Credit Suisse https://www.credit-suisse.com hosted Gina Bartasi, Founder & CEO of Kindbody https://kindbody.com for a virtual meeting with a small group of investors. By way of background, Kindbody is a NYC-based startup that provides an alternative to traditional fertility clinics.
Credit Suisse previously hosted the company and published the note “Kindbody Story As Narrated by the Founder and CEO”.
Kindbody works in the provision of care by operating their own network of clinics to affect member experience, outcome, and cost within fertility benefits. On top of core fertility treatments, Kindbody also offers mental health, maternity-related care, and wellness & nutrition solutions for a seamless patient care experience.
Currently, Kindbody has 26 clinics across the country to date, where the company prefers to build their stand-up clinics de novo. Meanwhile, on top of operating their own EMR, Kindbody uses AI and machine learning to remove doctors’ anecdotal decision-making from fertility treatments.
All Kindbody’s physicians are full time W2 employees, and most staff have the opportunity to earn equity. By replacing people & paper with technology, Kindbody offers fertility benefits at prices that are <$300 (vs $1,200 initially. By replacing people & paper with technology, Kindbody offers fertility benefits that are <30% than peers.
Kindbody serves three revenue channels. Employers, Managed Care, and Self-Pay. Most Kindbody contracts are three years in length with 90-day termination notifications. For employer and self-pay clients, Kindbody’s revenue model is on a fee-for-services basis at a rate similar to the bundled case rates.
Kindbody has a diverse revenue mix by category, where 58% of revenues is Fertility, ~20% is Assessment, and ~20% in Other (OB-GYN and other services). The LTV for an egg freezing patient is $34,000 while the CAC is <$300 (vs. $1,200 initially). As of recent, Kindbody expects $160 min in 2022 revenues. The company also expects positive EBITDA by late 2Q 2023.
Kindbody sees their U.S fertility TAM at >$80 bin. Which includes a TAM expansion by bringing the fertility treatment cost down by 30%. However, Kindbody believes their total TAM is actually much greater since the company also sells into other solutions such as mental health, maternity-related care, and wellness & nutrition. Even though penetration is low and demand well exceeds supply, the nascent fertility industry is seeing more players competing today (e.g. Maven, Cleo, Carrot, Progyny etc.).
Kindbody paid $180 min for the Vios Fertility Institute acquisition, which valued Kindbody at $1 bin pre and $1.2 bin post. Geographical customer overlap was minimal, given that Vios has 13 clinics primarily in the Midwest where Kindbody has no presence.
Following the close, Kindbody is following a 100 day plan that should reach completion by May 1. Key objectives include integrating Vios onto Kindbody’s tech stack, rebranding all Vios clinics into Kindbody clinics, as well as setting a price strategy for Vios.
Specifically, Bios will be adopting Kindbody’s bundled case rate approach, where the case rate will be adjusted based on geographical cost differences. Importantly, the acquisition moved up Kindbody’s EBITDA positive date from late 2023 previously to late 2Q of 2023 now.
For information on the published note “Kindbody Story as Narrated by the Founder and CEO”, to ask questions, provide feedback, or news, email Jailendra Singh at jailendra.singh@credit-suisse.com or call 212-325-8121.