Talkspace, Inc. · NASDAQ:TALK

Talkspace — Q2 2023 Earnings Presentation

11 slides from Talkspace's earnings presentation, Jul 27, 2023

  1. Slide 1: 2023 Second Quarter Earnings Presentation

    Feeling better starts with a single message 2023 Second Quarter Earnings Presentation July 27, 2023

  2. 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

  3. Slide 3: 2Q 2023 Performance Highlights

    2Q 2023 Performance Highlights Revenue1 and % Composition B2B Payor Sessions2 Adjusted EBITDA3 Loss USD, millions Thousands USD, millions $40 ($25) 200 $35.6 $29.8 ($20) $30 $9.1 25.4% $15.3 ($15) $20 51.2% 100 200.5 ($10) $26.6 ($17.0) $10 74.6% $14.6 96.0 ($5) 48.8% ($4.0) 0 $0 $0 Q2’22 Q2’23 Q2’2

  4. Slide 4: Executing on Our Strategic Priorities

    Executing on Our Strategic Priorities 1. Payor Revenue Growth 2. Direct-to-Enterprise Growth ● Higher capture rate and member engagement ● Renewed commercial emphasis is gaining driven by user experience and clinical quality traction with prospective clients ● Recurring sessions to drive utilization

  5. Slide 5: 2Q 2023 Key Performance Metrics

    2Q 2023 Key Performance Metrics Revenue Gross Profit and % Margin USD, millions USD, millions $35.6 $35 $33.3 $20 65% $17.8 $30.2 $9.1 $30 $29.3 $16.7 $9.8 $16.2 60% $15 $25 $11.0 $8.0 $12.5 $14.6 55% 53.5% 53.5% $20 $8.7 50.2% $10 50.0% 50% $8.6 49.8% $15 $7.3 45% $10 $18.5 $5 $14.8 $18.5 $10.7 40%

  6. Slide 6: 2Q 2023 Performance Metrics (cont'd)

    2Q 2023 Performance Metrics (cont’d) Operating Expenses1 Adjusted EBITDA Loss2 USD, millions USD, millions $40 $(20) $37.2 $34.4 $4.1 $(15.5) $11.8 $30 $(15) $25.8 $30.4 $2.3 $24.2 $25.4 $2.1 $20 $23.5 $(10) $22.1 $(8.9) $(6.4) $10 $(5) $(4.0) $0 $0 Q3 ‘22 Q4 ‘22 Q1 ‘23 Q2‘23 Q3 ‘22 Q4 ‘22 Q1 ‘23 Q2

  7. Slide 7: Raising FY 2023 Guidance

    Raising FY 2023 Guidance1 USD, millions Previous Updated Revenue $130M to $135M $137M to $142M FY 2023 Adjusted -$21M to -$24M -$16M to -$19M EBITDA2 Adjusted Break-Even Break-Even (unchanged) EBITDA2 By the End of Q1 2024 By the End of Q1 2024 Break- Even Cash $95M+ $100M+ Balance At the End of Q1

  8. Slide 8: Closing Remarks

    Closing Remarks Diversified revenue streams capitalizing on growing mental health awareness and demand Leading brand optimizing member acquisition across distribution channels Improving outcomes and engagement from continued product and clinical innovation Growing provider network and optimizing clin

  9. Slide 9: Appendix

    Appendix 9

  10. Slide 10: 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

  11. Slide 11: Reconciliation of Net Loss to Adjusted EBITDA

    Reconciliation of Net Loss to Adjusted EBITDA Adjusted EBITDA We calculate adjusted EBITDA as net loss adjusted to exclude (i) depreciation and amortization, (ii) interest and other expenses (income), net, (iii) tax benefit and expense, and (iv) stock-based compensation expense. 11

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