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  "docSlug": "bcbeb3ac7b21",
  "documentTitle": "Progyny, Inc. (PGNY)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2023-02-07 00:00:00",
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      "kind": "callout",
      "text": "PGNY's own auditor comments on PGNY's revenue recognition regarding fertility treatment revenues. As disclosed in its 10-K, PGNY accrues revenues based on member appointments scheduled. Our work indicates that some fertility treatments may require 10+ appointments over a three-month duration. Is PGNY recognizing revenue prematurely before the performance obligation has been satisfied? We have never seen a situation where scheduling a member appointment would permit revenue to be recognized. Issues surrounding the revenue recognition related to this dynamic has been disclosed as a critical audit matter in both FY20 and FY21. We question why PGNY would just not practice conservatism and recognize revenue when the full service is complete?",
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      "kind": "callout",
      "text": "We question why PGNY would just not practice conservatism and recognize revenue when the full service is complete?",
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      "kind": "quote",
      "text": "Auditing the Company's estimates of accrued receivables and the related accrued claims payable was complex and required significant judgment as the estimates were sensitive to changes in the significant assumptions, including management's assumptions regarding the lag between authorization date and service date, service changes and cancellations. — PGNY FY2021 10-K",
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      "text": "Source: PGNY FY2021 10-K",
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      "text": "Critical Audit Matter in FY2021 10-K vs Critical Accounting Estimates",
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      "kind": "title",
      "text": "Critical Audit Matters Regarding Accrued Receivables In Both FY20 And FY21 Raise Further Suspicion About PGNY's Revenue Recognition",
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