Fertility Clinic Network and Employer Benefits Provider on Track for Full Year Revenue of $180 Million, Reflecting 50% Year-Over-Year Growth
NEW YORK, December 5, 2023 /PRNewswire/ – Kindbody, the leading national fertility clinic network and global family-building benefits provider for employers, today announced that it is on track to generate revenue of approximately $180 million in fiscal year 2023. This represents 50% organic year-over-year growth, positioning Kindbody as a leader among its healthcare and fertility peers today and earning it a top ten percent ranking on the 2023 Deloitte Technology Fast 500™ list.
Kindbody’s model is unique in that it is the only family-building benefits provider for employers that owns and operates fertility clinics. The Company guarantees savings of 25%-30% to employers by contracting directly with Kindbody to provide comprehensive virtual and in-person care for their employees. As the direct provider of care, Kindbody is uniquely positioned to decrease cost, improve the patient experience, and deliver better health outcomes.
Kindbody has seen growing interest in its hybrid solution of both virtual and in-person care, which is differentiated from legacy solutions which only provide for virtual care navigation. The 2024 Large Employer Health Care Strategy Survey conducted by Business Group on Health cited that virtual only solutions are on the decline as hybrid solutions emerge as the newer, preferred solution, “[Employers’] changing views are due to concerns regarding whether or not all forms of virtual health result in positive impacts on outcomes, quality, cost, experience, and integration.”
The Company attributes its high growth to its substantial investments in technology and state-of-the-art fertility clinics. With 33 clinics operating today, and an additional eight scheduled to open over the next few months, Kindbody has an extensive geographical footprint to provide exceptional care nationwide to its growing network of employer clients and patients. Kindbody’s technology investments have enabled it to achieve thought leadership and innovation in an industry ripe for change.
“2023 is an exceptional year for Kindbody, highlighted by record levels of revenue and our clinic financials with 60% gross margin and just under 50% contribution margin, indicating interest in family-building care continues to grow among employers and consumers alike,” said Annbeth Eschbach, CEO of Kindbody. “In five short years, Kindbody has emerged as one of the fastest growing companies in North America with 132 employer clients covering dozens of industries from education and retail, to aerospace and transportation. Our record growth demonstrates the excellence of Kindbody’s offerings and differentiated business model, setting new benchmarks in the fertility and family-building industry.”
Kindbody Chief Financial Officer Scott Bruckner commented, “While investing in growth, we will experience operating losses, which is typical of a growth stage company. In Kindbody’s five-year operating history, the payoff from our investments is evident with our clinics already generating positive contribution margin on a consolidated basis and our operating losses improving 36% during fiscal year 2023. This puts the Company on track to be EBITDA positive in 2024 and free cash flow positive in late 2024/early 2025, ultimately capturing significant market share of the $80 billion fertility industry.“
Bruckner added, “Kindbody’s top line growth in 2023 was all organic. Several planned acquisitions that would have taken the Company to well over $200 million in revenue will be considered for 2024/2025. Without any M&A, our 2024 revenue guidance is for 50% year-over-year growth, with a top-line range of $270 million to $300 million. What investors favor is the significant revenue scale and stickiness of our employer offering coupled with the attractive gross margins of fertility clinics — it is unusual to see these tech-like margins in healthcare. Of course, what CFOs at major employers favor is a more affordable, transparent fertility benefits solution which provides them meaningful, guaranteed savings.”
Kindbody owns and operates 33 signature clinics throughout the U.S. in Arkansas, California, Colorado, District of Columbia, Georgia, Illinois, Maryland, Michigan, Missouri, New Jersey, New York, Texas, Washington, and Wisconsin. To schedule an appointment, visit kindbody.com/book. Employers who wish to learn more about how Kindbody delivers the best patient experience and outcomes while reducing healthcare costs can contact solutions@kindbody.com.
About Kindbody
Kindbody is the leading national fertility clinic network and global family-building benefits provider for employers offering the full spectrum of reproductive care from preconception to postpartum through menopause. Kindbody is the trusted fertility benefits provider for 132 leading employers, covering almost 2.7 million lives. Many thousands more receive their fertility care directly from Kindbody throughout the country at signature clinics, mobile clinics, and partner clinics. As the fertility benefits provider, technology platform, and direct provider of care, Kindbody delivers a seamless, integrated experience with superior health outcomes at lower cost, making fertility care more affordable and accessible for all. Kindbody has raised $315 million in debt and equity funding from leading investors including Perceptive Advisors, JP Morgan Chase’s Morgan Health, GV (formerly Google Ventures), RRE Ventures, Claritas Health Ventures, Rock Springs Capital, Distributed Ventures, Whatif Ventures and TQ Ventures. Visit www.kindbody.com. and follow us on Instagram, Twitter, and Linkedin.
