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Progyny, Inc. Announces Second Quarter 2023 Results
ソース: Nasdaq GlobeNewswire / 03 8 2023 16:01:14 America/New_York
Reports Record Quarterly Revenue of $279.4 Million, Reflecting 43% Growth Over the Prior Year Period
Achieves Record Quarterly Operating Cash Flow of $76.0 Million
Raises Full Year Revenue and Earnings Guidance
Continuing to See Strong Employer Demand for Fertility and Family Building SolutionsNEW YORK, Aug. 03, 2023 (GLOBE NEWSWIRE) -- Progyny, Inc. (Nasdaq: PGNY) (“Progyny” or the “Company”), a leading benefits management company specializing in fertility and family building benefits solutions, today announced its financial results for the three-month period ended June 30, 2023 (“the second quarter of 2023”) as compared to the three-month period ended June 30, 2022 (“the second quarter of 2022” or “the prior year period”).
“We are pleased with our strong second quarter results, driven once again by healthy levels of member engagement that continue to reflect members’ desire to pursue the care they need in order to achieve their family building goals,” said Pete Anevski, Chief Executive Officer of Progyny. “According to the CDC, assisted reproductive technology (ART) cycles grew at a compounded annual growth rate of 10.5% over the past ten years, and a compounded annual growth rate of 11.8% over just the last two years alone, despite the effects of the global pandemic. We believe the accelerating growth in treatment volumes reflects both the increasing prevalence of infertility – which the World Health Organization recently reported is now affecting one out of every six people of reproductive age globally – as well as improved access to care, as employers increasingly look to provide the health benefits that will meet the medical needs and expectations of their workforce.
“This data also reveals that the macro trends that have been driving our growth remain intact, and we are continuing to see high employer demand for fertility and family building solutions in our current selling season. Our pipeline continues to be favorable as compared to this time last year, and we have already received a healthy number of commitments for 2024 implementations, including leading industrial, financial services and transportation brands, as well as labor union populations. While we expect the majority of client decisions will occur in the late summer and early fall, as usual, we are pleased with where we are today and with how we are positioned for the remainder of the selling season.”
“During the second quarter, we reached new agreements with our pharmacy program partners, under terms that will not only continue to provide us with favorable unit economics, but also accelerate the receipt terms to us, which, along with our strong performance, contributed to the record $76.0 million of operating cash flow we achieved this quarter,” said Mark Livingston, Progyny’s Chief Financial Officer.
Second Quarter 2023 Highlights: (unaudited; in thousands, except per share amounts) 2Q 2023 2Q 2022 Revenue $ 279,373 $ 195,004 Gross Profit $ 60,641 $ 43,887 Gross Margin 21.7 % 22.5 % Net Income $ 14,991 $ 8,768 Net Income per Diluted Share1 $ 0.15 $ 0.09 Adjusted EBITDA2 $ 47,464 $ 32,878 Adjusted EBITDA Margin2 17.0 % 16.9 % 1. Net income per diluted share reflects weighted-average shares outstanding as adjusted for potential dilutive securities, including options, restricted stock units, warrants to purchase common stock, and shares issuable under the employee stock purchase plan.
2. Adjusted EBITDA and Adjusted EBITDA margin are financial measures that are not required by, or presented in accordance with, U.S. generally accepted accounting principles (“GAAP”). Please see Annex A of this press release for a reconciliation of Adjusted EBITDA to net income, the most directly comparable financial measure stated in accordance with GAAP for each of the periods presented. We calculate Adjusted EBITDA margin as Adjusted EBITDA divided by revenue.Financial Highlights
Revenue was $279.4 million, a 43% increase as compared to the $195.0 million reported in the second quarter of 2022, primarily as a result of the increase in our number of clients and covered lives.- Fertility benefit services revenue was $172.7 million, a 36% increase from the $126.8 million reported in the second quarter of 2022.
- Pharmacy benefit services revenue was $106.6 million, a 56% increase as compared to the $68.2 million reported in the second quarter of 2022.
Gross profit was $60.6 million, an increase of 38% from the $43.9 million reported in the second quarter of 2022, primarily due to the higher revenue. Gross margin was 21.7%, a decrease of 80 basis points from the 22.5% reported in the prior year period, reflecting the impact of planned cost containment efforts that were shared with our clients, as well as incremental investments in care management resources.
Net income was $15.0 million, or $0.15 income per diluted share, an increase of 71% as compared to the $8.8 million, or $0.09 income per diluted share, reported in the second quarter of 2022. The higher net income was due primarily to the operating efficiencies realized on our higher revenues, which was partially offset by an increase in non-cash stock-based compensation expense and a higher provision for taxes in the current period.
Adjusted EBITDA was $47.5 million, an increase of 44% as compared to the $32.9 million reported in the second quarter of 2022, reflecting the higher gross profit and operating efficiencies realized on our higher revenues. Adjusted EBITDA margin was 17.0%, an increase of 10 basis points from the 16.9% Adjusted EBITDA margin in the second quarter of 2022. Please refer to Annex A for a reconciliation of Adjusted EBITDA to net income.
Cash Flow
Net cash generated by operating activities in the second quarter of 2023 was $76.0 million, compared to cash generated of $19.2 million in the prior year period. The higher cash flow as compared to the prior year period was positively impacted by new agreements with our pharmacy program partners, which included more favorable receipt terms and resulted in one additional receipt in the second quarter, as well as the impact of timing for certain working capital items.Balance Sheet and Financial Position
As of June 30, 2023, the Company had total working capital of approximately $367.2 million and no debt. This included cash and cash equivalents and marketable securities of $282.5 million, an increase of $74.6 million from March 31, 2023.Key Metrics
The Company had 384 clients as of June 30, 2023, as compared to 273 clients as of June 30, 2022.Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 ART Cycles* 14,771 10,392 27,942 19,316 Utilization – All Members** 0.57 % 0.49 % 0.85 % 0.77 % Utilization – Female Only** 0.50 % 0.44 % 0.73 % 0.66 % Average Members 5,340,000 4,268,000 5,330,000 4,135,000 * Represents the number of ART cycles performed, including IVF with a fresh embryo transfer, IVF freeze all cycles/embryo banking, frozen embryo transfers, and egg freezing.
** Represents the member utilization rate for all services, including, but not limited to, ART cycles, initial consultations, IUIs, and genetic testing. The utilization rate for all members includes all unique members (female and male) who utilize the benefit during that period, while the utilization rate for female only includes only unique females who utilize the benefit during that period. For purposes of calculating utilization rates in any given period, the results reflect the number of unique members utilizing the benefit for that period. Individual periods cannot be combined as member treatments may span multiple periods.Financial Outlook
“In light of our strong results in the first half of the year, as well as our current expectations for member engagement, we are raising our guidance for the year, which also reflects the customary seasonality that we typically see with member activity in the third quarter,” said Mr. Anevski.The Company is providing the following financial guidance for the full year ending December 31, 2023 and the three-month period ending September 30, 2023:
- Full Year 2023 Outlook:
- Revenue is now projected to be $1,075 million to $1,090 million, reflecting growth of 37% to 39%
- Net income is projected to be $51.2 million to $54.3 million, or $0.50 to $0.53 per diluted share, on the basis of approximately 102 million assumed weighted-average fully diluted-shares outstanding
- Adjusted EBITDA1 is projected to be $183.0 million to $187.5 million
- Third Quarter of 2023 Outlook:
- Revenue is projected to be $268.0 million to $273.0 million, reflecting growth of 30% to 33%
- Net income is projected to be $9.5 million to $10.5 million, or $0.09 to $0.10 per diluted share, on the basis of approximately 101 million assumed weighted-average fully diluted-shares outstanding
- Adjusted EBITDA1 is projected to be $44.7 million to $46.2 million
1. Adjusted EBITDA is a financial measure that is not required by, or presented in accordance with, GAAP. Please see Annex A of this press release for a reconciliation of forward-looking Adjusted EBITDA to forward-looking net income, the most directly comparable financial measure stated in accordance with GAAP for the period presented.
Conference Call Information
Progyny will host a conference call at 4:45 P.M. Eastern Time (1:45 P.M. Pacific Time) today, August 3, 2023, to discuss its financial results. Interested participants from the United States may join by calling 1.866.825.7331 and using conference ID 265484. Participants from international locations may join by calling 1.973.413.6106 and using the same conference ID. A replay of the call will be available until August 10, 2023 at 6:00 P.M. Eastern Time by dialing 1.800.332.6854 (U.S. participants) or 1.973.528.0005 (international) and entering passcode 265484. A live audio webcast of the call and subsequent replay will also be available through the Events & Presentations section of the Company’s Investor Relations website at investors.progyny.com.About Progyny
Progyny (Nasdaq: PGNY) is a leading fertility benefits management company. We are redefining fertility and family building benefits, proving that a comprehensive and inclusive solution can simultaneously benefit employers, patients, and physicians.Our benefits solution empowers patients with education and guidance from a dedicated Patient Care Advocate (PCA), provides access to a premier network of fertility specialists using the latest science and technologies, reduces healthcare costs for the nation’s leading employers, and drives optimal clinical outcomes. We envision a world where anyone who wants to have a child can do so.
Headquartered in New York City, Progyny has been recognized for its leadership and growth by CNBC Disruptor 50, Modern Healthcare’s Best Places to Work in Healthcare, Financial Times, INC. 5000, and Crain’s Fast 50 for NYC. For more information, visit www.progyny.com.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this press release other than statements of historical fact, including, without limitation, statements regarding our financial outlook for the third quarter and full year 2023; the demand for our solutions; our expectations for our selling season for 2024 launches; our positioning to successfully manage economic uncertainty on our business; the timing of client decisions; our expected utilization rates and mix; our ability to retain existing clients and acquire new clients; the expected benefits of our pharmacy program partner agreements; and our business strategy, plans, goals and expectations concerning our market position, future operations, and other financial and operating information. The words “anticipates,” “assumes,” “believe,” “contemplate,” “continues,” “could,” “estimates,” “expects,” “future,” “intends,” “may,” “plans,” “predict,” “potential,” “project,” “seeks,” “should,” “target,” “will,” and the negative of these or similar expressions and phrases are intended to identify forward-looking statements, though not all forward-looking statements use these words or expressions.Forward-looking statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These risks include, without limitation, failure to meet our publicly announced guidance or other expectations about our business; competition in the market in which we operate; our history of operating losses and ability to sustain profitability; unfavorable conditions in our industry or the United States economy; our limited operating history and the difficulty in predicting our future results of operations; our ability to attract and retain clients and increase the adoption of services within our client base; the loss of any of our largest client accounts; changes in the technology industry; changes or developments in the health insurance market; negative publicity in the health benefits industry; lags, failures or security breaches in our computer systems or those of our vendors; a significant change in the level or the mix of utilization of our solutions; our ability to offer high-quality support; positive references from our existing clients; our ability to develop and expand our marketing and sales capabilities; the rate of growth of our future revenue; the accuracy of the estimates and assumptions we use to determine the size of target markets; our ability to successfully manage our growth; reductions in employee benefits spending; seasonal fluctuations in our sales; the adoption of new solutions and services by our clients or members; our ability to innovate and develop new offerings; our ability to adapt and respond to the medical landscape, regulations, client needs, requirements or preferences; our ability to maintain and enhance our brand; our ability to attract and retain members of our management team, key employees, or other qualified personnel; our ability to maintain our Company culture; risks related to any litigation against us; our ability to maintain our Center of Excellence network of healthcare providers; our strategic relationships with and monitoring of third parties; our ability to maintain or any disruption of our pharmacy distribution network or their supply chain; our relationship with key pharmacy program partners or any decline in rebates provided by them; our ability to maintain our relationships with benefits consultants; exposure to credit risk from our members; risks related to government regulation; risks related to potential sales to government entities; our ability to protect our intellectual property rights; risks related to acquisitions, strategic investments, partnerships, or alliances; federal tax reform and changes to our effective tax rate; the imposition of state and local taxes; our ability to utilize a significant portion of our net operating loss or research tax credit carryforwards; our ability to maintain effective internal control over financial reporting; our ability to adapt and respond to the changing SEC expectations regarding environmental, social and governance practices. For a detailed discussion of these and other risk factors, please refer to our filings with the Securities and Exchange Commission (the “SEC”), including in the section entitled “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022, and subsequent reports that we file with the SEC which are available at http://investors.progyny.com and on the SEC’s website at https://www.sec.gov.
Forward-looking statements represent our management’s beliefs and assumptions only as of the date of this press release. Our actual future results could differ materially from what we expect. Except as required by law, we assume no obligation to update these forward-looking statements publicly, or to update the reasons.
Non-GAAP Financial Measures
In addition to disclosing financial measures prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), this press release and the accompanying tables include the non-GAAP financial measures Adjusted EBITDA, Adjusted EBITDA margin, and Adjusted EBITDA margin on incremental revenue.Adjusted EBITDA, Adjusted EBITDA margin and Adjusted EBITDA margin on incremental revenue are supplemental financial measures that are not required by, or presented in accordance with, GAAP. We believe that these non-GAAP measures, when taken together with our GAAP financial results, provides meaningful supplemental information regarding our operating performance and facilitates internal comparisons of our historical operating performance on a more consistent basis by excluding certain items that may not be indicative of our business, results of operations or outlook. In particular, we believe that the use of Adjusted EBITDA, Adjusted EBITDA margin and Adjusted EBITDA margin on incremental revenue are helpful to our investors as they are measures used by management in assessing the health of our business, determining incentive compensation, evaluating our operating performance, and for internal planning and forecasting purposes.
Adjusted EBITDA, Adjusted EBITDA margin and Adjusted EBITDA margin on incremental revenue are presented for supplemental informational purposes only, have limitations as analytical tools and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. Some of the limitations of Adjusted EBITDA, Adjusted EBITDA margin and Adjusted EBITDA margin on incremental revenue include: (1) it does not properly reflect capital commitments to be paid in the future; (2) although depreciation and amortization are non-cash charges, the underlying assets may need to be replaced and Adjusted EBITDA does not reflect these capital expenditures; (3) it does not consider the impact of stock-based compensation expense; (4) it does not reflect other non-operating income and expenses, including other (income) expense, net and interest (income) expense, net; (5) it does not reflect tax payments that may represent a reduction in cash available to us. In addition, our non-GAAP measures may not be comparable to similarly titled measures of other companies because they may not calculate such measures in the same manner as we calculate these measures, limiting their usefulness as comparative measures. Because of these limitations, when evaluating our performance, you should consider Adjusted EBITDA, Adjusted EBITDA margin and Adjusted EBITDA margin on incremental revenue alongside other financial performance measures, including our net income, gross margin, and our other GAAP results.
We calculate Adjusted EBITDA as net income, adjusted to exclude depreciation and amortization; stock-based compensation expense; other (income) expense, net; interest income, net; and provision (benefit) for income taxes. We calculate Adjusted EBITDA margin as Adjusted EBITDA divided by revenue. We calculate Adjusted EBITDA margin on incremental revenue as incremental Adjusted EBITDA in 2023 divided by incremental revenue in 2023. Please see Annex A: “Reconciliation of GAAP to Non-GAAP Financial Measures” elsewhere in this press release.
For Further Information, Please Contact:
Investors: Media: James Hart Selena Yang investors@progyny.com media@progyny.com PROGYNY, INC. Consolidated Balance Sheets (Unaudited) (in thousands, except share and per share amounts) June 30,
2023December 31,
2022ASSETS Current assets: Cash and cash equivalents $ 170,570 $ 120,078 Marketable securities 111,925 69,222 Accounts receivable, net of $37,892 and $28,328 of allowances at June 30, 2023 and December 31, 2022, respectively 264,958 240,067 Prepaid expenses and other current assets 13,677 4,489 Total current assets 561,130 433,856 Property and equipment, net 9,497 8,371 Operating lease right-of-use assets 18,451 6,903 Goodwill 11,880 11,880 Intangible assets, net — 99 Deferred tax assets 77,065 77,889 Other noncurrent assets 3,514 3,988 Total assets $ 681,537 $ 542,986 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 130,160 $ 109,287 Accrued expenses and other current liabilities 63,740 50,249 Total current liabilities 193,900 159,536 Operating lease noncurrent liabilities 18,138 6,482 Total liabilities 212,038 166,018 Commitments and Contingencies STOCKHOLDERS’ EQUITY Common stock, $0.0001 par value; 1,000,000,000 shares authorized at June 30, 2023 and December 31, 2022; 95,165,253 and 93,301,156 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively 9 9 Additional paid-in capital 408,814 349,533 Treasury stock, at cost, $0.0001 par value; 615,980 shares at June 30, 2023 and December 31, 2022 (1,009 ) (1,009 ) Accumulated earnings 60,603 27,934 Accumulated other comprehensive income 1,082 501 Total stockholders’ equity 469,499 376,968 Total liabilities and stockholders’ equity $ 681,537 $ 542,986 PROGYNY, INC. Consolidated Statements of Operations (Unaudited) (in thousands, except share and per share amounts) Three Months Ended
June 30,Six Months Ended
June 30,2023 2022 2023 2022 Revenue $ 279,373 $ 195,004 $ 537,767 $ 367,221 Cost of services 218,732 151,117 418,486 290,385 Gross profit 60,641 43,887 119,281 76,836 Operating expenses: Sales and marketing 15,384 11,496 29,666 21,511 General and administrative 30,073 23,553 59,420 46,545 Total operating expenses 45,457 35,049 89,086 68,056 Income from operations 15,184 8,838 30,195 8,780 Other income (expense), net: Other income (expense), net 1,277 25 1,775 (71 ) Interest income, net 706 40 1,528 52 Total other income (expense), net 1,983 65 3,303 (19 ) Income before income taxes 17,167 8,903 33,498 8,761 (Provision) benefit for income taxes (2,176 ) (135 ) (829 ) 4,978 Net income $ 14,991 $ 8,768 $ 32,669 $ 13,739 Net income per share: Basic $ 0.16 $ 0.10 $ 0.35 $ 0.15 Diluted $ 0.15 $ 0.09 $ 0.33 $ 0.14 Weighted-average shares used in computing net income per share: Basic 94,738,651 91,964,978 94,290,653 91,578,707 Diluted 100,615,919 99,672,769 100,391,573 99,725,564 PROGYNY, INC. Consolidated Statements of Cash Flows (Unaudited) (in thousands) Six Months Ended
June 30,2023 2022 OPERATING ACTIVITIES Net income $ 32,669 $ 13,739 Adjustments to reconcile net income to net cash provided by operating activities: Deferred tax expense (benefit) 824 (5,070 ) Depreciation and amortization 1,068 750 Stock-based compensation expense 62,561 48,154 Bad debt expense 9,794 6,097 Realized gain on sale of marketable securities (1,324 ) — Foreign currency exchange rate gain (7 ) — Changes in operating assets and liabilities: Accounts receivable (34,686 ) (101,405 ) Prepaid expenses and other current assets (9,189 ) 421 Accounts payable 20,853 31,075 Accrued expenses and other current liabilities 13,829 15,591 Other noncurrent assets and liabilities 581 (1,368 ) Net cash provided by operating activities 96,973 7,984 INVESTING ACTIVITIES Purchase of property and equipment, net (2,010 ) (1,280 ) Purchase of marketable securities (120,599 ) (94,611 ) Sale of marketable securities 79,813 55,074 Net cash used in investing activities (42,796 ) (40,817 ) FINANCING ACTIVITIES Proceeds from exercise of stock options 3,124 1,209 Payment of employee taxes related to equity awards (7,426 ) (5,635 ) Proceeds from contributions to employee stock purchase plan 617 576 Net cash used in financing activities (3,685 ) (3,850 ) Effect of exchange rate changes on cash and cash equivalents 0 — Net increase (decrease) in cash and cash equivalents 50,492 (36,683 ) Cash and cash equivalents, beginning of period 120,078 91,413 Cash and cash equivalents, end of period $ 170,570 $ 54,730 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Cash paid for income taxes, net of refunds received $ 698 $ 60 SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES Additions of property and equipment, net included in accounts payable and accrued expenses $ 438 $ 303 ANNEX A
PROGYNY, INC.
Reconciliation of GAAP to Non-GAAP Financial Measures
(Unaudited)
(in thousands)Costs of Services, Gross Margin and Operating Expenses Excluding Stock-Based Compensation Calculation
The following table provides a reconciliation of cost of services, gross profit, sales and marketing and general and administrative expenses to each of these measures excluding the impact of stock-based compensation expense for each of the periods presented:Three Months Ended Three Months Ended June 30, 2023 June 30, 2022 GAAP Stock-Based
Compensation
ExpenseNon-GAAP GAAP Stock-Based
Compensation
ExpenseNon-GAAP Cost of services $ 218,732 $ (8,812 ) $ 209,920 $ 151,117 $ (6,170 ) $ 144,947 Gross profit $ 60,641 $ 8,812 $ 69,453 $ 43,887 $ 6,170 $ 50,057 Sales and marketing $ 15,384 $ (6,883 ) $ 8,501 $ 11,496 $ (5,079 ) $ 6,417 General and administrative $ 30,073 $ (16,058 ) $ 14,015 $ 23,553 $ (12,405 ) $ 11,148 Expressed as a Percentage of Revenue Gross margin 21.7 % 3.2 % 24.9 % 22.5 % 3.2 % 25.7 % Sales and marketing 5.5 % (2.5 )% 3.0 % 5.9 % (2.6 )% 3.3 % General and administrative 10.8 % (5.7 )% 5.0 % 12.1 % (6.4 )% 5.7 % Six Months Ended Six Months Ended June 30, 2023 June 30, 2022 GAAP Stock-Based
Compensation
ExpenseNon-GAAP GAAP Stock-Based
Compensation
ExpenseNon-GAAP Cost of services $ 418,486 $ (17,026 ) $ 401,460 $ 290,385 $ (12,335 ) $ 278,050 Gross profit $ 119,281 $ 17,026 $ 136,307 $ 76,836 $ 12,335 $ 89,171 Sales and marketing $ 29,666 $ (13,451 ) $ 16,215 $ 21,511 $ (9,842 ) $ 11,669 General and administrative $ 59,420 $ (32,084 ) $ 27,336 $ 46,545 $ (25,977 ) $ 20,568 Expressed as a Percentage of Revenue Gross margin 22.2 % 3.2 % 25.3 % 20.9 % 3.4 % 24.3 % Sales and marketing 5.5 % (2.5 )% 3.0 % 5.9 % (2.7 )% 3.2 % General and administrative 11.1 % (6.0 )% 5.1 % 12.7 % (7.1 )% 5.6 % Note: percentages shown in the table may not cross foot due to rounding.
Adjusted EBITDA and Adjusted EBITDA Margin on Incremental Revenue Calculation
The following table provides a reconciliation of Net income to Adjusted EBITDA for each of the periods presented:Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Net income $ 14,991 $ 8,768 $ 32,669 $ 13,739 Add: Depreciation and amortization 527 386 1,068 750 Stock‑based compensation expense 31,753 23,654 62,561 48,154 Other (income) expense, net (1,277 ) (25 ) (1,775 ) 71 Interest income, net (706 ) (40 ) (1,528 ) (52 ) Provision (benefit) for income taxes 2,176 135 829 (4,978 ) Adjusted EBITDA $ 47,464 $ 32,878 $ 93,824 $ 57,684 Revenue $ 279,373 $ 195,004 $ 537,767 $ 367,221 Incremental revenue vs. 2022 84,369 170,546 Incremental Adjusted EBITDA vs. 2022 14,586 36,140 Adjusted EBITDA margin on incremental revenue 17.3 % 21.2 % Reconciliation of Non-GAAP Financial Guidance for the Three Months Ending September 30, 2023 and Year Ending December 31, 2023
Three Months Ending
September 30, 2023Year Ending
December 31, 2023(in thousands) Low High Low High Revenue $ 268,000 $ 273,000 $ 1,075,000 $ 1,090,000 Net Income $ 9,500 $ 10,500 $ 51,200 $ 54,300 Add: Depreciation and amortization 600 600 2,300 2,300 Stock-based compensation expense 32,000 32,000 127,000 127,000 Other income, net (1,800 ) (1,800 ) (7,000 ) (7,000 ) Provision for income taxes 4,400 4,900 9,500 10,900 Adjusted EBITDA* $ 44,700 $ 46,200 $ 183,000 $ 187,500 * All of the numbers in the table above reflect our future outlook as of the date hereof. Net income and Adjusted EBITDA ranges do not reflect any estimate for other potential activities and transactions, nor do they contemplate any discrete income tax items, including the income tax impact related to equity compensation activity.
