Financial Data and Key Metrics - Revenue increased 23% YoY to $47.4 million in Q3 2024 [6] - Adjusted EBITDA improved to $2.4 million, marking the third consecutive profitable quarter [6] - Gross profit increased 15% YoY to $21.6 million, with a gross margin of 45.6% [20] - GAAP net profit was $1.9 million, compared to a loss of $4.4 million in the same period last year [22] - Cash and cash equivalents stood at $119 million at the end of Q3, up from $115 million in the previous quarter [22] Business Line Performance - Payor segment revenue grew 45% YoY to $32 million, driven by strong relationships with key payor partners [6] - Payor sessions increased 38% YoY to 316,000, with unique active Payor members growing 24% YoY to over 93,000 [18] - Direct to Enterprise (DTE) revenue grew 17% YoY to $9.4 million, driven by initiatives like the Teen Space program with New York City [14][19] - Consumer segment revenue declined 30% YoY to $6 million, in line with expectations due to the shift towards Payor growth [20] Market and Strategic Initiatives - The company expanded its Medicare coverage to 40 states, with services live in 30 states, including major markets like Texas, Florida, California, and New York [8] - Talkspace launched a partnership with Wisdo, an AI-driven social health platform, to address social isolation among seniors [8] - The company initiated a Direct to Enterprise pilot program with the U.S. Navy, covering 25,000 sailors and their dependents across six naval bases [10] - Talkspace announced a partnership with Amazon Health Services, making it the first behavioral health company within the Amazon Health Conditions Program [12] Management Commentary on Industry and Future Outlook - The company aims to be in-network for approximately 200 million lives by 2025, representing two-thirds of the U.S. insured population [10] - Management emphasized the importance of increasing awareness and engagement among covered lives, optimizing marketing efforts, and improving the patient and therapist journey [11] - The company is focused on expanding its reach to seniors and military personnel, with a particular emphasis on addressing mental health challenges in these populations [8][9] - Talkspace expects to continue leading the transformation of mental health care delivery, leveraging its strong financial position and innovative approach [15] Q&A Session Highlights Question: Amazon Partnership Impact - The Amazon partnership is expected to drive high-intent users to Talkspace, with early results being very positive [24][25] - The partnership is part of a broader strategy to increase awareness and capture rate among the 200 million covered lives [29] Question: EBITDA Guidance and Revenue Growth - The company expects to land at the high end of its 2024 EBITDA guidance range of $4 million to $8 million, driven by cost optimization initiatives [33] - Revenue growth in 2024 has been primarily driven by existing covered lives, with Medicare and military initiatives expected to impact 2025 growth [34] Question: B2C Business Trajectory - The decline in B2C revenue is attributed to the shift towards insurance-based models, with the company expecting the consumer segment to stabilize at a lower level [36][38] Question: Customer Acquisition Costs (CAC) - The company has managed to keep CAC low despite the election year, leveraging a dynamic and data-driven marketing strategy [42][43] - CAC varies significantly across different sub-segments, such as military personnel, Medicare beneficiaries, and teens [45] Question: DTE Pipeline and ESSER Funding - The DTE pipeline remains strong, with a mix of employer, municipal, and association contracts [49] - ESSER funding, tied to COVID relief, has largely expired, and the company does not distinguish between employer and municipal contracts in its reporting [50] Question: Value-Based Care Contracts - Talkspace has signed value-based contracts with payors, focusing on metrics like time to initial evaluation and follow-up appointments [53] - The company is well-positioned to meet these metrics, as they align with existing practices [53]

2024 Fourth Quarter Earnings Presentation February 20, 2025 2024 FOURTH QUARTER EARNINGS PRESENTATION 2 Disclaimer This presentation contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. All statements contained in this presentation that do not relate to maers of historical fact should be considered forward-looking, including statements regarding our financial condition, anticipated financial performance, achieving profitability, ...

Financial Performance - Talkspace, Inc. reported quarterly earnings of $0.01 per share, matching the Zacks Consensus Estimate, compared to a loss of $0.01 per share a year ago [1] - The company posted revenues of $48.72 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 3.35%, but up from $42.42 million year-over-year [2] - Over the last four quarters, Talkspace has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2][1] Stock Performance - Talkspace shares have increased approximately 24.9% since the beginning of the year, outperforming the S&P 500's gain of 4.5% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.01 on revenues of $54.26 million, and for the current fiscal year, it is $0.08 on revenues of $233.69 million [7] - The outlook for the Medical Info Systems industry, where Talkspace operates, is favorable, ranking in the top 34% of over 250 Zacks industries, suggesting potential for outperformance [8]

Revenue Growth - Full-year 2024 total revenue increased by 25% year-over-year to $187.6 million[1] - Fourth quarter 2024 total revenue grew by 15% year-over-year to $48.7 million[1] - Payor revenue for the fourth quarter increased by 33.5% year-over-year to $33.8 million, and for the full year, it rose by 53.8% to $124.3 million[15] Consumer Revenue - Consumer revenue declined by 34.8% year-over-year in Q4 to $5.3 million and by 30.4% for the full year to $24.8 million[15] Profitability and EBITDA - Adjusted EBITDA for Q4 was $2.7 million, improving from a loss of $0.3 million in Q4 2023[7] - Adjusted EBITDA for 2024 was $6,962,000, compared to a loss of $13,529,000 in 2023, indicating a substantial improvement[33] - Net income for the full year was $1.1 million, a significant improvement from a net loss of $19.2 million in 2023[7] - Net income improved significantly from a loss of $19,182,000 in 2023 to a profit of $1,148,000 in 2024[26] Financial Expectations - The company expects 2025 revenue to be in the range of $220 million to $235 million[7] Expenses and Liabilities - Operating expenses decreased by 11% year-over-year in Q4 to $21.0 million[7] - Total current liabilities decreased from $21,648,000 in 2023 to $19,023,000 in 2024, a reduction of approximately 12.06%[23] Assets and Equity - Total assets decreased from $142,221,000 in 2023 to $138,677,000 in 2024, a decline of approximately 3.85%[23] - Total stockholders' equity decreased from $118,646,000 in 2023 to $117,395,000 in 2024, a decline of approximately 1.06%[23] Cash Flow - The company reported a net cash provided by operating activities of $11,704,000 in 2024, compared to a net cash used of $16,393,000 in 2023[26] - The company incurred a net cash used in investing activities of $46,732,000 in 2024, compared to $141,000 in 2023[26] Stock-Based Compensation - Stock-based compensation increased from $8,395,000 in 2023 to $9,173,000 in 2024, an increase of about 9.25%[33] Accounts Payable - The company’s accounts payable increased from $6,111,000 in 2023 to $7,710,000 in 2024, an increase of approximately 26.2%[23]

Core Insights - Talkspace, Inc. reported a total revenue growth of 25% year-over-year for the full year 2024, reaching $187.6 million, with a net income of $1.1 million and adjusted EBITDA of $7.0 million [1][11] - In the fourth quarter of 2024, total revenue increased by 15% year-over-year to $48.7 million, with a net income of $1.2 million and adjusted EBITDA of $2.7 million [1][11] Financial Performance - Full Year 2024: - Total revenue: $187,593,000, up 25% from the previous year - Gross profit: $85,836,000, a 15% increase year-over-year - Operating expenses: $90,333,000, down 7% year-over-year - Net income: $1,148,000, improved from a net loss of $19,182,000 in 2023 - Adjusted EBITDA: $6,962,000, improved from a loss of $13,529,000 in 2023 [2][11][29] - Fourth Quarter 2024: - Total revenue: $48,720,000, a 15% increase from the prior year - Gross profit: $21,533,000, a 3% increase year-over-year - Operating expenses: $20,964,000, a decrease of 11% year-over-year - Net income: $1,214,000, improved from a net loss of $1,306,000 in Q4 2023 - Adjusted EBITDA: $2,659,000, improved from a loss of $306,000 in Q4 2023 [2][5][11][29] Key Metrics - Number of eligible lives at year-end: 179.4 million, a 37% increase year-over-year [2] - Number of completed Payor sessions: 1,229.2 million, a 45% increase year-over-year [2] - Number of Consumer active members at year-end: 7.2 million, a 38% decrease year-over-year [2] Strategic Focus - The company has shifted its strategy over the last three years to focus on the payor market, increasing total covered lives to nearly 200 million [4] - Talkspace aims to provide accessible, high-quality behavioral health services, leveraging its brand to reach various demographics including teens, seniors, and military members [4][10]

Core Insights - Talkspace, a leading behavioral healthcare company, will release its fourth quarter and full year 2024 results on February 20, 2025, before market open [1] - A conference call to review the results will take place at 8:30am ET on the same day [1] Company Overview - Talkspace is a prominent virtual behavioral healthcare provider focused on improving mental health access and quality [3] - The company offers a range of mental health services, including therapy for individuals, teens, and couples, as well as psychiatric treatment and medication management for adults [4] - Talkspace's services are accessible through a fully-encrypted web and mobile platform that complies with HIPAA and other regulatory requirements [5] Accessibility and Reach - Over 158 million Americans can access Talkspace services through various channels, including health insurance plans, employee assistance programs, and partnerships with healthcare companies [5]

Talkspace, Inc. (TALK) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.The power o ...

New feature from Talkspace’s AI Innovation Group, developed alongside therapists, helps providers efficiently prep for sessions and guide client care between sessionsDynamic insights save providers time and effort by consolidating important clinical informationTechnology is HIPAA-compliant, secure, private, and confidential NEW YORK, Jan. 15, 2025 (GLOBE NEWSWIRE) -- Talkspace, (NASDAQ: TALK), the leading online therapy platform, today announced the launch of Insights, a new feature that enhances therapeuti ...

NEW YORK, Jan. 06, 2025 (GLOBE NEWSWIRE) -- Talkspace (NASDAQ:TALK), a leading online behavioral health company, is now available to approximately 9.5 million active duty and retired military personnel and their dependents as an in-network benefit through partnerships with TRICARE East and West region contractors. Eligible beneficiaries, including partners and teen dependents (13+), can now receive therapy from a licensed clinician or psychiatric services (for those 18+) from a Board-certified psychiatrist ...

Last week, the Dow Jones Industrial Average gained 0.2%, whereas the tech-heavy Nasdaq Composite declined 0.22%. The S&P 500 remained unchanged. Broader market uncertainties during the holiday-shortened trading week weighed on investors’ confidence.The consumer confidence for December came in at 104.7, significantly lower than the market consensus of 113, per a report by the Conference Board.  On December 27, the 10-year U.S. Treasury yield surged to 4.626%, hovering near a seven-month high as market partic ...