Talkspace, Inc. · NASDAQ:TALK
Talkspace — 2025 JP Morgan Healthcare Conference
24 slides from Talkspace's conference presentation, Jan 15, 2025
Slide 1: Quality Mental Health Care for All
Quality Mental Health Care for All Jon Cohen, M.D., CEO Ian Harris, CFO 2025 JP Morgan Healthcare Conference
Slide 2: Disclaimer
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 matters of historical fact should be considered forward-looking, includ
Slide 3: The Behavioral Health market is massive and dramatically underserved
Commercial 23% of adults in the U.S. have a mental health condition 46M $46B* Medicare 16.5M $16.5B* Active Military 20% of ~10M active military personnel with a mental health challenge 2M $2B* 10M $1B Teens 50% of 20M adolescents between 13-17 years old will face a mental health condition Sources:
Slide 4: Effectively delivering behavioral healthcare requires excellence across 4 key pillars
Effectively delivering behavioral healthcare requires excellence across 4 key pillars Broadest reach Significant in-network coverage 158M+ Covered Strongest brand Experienced & diverse provider network ~6K providers Referral partners AVAILABLE AFFORDABLE Comprehensive platform keeps members engaged
Slide 5: Talkspace is the most well-recognized coverage-focused brand
Talkspace is the most well-recognized coverage-focused brand More people choose Talkspace, a recognized and trusted brand “Therapy helped save my life.” - Michael Phelps 1 in 3 people know Talkspace 350K+ Most followed of any BH brand across social AVAILABLE Source: Qualtrics Study of aided brand aw
Slide 6: Our national, curated network meets growing demand
Our national, curated network meets growing demand ~6K Total providers in network, all master’s or doctorate-level Network overview Hybrid network Provider specialties 50 States covered by provider network ~10% Growth in number of providers in the last 12 months In-house, full-time providers Indepen
Slide 7: High quality care produces strong outcomes for members, payors and employers
Hybrid W2 and contract Rewards & recognition Community & culture Learning, development, support Meaningful work and reduced admin burden AI provider-assist and risk detection tools Robust hiring and onboarding standards Training, education, and support Quality management activities Risk management s
Slide 8: Partnerships drive high intent referrals and brand awareness
Strategic partnerships Brand awareness with new audiences Like-minded specialty providers Provides access to whole-person care Drives utilization through provider led referrals Attractive customer acquisition cost Large reach, established audience Focused on scale and performance Established third-p
Slide 9: In-network benefit results in affordable access to behavioral care
In-network in 45 states Most visits have $0 copay Seniors are 2.5x more likely to suffer from anxiety, depression, or loneliness Commercial Medicare Military In-network to 9.5M active-duty military, dependents & retirees covered 20% suffer from mental health challenges In-network with all major comm
Slide 10: Reaching historically underserved groups
55K 13-24 year olds covered Free text & live therapy AFFORDABLE Over 500,000 teens have Talkspace free through their city or school 16,200+ Teen users across all services ~70% Teens reported improvement 57% Live in underserved neighborhoods Seattle Dept of Education Top presenting problems 1. Improv
Slide 11: Using tech to improve the member journey through ongoing optimization
Eligibility Registration Scheduling Session Billing All leading to better quality through stronger therapeutic alliance Using tech to improve the member journey through ongoing optimization 18.5% No show reduction 30% Complete 3 sessions month 1 15% Sessions per member* ACCESSIBLE Source: Talkspace,
Slide 12: 10B+ proprietary clinical data points power our AI engine
1.2 M diagnoses 4.3 M psych notes 3 M therapist ratings 450 K treatment plans 1.4 M treatment goals 3.8 M clinical interventions 8 Billion words 140 M messages 6.2 M assessments 10B+ proprietary clinical data points power our AI engine ACCESSIBLE
Slide 13: Our AI Engine drives better quality and efficiency
Talkspace AI Engine Operational Excellence - Network supply/demand - Efficient provider scheduling Provider Assist - AI Risk Algorithms - Smart progress notes Clinical & Network Quality - Session prep & session recap - Risk Radar for network quality Member Experience / Self-Guided - Hyper-personaliz
Slide 14: AI Sneak Peek
AI Sneak Peek> AI Generated personalized podcast-like episodes driving in between session engagement
Slide 15: Scaled, profitable, and continuing to grow
Scaled, profitable, and continuing to grow National network of ~6,000 providers 158M+ Commercial lives covered 1M+ Payor sessions Revenue MMs *1Q24-3Q24 actuals; **4Q24 placeholder to 2024 Guidance Midpoint *1Q24-3Q24 run-rate *Placeholder to 2024 Guidance Midpoint SUSTAINABLE $185 – $195 Payor Sess
Slide 16: Strategic pivot to payor coverage drives growth
Strategic pivot to payor coverage drives growth Payor-Driven Revenue Growth Covered Payor Lives and Sessions SUSTAINABLE Note: Reflects Company disclosures, as of Q3 2024
Slide 17: Operating leverage drives profitability
Operating leverage drives profitability Adjusted EBITDA Over Time (MMs) Gross Margin and OpEx as a % of Revenue SUSTAINABLE Note: Reflects Company disclosures, as of Q3 2024
Slide 18: Strong balance sheet supports investments in growth and innovation
Lorem ipsum dolor sit amet $119 million Cash Balance $0 Debt $7.6 million Cash Flow from Operations YTD $40 million Authorized Share Repurchase Strong balance sheet supports investments in growth and innovation SUSTAINABLE Note: Reflects Company disclosures, as of Q3 2024
Slide 19: 2024 guidance and 3-year outlook
2024 Guidance Reiterated on 3Q ’24 Earnings Call (Oct. 2024) Revenue ~$185M – $195M +23% to +30% y/y Adjusted EBITDA 2 $4M – $8M 3-year outlook YE23-YE26, introduced February 2024 Revenue CAGR +20% to +25% Adjusted EBITDA 2 margin +12% to +15% 1: Guidance and Outlook are based on current market cond
Slide 20: Our comprehensive solution is a competitive advantage
Services Therapy Psychiatry 150 + conditions Experienced Clinical Network ~6000 licensed providers All 50 states Avg 10 years experience Sustainable business Rapidly growing Profitable Experienced management team Approaching 200M Covered Teens Seniors Military Most major payors Modalities Video Audi
Slide 21: Appendix
Appendix
Slide 22: Non-GAAP financial measures
Non-GAAP financial measures In addition to our financial results determined in accordance with GAAP, we believe adjusted EBITDA, a non-GAAP measure, is useful in evaluating our operating performance, and our management uses it as a key performance measure to assess our operating performance. Because
Slide 23: Reconciliation of net income (loss) to adjusted EBITDA
Reconciliation of net income (loss) to adjusted EBITDA Adjusted EBITDA We calculate adjusted EBITDA as net income (loss) adjusted to exclude (i) depreciation and amortization, (ii) interest and other expenses (income), net, (iii) tax benefit and expense, (iv) stock-based compensation expense, (v) im
Slide 24: Reconciliation of net income (loss) to adjusted EBITDA (cont'd)
Reconciliation of net income (loss) to adjusted EBITDA (cont’d) Adjusted EBITDA We calculate adjusted EBITDA as net income (loss) adjusted to exclude (i) depreciation and amortization, (ii) interest and other expenses (income), net, (iii) tax benefit and expense, (iv) stock-based compensation expens