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  "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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  "pageNumber": 45,
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  "notes": "The slide uses a dual-axis chart to correlate benefit maturity (bars) with utilization rates (dots).",
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      "kind": "callout",
      "text": "We estimate that the average duration of the fertility benefit across PGNY's aggregate membership base will have increased to 3.24 years entering FY23 versus 1.47 years in FY19. We note that membership utilization has decreased by ~6.5% in FY22 (from 1.09% in FY19 to an estimated 1.02% in FY22). Historical trends indicate that utilization will decrease again next year as the average age of the benefit will see its largest step increase since PGNY went public.",
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      "text": "These numbers seem immaterially small, yet we highlight that each 0.01% decline in utilization represents ~$10M headwind to FY23 vs. FY22 revenues",
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      "kind": "chart",
      "text": "PGNY's Maturing Fertility Benefit and Female Utilization Trends",
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      "text": "Female Utilization: 1.02%",
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      "kind": "paragraph",
      "text": "Logically, lower hiring rates among existing clients will also reduce utilization as relevant current employees exhaust their fertility benefits. In addition, we believe it is important to note that IVF, pregnancy, and having a child are very expensive, even with generous healthcare insurance. Therefore, while difficult to quantify, we expect a weaker macroeconomic picture will be an incremental headwind to utilization.",
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      "kind": "source-note",
      "text": "Sources: PGNY FY19 10-K, FY20 10-K, FY21 10-K, 3Q22 10-Q, Spruce Point Estimates",
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      "text": "Utilization Is Decreasing As The Fertility Benefit Matures Within PGNY's Member Base",
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