Slide 1: 2022 Fourth Quarter Earnings Presentation
Feeling better starts with a single message 2022 Fourth Quarter Earnings Presentation February 22, 2023
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: Built to Capitalize on Growing Trend
Built to Capitalize on Growing Trend Current Dynamics Shaping Mental Health Access ● Demand for covered care dominating TAM growth Policy makers forcing “mental health parity” from insurers Employers reallocating resources to mental health care to supplement insurance offerings1 Kathy Hochul Propose
Slide 4: Executing On Our Strategic Priorities
Executing On Our Strategic Priorities 1. Payor Revenue Growth 2. Direct-to-Enterprise Growth ● Higher conversion and engagement ● Scaling growth via product improvements ● Driving adoption and reducing friction through ● Expanding covered lives and national payor product innovation relationships 3.
Slide 5: 2022 Performance Highlights
2022 Performance Highlights Revenue1 and % Composition B2B Payor Sessions2 USD, millions thousands $150 500 $120 $114 400 $100 $55 46% 300 $75 66% 200 426 $50 $64 100 274 54% $39 34% 0 $0 2021 20222 2021 20222 Consumer B2B Payor and DTE (1) 2022 results are unaudited. 5 (2) Includes sessions from Em
Slide 6: Q4 Performance Highlights
Q4 Performance Highlights Revenue1 Adjusted EBITA Loss1,2 USD, millions USD, millions ($25) $35 $30.2 $30 $29.2 ($20) $25 $11.0 36% ($15) $20 $16.5 56% $15 ($10) ($17.6) $10 $19.3 ($5) 64% $5 $12.7 ($8.9) 44% $0 $0 2 Q4 ‘21 Q4 ‘22 Q4 ‘21 Q4 ‘222 Consumer B2B Payor and DTE (1) 2022 results are unaudi
Slide 7: Revenue and Gross Profit
Revenue and Gross Profit Revenue1,2 Gross Profit and % Margin1 USD, millions USD, millions $35 $20 65% $30.2 $30.2 $29.8 $29.3 $16.2 $15.0 $14.6 60% $17.3 $11.0 $14.5 $15.3 $12.5 $15 $25 53.5% 55% $10 49.8% 49.8% 50% 48.7% $19.3 $15 $16.8 45% $14.6 $5 $12.9 40% $5 $0 35% Q1 ‘22 Q2 ‘22 Q3 ‘22 Q4 ‘22 Q1
Slide 8: Revenue Categories
Revenue Categories Consumer Revenue1 Payor Revenue1,2 DTE Revenue1 USD, millions USD, millions USD, millions $20 $12 $10 $10.7 $8.6 $17.3 $15.3 $10 $9.5 $8 $7.3 $12.5 $15 $6.7 $11.0 $8 $7.9 $7.2 $6 $5.7 $6 $10 $4 $4 $5 $2 $2 $0 $0 $0 Q1 ‘22 Q2 ‘22 Q3 ‘22 Q4 ‘22 Q1 ‘22 Q2 ‘22 Q3 ‘22 Q4 ‘22 Q1 ‘22 Q2
Slide 9: Operating Expense and Adjusted EBITDA
Operating Expense and Adjusted EBITDA Advertising Spend1 Operating Expenses1,2 Adjusted EBITA Loss1,2,3 % change QoQ USD, millions USD, millions $40 $37.2 ($25) $36.2 (23%) $35.6 $2.4 $34.4 $3.8 $11.8 ($20) $30 $4.1 $18.4 (9%) $17.0 $33.9 $15.5 (16%) $31.8 ($15) $20 $30.4 $25.4 ($10) $8.9 $10 ($5) $
Slide 10: Operational Excellence
Operational Excellence Corporate Wide Advertising Spend Fit-For-Purpose Operating Efficiency Operational Plan Optimization Compliance and Controls ● Objectives and key ● Disciplined spend in ● Integrated Payor, ● Sarbanes Oxley results of every every category DTE, and Consumer compliance employee alig
Slide 11: Fiscal Year 2023 and Break-Even Guidance
Fiscal Year 2023 and Break-Even Guidance USD, millions 2023 Guidance1 Break-Even Guidance1 $125M to $135M Break-Even Adjusted EBITDA 2023 Revenue By the End of H1 2024 -$32M to -$28M $95M+ Cash Balance 2023 Adjusted EBITDA Loss2 At the End of H1 20243 (1) Guidance is based on current market conditio
Slide 12: Closing Remarks
Closing Remarks Diversified revenue streams capitalizing on growing Mental Health awareness and market Leading brand driving customer recognition and organic traffic across distribution channels Improving outcomes and efficiencies from continued product and clinical innovation Growing provider network an
Slide 13: Appendix
Appendix 13
Slide 14: 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 is a key performance measure that our management uses to assess our operating performance. Because
Slide 15: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA Adjusted EBITDA We calculate adjusted EBITDA as net loss adjusted to exclude (i) interest and other expenses (income), net, (ii) tax benefit and expense, (iii) depreciation and amortization (iv) stock-based compensation expense, (v) goodwill impairment