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  "documentTitle": "Progyny, Inc. (PGNY)",
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  "authorName": "Spruce Point Capital Management",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2023-02-07 00:00:00",
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  "notes": "Uses a table to perform a 'gap analysis' between company-reported metrics and external client data.",
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      "kind": "callout",
      "text": "How did the PGNY existing client member base grow by only 100,000 members when just four clients, AMZN, MSFT, GOOG, and FB/META, grew by nearly 150,000 alone?",
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      "text": "YoY Major Client Employee Growth / Implied Existing Client Member Growth: 218%",
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      "text": "If we subtract new members added from the previous selling season from total members added during a calendar year, we can calculate a proxy for members added from existing client employee growth. However, we find that this figure fell far short of reported employee growth, even when looking solely at four major clients. How can this be?",
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      "kind": "quote",
      "text": "…many of our clients have continued to expand their workforce as they successfully grow their own businesses. Our existing clients grew in aggregate by approximately 100,000 lives in 2020 despite the significant disruptions caused by the COVID pandemic. Because of our utilization-based model, as our employees grow, we grow too.",
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      "kind": "quote",
      "text": "“…many of our clients have continued to expand their workforce as they successfully grow their own businesses. Our existing clients grew in aggregate by approximately 100,000 lives in 2020 despite the significant disruptions caused by the COVID pandemic. Because of our utilization-based model, as our employees grow, we grow too.” — David Schlanger, 2021 JPMorgan Healthcare Conference Transcript",
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      "kind": "source-note",
      "text": "Source: PGNY Q3 2022 earnings call, PGNY Q3 2021 earnings call, PGNY Q3 2020 earnings call, PGNY Q3 2019 earnings call, PGNY 10-Ks for 2019, 2020, and 2021, Bloomberg",
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      "kind": "table",
      "text": "Analysis of Reported Major Client Employee Growth Versus Implied PGNY Existing Client Growth",
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      "kind": "title",
      "text": "Existing Client Employee Growth Has Been A Material Driver of Member Growth; We Believe PGNY Disclosures Don't Add Up",
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