降，而高端則假設消費量連續持平，儘管在第四季度的這一點上，我們已經看到了ART 週期的提升。

As I said before, we believe it's prudent to assume yet another variance occurs and have contemplated the ranges accordingly. With those assumptions, we expect revenue of $266.2 million to $281.2 million for the fourth quarter. This translates to revenue of $1.135 billion to $1.150 billion over the full year.

正如我之前所說，我們認為假設還會出現另一種差異並相應地考慮了範圍是明智的。根據這些假設，我們預計第四季的營收為 2.662 億美元至 2.812 億美元。這意味著全年收入為 11.35 億美元至 11.50 億美元。

Turning to our profitability, we expect adjusted EBITDA of $37.8 million to $42.8 million in the fourth quarter and net income of $6.1 million to $9.5 million. This equates to $0.07 and $0.10 earnings per diluted share or $0.31 and $0.35 of adjusted EPS on the basis of approximately 91 million fully diluted shares.

談到我們的獲利能力，我們預計第四季度調整後的 EBITDA 為 3,780 萬美元至 4,280 萬美元，淨利潤為 610 萬美元至 950 萬美元。這相當於稀釋後每股收益 0.07 美元和 0.10 美元，或基於約 9,100 萬股完全稀釋股票計算的調整後每股收益 0.31 美元和 0.35 美元。

For the year, we now expect adjusted EBITDA of $189 million to $194 million, along with net income of $49.9 million to $53.3 million. That equates to $0.52 and $0.56 earnings per diluted share or $1.54 and $1.57 of adjusted EPS on the basis of approximately 96 million fully diluted shares. I'll remind you that our net income projections do not contemplate any discrete income tax items.

我們目前預計今年調整後的 EBITDA 為 1.89 億美元至 1.94 億美元，淨利潤為 4,990 萬美元至 5,330 萬美元。這相當於每股稀釋每股收益 0.52 美元和 0.56 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 1.54 美元和 1.57 美元。我要提醒您的是，我們的淨利潤預測並未考慮任何離散所得稅項目。

I'd now like to turn the call back over to Pete for some closing remarks.

現在我想將電話轉回給皮特，讓他做一些結束語。

Thanks, Mark. I hope today's call has helped you understand how the business remains fundamentally strong and uniquely positioned to take advantage of our large and growing market opportunities despite the headwinds that have that impacted our recent results.

謝謝，馬克。我希望今天的電話會議能夠幫助您了解儘管不利因素影響了我們最近的業績，但我們的業務如何保持基本強勁並處於獨特的地位，以利用我們龐大且不斷增長的市場機會。

As we look forward into 2025, consistent with our past practice, we expect to provide our financial guidance when we report year-end results in February, when we'll have insight into the clients launching on January 1. At this point, even with the loss of the one large client, we expect to continue generating strong profitability and meaningful cash flow in 2025, which is a testament to the diversity of our business and the strength of our business model.

展望 2025 年，與我們過去的做法一致，我們希望在 2 月份報告年終業績時提供財務指導，屆時我們將深入了解 1 月 1 日推出的客戶。目前，即使失去了一個大客戶，我們預計將在 2025 年繼續產生強勁的盈利能力和有意義的現金流，這證明了我們業務的多樣性和業務模式的優勢。

With that, we'll open up the call for your questions. Operator?

至此，我們將開始電話詢問您的問題。操作員？

(Operator Instructions) Anne Samuel, JPMorgan.

（操作員指令）Anne Samuel，摩根大通。

I was hoping maybe you could speak a little bit to how you get visibility or understanding into what's going on with your utilization and consumption? Are the PCAs perhaps able to offer any insight on trends from recurring conversations that they're having around what may be causing some of this disruption?

我希望您能談談如何了解或了解您的使用率和消費情況？PCA 是否能夠從他們圍繞可能導致這種中斷的原因進行的反覆對話中提供對趨勢的見解？

So relative to understanding our utilization and consumption to date, which is, I think, the first part of your question, Anne, we look at contextualized data. So same point in the quarter in Q3 versus now and we look at both overall unique utilizers, i.e., utilization rate as compared to that time period. And then we look at the ART cycles per utilizer that are at that point scheduled versus what was scheduled in Q3, right?

因此，相對於了解我們迄今為止的利用和消費，我認為這是您問題的第一部分，安妮，我們會研究情境化數據。因此，在第三季與現在的同一時間點，我們會查看總體獨特用戶數，即與該時間段相比的利用率。然後我們看看當時安排的每位使用者的 ART 週期與第三季安排的情況，對嗎？

Relative to the PCAs, as I mentioned, it's -- their conversations are primarily around the members' needs, the journey to going on, helping them answer their questions, helping them schedule appointments, et cetera. They're not talking to them about any other type of activity relative to timing or anything else. As you might imagine, there's roughly 30,000 unique utilizers in a given quarter, aggregating those conversations even if they were happening is not something that is realistic, but either way, it don't occur that way. The way I said it in the prepared remarks, they're just helping them get through and fulfilling their needs relative to what their current needs are.

相對於 PCA，正如我所提到的，他們的對話主要圍繞著成員的需求、繼續進行的旅程、幫助他們回答問題、幫助他們安排約會等等。他們不會與他們談論與時間或其他任何事情相關的任何其他類型的活動。正如您可能想像的那樣，在給定季度內大約有 30,000 個獨特的用戶，即使這些對話正在發生，但聚合這些對話也是不現實的，但無論如何，它都不會以這種方式發生。正如我在準備好的演講中所說的那樣，他們只是幫助他們度過難關並滿足他們相對於當前需求的需求。

That's helpful. And just wondering maybe is the kind of the national conversation and the recent election, maybe would you attribute some of the disruption you've seen to that? Some of your competitors recently launched a faith-based fertility program. Are your members asking for anything like this? Do you think that's factoring at all?

這很有幫助。只是想知道也許是全國性的對話和最近的選舉，也許您會將您所看到的一些破壞歸因於此？您的一些競爭對手最近推出了基於信仰的生育計劃。你們的會員有這樣的要求嗎？你認為這根本就是一個因素嗎？

Well, I haven't heard a request around the second part of your question in terms of faith-based program or anything else like that from our members or PCA is hearing that. I'm sorry, what was the second question?

嗯，我還沒有聽到我們的會員或 PCA 正在聽到有關基於信仰的計劃或其他類似問題的第二部分的請求。抱歉，第二個問題是什麼？

It's hard to say whether or not the election had any impact on utilization or not. As you rightly point out, the election cycle did have fertility as part of the overall conversation. But as we said earlier, the good news is that on both sides of the aisle, they talked about protecting fertility. And so that's positive. So it's hard to know. We haven't heard of that or haven't heard anything around that in terms of it impacting it. So I'd be guessing if I comment it further.

很難說這次選舉是否對利用率產生了影響。正如您正確指出的那樣，選舉週期確實具有作為整體對話的一部分的生育力。但正如我們之前所說，好消息是兩黨都在談論保護生育能力。所以這是積極的。所以很難知道。我們還沒有聽說過這一點，或者沒有聽說過任何有關它對其產生影響的事情。所以我會猜測是否進一步評論。

Great. And if I could just squeeze in one more. But just curious -- now that you have a more kind of fulsome total women's health benefit, we've been hearing a lot from employers that they are looking for a really comprehensive benefit spinning all of women's health. Did that catalyze any of your conversations this year, maybe for the uptick of the core fertility benefit? And did that enable you to get maybe more employers than you were anticipating?

偉大的。如果我能再擠進一顆就好了。但只是好奇——既然你有了更全面的女性健康福利，我們已經從雇主那裡聽到很多消息，他們正在尋找一種真正全面的福利來改善所有女性的健康。這是否促進了您今年的任何對話，也許是為了提高核心生育福利？這是否使您能夠找到比您預期更多的雇主？

I will let Michael comment, and then I'll add some comments if needed.

我會讓邁克爾發表評論，然後如果需要的話我會添加一些評論。

Yes. So thanks for the question. So it definitely saw good strong interest in our new products, certainly help contribute to a successful sales season this year. That goes from both a new logo prospect -- perspective as well as well as our itineraries business and adoption rates there. I'll turn it back to Pete for some additional color.

是的。謝謝你的提問。因此，人們肯定對我們的新產品產生了濃厚的興趣，這無疑有助於今年銷售季的成功。這既來自於新標誌的前景，也來自於我們的行程業務和採用率。我會把它轉回皮特以獲得一些額外的顏色。

Yes. So the other color I would give is that if you look at -- simply if you've got RFP activity, there was a greater percent of RFPs that were looking for a full suite -- a fuller suite of solutions even if they didn't buy them all than there was in the prior year. But I think the most positive data point is that 40% of the new clients bought the additional products in addition to the fertility benefit. So I think overall, it's supportive of the demand that you're talking about relative to more and more clients looking for a more fulsome solution.

是的。因此，我要給的另一種顏色是，如果你看一下- 如果你有RFP 活動，你會發現有更大比例的RFP 正在尋找全套解決方案- 一套更完整的解決方案，即使他們沒有'與前一年相比，不要全部購買。但我認為最積極的數據點是，40% 的新客戶除了生育福利之外還購買了其他產品。因此，我認為總體而言，相對於越來越多的客戶尋求更完善的解決方案，它支援您所談論的需求。

Allen Lutz, Bank of America.

艾倫·盧茨，美國銀行。

Mark, one for you. The gross margin was under a little bit of pressure this quarter, and you called out care management services or investments in care management services. Can you talk about what exactly is driving the gross margin compression as it relates to that care management investments?

馬克，給你一張。本季毛利率面臨一些壓力，您呼籲護理管理服務或護理管理服務投資。您能否談談與護理管理投資相關的毛利率壓縮的真正原因是什麼？

And then as we shift to 2025, can you provide just high-level commentary on what's going to drive the gross margin next year? I know you're dealing with the client loss, you have new offerings. There's these investments in care management that you're talking about. But how should we think about whether or not you can increase the gross margin into 2025?

然後，當我們轉向 2025 年時，您能否就推動明年毛利率的因素提供高水準的評論？我知道你正在處理客戶流失的問題，你有新的產品。您正在談論這些對護理管理的投資。但我們該如何考慮2025年毛利率能否提高呢？

Yes. So as it relates to this quarter, we do and we have in each year, begin to build our staff in anticipation of the launches in the prior year. And so -- and we did that. So that's part of what's showing a decline just sequentially in gross margin. The other is obviously the impact of the unexpected level of contribution from ART cycle revenue, which was not planned for.

是的。因此，就本季而言，我們每年都會開始培養我們的員工，以應對前一年的推出。所以——我們就這麼做了。這就是毛利率持續下降的部分原因。另一個顯然是 ART 週期收入的意外貢獻水準的影響，這是沒有計劃的。

And then as it relates to balance of the year, we're obviously looking at moderating -- and it was in my prepared comments, we're moderating the hiring in and around gross margins and the care management services teams that support them, although we will be growing next year. So at least our -- from our prepared comments, our membership will be growing next year.

然後，由於與今年的餘額相關，我們顯然正在考慮進行調整——在我準備好的評論中，我們正在調整毛利率和支持它們的護理管理服務團隊的招聘，儘管明年我們將會成長。因此，至少從我們準備好的評論來看，我們的會員明年將會增加。

A little bit early, I think, to comment on exactly what we'll do in 2025, we typically give guidance for the year in February. We're in the middle of our budgeting processes right now. And as always, we'll be looking at all of our costs with a pretty close eye and planning for next year, given we now understand where our selling seasons turned out and how our retention season has also turned out.

我認為，要準確評論 2025 年我們將做什麼，我們通常會在 2 月給出全年指導。我們現在正處於預算流程之中。像往常一樣，我們將密切關注所有成本，並為明年做好計劃，因為我們現在了解了銷售季節的情況以及保留季節的情況。

Great. And then one housekeeping question. 6.4 million members today, adding 1.1 million, that gets you to about 7.5 million, minus the disclosed client loss gets us to about, call it, 6.3 million. That's a little bit of a delta versus the 6.7 million that you called out. Is there any other -- is there anything else to mention there? Any other churn going on? Or is it just sort of rounding?

偉大的。然後是一個家政問題。今天有 640 萬會員，加上 110 萬，那麼就達到了大約 750 萬，減去披露的客戶流失，我們就得到了大約 630 萬。與您所說的 670 萬相比，這只是一個小小的增量。還有其他的嗎？還有其他混亂發生嗎？或只是四捨五入？

Yes. No, it's still -- there's about 100,000 or so that actually went live this year. So they're already part of the 6.4 million from the current selling season. So that's your -- that's pretty much what your delta is.

是的。不，今年仍然有大約 100,000 個實際上線。因此，它們已經成為目前銷售季 640 萬輛的一部分。這就是你的──這幾乎就是你的三角洲。

Sarah James, Cantor Fitzgerald.

莎拉詹姆斯，康托費茲傑拉。

I'll continue on the lines of just checking these numbers. So if I had 80 clients to the current book, I get 548, not 530, so there's an 18 account delta there. Are any of those account losses? And if so, is there any commonality?

我將繼續檢查這些數字。因此，如果目前書籍有 80 個客戶，我會得到 548 個，而不是 530 個，因此存在 18 個帳戶增量。這些帳戶有損失嗎？如果是的話，有什麼共同點嗎？

Yes. There's roughly -- and again, as they talked about, the roughly 100,000 lives that went live already there's roughly 10, 12 new clients. And then overall, in terms of losses. I think we had five losses overall.

是的。正如他們所說，大約 10 萬條生活已經上線，大約有 10、12 個新客戶。然後總體而言，就損失而言。我認為我們總共輸了五場。

Okay. Are you seeing demand in the market for plans that can offer a more moderated utilization trend? And do you anticipate having an offering that can serve that type of client?

好的。您是否看到市場上對能夠提供更適度的利用率趨勢的計劃的需求？您是否期望提供可以服務此類客戶的產品？

I'm not sure if you could be more specific on what you're referring to relative to a moderated utilization trend. If you talk about a skinnier benefit or sort of more pull back benefit or the ones that are out there already, which are dollar maximum benefits, which effectively achieve that. They're out there, but we don't believe in those, in particular because when a dollar maximum benefit, you run out of your money in the middle of treatment literally.

我不確定您是否可以更具體地說明您所指的相對於適度使用趨勢的內容。如果你談論更精簡的福利或更多的回撤福利或已經存在的福利，即美元最大福利，可以有效地實現這一目標。它們就在那裡，但我們不相信這些，特別是因為當一美元最大收益時，你實際上會在治療過程中耗盡你的錢。

It's not a good experience and members then operating world where they're operating with economic scarcity in their mind, and try and preserve dollars. And therefore, forego portions of treatments to have higher probability of success from a high birth rate. So it's not something we believe in as a good member experience. But if you can clarify if I'm thinking about something else, then I'm happy to answer the question.

這不是一次好的經歷，當時的成員在經營世界時，他們的頭腦中存在著經濟稀缺的情況，並試圖保存美元。因此，放棄部分治療可以從高出生率中獲得更高的成功機率。因此，我們認為這不是良好的會員體驗。但如果你能澄清我是否在想別的事情，那麼我很樂意回答這個問題。

Sure. Yes. I would think not just an employer that maybe wants to offer less cycles, but one that maybe wants to make those cycles harder to access, so technically offering, but not really having global utilization that you're used to.

當然。是的。我認為，不僅是雇主可能想要提供更少的周期，而且可能想讓這些週期更難獲得，因此從技術上講是提供的，但實際上並沒有像您所習慣的那樣具有全球利用率。

I'm not sure sort of what type of benefit that is. Again, we wouldn't support that. Either you believe your employees need to benefit and you believe your network and your network management and the physician in your network are making decisions for appropriate treatment. But to restrict access sort of arbitrarily I don't believe in. We don't believe in. We believe in the doctors in the network, making the medical decisions necessary for appropriate treatment.

我不確定這是什麼類型的好處。再說一遍，我們不會支持這一點。要么您認為您的員工需要受益，要么您相信您的人脈、網路管理人員以及網路中的醫生正在做出適當治療的決定。但我不相信任意限制存取。我們不相信。我們相信網路中的醫生能夠做出適當治療所需的醫療決定。

Michael Cherny, Leerink Partners.

邁克爾·切爾尼，Leerink Partners。

Maybe if I can dive into a little bit of the maternity and menopause services you talked about for '25, again, not trying to get to guidance in any way, shape or form at this point in time. But as you think about the materiality of those businesses for next year against your '28 targets, which I recall, we're about for $200 million of run rate revenue by then. How is the sell-through on the new products that you expected tracking? And is there any way we should think about qualitatively how they should ramp at the start and then over the course of the year?

也許我可以再次深入探討您在 25 年談到的孕產和更年期服務，而不是試圖在此時以任何方式、形式或形式獲得指導。但當你考慮明年這些業務對你的 28 目標的重要性時，我記得，到那時我們的運行率收入約為 2 億美元。您預期追蹤的新產品的銷售情況如何？我們是否應該以任何方式定性地思考它們應該如何在開始時以及在一年中如何成長？

The sell-through, I think, was positive relative to our first year-end market expectation. Having now launching -- being live with the 1.5 million lives across the number of clients that we talked about, both new and existing. I think is really positive. It's the utilization patterns of those benefits. The take rate, if you will, awareness that we create across those members that are at those employers will be -- what will be -- the progress that we'll see over not just the next year but over the next couple of years.

我認為，相對於我們的第一個年終市場預期，銷售量是正面的。現在已經推出——與我們談論的 150 萬客戶（包括新客戶和現有客戶）一起生活。我認為這確實是積極的。這是這些好處的利用模式。如果你願意的話，我們在那些雇主的成員中建立的意識將是——將會是什麼——我們不僅會在明年而且在接下來的幾年裡看到進步。

Got it. And I know the international acquisition you made was a small deal, but how do we see that flowing through into the model? Is there anything else you can give us financially on that in terms of -- are there lives covered that are part of your recent adds? Is there anything -- I know it was tiny, but how are you thinking about the growth characteristics and the potential for contribution on that business?

知道了。我知道您進行的國際收購是一筆小交易，但我們如何看待它流入模型？您還可以在財務方面為我們提供什麼其他資訊嗎？我知道這很小，但您如何看待該業務的成長特徵和貢獻潛力？

Yes, it's more of an opportunity for us relative to employers that are multinational employers that are looking to do something with their global employees in addition to doing something with their US employees. It's a recent investment, as you said, and a continued investment relative to having an offering not just in the fertility and family-building space, but beyond that, even for global. But at this point, there were -- I don't think or lives we did not attribute lives to global populations in the reported numbers. And given this recent -- the recent timing of the acquisition, it's probably more of an opportunity for us for the 2025 selling season.

是的，相對於那些跨國雇主來說，這對我們來說更像是一個機會，這些跨國雇主除了與美國員工做一些事情之外，還希望與他們的全球員工做一些事情。正如您所說，這是一項最近的投資，也是一項持續投資，不僅在生育和家庭建設領域，而且在其他領域，甚至在全球範圍內提供服務。但在這一點上，我認為在報告的數字中，我們沒有將生命歸因於全球人口。考慮到最近的收購時機，這對我們來說可能是 2025 年銷售季的一個機會。

Glen Santangelo, Jefferies.

格倫桑坦傑洛，傑弗里斯。

Pete, just a few quick ones for you. I was wondering if you could just give us some sort of qualitative commentary on the selling season in terms of what you're seeing across the competitive landscape. Because it certainly seems like your competitors, Maven and Carrot certainly starting to get more aggressive. And we've started to get questions around additional renewals you may have coming up because you obviously signed a lot of those clients back several years ago when maybe the competitive landscape was less intense. And so I'm just kind of -- any sort of qualitative commentary in terms of what you're seeing out there would be helpful. And then I just had a quick financial follow-up.

皮特，只是給你一些快速的。我想知道您是否可以根據您在競爭格局中看到的情況，對銷售季節進行一些定性評論。因為它確實看起來像你的競爭對手，Maven 和 Carrot 肯定開始變得更加激進。我們已經開始收到有關您可能會提出的額外續約的問題，因為您顯然在幾年前簽下了很多這樣的客戶，當時競爭格局可能不那麼激烈。所以我只是——任何關於你所看到的內容的定性評論都會有所幫助。然後我進行了快速的財務後續。

Yes. I'll take the second part first, and then I'll have Michael comment on the selling season and competitive environment. As it relates renewals, as you might imagine, right, our base of clients have been growing over years. So every year, we have a significant amount of renewals coming up each and every year, right?

是的。我將首先討論第二部分，然後我將請邁克爾評論銷售季節和競爭環境。正如您可能想像的那樣，由於涉及續訂，我們的客戶群多年來一直在增長。所以每年我們都會有大量的續訂，對吧？

There are generally three-year terms. And as I mentioned in the previous question, we only lost five clients notwithstanding the large one that we announced this past renewal season. So from a renewal perspective, we still maintain 99% of our client base.

任期一般為三年。正如我在上一個問題中提到的，儘管我們在上個季度宣布了一個大客戶，但我們只失去了五個客戶。所以從續約的角度來看，我們還是保住了99%的客戶群。

Yes. So just overall, we've been operating in that competitive environment as you referenced here for -- so for at least a couple of years from sort of the VC privately held companies. And then, of course, we've operated from a health plan perspective, we really compete with them on each and every sale.

是的。總的來說，我們一直在這種競爭環境中運營，正如您在這裡提到的那樣——所以至少有幾年來自創投私人公司。當然，我們是從健康計劃的角度來運作的，我們確實在每一次銷售上與他們競爭。

Sort of from both perspectives, particularly when you look at our new sales this year, we saw consistent win rates against those competitors, especially -- or I should say, including those jumbo clients that Pete referenced earlier, where, as you would imagine, those are some of the most competitive bids. And we fared well there and feel really good about our position there.

從兩個角度來看，特別是當你看看我們今年的新銷售時，我們看到了對這些競爭對手的持續贏率，特別是——或者我應該說，包括皮特之前提到的那些大型客戶，正如你想像的那樣，這些是一些最具競爭力的投標。我們在那裡表現得很好，並且對我們在那裡的位置感到非常滿意。

And then as it relates to the health plans, again, that's an area that we've been competing for a number of years. And as we referenced earlier, starting to add on some of those health plans sort of shifting them from competitors to partners also, we view as a positive competitive side.

然後，由於它與健康計劃有關，這也是我們多年來一直在競爭的領域。正如我們之前提到的，開始添加其中一些健康計劃，也將它們從競爭對手轉變為合作夥伴，我們認為這是積極的競爭方面。

Okay. Awesome. Maybe if I can just quickly follow up on the membership question. I mean, Pete, it looks like your membership is going to be up 3.5%, 4% on a sequential basis going into 2025. And I appreciate you don't want to give any guidance around fiscal '25 at this point. But like given where utilization rates trended in fiscal '24, it's hard to imagine maybe to get much worse. So is it reasonable for us to at least be thinking about the company generating revenue growth in fiscal '25. Is that a fair assessment?

好的。驚人的。也許我可以快速跟進會員資格問題。我的意思是，Pete，到 2025 年，您的會員資格將環比增長 3.5%、4%。我很感激您目前不想就 25 財年提供任何指導。但考慮到 24 財年的使用率趨勢，很難想像情況會變得更糟。因此，我們至少考慮一下公司在 25 財年實現營收成長是否合理？這是一個公平的評價嗎？

Okay. Awesome. Maybe if I can just quickly follow up on the membership question. I mean, Pete, it looks like your membership is going to be up 3.5%, 4% on a sequential basis going into 2025. And I appreciate you don't want to give any guidance around fiscal '25 at this point. But like given where utilization rates trended in fiscal '24, it's hard to imagine maybe to get much (inaudible). So is it reasonable for us to at least be thinking about the company generating revenue growth in fiscal '25. Is that a fair assessment?

好的。驚人的。也許我可以快速跟進會員資格問題。我的意思是，Pete，到 2025 年，您的會員資格將環比增長 3.5%、4%。我很感激您目前不想就 25 財年提供任何指導。但就像 24 財年的使用率趨勢一樣，很難想像可能會得到多少（聽不清楚）。因此，我們至少考慮一下公司在 25 財年實現營收成長是否合理？這是一個公平的評價嗎？

Jailendra Singh, Truist Securities.

Jailendra Singh，Truist 證券公司。

I want to go back to the issue of less consumption in Q3. First, I want to confirm this is the same issue you guys called out for missed and guidance cut on Q2 call? Or are there any differences in trends or behaviors you're seeing or just the same trend getting worse in Q3?

我想回到第三季消費減少的問題。首先，我想確認這與你們在第二季電話會議上指出的錯過和指導削減的問題相同嗎？或者您看到的趨勢或行為是否有任何差異，或者第三季度的趨勢或行為變得更糟？

And related to that, the recovery you're seeing in consumption in Q4 thus far, are you able to somehow figure out if this is a pickup from members you started engaging in Q2 or Q3? Or these are new members who are driving faster consumption? Just trying to understand if there is any structural change driving the timing lag between utilization and consumption?

與此相關的是，到目前為止，您在第四季度看到的消費復甦，您是否能夠以某種方式弄清楚這是否是您在第二季或第三季開始參與的會員的回升？還是這些是正在推動消費更快的新成員？只是想了解是否存在任何結構性變化導致利用率和消費之間的時間延遲？

Yes. So first part of your question, the -- what we saw in Q2, if you recall, was the increase in utilization, ART cycles per utilizer that you would normally see sequentially from Q1 to Q2, we didn't see as big of an increase. The difference in Q3 is now have seen a decline, which we've never seen before. So that's the most stark difference relative to Q3 and what we saw there versus what we saw in Q2 was just a slower rate of growth.

是的。所以你的問題的第一部分，我們在第二季度看到的，如果你還記得的話，是利用率的增加，每個利用者的ART 週期，你通常會從第一季到第二季依次看到，我們沒有看到那麼大的成長。第三季的差異是現在出現了下降，這是我們以前從未見過的。因此，這是與第三季相比最明顯的差異，與第二季相比，我們看到的只是成長率放緩。

As it relates to the members in Q4 so far, they're across the board, new end and those that have already begun their journey. And as we have commented for Q3, what impacted the ART cycle utilizers that journey getting slightly elongated. And so by definition, it's going to get elongated into Q4 as opposed to having ended up in Q3 for a portion of those members.

就到目前為止第四季的成員而言，他們是全面的、新的結局和已經開始旅程的成員。正如我們對第三季的評論，是什麼影響了 ART 週期使用者的旅程稍微延長了。因此，根據定義，對於部分成員來說，它將延長到第四季度，而不是最終進入第三季度。

Okay. That's helpful. And then my follow-up given all the volatility you have seen in results in 2024 around utilization and consumption, Pete, what are your thoughts on business models where you have exposure to member utilization like today versus having a model which is much lighter and administrative in nature while still adding value to clients through member engagement services. Are you open to having such arrangements with employers given the recent developments?

好的。這很有幫助。然後，考慮到您在2024 年的結果中看到的關於利用率和消費的所有波動，Pete，您對像今天這樣接觸會員利用率的商業模式有何想法，而不是擁有一個更輕量級和管理性的模型本質上，同時仍透過會員參與服務為客戶增加價值。鑑於最近的事態發展，您是否願意與雇主做出此類安排？

The short answer is yes. But beyond thinking about it, there's not anything that we've done with clients at this point, but we are thinking about different ways to mitigate utilization variability, but not much more to talk about at this point.

簡短的回答是肯定的。但除了考慮這一點之外，我們目前還沒有與客戶做任何事情，但我們正在考慮不同的方法來減輕利用率的可變性，但目前沒有更多可談的。

Stephanie Davis, Barclays.

史蒂芬妮戴維斯，巴克萊銀行。

We have seen just such a prolonged period of a typical mix in utilization and consumption. I kind of want to pull on the same thread that Jailendra was. Have you talked to any of your clinic partners to see if this is reflective of some broader trends such as new tech or higher incidence of PGT testing that's improving the efficacy of transfers? Or potentially GLP-1 having some impact like PCOS and driving improved fertility? This is -- I mean it's too early to call a trend, but it's been a few quarters.

我們已經看到瞭如此長時間的利用和消費的典型組合。我有點想跟 Jailendra 一樣。您是否與任何診所合作夥伴交談過，看看這是否反映了一些更廣泛的趨勢，例如新技術或提高移植效率的 PGT 檢測發生率更高？或者 GLP-1 是否可能像 PCOS 一樣產生一些影響並提高生育能力？我的意思是，現在稱之為趨勢還為時過早，但已經有幾個季度了。

So thanks for the question, Stephanie. Regarding the last two points, we haven't heard anything from the clinics related to GLP-1s or higher PGT-A testing, which would result in more favorable clinical outcomes, which I think we are alluding to.

謝謝你的提問，史蒂芬妮。關於最後兩點，我們還沒有從診所聽到任何與 GLP-1 或更高的 PGT-A 測試相關的消息，這將導致更有利的臨床結果，我認為我們正在提到這一點。

As it relates to trends in consult to treatment timing, a few of the clinics have observed the same thing, especially on the West Coast and also have observed lighter utilization of egg freezing benefits, and we're also seeing some of that. But again in Q4, we're seeing a reversal of that, if you will, at least the beginning of a reversal versus what we saw in Q3, which is why in my remarks, I talked about it's too early to call it a trend, and it's more of a short-term phenomenon, I'll call it, which right now, we're not guiding differently to, but we are seeing the beginning of a reversal, if you will, relative to overall ART cycles per utilizer, and within that, related to my comment now within that on the egg freezing side, particularly.

由於它與諮商治療時機的趨勢有關，一些診所也觀察到了同樣的情況，特別是在西海岸，並且還觀察到卵子冷凍福利的使用較少，我們也看到了其中的一些。但在第四季度，我們再次看到了這種情況的逆轉，如果你願意的話，至少是我們在第三季度看到的逆轉的開始，這就是為什麼在我的講話中，我談到現在將其稱為趨勢還為時過早，我稱之為短期現象，目前我們並沒有採取不同的指導，但如果你願意的話，我們正在看到相對於每個用戶的總體 ART 週期出現逆轉的開始，其中，特別是與我現在在卵子冷凍方面的評論相關。

Now I have a follow-up for Mark and you're kind of going to hate question. So I just want to keep that in mind. But given some of the lessons learned from guidance this past year, are you thinking that maybe taking a more conservative approach to guidance as you look at 2025? Or how are you changing the philosophy?

現在我有一個關於馬克的後續行動，你可能會討厭這個問題。所以我只想記住這一點。但考慮到從去年的指導中學到的一些經驗教訓，您是否認為在展望 2025 年時可能會採取更保守的指導方法？或你如何改變哲學？

Well, look, I think we certainly learned lessons throughout 2024, but really, they're about the variability that's happening within the business itself. And so what we're doing here this quarter is incorporating a greater emphasis on the variability that we're seeing and a little bit less reliance on the most current data point to drive where we think those ranges should be set. And so that's our -- that's the philosophy that we're going with right now.

好吧，我認為我們確實在 2024 年吸取了教訓，但實際上，這些教訓與業務本身內部發生的變化有關。因此，我們本季在這裡所做的就是更加重視我們所看到的可變性，並減少對最新數據點的依賴，以推動我們認為應該設定這些範圍。這就是我們現在所遵循的理念。

Scott Schoenhaus, KeyBanc.

斯科特·舍恩豪斯，KeyBanc。

I just want to kind of dig into the selling season more. The 6.7 million lives that you've stated for next year, the 1.1 million you added this year. I just want to make sure the 300,000 federal that were added this past year. Those are still consulting only. They're not full ART cycles?

我只是想更多地了解銷售季節。你所說的明年有 670 萬人的生命，今年你增加了 110 萬人。我只是想確認去年增加的 30 萬聯邦人口。這些仍然只是諮詢。它們不是完整的 ART 週期？

And then I wanted to ask about the 1.1 million lives added for next year. Can you give us any color on where the distribution, what kind of industry is it broad-based? Or is it more in the middle of the country? Like you kind of referenced last selling season, you were doing -- making more progress towards the middle of the country? Sort of any more color there on the cohort of this new clients added?

然後我想問明年新增的 110 萬人的生命。您能為我們介紹一下分佈在哪裡嗎？還是在這個國家的中部？就像您提到的上個銷售季節一樣，您正在做的事情 - 向該國中部取得更多進展？新加入的客戶群還有更多色彩嗎？

Sure. I'll comment and then Michael will add anything. Regarding your first question, yes, the 300,000 lives are still don't include the full benefit. The same as what they were this year is the easiest way to describe it. As it relates to the distribution on the new sales, there across -- regarding the industry question first.

當然。我會發表評論，然後邁克爾會添加任何內容。關於你的第一個問題，是的，這30萬條生命還沒有包括全部福利。和今年一樣是最簡單的描述方式。由於它涉及新銷售的分配，因此首先涉及行業問題。

They're across a couple of dozen industries. I listed out a bunch of them in the prepared remarks. And they're also, from a size distribution perspective, they almost reflect our existing book of business in terms of distribution, small to big relative to size distribution, if that's what you're referring to in terms of distribution.

他們橫跨幾十個行業。我在準備好的發言中列出了其中的一些。而且，從規模分佈的角度來看，它們幾乎反映了我們現有的業務分佈情況，相對於規模分佈從小到大，如果這就是您在分佈方面所指的內容。

Yes. I mean very similar makeup to prior years from a demographic and distribution of industry perspective as well as Pete said, from a size perspective. As was referenced in the comments, we did have a nice season with jumbos this year. And outside of that, again, nothing different necessarily from a makeup of the sales season.

是的。我的意思是，從人口和產業分佈的角度來看，以及皮特所說的從規模的角度來看，組成與前幾年非常相似。正如評論中提到的，今年我們確實在巨型球方面度過了一個美好的賽季。除此之外，與銷售季節的組成沒有什麼不同。

Richard Close, Canaccord Genuity.

理查德·克洛斯，Canaccord Genuity。

Congratulations on the selling season. Just on the losses that you talked about, and then there's the large client as well. Is there anything -- any similarities or commonalities in those losses that you've gleaned in looking back at those?

恭喜銷售旺季到來。就你所說的損失而言，還有大客戶。您在回顧這些損失時發現，有什麼相似之處或共通性嗎？

The short answer is no. There -- again, there were only five and including the large one that we announced and there's sort of no commonalities. There are different reasons. Sometimes their losses relative to the parent company being acquired then being acquired, which was one of them. So they're not always dissatisfaction or anything else like that relative to the benefit, but with five of them, the answer is no, there weren't really any commonalities.

簡短的回答是否定的。再說一次，只有五個，包括我們宣布的那個大的，而且沒有任何共同點。有不同的原因。有時，他們的損失是相對於被收購然後被收購的母公司而言的，這就是其中之一。因此，他們並不總是對利益有不滿或其他類似的情緒，但對於其中的五個人來說，答案是否定的，實際上沒有任何共同點。

Okay. Great. That's good to hear. And then with respect to the health plans and the success there, obviously, that's relatively new beginning, I guess, what last -- second half of last year and then now in national and another regional. As you think about how -- bringing those customers on, is there any difference versus employers in terms of maybe utilization or consumption in those populations? Or is it just too early to tell?

好的。偉大的。很高興聽到這個消息。然後，就衛生計劃和那裡的成功而言，顯然，這是一個相對較新的開始，我想，最後是去年下半年，然後是現在在全國和另一個地區。當您思考如何吸引這些客戶時，在這些人群的使用率或消費方面與雇主有什麼不同嗎？還是現在說還太早？

Yes. So just to clarify the sort of difference in unique partnerships there. So when we talk about the health plans. It really -- they really function more as partners as we go to market versus sort of a utilization the way we would think about clients. Then within those partnerships from the health plan side, again, similar to other partners that we have today, we'll bring employers on sort of through that partnership.

是的。所以只是為了澄清那裡獨特的合作關係的差異。所以當我們談論健康計劃時。確實如此——當我們進入市場時，他們確實更多地充當合作夥伴，而不是像我們對待客戶的方式那樣進行利用。然後，在健康計劃方面的合作夥伴關係中，與我們今天擁有的其他合作夥伴類似，我們將透過這種夥伴關係讓雇主加入。

And then we've seen the utilization of those employers, again, function similarly to how -- whether an employer comes on direct or through a partner, the utilization of those, we haven't seen differences in depending on how they contract with us.

然後我們再次看到這些雇主的利用，其功能與雇主直接或透過合作夥伴的方式類似，這些雇主的利用，我們沒有看到取決於他們與我們簽訂合約的方式的差異。

Yes. There's no impact -- said a different way, there's no impact whether or not to direct sale or through a partner on utilization. There's nothing structural there that would impact it in any way. And then we had made a comment that some of them trusted us with their employees as well as a client in house account, that's just normal utilization, normal onboarding for employees, no different than any other client.

是的。沒有影響——換句話說，無論是直接銷售還是透過合作夥伴對利用率都沒有影響。那裡沒有任何結構性的東西會以任何方式影響它。然後我們發表評論說，他們中的一些人信任我們及其員工以及內部客戶帳戶，這只是正常使用，員工正常入職，與任何其他客戶沒有什麼不同。

David Larsen, BTIG.

大衛‧拉森，BTIG。

When I was at the health conference recently, I heard from a couple of your competitors, Kindbody, Maven and also Carrot, a couple of the things broadly speaking, that I was hearing were things like maybe a company wants a $10,000 or $20,000 or a $30,000 max sort of benefit which I think maybe you would describe as being low. I think the way you described it, Pete, was $1 max benefit or something like that. I mean, do you have a product or a program that can accommodate something like that?

當我最近參加健康會議時，我聽到你們的幾個競爭對手，Kindbody、Maven 和 Carrot，從廣義上講，我聽到的一些事情是，也許一家公司想要 10,000 美元或 20,000 美元或一個最高30,000 美元的福利，我想你可能會說它很低。我認為皮特，你所描述的方式是最高 1 美元的福利或類似的東西。我的意思是，你們有可以適應類似情況的產品或程序嗎？

And then maybe how you want to describe it, upsell them or grow the product over time? Just any thoughts there would be helpful because the mix, it seems to me like you're winning more blue collar accounts, so they have less money to spend, so they'll buy fewer IVF cycles, which is basically explains your consumption challenge. Just any thoughts there would be very helpful.

然後也許您想如何描述它、追加銷售或隨著時間的推移發展產品？任何想法都會有幫助，因為在我看來，你贏得了更多的藍領帳戶，所以他們花的錢更少，所以他們會購買更少的試管受精週期，這基本上解釋了你的消費挑戰。任何想法都會非常有幫助。

Yes. Let me clarify that. So I'm not sure what you're referring to in terms of blue collar accounts, the clients we're winning are adopting the benefit, the same that they've been adopting it, two-cycle, three-cycle benefit. They are full treatment bundles. They're full cycles. They're not limited by an arbitrary dollar constraint.

是的。讓我澄清一下。所以我不確定你所指的藍領帳戶是什麼，我們贏得的客戶正在採用這種福利，就像他們一直在採用的那樣，兩個週期、三個週期的福利。它們是完整的治療包。它們是完整的周期。它們不受任意美元約束的限制。

So when I refer to a dollar maximum benefit regardless of the amount you pick. You're limited, the person is limited in their lifetime with their employer as to how much actual dollars they can spend against the benefit. So when a company and a vendor offers a $10,000 maximum benefit, they're not even offering enough money for one actual medical treatment for IVF, not in close, right? Whether they offer a $20,000 maximum benefit, they're not offering enough statistically to have a baby for most people because national live birth rates are below 50% and a cycle with the drugs is going to be in the $20,000 plus range. So mathematically, you're not going to get there, right?

因此，當我提到最大美元福利時，無論您選擇的金額是多少。你是有限的，這個人在他們的雇主的一生中，他們可以在福利中實際花費多少美元是有限的。因此，當一家公司和一家供應商提供高達 10,000 美元的福利時，他們甚至沒有為 IVF 的一次實際醫療提供足夠的資金，遠遠不夠，對嗎？無論他們是否提供高達 20,000 美元的福利，他們都沒有提供足夠的統計數據來支持大多數人生孩子，因為全國活產率低於 50%，而藥物週期將在 20,000 美元以上。所以從數學上來說，你不會到達那裡，對嗎？

And so the clients that are buying our benefit understand that an arbitrary dollar maximum benefit is an inequitable benefit. And because around the country, especially if your national employer, reimbursements rates varies dramatically. And so certain people in the middle of the company where reimbursement rates are lower, are going to have more attempts under $1 maximum benefit than employees that you might have on the East and West Coast, where reimbursement rates on average are higher.

因此，購買我們福利的客戶明白，任意的美元最大福利是不公平的福利。而且因為在全國各地，尤其是您的國家雇主，報銷率差異很大。因此，報銷率較低的公司中層的某些人將比東海岸和西海岸的員工嘗試更多低於 1 美元最高福利的嘗試，而東海岸和西海岸的平均報銷率較高。

But either way, $1 maximum benefit drives, as I said before, different behavior by the patient in the doctor's office and they're making decisions for treatment, and those decisions are made from a position of economic scarcity, where they're trying to preserve dollars and, therefore, select things that otherwise would help them achieve success. And so sort of the upsell concept is a good one, but we have an offering and the offering is, if you want to do a one cycle benefit, you could do it, but having $1 maximum, we believe is not the right way to do.

但無論哪種方式，正如我之前所說，1 美元的最大福利會導致醫生辦公室裡的患者採取不同的行為，他們會做出治療決定，而這些決定是在經濟匱乏的情況下做出的，他們試圖保留金錢，因此選擇那些能夠幫助他們成功的事情。因此，加售概念是一個很好的概念，但我們有一個產品，如果你想獲得一個週期的好處，你可以做到，但最高 1 美元，我們認為這不是正確的方式。

That does conclude today's Q&A. I will now hand the call back to James Hart for closing remarks.

今天的問答就到此結束。現在我將把電話轉回給詹姆斯·哈特（James Hart）做總結發言。

Thanks, Paul, and thanks, everyone, for joining us this afternoon. We hope you found the (inaudible) informative, but feel free to reach out to me at any time for any follow-up. And otherwise, we look forward to speaking to you at the start of the year.

謝謝保羅，也謝謝大家今天下午加入我們。我們希望您能找到（聽不清楚）訊息，但請隨時與我聯繫以獲取任何後續資訊。除此之外，我們期待在今年年初與您交談。

Thank you. This does conclude today's conference call. You may disconnect your lines at this time. Have a wonderful day. Thank you for your participation.

謝謝。今天的電話會議到此結束。此時您可以斷開線路。祝你有美好的一天。感謝您的參與。