Talkspace, Inc. · NASDAQ:TALK
Talkspace — Hudson Executive Investment — SPAC Merger (March 2021)
74 slides from Talkspace's SPAC merger presentation, Mar 12, 2021
Slide 1: Analyst Day Presentation
Analyst Day Presentation
Slide 2: Disclaimer
Disclaimer About this Presentation This presentation (this “Presentation”) has been prepared for use by Hudson Executive Investment Corp. (“Hudson”) and Groop Internet Platform, Inc. (d/b/a Talkspace) (the “Company”) in connection with their proposed business combination (the “Business Combination”)
Slide 3: Today's presenters
Today’s presenters Co-founder and President, Chief Operating Co-founder, Chief Technology Chief Executive Officer and Financial Officer Clinical Services Officer SVP Network Chief Medical Chief Marketing Chief of Staff and Quality Officer
Slide 4: Agenda
Agenda Time Duration Topic Speaker(s) Oren Frank & 11:00am – 11:10am 10 minutes Introductions Roni Frank Oren Frank & 11:10am – 11:30am 20 minutes Strategic Overview Michaela Yule 11:30am – 11:50am 20 minutes Our Business: B2C Sam Braunstein 11:50am – 12:10pm 20 minutes Our Business: B2B Mark Hirsch
Slide 5: Behavioral healthcare accessible for all
Behavioral healthcare accessible for all
Slide 6: dian = >
dian = > Thea for all ? 7
Slide 7: Strategic overview: Why behavioral health and why Talkspace?
Strategic overview Why behavioral health and why Talkspace?
Slide 8: Behavioral health is a vital service with an enormous TAM
Behavioral health is a vital service with an enormous TAM 70 million Americans suffer from mental illness, spread across all ethnic, socio-economic and age ranges 48,000 Americans died of suicide in 2018, the 10th leading cause of death in the U.S. $192 billion Of annual lost wages and lost producti
Slide 9: COVID has accelerated a second pandemic – the behavioral health crisis
COVID has only illuminated and accelerated a second pandemic – The behavioral health crisis 3x Prevalence of depression symptoms in the U.S. since beginning of COVID pandemic 60% Of adults reported their mental health had gotten worse since pandemic lockdown Covid-19 has shed light on another pandem
Slide 10: Talkspace at a glance: A leading virtual behavioral health platform
Talkspace at a glance: A leading virtual behavioral health platform 2021E financial snapshot $125M net revenue 64% y/y rev. growth 64% gross margin 2M Members served to date 40M Covered lives1 51,000 Active members1,2 #1 Branded virtual therapy provider 3,000 Providers 68% Of members saw improvement
Slide 11: Talkspace is a purpose-built full behavioral health solution
Talkspace is a purpose-built full behavioral health solution Easy, quick and affordable access to care Technology designed to ensure clinical outcomes at scale Subscriber-based model to drive member utilization and care continuity A network where providers are motivated to practice Open new care cha
Slide 12: Tech-enabled solution positioned to address full spectrum of clinical care
Tech-enabled solution uniquely positioned to address full spectrum of clinical care across all channels Extensive Limited No presence Psychotherapy Psychiatry B2C / B2B Tech platform Provider credentialing standards Integrated peer review clinical outcomes Brand awareness Source: Talkspace market st
Slide 13: The future of behavioral health is Talkspace's full-stack platform
We believe the future of behavioral health is Talkspace’s pure-play, full-stack platform Core Developing Psychotherapy Psychiatry Self-Service & digital solutions (e.g. meditation) Chronic managed care Substance use disorder Virtual therapy and psychiatry Wellness and mindfulness platforms Artificia
Slide 14: Talkspace is its own behavioral health category: Leadership in consumer market
Talkspace is its own behavioral health category: Differentiated leadership in the consumer market
Slide 15: Our members are at our center
Our members are at our center
Slide 16: B2C model overview
B2C model overview Monthly therapy subscription plans Messaging Messaging Messaging Couples Teens Plus Premium Ultimate Text, video and Text, video and Text, video and Text, video and Text, video and audio messaging audio messaging audio messaging audio messaging audio messaging 1 Live Video 4 Live
Slide 17: The leading brand in digital behavioral health
The leading brand in digital behavioral health Brand awareness1 Top U.S. behavioral telehealth brands Source: July 2020 Brand survey—800 U.S. Consumers, 18-49 year olds 1 Measurement of aided awareness
Slide 18: A powerful multi-channel marketing and branding strategy
A power full multi-channel marketing and branding strategy
Slide 19: Deep knowledge of member behavior and needs
Deep knowledge of member behavior and needs Linear and Digital TV Podcast / Radio Streaming Services / OTT SEM (Google, Bing, Apple) Affiliates & partnerships Prospect target audience by demographics Contextual targeting by key indicators First-time free trials Promotions Social Media (FB, IG, Pinte
Slide 20: Broad, sustained and positive media coverage
Broad, sustained and positive media coverage “If we talk about behavioral health, it was very broken before Covid, the level of access and the quality of the outcomes were subpar. We always thought that virtual care is a particularly good fit for behavioral health care, even before Covid.” January 1
Slide 21: Q&A break
Q&A break
Slide 22: Clear value proposition and traction with B2B clients
Talkspace is its own behavioral health category: Clear value proposition and traction with B2B clients
Slide 23: Comprehensive mental health solution is a key workplace priority
A comprehensive mental health solution is a key priority for the workplace today 9 of 10 employees (92%) report some level of anxiety from the pandemic Only one-third (32%) say they can balance working from home and other responsibilities Fewer than half of respondents (46%) say their company is mak
Slide 24: Rapidly expanding B2B client base
Rapidly expanding B2B client base The B2B segment quickly grew to 70 clients and 40MM commercial covered lives across plans and employers Representative clients Talkspace value proposition Key stats Employee Assistance Program (EAP) acts as “catch-all” for behavioral health and work / life issues Pr
Slide 25: B2B clients across the spectrum
B2B clients across the spectrum – Every kind of enterprise client is served Channel partners to distribute B2B services Robust growth Employee Assistance Behavioral Health Direct to Employer Program Care through employer plan Care through Care direct from in-network providers employer benefits Psych
Slide 26: B2B case studies
B2B case studies In response to the COVID-19 pandemic, Cigna needed to enable simpler and more convenient access to an expanded suite of virtual behavioral support services Implemented Talkspace in less than 3 weeks and in May 2020, Talkspace became an in-network provider for Cigna Cigna launched a
Slide 27: B2C and B2B drive each other
B2C and B2B drive each other
Slide 28: Q&A break
Q&A break
Slide 29: Purpose-built technology platform
Talkspace is its own behavioral health category: Purpose-built technology platform
Slide 30: Talkspace's evidence-based quality platform
Talkspace’s evidence-based quality platform Talkspace Core Matching Algorithm Recommendations Engine Transcript Analysis Machine Learning Clinical Quality Provider Network Working Alliance Provider Score Outcome Measures Onboarding Client Reviews Insights Generator Orientation Discharge Results Qual
Slide 31: Robust technology platform drives differentiated care model
Robust technology platform drives differentiated care model The journey 1 Screening / intake 2 Match 3 Treatment 4 Outcomes 5 Discharge 6 Maintenance Technology engaged Robust, data-supported provider network Proprietary matching algorithm and quality control Machine learning-driven tools and progra
Slide 32: Technology delivers a best-in-class customer experience
We believe our technology delivers a best-in-class customer experience Guaranteed Multi-platform Digital navigation Find provider response time capability and triage Personalized matches Secure, reliable Live video sessions with Goal-setting, guidance, to suit specific needs messaging with a provide
Slide 33: Member platform demo
Member platform demo talk space Welcome to Talkspace
Slide 34: Provider tools and interfaces drive provider efficiency
Provider tools and interfaces drive provider efficiency Seamless mobile interface Easy to navigate dashboards
Slide 35: Provider platform demo
Provider platform demo talkspace Welcome to Talkspace for Clinicians
Slide 36: Complete and unique data set enables superior service
Complete and unique data set enables superior service to all stakeholders 2.1M 80M 1.9M 250K Registered member Anonymized messages Psychographic Clinical diagnostics database Text, audio, photo, video measurements1 Members Understand members’ psychographics to predict needs to deliver higher care an
Slide 37: Machine learning features constantly enhance member experience
Machine learning features constantly enhance member experience 1 2 Increase Drive higher understanding quality dialogue of member Analyze history of member interactions Improve Draw inferences care plan Identify Risk from member 3 6 profile and robust dataset Supplement with clinical input Provide M
Slide 38: Security and privacy by design
Security and privacy by design Confidentiality Integrity Availability Fully cloud-based Talkspace web and All data encrypted Notable third-party Information Security systems mobile apps access in transit (using TLS software used in Officer responsible for data using secure 1.2 or higher) and develop
Slide 39: Q&A break
Q&A break talk space]
Slide 40: Session break
Session break talk space
Slide 41: Clinical network pioneering data-driven quality of care
Talkspace is its own behavioral health category: Clinical network pioneering data-driven quality of care and efficiency
Slide 42: Provider testimonial
Provider testimonial
Slide 43: Unparalleled network quality and adequacy
Unparalleled network quality and adequacy Robust growth Active providers 3,000 1,300 Jun’19 Current Unparalleled value proposition Flexibility and convenience Professional development Efficiency Income Unmatched presence and quality Access 3,000 providers across all 50 U.S. states Experience 100% 8
Slide 44: Hybrid network model benefits both Talkspace and provider
Hybrid network model benefit both Talkspace both provider
Slide 45: Providers' capacity management ensures network scalability
Providers’ capacity management ensures network scalability Network mission Deliver timely access, high quality, evidence based care to Talkspace members, at scale Predictive, real time, state level capacity dashboard Automated, fast, efficient provider enrollment
Slide 46: Ensuring highest standards of clinical quality
Ensuring highest standards of clinical quality Embedded evidence-based workflow Progress tracking Goals and objectives Outcome measures
Slide 47: Science-based approach driving meaningful clinical outcomes
Science-based approach driving meaningful clinical outcomes Clinical case study Talkspace treatment efficacy 12 PHQ-9 GAD-7 10 8 6 4 2 0 Pre Post 68% Of patients improved or remitted Talkspace treatment efficacy Published study of 10,718 participants Study length of 1.5-3 months Average patient age
Slide 48: Q&A break
Q&A break
Slide 49: Creating shareholder value
Creating shareholder value
Slide 50: Multiple levers for continued rapid growth
Multiple levers for continued rapid growth M&A International expansion Expand partnerships Expand user base Multiple adjacency and drive engage areas to enter Highly exportable Further expand platform capabilities Expand base and care capabilities penetration of 30mm1 near-term existing B2B clients
Slide 51: Expand highly-engaged core user base
Expand highly-engaged core user base Continue driving brand awareness and member engagement Expand member base Utilize brand awareness for further penetration Transition existing user base in need of psychiatry services Expand provider network and capabilities Continue penetrating large base of pote
Slide 52: Diverse pathways to continued B2B growth
Diverse pathways to continued B2B growth Address embedded members in existing B2B clients Add new B2B clients Expand capabilities B2B lives covered growth (mm) 1 Extend member retention through 40 self-service care products 2 Further establish and grow psychiatry 2 2 Q1’19 Current Partner with addit
Slide 53: Clear global expansion opportunity
Clear Global expansion opportunity
Slide 54: Optimally positioned for M&A opportunities across behavioral health
Optimally positioned for M&A opportunities across behavioral health landscape Chronic managed care Substance use disorder Virtual therapy and Wellness and psychiatry adjacencies mindfulness platform Address price Upsell product to sensitive users and current users to drive expand member ARPU base Pr
Slide 55: Overview of financials
Overview of financials
Slide 56: Financial performance highlights
Financial performance highlights Attractive market trends Embedded growth opportunities Efficient customer profitability metrics Unique economic model Capital deployment Demand for behavioral services driving widespread insurance coverage Positive regulatory outlook with loosening of cross-state cre
Slide 57: Exceptional financial profile with strong growth trajectory
Exceptional financial profile with strong growth trajectory Net revenue ($mm) | Growth (%) Gross profit ($mm) | Gross margin (%) Net revenue ($mm) | Growth (%) Gross profit ($mm) | Gross margin (%) EBITDA1 ($mm) | EBITDA margin (%) 1 We have not provided a reconciliation of EBITDA to GAAP net income
Slide 58: Financial outlook
Financial outlook Near-to-medium term growth and margin expectations Revenue growth Gross margin expansion EBITDA margin expansion Rapid growth in both B2B and B2C segment Strong growth in new clients coupled with high retention of existing accounts Increasing awareness and engagement driving utiliz
Slide 59: Profit and loss snapshot
Profit and loss snapshot H I S T O R I C A L F O R E C A S T 2017A 2018A 2019A 2020A 2021E 2022E 2023E ($ in millions) Net revenue $18 $29 $38 $76 $125 $205 $285 % growth 61% 33% 100% 64% 64% 39% Gross profit 8 14 20 50 80 129 176 % margin 47% 49% 51% 65% 64% 63% 62% Operating (23) (34) (49) (72) (9
Slide 60: Financial statement presentation
Financial statement presentation Income Statement Revenues Commentary We generate revenues from the sale of monthly membership subscriptions to our therapy platform, payments from consumers and their respective insurance companies and annually contracted platform access fees paid to us by our enterp
Slide 61: Financial statement presentation (cont'd)
Financial statement presentation (cont’d) Income Statement Commentary Cost of revenues Comprised of therapist payments and hosting costs Largely driven by the size of our provider network that is required to service the growth of our customer base, in addition to the growth of our health plan and en
Slide 62: Financial statement presentation (cont'd)
Financial statement presentation (cont’d) Income Statement Commentary Sales expenses Consist primarily of employee-related expenses, including salaries, benefits, commissions, travel and stock-based compensation costs for our employees engaged in sales and account management We expect our sales expe
Slide 63: Financial statement presentation (cont'd)
Financial statement presentation (cont’d) Income Statement Commentary General & administrative Consist primarily of personnel costs, including salaries, benefits, bonuses and stock-based compensation expense for our executive, finance, accounting, legal and human resources functions, as well as prof
Slide 64: Company highlights
Company highlights Pure-play solution to vast unmet medical needs with huge TAM accelerated by COVID 2 Purpose-built platform designed to optimize outcomes for patients, clinicians and payors 3 Sizeable credentialed providers’ network addressing a wide spectrum of clinical needs 4 Scalable technolog
Slide 65: Talkspace is a preeminent digital behavioral health platform
Talkspace is a preeminent digital behavioral health platform This is just the beginning for us Our goal is to become a full stack one-stop shop behavioral health provider, able to serve any user’s needs across their care journey
Slide 66: Thank you
Thank you 66 What | admire most about Talkspace is their mission to provide Therapy for All and bring more awareness to the importance of mental and behavioral health. Demi Lovato, Singer, Songwriter, Activist, Mental Health Advocate
Slide 67: Appendix
Appendix
Slide 68: Hudson Executive Investment Corp. overview
Hudson Executive Investment Corp. overview Founder / Managing Partner of Hudson Executive Capital Former CFO / Vice Chairman of J.P. Morgan and Head of Americas Investment Banking 35-years of M&A leadership, including some of largest Healthcare transactions drive portfolio company strategy through a
Slide 69: Pro forma capitalization and ownership
Pro forma capitalization and ownership Estimated transaction sources & uses1 ($mm) Sources SPAC Cash in Trust $414 Hudson Executive Capital Forward Purchase $25 PIPE $300 Total cash sources $739 Uses Cash to balance sheet $250 Secondary proceeds $444 Estimated transaction expenses1 $45 Total cash us
Slide 70: Valuation benchmarking to peers
Valuation benchmarking to peers Source: FactSet as of 03/05/21; 1 Disruptive Healthcare includes mean of: Accolade, DexCom, Health Catalyst, HealthEquity, Inspire Medical, iRhythm, Novocure, Oak Street, One Medical, Phreesia, Veeva; 2 High Growth Internet includes mean of: Chegg, Etsy, Fiverr, Match
Slide 71: Legal and regulatory
Legal and regulatory
Slide 72: Regulatory environment
Regulatory environment Regulatory reforms Traditionally, intimate nature of behavioral health care has placed a regulatory burden on teletherapy CMS expanded services and waived barriers to coverage of teletherapy video and messaging platforms States issuing waivers to allow cross-state practicing o
Slide 73: Licensing & credentialing as first step towards practice management
Licensing & credentialing as first step towards full practice management services Goals of credentialing process 1 Timely processing of applications 2 Safety of clients and quality to care 3 Access to care Types of providers credentialed Licensed Ph.D./Psy.D. Masters level licensed counselers (LPC,
Slide 74: Additional Information and Where to Find It
Talk space Additional Information and Where to Find It This press release relates to a proposed transaction between Talkspace and HEIC. This press release does not constitute an offer to sell or exchange, or the solicitation of an offer to buy or exchange, any securities, nor shall there be any sale
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