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Talkspace announced an intriguing new partnership with Amazon Health Services today. Shares of online mental healthcare provider Talkspace (TALK 14.62%) have soared 16% as of 3:30 p.m. ET Tuesday, according to data provided by S&P Global Market Intelligence. The company announced a partnership with Amazon's health services unit, in a move it says aims to improve the discoverability of its services among the 145 million people who are covered by its benefits. Management believes partnering with the world's s ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-39314 TALKSPACE, INC. (Exact Name of Registrant as Specified in its Charter) Delaware 84-4636604 (State or oth ...

Financial Data and Key Metrics Changes - Revenue increased by 29% year-over-year to $46.1 million, marking the second consecutive profitable quarter with adjusted EBITDA of $1.2 million [5][18][22] - Gross profit rose by 18% year-over-year to $21 million, with a gross margin of 45.5%, lower than the previous year due to a shift towards payer revenue [20][21] - GAAP net loss improved to $500,000, a $4.2 million improvement compared to the same period last year [22] Business Line Data and Key Metrics Changes - Payer revenue grew by 62% year-over-year to $29.9 million, with payer sessions completed increasing by 49% year-over-year to nearly 299,000 [19][6] - Direct-to-Enterprise revenue increased by 20% year-over-year to $9.6 million, driven by contracts such as those with New York City [11][19] - Consumer revenue declined by 28% year-over-year to $6.5 million, aligning with the strategy to optimize traffic conversion [20] Market Data and Key Metrics Changes - Covered lives increased from 131 million to 145 million, with expectations to reach nearly 200 million within the next 12 months [6][8] - Brand awareness of Talkspace increased to over 30%, a 7% increase compared to the previous year [10] Company Strategy and Development Direction - The company aims to expand Medicare coverage to all 50 states by year-end and is focused on increasing capture rates and utilization among the growing covered lives [7][8] - Continued investment in product improvements and marketing efforts to enhance member engagement and retention [9][13] - The company is exploring partnerships to enhance brand reach and recognition, positioning itself as a leader in quality mental health care [10][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future of the business, supported by survey data indicating increased openness to therapy among the population [4][5] - The company is preparing for a significant rollout of Medicare Advantage plans, with expectations for increased member engagement and revenue growth in 2025 [48][54] - Management emphasized the importance of maintaining quality care and operational efficiency as the company scales [14][21] Other Important Information - The company ended the quarter with $114.9 million in cash and cash equivalents, down $5.4 million sequentially due to share repurchase activities [23] - The Board of Directors increased the share repurchase authorization by $25 million, in addition to the original $15 million [23] Q&A Session Summary Question: How should we think about the economics of government lives compared to commercial? - Management indicated that it is too early to provide data on Medicare utilization and reimbursement, as they are still in the early stages of rollout [27][31] Question: Can you provide details on the Humana TRICARE East contract? - Management confirmed that the rollout is straightforward once live, but it may take time to see revenue from the new population [35][37] Question: What challenges have been identified within the Medicare population? - Management noted significant interest in Medicare, but emphasized the need for a careful rollout to maximize patient capture [46][48] Question: How is the company addressing the competitive landscape? - Management highlighted the extensive investment and time required to transition to a payer model, which gives Talkspace a competitive advantage [38][43] Question: What is the expected impact of the Medicare rollout on marketing spend? - Management stated that while marketing spend will increase, it is not expected to have a negative impact on EBITDA this year [52][54] Question: Is there increased demand in the employer channel? - Management confirmed strong interest in mental health support from mid to lower-level firms, with a growing pipeline in the employer segment [55][56]

Core Insights - Talkspace, Inc. reported a 29% year-over-year growth in total revenue for Q2 2024, reaching $46.1 million, primarily driven by a 62% increase in Payor revenue [1][3][4] - The company reduced its GAAP net loss to $0.5 million from $4.7 million in the same quarter last year, indicating improved financial performance [1][4] - Adjusted EBITDA for Q2 2024 was $1.2 million, a significant improvement from a loss of $4.0 million in Q2 2023 [1][4] Financial Performance - Total revenue for the first half of 2024 was $91.5 million, reflecting a 33% increase compared to the prior year [2] - Payor revenue reached $29.9 million, up 61.5% year-over-year, while Direct to Enterprise (DTE) revenue increased by 19.8% [12][3] - Consumer revenue, however, saw a decline of 28.5% year-over-year, totaling $6.5 million [12][3] Operational Metrics - The number of eligible lives covered by Talkspace exceeded 145 million, with 298.6 thousand completed Payor sessions in Q2 2024 [2][3] - The gross profit for Q2 2024 was $21 million, an 18% increase from the previous year, but the gross margin decreased to 45.5% from 50% [3][12] - Operating expenses were $24.4 million, a slight increase of 1% year-over-year, primarily due to higher general and administrative costs [3][12] Share Repurchase Program - The Board of Directors approved an additional $25 million share repurchase program, following an $8 million repurchase in Q2 2024 [1][6] - This brings the total authorized repurchase amount to $32 million over the next 24 months [6] Future Guidance - For the fiscal year 2024, Talkspace expects revenue to be in the range of $185 million to $195 million, representing a growth of 23-30% [5] - Adjusted EBITDA is anticipated to be between $4 million and $8 million for the same period [5]

About Talkspace Contacts Talkspace pioneered the ability to text with a licensed therapist from anywhere and now offers a comprehensive suite of mental health services, including therapy for individuals, teens, and couples, as well as psychiatric treatment and medication management (18+). With Talkspace's core therapy offerings, members are matched with one of thousands of licensed therapists within days and can engage in live video, audio, or chat sessions, and/or unlimited asynchronous text messaging sess ...

NEW YORK, June 17, 2024 (GLOBE NEWSWIRE) -- Talkspace (NASDAQ:TALK), a leading behavioral healthcare company, today announced that management will participate in the Truist Securities Healthcare Disruptors & Digital Health Summit, being held in New York, on Tuesday, June 25, 2024, including a panel discussion on "Addressing the Mental Health Crisis" with Dr. Jon Cohen, Chief Executive Officer of Talkspace, at 10:30am ET. About Talkspace Talkspace (NASDAQ:TALK) is a leading virtual behavioral healthcare prov ...

Talkspace pioneered the ability to text with a licensed therapist from anywhere and now offers a comprehensive suite of mental health services, including therapy for individuals, teens, and couples, as well as psychiatric treatment and medication management (18+). With Talkspace's core therapy offerings, members are matched with one of thousands of licensed therapists within days and can engage in live video, audio, or chat sessions, and/or unlimited asynchronous text messaging sessions. All care offered at ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) Commission File Number: 001-39314 TALKSPACE, INC. (Exact Name of Registrant as Specified in its Charter) Delaware 84-4636604 (State or other jurisdiction of incorporation or organization) 622 Third Avenue, New York, New York 10017 ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO ...

Talkspace, Inc. (NASDAQ:TALK) Q1 2024 Earnings Conference Call May 7, 2024 8:30 AM ET Company Participants Jeannine Feyen - Investor Relations Jon Cohen - Chief Executive Officer Jennifer Fulk - Chief Financial Officer Conference Call Participants Charles Rhyee - TD Cowen Jack Senft - William Blair Stephanie Davis - Barclays Operator Thank you for standing by. My name is Benjamin, and I will be your conference operator today. At this time, I’d like to welcome everyone to Talkspace First Quarter 2024 Earning ...