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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": "Management's narrative on profitability conveniently excludes the ballooning cost of SBC to public shareholders in the form of dilution. As recently as February 2022, Peter Anevski, commented that PGNY was not replacing any cash compensation with stock compensation. We note that a large stock grant to non-executive employees was made on October 18, 2022. Spruce Point estimates that \"cash\" operating costs per employee has decreased from $247K in FY20 to ~$160K in the LTM period ending September 30, 2022.",
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      "kind": "callout",
      "text": "Management's narrative on profitability conveniently excludes the ballooning cost of SBC to public shareholders in the form of dilution.",
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      "text": "Operating Cost Per Employee",
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      "text": "Operating Cost Per Employee: $160K",
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      "kind": "paragraph",
      "text": "On October 18, 2022, the Company's Board of Directors granted 3,706,800 non-qualified stock options and 207,400 restricted stock unit awards under the Company's 2019 Equity Incentive Plan to certain key executives and employees of the Company.",
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      "kind": "quote",
      "text": "\"We're not replacing any level of cash comp with stock comp\" – Peter Anevski on 4Q21 Conference Call on February 28, 2022",
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      "kind": "quote",
      "text": "\"We're not replacing any level of cash comp with stock comp\" — Peter Anevski on 4Q21 Conference Call on February 28, 2022",
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      "kind": "source-note",
      "text": "Sources: PGNY 4Q21 Transcript, FY19 10-K, FY20 10-K, FY21 10-K. (1) PGNY disclosed year ending employees for FY19, FY20 and FY21. Employees for the LTM metric are estimated by Spruce Point based on 30% employee growth in FY22. Cash OPEX excludes stock compensation from operating costs",
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      "kind": "title",
      "text": "Stock Compensation Is Replacing Cash Compensation",
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      "evidence": "Contrasts CEO quote with financial data and recent grant disclosures",
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      "evidence": "The document uses industry comparisons to highlight PGNY's weaknesses.",
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