Specialist
Former Director at Maven Clinic
Agenda
- TAM opportunity for US fertility benefits providers
- Progyny's (NASDAQ: PGNY) customer relationships, retention dynamics and value proposition differentiation
- Smart-bundling commercial strategy and upsell potential
- Progyny's competitive positioning vs Maven Clinic, Carrot, KindBody, WinFertility and others
- Expansion opportunities beyond fertility care
- 2022 outlook, growth trajectory and M&A prospects
Questions
1.
What are some of the most important trends and developments you’ve been following in the fertility benefits market over the past 12 months or so?
2.
How would you say Progyny’s story has shifted over the past few years?
3.
How are you assessing the utilisation environment around fertility volumes? There was an unexpected drop in June 2021. To what extent do you believe pent-up demand and deferred care could make up for lost volumes in the latter part of 2021 and early 2022?
4.
How do you assess Progyny’s ability to weather a recessionary environment? How much of a material risk is self-insured employers cutting Progyny’s benefits in the event of an economic downturn?
5.
The US is in the midst of a historically tight labour market. To what extent does increasing competition for skilled labour affect employer willingness to spend on health benefits such as fertility? How much could Progyny benefit from the accelerated employer adoption of fertility benefits to stay competitive?
6.
How would you quantify the TAM opportunity for fertility benefits in the US? Anecdotal reports suggested as low as USD 3bn domestically and as high as USD 12bn. Where do you think the likely number falls and which services make up the largest percentage of the pie?
7.
Could you expound on the growth potential in this market? Do you think a mid-teens CAGR is sustainable over the next 5-7 years? What factors will determine what kind of clip might be realistic?
8.
How do you assess Progyny’s ability to penetrate some new customer demographics beginning to offer these types of benefits? What are some key differences in winning business from employers who’ve never offered fertility benefits before vs those that are trying to improve their offering?
9.
Progyny boasts extremely high customer retention metrics. How has the company been able to be so successful in retaining customers and reducing churn? Could you expound on any competitive moat the company may have and how sustainable this performance is as the market becomes increasingly saturated?
10.
Could you discuss Progyny’s smart bundling up-selling strategy? How much additional revenue can be captured from smart bundling?
11.
Could you expand on the growth runway and Progyny’s Rx business? Where are the main synergies that
can be leveraged between its fertility benefits and pharmacy benefits service lines?
12.
To what extent is Progyny leveraging its existing customer base for referrals? How important are these referral pathways to capturing new business and how do you assess its commercialisation efforts there?
13.
What are your thoughts on Progyny’s ability to expand beyond fertility care? What new services or benefits would make sense to capture an untapped portion of the market or getting into other areas of family building?
14.
Progyny has been fairly shy acquisitively over the last few years. Do you think the company may get more active as it grows in scale?
15.
How would you break down the relative positioning of Progyny against competitors such as Carrot, WinFertility, Kindbody and others? How do they differ in relative offerings, value proposition and market share?
16.
How high are the market’s barriers to entry? How substantial is the risk of smaller entrants entering the fertility benefits market and encroaching on Progyny’s market share, especially given the high growth clip we discussed earlier?
17.
What is stopping large carriers who already have experience in healthcare benefits from mimicking Progyny’s business model and offering bundled fertility benefits in-house? How defensible is their positionin light of that threat?
18.
How would you assess Progyny’s ability to expand its business into international markets? Where do you think is on the list of company priorities? What are some of the major challenges when entering ex-US markets with different and less mature healthcare systems?
19.
What are your growth expectations for Progyny? It has been approximately doubling revenues every year for several years. How do you assess the sustainability and trajectory of its growth over the next 5-7 years?
20.
What is the average cost for SMID ER and how does the sales process differ for a SMID ER vs larger ones?
21.
Is there anything we haven’t discussed that might be especially important to highlight regarding Progyny?
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