{
  "docId": "019dd923-622c-750b-8b99-4fdf89a4b224",
  "docSlug": "bcbeb3ac7b21",
  "documentTitle": "Progyny, Inc. (PGNY)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2023-02-07 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 95,
  "pageCount": 100,
  "prevPage": 94,
  "nextPage": 96,
  "slideType": "thesis_headline",
  "function": "diagnose_problem",
  "density": "dense",
  "nDataPoints": 0,
  "notes": "Uses a 2x2 grid layout to categorize the core arguments against PGNY's business model sustainability.",
  "elementsJson": [
    "headline_text",
    "callout_box",
    "bullet_list",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b99-4fdf89a4b224/95",
  "deckHref": "/decks/019dd923-622c-750b-8b99-4fdf89a4b224",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b99-4fdf89a4b224.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b99-4fdf89a4b224#slide-95",
  "components": [
    {
      "bbox": {
        "h": 0.08,
        "w": 0.85,
        "x": 0.1,
        "y": 0.16
      },
      "kind": "callout",
      "text": "The fertility clinic landscape is changing rapidly, as private equity owners roll-up a supply constrained sector. We believe PGNY needs the clinics more than they need PGNY and that short, 1-year clinic contracts only increase clinic network negotiating leverage, which we believe may pressure PGNY margins going forward.",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "a4ee55af-d745-43d2-b6b6-188f6ceb1fa0",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "callout",
      "text": "We believe PGNY needs the clinics more than they need PGNY and that short, 1-year clinic contracts only increase clinic network negotiating leverage, which we believe may pressure PGNY margins going forward.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-2b61-7647-86f4-7699ce3d3771",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.18,
        "w": 0.48,
        "x": 0.02,
        "y": 0.66
      },
      "kind": "list",
      "text": "Clinic / PGNY Economic Splits: Private-equity owned clinic networks have clearly gained negotiating leverage versus PGNY. PGNY still accounts for a small fraction of most clinics' business, making them less strategic. PGNY must legally sustain a clinic network able to service its new clients, placing the onus on PGNY to ensure capacity.",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "06d195c2-1ed5-4d79-9894-443d6ec0eee0",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.48,
        "x": 0.52,
        "y": 0.35
      },
      "kind": "list",
      "text": "Clinic Demand: PGNY was widely acknowledged to be a richer payer when the Company launched its fertility benefit; with new entrants undercutting PGNY on price, PGNY may become a less attractive source of business. The large number of high-growth competitors presents other options for clinics seeking growth.",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "ac7c1ae6-3187-46fa-950a-63e0e36d0e6b",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.48,
        "x": 0.52,
        "y": 0.66
      },
      "kind": "list",
      "text": "Clinic Contract Issues: The PGNY network is inherently unstable, as client contracts are typically three years, yet clinic contracts are only one year. PGNY clinic relationships are not exclusive, so PGNY has no ability to secure capacity or differentiate its offering.",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "b55b6d69-2ad2-4b75-b964-ba1ee377f586",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.2,
        "w": 0.48,
        "x": 0.02,
        "y": 0.35
      },
      "kind": "list",
      "text": "Clinic Supply / Capacity: The fertility clinic landscape is generally considered to be supply constrained, with insufficient new endocrinologists graduating from schools. We believe constrained supply is one explanation for clinics with issues remaining in-network. The best clinics are the ones who need PGNY the least. Private-equity owned networks and Kindbody are rolling up clinics, which may lead to defections from PGNY.",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "cd102973-174c-4ba3-b105-4774eebe994c",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.02,
        "w": 0.15,
        "x": 0.02,
        "y": 0.97
      },
      "kind": "source-note",
      "text": "Source: Spruce Point Research",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "de813bf3-6a2e-4f0c-ad57-9ce5c5b5cae9",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.06,
        "w": 0.65,
        "x": 0.31,
        "y": 0.02
      },
      "kind": "title",
      "text": "We Believe The PGNY Clinic Network Is Unstable And Under Pressure",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "0f0bda14-2e46-423a-a79b-89b4790e309f",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "matrix-2x2",
      "slug": null,
      "matchId": "6cd62689-ac8f-4c9a-bfb0-c4dd857abccd",
      "evidence": "The slide organizes arguments into four distinct quadrants (Supply, Demand, Economics, Contracts).",
      "confidence": 0.8
    }
  ],
  "arcBeats": [
    {
      "to": 100,
      "from": 61,
      "beatId": "470ad4dd-317c-46c8-baea-551e7894c3b9",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "Resolution",
      "beatSlug": "mountain-resolution",
      "evidence": "The document concludes with a detailed analysis of PGNY's valuation and downside risk.",
      "position": 4,
      "confidence": 0.8,
      "parentBeatName": "Resolution",
      "parentBeatSlug": "resolution"
    }
  ],
  "loops": [
    {
      "to": 100,
      "from": 61,
      "name": "Mece Breakdown",
      "slug": "40-mece-breakdown",
      "bestFor": "Problem structuring, ensuring completeness, strategic analysis",
      "matchId": "db636762-5e9e-4cb6-8376-e0923a5a5438",
      "evidence": "The document presents a detailed analysis of PGNY's valuation and downside risk.",
      "position": 3,
      "objective": "How do PGNY's issues impact its valuation?",
      "structure": "The Whole -> Category A (distinct) -> Category B (distinct) -> Category C (distinct) -> Complete Coverage",
      "confidence": 0.7,
      "description": "Divide a complex topic into mutually exclusive, collectively exhaustive categories"
    }
  ],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}