Financial Data and Key Metrics Changes - In Q1 2025, the company's revenue was $2 million, reflecting a 25% decrease compared to the same period last year due to the loss of a customer [15] - The average revenue per enrolled member per month was approximately $254, down from $500 in Q4 2024 and $504 in Q1 2024 [17] - Gross margin for Q1 was 37%, a decrease from 61% in Q4 2024 and 63.6% in Q1 2024, primarily driven by the loss of a customer and a shift in member mix [20] Business Line Data and Key Metrics Changes - The total enrolled members reached 3,165 at the end of Q1, nearly doubling year over year, with over 1,150 members in the Engage program [6][16] - The company added 2,039 new members during the quarter, the highest since Q3 2021, contrasting with 1,641 in Q4 2024 and 925 in Q1 2024 [18] - The average monthly disenrollment rate was 10%, down from 19% in Q4 2024 and 22% in Q1 2024 [19] Market Data and Key Metrics Changes - The company has achieved state Medicaid provider approval in two states and is working to expand its footprint [8] - The outreach pool averaged 27,204 for the quarter, leading to a 30% enrollment rate, down from 50% in Q4 2024 [18] Company Strategy and Development Direction - The company aims to double its run rate revenue in 2025 compared to 2024, driven by successful conversions of prospective customers [6] - The Engage solution is expanding market reach by serving members who may not require the full Whole Health Plus program [7] - The company is focused on converting its strong pipeline into signed contracts while nurturing relationships with existing customers [13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about converting prospective customers, particularly a large Midwestern Medicaid plan [5][10] - The overall reaction from prospects to the enhanced solution suite has been extremely positive, with health plans acknowledging the need for more intensive behavioral health support [12] - The company anticipates revenues for Q2 2025 in the range of $2.2 million to $2.6 million, representing an 8% to 22% sequential increase [22] Other Important Information - The company reported cash flow from operations for Q1 was negative $2.7 million, an improvement from negative $3.3 million in the same period last year [21] - Cash reserves stood at $4.1 million at the end of the quarter, down from $5.7 million at the end of 2024 [21] - The company has secured up to $10 million of additional financing available as needed in the short term [22] Q&A Session Summary - No specific questions or answers were documented in the provided content, indicating that the call may have concluded without a formal Q&A session.

Financial Data and Key Metrics Changes - The company reported total revenue of $52.2 million for Q1 2025, representing a 15% increase compared to Q1 2024 [22] - EBITDA increased by 153% year-over-year, reaching $2 million for the quarter [6][27] - The gross profit for the quarter was $23.3 million, up 7% from the previous year, with a gross margin of 44.6% [25] Business Line Data and Key Metrics Changes - The payer business revenue grew by 33% year-over-year, with payer sessions totaling approximately 350,000, an increase of 23% [22] - Direct to Enterprise (DTE) revenue was $9.6 million, down 3% year-over-year, while consumer revenue declined by over $2 million [25] - Unique payer members completing a session grew 17% year-over-year, reaching over 101,000 [22] Market Data and Key Metrics Changes - The company now covers nearly 200 million lives, a growth of over 40% year-over-year [23] - The Medicare population showed strong patient outcomes, with 84% of members demonstrating clinical improvement [12] Company Strategy and Development Direction - The company is focused on driving engagement within the population that has access to Talkspace through insurance plans [7] - Initiatives to enhance customer experience include real-time benefits verification and an easy button for EAP members to switch to insurance coverage [9][10] - The company is committed to expanding its psychiatry offerings and has reconfigured a dedicated team for this purpose [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the trajectory for 2025, expecting continued demand for affordable in-network care [21] - The company is not directly affected by tariffs and has shifted its core business to an insured patient base, reducing reliance on out-of-pocket spending [20] - Management noted that marketing investments are expected to yield benefits in the latter half of the year [60] Other Important Information - The company has launched AI applications to enhance client onboarding and clinical assessments, including a risk assessment tool with over 90% accuracy [18] - A partnership with BART Technologies aims to address teen mental health by providing access to Talkspace through their platform [17] Q&A Session Summary Question: How will the positive clinical data for Medicare Advantage be used to market to other MA plans? - Management noted significant interest from MA plans and the potential for developing deeper relationships with specific plans in the future [34] Question: What is the marketing budget for Medicare? - The company is taking a portfolio approach to marketing, adjusting budgets based on data-driven insights [38] Question: How broadly is the easy button for EAP to insurance switching rolled out? - The rollout is ongoing, plan by plan, and is having a significant positive impact on user engagement [43] Question: How has data retention changed with technology enhancements? - Session velocity metrics are up 5% year-over-year, indicating positive retention trends [49] Question: What portion of 2025 revenue guidance is expected from Medicare and military? - The company does not break out specific revenue sources but is optimistic about growth from these segments [47] Question: Can you discuss the Bark partnership and its economics? - The partnership allows easy access to Talkspace for Bark users, with the app preloaded on Bark phones [70] Question: How is the Talkcast feature being utilized? - The feature has generated 6,000 podcasts, with therapists deciding on their distribution to members [75] Question: What is the financial difference between EAP and insurance patients? - EAP sessions are fee-for-service, similar to insurance coverage, but insurance typically offers higher-priced sessions [82]