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]

Talkspace (TALK) Q1 2025 Earnings Call May 06, 2025 08:30 AM ET Speaker0 Good morning, ladies and gentlemen, and thank you for standing by. My name is Kelvin, and I will be your conference operator today. At this time, I would like to welcome everyone to the Talk Space First Quarter twenty twenty five Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer question Thank you. I would now like to turn the call over to ...