Talkspace(TALK) - 2025 Q1 - Quarterly Results

Financial Performance - Q1 2025 total revenue increased by 15% year-over-year to $52.2 million, driven by a 33% growth in Payor revenue[1][5] - Adjusted EBITDA for Q1 2025 was $2.0 million, reflecting a 153% increase compared to $0.8 million in Q1 2024[5] - Net income for Q1 2025 was $0.3 million, an improvement from a net loss of $1.5 million in Q1 2024[5] - Gross profit increased by 7% year-over-year to $23.3 million, with a gross margin of 44.6%[5] - Operating expenses were $24.4 million, a 4% increase year-over-year[5] - For 2025, the company expects revenue to be in the range of $220 million to $235 million[5] Consumer and Payor Revenue - The company reported a 32% decline in Consumer revenue year-over-year, totaling $4.8 million[5][13] - Number of completed Payor sessions rose to 350,000, a 23% increase from the previous year[2] Cash and Investments - Cash and cash equivalents at the end of Q1 2025 were $60.1 million[2][17] - The company reported a decrease in cash and cash equivalents to $60,077 at the end of Q1 2025, down from $120,278 at the end of Q1 2024[19] - Cash flows from operating activities showed a net cash used of $1,239 in Q1 2025, an improvement from $3,391 in Q1 2024[19] - The company incurred $10,428 in purchases of marketable securities during Q1 2025, with no such purchases in Q1 2024[19] - The company reported a net cash used in investing activities of $9,019 in Q1 2025, compared to $385 in Q1 2024[19] Operational Highlights - The company continues to focus on expanding its mental health services and enhancing its platform capabilities[3] - The company highlighted the importance of adjusted EBITDA as a key performance measure for evaluating operational performance and acquisition opportunities[20] Stock and Compensation - Stock-based compensation increased slightly to $2,333 in Q1 2025 from $2,252 in Q1 2024[26] - Proceeds from the exercise of stock options were $678 in Q1 2025, compared to $741 in Q1 2024[19] Accounts Receivable - The increase in accounts receivable was $3,606 in Q1 2025, compared to an increase of $861 in Q1 2024[19]