Financial Data and Key Metrics Changes - The company reported first quarter consolidated revenue of $629.4 million, down 3% year over year, but at the high end of the guidance range [22] - Adjusted EBITDA was $58.1 million, representing a margin of 9.2%, near the high end of the guidance range [22] - Consolidated net loss per share was $0.53, compared to a net loss per share of $0.49 in the same quarter of the previous year [22][23] - Free cash flow was a net outflow of $16 million, an improvement of $11 million compared to the prior year [22] Business Line Data and Key Metrics Changes - Integrated Care segment revenue was $389.5 million, an increase of 3.3% year over year, exceeding the top end of the guidance range [24] - U.S. Integrated Care segment membership reached 102.5 million, up 12% year over year [25] - BetterHelp segment revenue was $239.9 million, down 11% year over year, but above the midpoint of the guidance range [27] - BetterHelp adjusted EBITDA was $7.7 million, down from $15.5 million in the prior year, with an adjusted EBITDA margin of 3.2% [27] Market Data and Key Metrics Changes - U.S. virtual visit volumes grew by 7%, and Chronic Care enrollment increased by 3% [13] - International revenue growth for Integrated Care was in the mid-teens on a constant currency basis [14] - BetterHelp served over 1 million unique users globally in 2024, with 40% of those being new to therapy [10] Company Strategy and Development Direction - The company announced the acquisition of Uplift, a virtual mental health company, to enhance its BetterHelp segment and support consumers seeking covered benefits [3][9] - The focus remains on expanding access to virtual mental health services and leveraging BetterHelp's marketing budget more effectively [27][75] - The company is committed to improving performance through technology investments and operational efficiencies [20][102] Management's Comments on Operating Environment and Future Outlook - The healthcare industry is facing challenges such as medical cost trends and mental health issues, which present both opportunities and challenges for the company [18][19] - The broader economic environment is being monitored closely, with signs of weakening business and consumer sentiment [20] - The company remains on track with its 2025 revenue outlook and is focused on executing strategic priorities despite macro uncertainties [21] Other Important Information - The company has a strong cash position with nearly $1.2 billion in cash and cash equivalents [41] - The acquisition of Uplift is expected to enhance the company's ability to offer insurance benefits coverage, which is anticipated to lead to higher conversion rates and user engagement [34][35] Q&A Session Summary Question: Impact of shorter duration contracts on churn and expectations - Management noted that the weekly offering has led to stronger conversion rates but also higher churn, which was expected. Overall, the net effect remains positive [48][49] Question: Evaluation of BetterHelp network's payer coverage - Management clarified that the focus was on technical capabilities and that they paused payer contracts to avoid mixed signals during the Uplift acquisition [51][52] Question: Trends in BetterHelp member growth and revenue per member - Management explained that while revenue per member has declined, this is due to onboarding a large number of new members, which will provide opportunities for upselling additional services over time [61][62] Question: Strategic focus on profitability per member - Management emphasized the importance of activating membership to drive revenue and highlighted ongoing efforts to enhance chronic care management programs [71][73] Question: BetterHelp margin improvement in the second half of the year - Management indicated that revenue growth in the second half will be driven by international efforts and insurance initiatives, with a planned pullback in ad spend [81][82] Question: Customer acquisition cost trends in BetterHelp - Management reported stable customer acquisition costs, with improved conversion rates from the weekly offering contributing to favorable trends [92][93] Question: Opportunities for cost savings in technology and G&A - Management confirmed ongoing efforts to streamline costs, with a focus on reducing technology and development spending while maintaining control over the overall cost base [100][102]

Financial Data and Key Metrics Changes - First quarter consolidated revenue was $629.4 million, down 3% year over year, but at the high end of the guidance range [20] - Adjusted EBITDA was $58.1 million, representing a margin of 9.2% [20] - Consolidated net loss per share was $0.53, compared to a net loss per share of $0.49 in the same quarter of the previous year [20][21] - Free cash flow was a net outflow of $16 million, an improvement of $11 million compared to the prior year [22] Business Line Data and Key Metrics Changes - Integrated Care segment revenue was $389.5 million, an increase of 3.3% year over year, exceeding the top end of guidance [22] - BetterHelp segment revenue was $239.9 million, down 11% year over year, but above the midpoint of guidance [26] - U.S. Integrated Care segment membership reached 102.5 million, up 12% year over year [24] - Virtual visit volume in the U.S. increased by 7%, while Chronic Care enrollment rose by 3% [24] Market Data and Key Metrics Changes - The international business of Integrated Care showed revenue growth in the mid-teens on a constant currency basis [13][24] - BetterHelp served over 1 million unique users globally in 2024, with 40% being new to therapy [8] Company Strategy and Development Direction - The acquisition of Uplift aims to enhance the BetterHelp segment's position in virtual mental health services [6][7] - The company is focused on expanding its international markets and enhancing product offerings, including new pricing models [11] - The strategy includes leveraging BetterHelp's consumer expertise to provide more options for mental health care [7] Management's Comments on Operating Environment and Future Outlook - The healthcare industry faces challenges from medical cost trends and mental health issues, but these dynamics also present opportunities [16] - The broader economic environment is being monitored closely, with signs of weakening business and consumer sentiment [18] - The company remains on track with its 2025 revenue outlook and is optimistic about future growth potential despite macro uncertainties [19] Other Important Information - The company has a strong cash position with nearly $1.2 billion in cash and cash equivalents [38] - The acquisition of Uplift was valued at $30 million in cash, with potential additional earn-out consideration [32] Q&A Session Summary Question: Impact of shorter duration contracts on BetterHelp - Management noted that the weekly offering has led to stronger conversion rates but also higher churn, resulting in a net positive effect [41][44] Question: Evaluation of BetterHelp network's payer coverage - Management clarified that the focus was on technical capabilities and that they paused payer contracts to avoid mixed signals during the Uplift acquisition [47][49] Question: Trends in BetterHelp member growth and revenue per member - Management explained that while revenue per member has declined, the significant increase in membership provides opportunities for upselling additional services [56][58] Question: BetterHelp margin improvement expectations - Management indicated that the second half of the year would see revenue growth driven by international efforts and insurance initiatives, with a planned pullback in ad spend [75][77] Question: Customer acquisition cost trends - Management reported stable customer acquisition costs, with favorable trends due to improved conversion rates from the weekly offering [85][86] Question: Cost-saving opportunities in technology and G&A - Management emphasized ongoing efforts to streamline costs, with a focus on technology and development spending being down year over year [92][95]