Progyny Inc (NASDAQ: PGNY) stock rose over 2.9% on December 5th, 2019 in the pre market session (Source: Google finance) after the company in the third quarter of FY 19 has reported better than expected output. Moreover, for the third quarter of FY 19, the company has reported 120% rise in the revenue to $61.2 million as compared to $27.8 million reported in the prior year period. The increase was mainly due to higher revenue for both the fertility benefit services and the pharmacy benefit services.
The Net loss attributable to common stockholders of $8.2 million, compared to a net loss attributable to common stockholders of $1.1 million, in the prior year period. The increased loss was attributable due to a $11.2 million non-cash charge related with the increase in the valuation of the outstanding convertible preferred stock warrants, which are needed to be remeasured. The Adjusted EBITDA was increased by 710% to $5.5 million from the prior year period. The increase was on the back of the growth in revenue as well as improved operating leverage across the business. Net cash provided by operating activities for the third quarter of 2019 has increased to $5.9 million, compared to net cash used by operating activities of $0.5 million in the prior year period. The company has generated Cash and cash equivalents of $7.7 million as of September 30, 2019
Fertility benefit services revenue rose 90% to $50 million from the $26.4 million reported in the prior year period, mainly due to an increase in the number of clients. Pharmacy benefit services revenue has increased to $11.2 million as compared to $1.4 million reported in the prior year period. Progyny Rx went live with a select number of clients in 2018 and the revenue in the current period got benefit from having Progyny Rx available for the full selling season to both new and existing clients. Gross profit increased by 144% to $12.3 million from the prior year period. Gross margin was 20.1%, due to an increase of 190 basis points from the 18.2% gross margin in the prior year period, driven by increased operating efficiencies.
For the fourth quarter 2019, the company expects revenue to be $65.0 million to $66.5 million and adjusted net income is projected to be $1.1 million to $1.4 million.
For FY 19, the revenue is projected to be in the range of $229.6 million to $231.1 million and adjusted net income is expected to be in the range of $9.3 million to $9.6 million, or $0.10 to $0.11 per share.