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Talkspace (TALK)

Participants
Mark Hirschhorn President, COO
Oren Frank Co-Founder, CEO
Jennifer Fulk CFO
Charles Rhyee Cowen
Stephanie Davis SVB Leerink
Ryan Daniels William Blair
Vikram Kesavabhotla Baird
Richard Close Canaccord Genuity
Call transcript
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Operator

Welcome to the Talkspace Second Quarter Earnings Conference Call. My name is Richard and I'll be your operator for today's call. [Operator Instructions] I'll now turn the call over to Mr. Mark Hirschhorn, President and Chief Operating Officer.

You may begin.

Mark Hirschhorn

everyone. afternoon, Good Hirschhorn, Mark Chief Officer. Operating This Talkspace's is President, to conference XXXX. call I'd like the earnings you welcome of to for our second quarter Leading by Frank, Officer, today's myself. Chief Oren and and call Executive Chief Financial Talkspace's Officer will Fulk, Jennifer Co-Founder joined the company's be is offer will questions. remarks then take and Management we'll prepared your their Talkspace's webcast and release on press are available the website. Investor Talkspace's link Relations section of be we this will making forward-looking call, On statements. results and may judgment, if materially. and currently actual These events reflect us or our best statements differ known factors to Please press refer we that Talkspace's file at form X-K the the the documents the on SEC filed release posted including in disclaimer today's website. and I'll Frank. now Oren over turn to it

Oren Frank

Mark. healthcare of the our find a And Talkspace you, joining with millions proud and as accessible for we of clients. are We all us first high-quality making had to found Thank mission on have to of everyone. behavioral thank a Welcome impact you earning public we that company.

lower personalize technology built large purpose Our at a clinical scale. to platform most very designed to importantly improve outcomes treatment costs is and

individuals, our enterprise aim extremely invest of We the innovation conditions with broader choice providing will and individuals and clients. greater that make service to in and for array and product attractive address continue health of plans even portfolio

the Lilly track diverse in class you. of of healthcare Jennifer Jennifer, Financial to us joined her success across at and to innovative best address reach, health today's an call ways. mental to our offer organization. roles world to unparalleled joined growing accomplished further we We and in and Fulk, as dying will continue capabilities record and by to who market with develop the Jennifer us us allow I'm distribution leadership stats. demand start strategy relations Eli from brings Chief believe investor our services over clinical Officer. and finance expand set that channel technology that our the the unmatched product delighted for We're introducing

Jennifer Fulk

unique and and commitment Oren, that afternoon impressed capabilities, to joined thrilled team. Talkspace passion strong to as in you, virtual highly to and I'm investors tailwind a medical looking have This we incredible our on we Thank behavioral capitalize and technology clinical It speaking gives recognized with clear foundation of grade demand have leadership healthcare. very an weeks. been the revolutionize us the stack good a And has talented I'm differentiated brand. everyone. by forward coming is our

Oren Frank

what the you time of the results of to After of spend on Talkspace would our we some story, new I Talkspace's to are the generally. more and then talking many about this, review highlights provider sessions. quarter growth audio and company second touch of will text, like day ahead and behavior opportunities virtual pure-play to via messaging, access is public Talkspace also mental at want national recent Boyd, Officer. also program Thanks, I to Medical Varun incredibly joined Dr. Choudhary, Varun Jennifer. was two Magellan hires, previously who Chief he joined our and where managed important us who as Erin the health mention behavioral as of enterprise for Chief Strategy and advantage Officer Director our Cigna. of previously commitment as we Recognizing Behavioral a massive strengthens to a video, resources health delivering exciting life Growth view us. business some by health our only BXB opportunity. taking video/audio the Erin's for Network further as the hire that high-quality served same us

also prescription write had treat activities across data our and platform first a belief science. through treatment we've engagements XX application therapy company been the and range of specializations XX patient's conditions Clinicians a outcomes local couples, the sent or directly finding can psychiatric adolescence virtual health clinical because improve of the needs can of Talkspace, pharmacy and to in mental and Since and virtual patients. wide over Our of it a the addresses individuals, states. that technology dramatically all of

Our into diagnosis, clinical us matching treatment. dataset and patterns optimize to proprietary a outcomes. and identify to deliver and leverage and technologies enhance accuracy empower anonymized allows clinicians care natural of and to These and language improve personalized personalized vast learning machine the speed

and of a selling spectrum represents us entire needs at clients. use our serve capabilities members and second capabilities course, business requirements Of and member to access have right individual BXB practices also compelling the and different To advantage. value achieve our and information we grade across approach the patient's plans who as sustainable our in who health competitive HIPAA and business pay robust and new to who in-network as comprised per unique These compliance of expand an offer satisfy land clients driven medical to market our enable per month further of marketplace we us rates. the of functionalities service for upselling of well believe that opportunities behavioral broad products comprised an suite for drive is We health confidentiality the it at adopt innovation platform stack In reimbursement we and that data several fee will We full to a proposition and large maintain other and services cross designed our to their enhanced the will subscribe Direct-to-consumer, our BXC market imagine the adoption. lot ecosystem with half year, further business with directly legal expand and are calming clinical our to are Expanding through and we've behavioral consumers regarding of modalities. centric a that insured full affordable. information. believe our convenient products technological cases, to demand and two portfolio enterprise platform; our channels. to channel making members approach more towards will quality healthcare, again, a our our

to currently an and platforms access and distribution audience. us even additional healthcare more such that navigators, We’re involved will partnerships channels ecommerce and into broader diversified new give making as carriers nontraditional platform,

via some treatment and asynchronous messaging several Our scheduled, offer video, audio BXC live sessions. subscription unlimited for audio range allow offered a or and text, of tiers, product is via

continue which drive individuals, offering to currently prescription of and second shift will workplace. expand further the continue half planning psychotherapy, encompassed higher treatments our specific group and the We couples, to We on to in and to a target we're year teenagers, psychiatry focused services an and situation see tiers ARPU. toward therapy offer the

time cost to to portions contribute visible will cost expectations offerings BXB is saving service of our cost a higher clients provide ultimately accelerating acquisition with revenue and which time. an over expect a lead and of and We're operating to built Our and as to and it we both about of business and it increasing over extremely employers opportunities continues large stream traction low revenue a these reoccurring outperform excited margin. our margins

insurance provides Direct-To-Employer call our services an access or BXB through benefit DTE all either Our as paid which a we their or employees or to by directly plan. employer

are directly per We we basis. offering, direct care employing with to a and per governments, enterprises, member contract provide universities month on to

of our include University and Reserve clients Google, enterprise represented Accenture, Triathlon Federal Expedia, Blackstone, the Bank, Association. Our example USA West Virginia

EAP Aetna, the our Employee Optum, include by Manage to with Health insurance and MBH, and example clients represent our Program of clinic EAP, Cigna, plans Assistance major For and clients, Humana, Premera, clients Behavioral health contract and other Wellspring. deliver Programs care health we

base. experiment large rates, believe licensed and matching We of providers to proceeds we strategic hire our and satisfaction. our increase have which module will nurse to built in higher utilization our grant member from new demand a we decision enabled engagement, with The therapists, full-time clinicians capacity serve retention, of accelerate full-time W-X X,XXX growing The psychiatrists member's living practitioners, approximately lead enhances network us us and to flexibility employed products. our to and increasing more availability networks our

grow calendar and upfront therapists this investment confident add strategy time. both of our quality remainder scale we can improve and and economics rapidly meaningfully the that as to we throughout year that greater requires We the continue unit expect we can over are additional full-time a to

Telehouse We to all lower as health mental continued and essential a industry, thanks post-pandemic. to adoption to of behavior need an efficacy, and has are greater leading clinical its finally increase is demonstrable convenience, the cost, major recognized

medical consistent and onset business behavioral is behavior of a as suggests and clinicians reduced specialties driver utilization decline been of innovation. patient structural, of convenience, of demand. in section stigma, percentage behavior the and have attracts with increase COVID, the both trait percentage but survey no a lower has contingent infrastructure to is continues the change gradual demands of this most remained consumer healthcare aggregate and of the believe pandemic in While in which certain health the a Telehouse of visits most of claims. Telehouse aftermath virtual become total for new the validate high. We in have familiar actually all-time Utilization meaningful as this investment has ultimately the since mental seen more in consumers Telehouse platform claims The cost virtual durability longer

As privacy, it mobile has go-to and are be XX% therapy users first-time relates and natives market and Talkspace's strategy, our select our convenience and who for to continues first, of been members net digitally to young. Talkspace audience its affordability.

health of expect providers modality remain mental demand we care. robust to such, appreciate and the for to As virtual continues benefits especially consumers as

to to our highlight and a to turning monitor you help we Before with performance would to our share our number Mark, over our some KPIs quarterly the items of key track like to share investors and conversation I regularly internally also from financial performance. expect used business

has quarter the This approximately before for active the more conditions ever year over members just quarter XX,XXX across XX% one end at patients ago. of more which up than with second

in $XX the revenue company second million for quarter year-over-year and XX% quarterly the by $XX to Of million, was revenue XX% BXC note, revenue of a robust second up the a BXB growth. pipeline our Our clients BXB sequentially. and revenue was and net for particular million up for quarter and represents record net grew XX% year-over-year $XX opportunities. we have year-over-year XXX%

our result, by on track million of revenue are we XXXX. guidance a to $XXX XX% a of meet the revenue our year fiscal for growing As

other we While digital our cost elevated of in grew acquisition many peers experiencing advertising. costs a substantially, customer of our due material to increase are revenue BXC the and mainly

of taking a our a environment, further steps strengthens believe result number which business. we're of As this we

differences increased competition is leading brand an believe driver our our First our BXB pipeline. we we advertising and budget us further which which from enhances for important market

our building further increase ultimately unique member's by asset capabilities engagement, network we medical that clinical believe satisfaction. of enhancing focused on imposed will and we a Second, retention, clinicians, W-X grade our

of inflation. quarters of we'll a mitigate Third, coming we we're impact we the expect undertaking number operational new growth. And to distribution finally, a channels of over and could believe products, number CAC believe the which will organic we feature launch improvements which drive

not and brands are we defend market do believe how persist, we position. well-positioned we will pricing our both environment to know While leading long this well-capitalized

execute to of on BXB continue Moving growth high we revenue. which our margin our back to and reoccurring a stream strategy visible BXB business, provides

overtime, from the contribute are As a product and We thriving our increase. company's in our The added and and increase direct to differentiated we ending Direct-to-Employer as XX and up our increasing sell our a quarter seeing well cross continues business combined sale XX% the in and continues products the BXB sequential rapidly a expectations. expanding number employer our prior foresee place, clients significant experienced the existing offering comprehensive with to within we it resonate or to just expect the up was or of offering traction eligible and year-over-year BXB quarter, is with also medical portion opportunities lives, we of quarter, history. as revenue work portfolio The margin. second strongly quarterly largest to new and both In XX% clients. in up adding customers an million a we're grade XX% grow innovative DTE market representing enterprise outperform to continues

results. to As and a will of Thanks partnerships, massive brand the for At of to of approximately of call leverage ended increase review adoption high turn us point, Mark BXB already our all the million the which this used our we very cash internationally. further merger, awareness, channels, over result our new drive much, I add quarter opportunity everyone. will $XXX of and a expand ahead be we financial products across have

Mark Hirschhorn

Thank you, Oren.

we had quarter. solid noted, a Oren As very second

quarter Direct-to-Consumer our increase a million. consumer higher membership year-over-year During second and XXX% underscores this preferences the last be the subscription to where to of increased and quarter total year year-over-year driven in at the revenue This aggressively arena. shifting revenue to as $XX XX% increased of in million, into from XX% second grew to it total revenues our quarter, million to in by point the compared year's tiers. revenue second $XX we $XX want moving XX% increased XX% as active BXB represent is quarter. significant success in year-over-year well exactly towards to the and revenue enterprise

reflects guidance We revenue year-over-year a are XX% our reaffirming XXXX which growth. million at $XXX

to the QX, our inter-work as increased Direct-to-Employer over membership of million of of clients benefit XX an XX% Turning XX,XXX as second XXXX of XXXX members, June July over increase lives. an At quarter. a XX, to and access, eligible prior end the Talkspace quarter added over lives. we XXXX. XXX of the end with year's XXXX, ended was clients June up BXB from eligible XX quarter million as the reached XX Between business to the active X, second XX, for

weekly wins gain in to the the As we offering experienced history. Direct-To-Employer our just company's as marketplace Oren our largest in mentioned, traction Direct-To-Employer continues

stands than than on this last at greater pipeline stood time In a in fact, today which increase sales opportunities XXx year. our

clients as the slowly as of nation's enterprise care plans virtual opportunities have the net This partner necessity provider. modality enterprise to to access as pending our that for transitioning largest those some systemic professionals well in a qualified health plan behavioral Talkspace benefits shortage health obstacles as including an vital recognition other Our permanent to nation's absolute system healthcare every inherent in make and of a to addition our healthcare been care.

fourth excited the the extremely even market. us to quarter in white the timely existing space greater will percentage are product enhancements payer to We an capture as enable of

brand, members. promoting creating been While we our had also busy our leading have for been optionality market actively we

ability ensure their psychiatrist. have and will bringing that we to has broader with innovator synchronous how the Talkspace plan the to these ensure to opportunities through people and over our they We and or been an want select psychotherapist introducing to be phone video expanded next that in complement advance months. several members offer live have features the to to we or have to messaging a listened clients will therapy when millions to therapy engage audience shortly messaging, and features health into far of exactly

Our to quarter. year's $XX the prior an XX% gross increase the profit increased of second compared quarter, to million for

to XXXX. to in absolute was gross total the BXB in percentage attributable decline quarter revenues the is gross XX% Our margin of business, XX% their it's investments outside optimize it from increasing growing dollars full second The upfront margin line the Talkspace. of a in either and and compared of have time in primarily clinicians clinicians been the or These clinicians our addition to already time XXXX of part transitioned to W-X time takes platform client capacity. on as from recruited

$XXX,XXX $XX as We Adjusted several our XXXX. utilization in quarter expect second XXXX, platform loss to will on was loss quarter that full margins and optimization reach second the quarters. compared over normalize million a the EBITDA the next of in these clinicians of

expectations prior since to this As increase initial acquisition be can Oren periods. been in relative relative losses to the in year mentioned, to the customer CAC The elevated cost. has of meaningfully of beginning the excess majority quarter the attributed

the increased this of acquisition have when more normalize. current it first costs customer the environment predict advertising half difficult dramatically year, makes to will costs during While ultimately

the basis expenses any the not a such, period, of remainder for in included million update of of of $X.XX $X.XX $XXX QX, were quarter Net in and On the the for from a Also investments. in on for quarter net loss balance liability for this loss share closing transaction warrants the on connection million. will We related our merger. As Hudson we the second and with net to we per year. related be per last to booked million a was to prior ended $XX comparable our to $XXX,XXX providing quarter guidance was Investment a quarter compared with Executive acquired short in Corp about loss the cash compared share that year of $XX.X EBITDA sheet $X million year. loss term

have and turn, continue both franchise. our also out enable will generate our emerging franchise, these Over strategies are build expanding of sell cross will With confident us that invest segment our commercial we see in believe products, strengthen geographies. margin. We while closing portfolio. an resources revenue turn offerings, we And our to portion service opportunity invest in time, our very the channels call in new back that, increasing significant BXB comprehensive to and a our We this upsell we will to to and BXC BXB and to I to for Oren continue remarks.

Oren Frank

and Jennifer. Mark Thanks,

I opportunity to like hard our in would of to would for take the in this over this the use call members turn and I us time Talkspace the team the to I world. to your also Q&A, mission. to like our work thank trust around Before acknowledge investors

are and I'm that We Back you, while and talent for incredible we'll TALK public on good. managing world these into with open demanding execution, is grateful tell passion, company. questions. for operator. and a to the the to share call that, proud transition all your results And exciting behalf the your

Operator

you. Thank

begin line now go Instructions] We Charles the on question-and Mr. [Operator first Rhyee Please answer-session. Cowen. ahead. from from question will Our comes

Charles Rhyee

congratulations Yes. merger congratulations the the on Thanks and quarter. and on

was driving Just step noted had the of, of that? thinking so the second a mix of from in us less a a go business here margin sense might in just give that little nice from the the a be give we're the up what looking Mark think to us the how erosion bit third. into forward we at the guidance kind BXC quarter mix, and as obviously particular, active that in gross how first on you BXB, a you lot about and you really shift Can third a quarter sort BXB members can between quick breakdown about question and actually of I that here.

Mark Hirschhorn

you. Yes, Charles, thank

the the in a BXB essentially saw the members that increase members we to extent on BXB representing than more membership platform. quarter, half of active are slightly significant now active This

at reduced a They as those a margin. far generate, continue slightly towards however, a to As as BXB plan cost. lower acquisition the the to we look revenue our well us in membership improved come members to of year clients. tremendous margin, We Direct-To-Employer bottom to represent traction our revenue quarters both consolidated of line but growing contribution would both far BXB this just to gross fourth health a continue and third as and continue clients portion from of see net

expectations our came exceeded now exceed to have revenue. looking original and enterprise our We annualized million contribution we'll on total be to clearly our at quarter $XX as in for revenue guidance the

Charles Rhyee

The active down members for Anything on year? comment that, the Thanks. do you in the sequentially. were the side, rest BXC expect of and to what

Mark Hirschhorn

the and are to going our what looking leading Facebook with Sure. channel in to the in quarter, pricing brand. of price increases price continue spending market investments on a in from somewhat our to we we as in there's and to to There compared We of deliberate were and today. punitive really we're that were is believe tremendous this the And maintain of companies. disparity where to really channels we second frequency we through continue is acquisition leading other But, advantage fact in is acquisition as as competitive customer focus well diversify very this non-traditional obviously now to the properties. partner the appropriate Google XXXX. our nation's The year some dramatic costs quarter digital look

word We've that the in elevated unlikely that quarter clearly last two we really it's like will past believe seen frankly has five are but dramatic are we don't shift nor tracking been next this increases have stabilize ever levels, this, going think or that the we these quite to do a three sustainable are believe over levels we since two years. years down say CAC I'd to been. say I because see I'd this

Oren Frank

of Charles, additional couple this is Oren, a comments.

psychotherapy First psychotherapy XX demand seasonal. to this during your is lower and QX. all, question the the likely purely for about this is been of Historically, now, summer. for We've doing years

strong the look So you we've conservative with as on tailwinds We what's although behave. markets will very feel how it's little when QX, as Mark been variant to a very Delta on mentioned. at unclear going

CAC as and we very, things. two question, optimizing achieve are the carefully very Regarding this thoughtfully to

help part First active BXB of of all, we a have that would cross and and in to both utilization and for CAC both on we're our a will in very, consideration and do on advantage differentiation unique, actually brands power other of therefore take BXC. invest BXB in manner. is helping the much penetration BXC say It each how and feeding I very unique we

are said, investing prices. money to So one as this certain but in levels of keep rises there brand are brand market, we our there the Mark the number

they you just close that saw If prices you to we will their worth seen Facebook guys year-over-year that the raised think release, it. QX are XX% have don't

curve game. a it's So for optimizing

Charles Rhyee

Great, appreciate it. Thank you.

Operator

you. Thank

from line Davis the comes from on question SVB next Our Stephanie Leerink.

Stephanie Davis

congrats in welcome and Hi, earnings public the arena. the Mark, call first to guys, back quarter

missed. You have been

Mark Hirschhorn

you, Thank Stephanie.

Stephanie Davis

could was different how to going I because see eligible maybe following any the just at there? beginning we're hear BXB or any and year that hoping forward to metric are about in are going things employers lives how to season in look lumpiness to a growth seasonality the into selling bit consider benefits little for your key tie and the

Mark Hirschhorn

is side we're payer in objectives, We're performance colleagues accelerated sides entire We think both business. are on business and We've as group where to coming They've sales of align today. today, well our work the interest the as from seen internal and they both obviously seeing direct projections. excited trying our the extremely exceed sides. from individual I the the that sits going for benefit. seeded the to uptakes enterprise with What clearly BXB our about employer

individuals really traction we the from of ahead brokers. the ahead we're of benefits. QX and and as largest of amount now we adoption the We've clients frankly, with markets consultants going companies are believe number added the to of traditional benefits nation's plan implementation the some get seeing we've revised critical Talkspace from We're extremely to announce commencement marketplace some experienced most enterprise somewhat saw, beginning those, of have, continue in and modalities add January moving a of live tremendous issues through additional QX So on voice we introduction towards messaging, X, traditional and on and a to that clients, as and for interest side. cost. and hires that both we enviable that help are being through in attend on, video, a brought, additional can Quite to solution health enterprise a we today the we're a the position of just, services through employed to access I

Stephanie Davis

Then Teladoc, with your waking the the health up a budgets I of base days to early of remember spending on. improving user plan on guys penetration lot you marketing lot end a into and

cost So how around plan and and should the of users we think revenue health some and improving penetration base that? about maybe strategy active that metrics

Mark Hirschhorn

in believe available to those in want I to where I we're their access add us we traction product the our see thousands appealing fourth consumer to where the is are our likely align is are going health some point quarter almost point the because speaking we on. at that of deciding that analogy evangelizing of to out extremely those to still plan networks the therapists of us we're think find clients rolled spot of health their as really and XXX% innovations we're and all receive innovations overnight. they the prospects with Well, plan care. a expansion and platform additional

commercial other verb of those become and millions and our the So quickly years very psychotherapists have to some when we're fact of I is the towards could ubiquity care breakthrough care, the XXs believe psychiatrists, Talkspace of that solutions. as consumerization and being access we individuals to and degree that striving the very were virtual teladoc people think to introduced term similar urgent

depth relationship and their the subscribers our normally of through course, for successful course, with far as of of through months and remission. many Ours, us are a greater has tenure condition their,

Oren Frank

is is I time, really that. remote of any I We threshold. notion of do which deal, add one XX the to don't done the of That telemedicine think to or evangelize particular we've ago, had care. crossed Stephanie, want X years Teladoc have a thing, that to

we so would an say, And job I easier educating. in have,

and I the the at that don't unfortunately, and newspaper, level all are think Olympics health, we us. of understand second pandemic the somebody depression the and and and we have generated and Secondly mental around pandemic of stress to read look has the anxiety to know

So the penetration of equalization easier you say, would very tailwinds one example, helps couple very between is should reached be to and weeks, Talkspace that In are, the levels employees XXXXs give and than health of strong. a during that looking very, employers large also the United employers teladoc And that the largest us demand are EAP, fascinating for the points today to, which in for launched I the both have States. or of we coverage help. their alignment of one plans QX, of we first quite few and

and XX XXX% in not elsewhere. Our our all under our and technology that is ability hours, capability data employers in exist those quality, clinical under of can hours. And match employers outcomes, platform, to report network allowed and for us plans proven think and therapist XX this licensed by level accompanied our engagement really rate mentioned, states in the to match about whether large launch three XX% we the of their was does all employees, of that used the as for what a immediate for, are Mark when That I successful. actually looking the to assess be access,

Stephanie Davis

hear an There within few easier years that. usually a is was I ago. it, list

Mark Hirschhorn

Exactly.

Stephanie Davis

Thank you guys.

Mark Hirschhorn

you. Thank

Operator

And thank you.

question Our ahead. Blair. from comes Daniels go Please line from next William Ryan on

Ryan Daniels

of market more you little there to be offerings going the coming to taking targeted a for go the you back talk you want I the the I the particular. to about in out questions. which which those quarter thank and product new guys, bit Can would demanding that over think are referenced next employers are Yes, fourth because the some two BXC? are or quarters be of towards BXC

Mark Hirschhorn

you that privately So, those you people one or in think issues I'll or planning through services psychiatry taste in And to employers be will better will thanks give member the audiences services for both. we over all around BXB need specialty. or are and of for a And additional for our that have patient as that go us would that you I we and the looking prescription including health we look clinical crossing of and fit management tell are XX various what at requests at just XX a are say to for the needs With actually many the the at mind, plans. psychotherapy how BXC question. kind I our or and the markets. deliver from states access of as surprised individual I with person

So all covered. and major already conditions, are the acuities

again, is that, In to mentioned, planning was to therapy markets, Mark are sessions, messaging, more up we by from live have come modalities suite of people that which something closest live proxy both would both a requested the of go-to face to live that better Talkspace is a moving actually used say, add, I something the traditional with terms and face as users, comes of are session. course, in for them, past video and

that So we demands. in more seeing are and growth

treatment ailments use request our vector, is side. which more interesting group the substance partners acuity, clear is with essence, this behavioral lot properly ends, overlap We the on again, would from that very in is could other I at has hypertension the some large very therapy is very diabetes other and or the our on in are of helping patients. in In This that of the large again, the I And demand strong of I health. but of much also the be health which conditions use definitely for care a we're say planning that that say a virtual or We forms services see vast with to grown also disorders look to be that of we already cases. for network, want their the those disorder you That full from issues partners. or add would providing and you the has the would we therapy be for dedicated when for want the we with clinical dramatically first could a that. both say solution plans and conditions vast and at becomes something but full find we that solution conditions our to a And forms is consumer the huge could But They And which issue. strategy, the think in BXB more that look the and will we also acuities face as plan of is build versus stack, include acuities looking and But group, half. then behavioral conditions that those which majority represents other through a majority our face. in chronic major with are products of if treat many of the alcohol first more pandemic. are associated would line choice world, the are follow that news, online solutions to plan.

the So answer both. I guess short is

Ryan Daniels

be to color if care. might strengthening helpful lot only spend That's better you as next and to care Those care, patients a to the care. you of long greatest pay my probably even be local there behavioral to go matches, network the groups have so seem access a is periods, potential of integrate private mental the there's acquisition one doctors partnership health is with markets get it do in country. lot to would and them matching crisis, out more try customer reduce need of a actually there might But that realize it across money. to health not see and there want of and question, way Obviously primary physical like lot with cost, would leads into

So have platform a working try country as PCP to referral such and with service preferred to relative peers? larger relationships of to is groups across you with thoughts channel as the referral kind offering drive broad a urban some to your of

Oren Frank

Mark?

Mark Hirschhorn

Ryan let me take that.

comprehensive perhaps lot resources, a in type of the scaled but over enable something provider an in person several is today, as to be can once ensure over well able co-morbid I several quarters as say group any of going video engage seen they lot is we'll years. the either believe anywhere and or array these they're in condition be think that opportunity consumers that a that order have but likely next of the towards there live can I available just a come next some month not for aggressive by and naturally also weekly of can that platform M&A somebody through a care people treated would to or regionally, where is messaging. intervals them give move then services nation being in The consumer the designing over appointment, give the to that the optionality their this of select, a over bi-weekly be practices, they'll fact physical of we leverage make to nationally a to the facilitate or to as

a it's and and think result of active I inorganic our will to a geographies, growth. going part in acquisitions think about of come very I this be small as certain

Ryan Daniels

final very customer just, one, helpful. the I'll cost. on That's Then again, hop off acquisition

I'm seen you if curious of their across that mediums. I think kind Facebook raising mentioned you've prices. all

it year-over-year some is of that So price the base. is actively having lot they millions marketplace? that money then given we've Or of utilization uptick of just paid big of the hundreds earlier increases? generally seen try that up funding and is the behavioral similar this really if also, search of the specific And in spending of this saw market, competitors to across membership their to dollars year, kind drive the to inflows then a

just specific So is tele-behavioral the or to broad? Thanks. industry, very it

Mark Hirschhorn

very is broad. price raise the Ryan, So

United majority will the namely at across that the are and you States, look the advertising of which If platforms, all you the Google, big online growth Facebook essentially in categories. see is

the that's say would I so, majority. And

people, money a would an health. decade it's to of it of noise, the this some element of invested. pronounced is but with believe behavioral course, of strongly all we less I And because lot as than say, spoken see competition, being course, the is is of I Of of there before, tend you

the in therefore we solutions, the lot So most of say alternative costs When attention, CAC, dots. channels, see I and look growth. into generate large our platforms, red we order and there's of the, of at what would growth the organic much across more to we it's alternative efforts is direct a definitely in channel will

investing And so this you an before, of as to aggressively. our their environment we're how going keep optimization game because pay can't growth bit, last. tell to it's is only needs going Facebook, I brand. take long The the little in doable. is a We it's prices We they really mentioned believe to going that's will not raised I thing

Operator

you. Thank

comes on Our from Please Vikram Baird. ahead. from Kesavabhotla next go question line

Vikram Kesavabhotla

question. behavior how based you're talk and for if duration BXC relative the of any curious seeing on the the channels trend can members to some seen, expectations going for Thanks that can with taking platform what the Yes. just BXB respect newer to on what about member of you the both the forward platform? I'm across on and historically, you've

Oren Frank

So will in you that service, let platform number question. for over enterprise. years see and better difficult translates clinical the actually And this we and ARPU always forecast help of Vikram, what the correlated. me very a stable, then which hand in condition be. highly longer we're order seek I'll In on recently, come our our are to think It's mostly the Those for of members. to many take you is as will lifetime of We to the work related essence, relatively better and lifetimes people to been doing provide the it to has outcomes. it, this into acuity your consumer it side of Mark that the through improve

in I mentioned clinicians. and investment think, earlier network outcomes. a employed This W-X on our of higher translates generates in by clinical quality better large fully turn, hiring of quality lifetimes care the which I longer into very

normalizes, decline. see who definitely to And want going it the We are. to and be Over time depression a you again, And probably didn't if that had with this because if issue question. years, member I come years did quite my the for in people stay come I'm understand plan care few answers came are girlfriend, going quarter. improvement help last here, go I it's and say that we particular to personas. in, and because a simple back an an this I suffered continue. very few argument we of for in both, I long would by your weeks, and seeking going to I'm So a I hope solve Talkspace I forth for back. I from probably come. see If a many to hope to

Vikram Kesavabhotla

and in you through fully And talk go then as balance providers versus up mix future well? follow maybe provider just on the expectation today of of about that any longer the Thanks. as the a can where and network on can and term employed the the independent network, Thanks.

Mark Hirschhorn

Yes, thank you.

value ritual Delta. respect. they are I first They psychotherapists they are being good treated are, all, those all to something post with is is of they're both very view very, COVID, as essentially your or are on think set now. point the providers So and kind depends a being on professionals, of of now recognized right all There and psychiatrists. of happening as And huge COVID, through

huge that the them. the opportunity and hire manage are. view have into believe in way far ones. we January, real better year, psychiatrists data recruit a because strategy and earlier we have platform, our we this best actually So to of Therefore, changed to started I we we And would say, who the a we therapists

now by of their because continue alternatives find out of of alignment, we network. would have, flexibility also around very, to flexible working think from say again, lifestyle W-X have and I a the hired year. we mortar best the therapists, is is their very that very very is the very most of psychotherapists X,XXX we Talkspace. prescribers hire the And to independent, advantage the strong. being course, We very And to, minimal. hiring are in and the of is of And kind very and nature the course, brick data with different clear with power, associated churn the providers us, the this to to employed are and year, aggressively. We that would beginning XXX this people from XXX trend very that very happy from as I fully And are, the psychotherapists XXX of join on January the the roughly around the platform, aim are

very, this great very the a this. on we for we're for bullish us. And is and development industry think So

Operator

you. Thank

from Canaccord Our ahead. from line comes Genuity. next question Please Close on Richard go

Richard Close

congratulations the And Thanks transaction. for the on questions. Yes.

previous - XX%? just the users. Just direct the I in saying active like to of questions, of had some like here, BXB there just like on the on answers terms XX,XXX BXC the BXB sort to was that XX,XXX is XX% housekeeping clarification Am a couple target, maybe and of on and the consumer breakout around

Mark Hirschhorn

Yes.

on You're Richard. there, target

Richard Close

notes. And then and train or through retention stable. my on going just I appreciate I

five is should be we that had like think Is I I the months number thinking about? average duration. right

Oren Frank

Direct-To-Consumer. That's right. exactly Well,

Richard Close

your on Mark, comments.

I was question. Stephanie's think for this

could of I selling clear, in in January here you winds the answer selling that new that terms the X. your actually were be season to implying took start from to season Just prior

So they'd be late quarter launching call quarter, timeframe? it third fourth

Mark Hirschhorn

in on-boarding positions us a some go enable launching the with nation. prior houses. the right. brokerage or are some X the are in of start a other live they'll And are number represent accelerate We're January that RFPs. dates finalists exactly there two them will initiatives That dates. also traditional and to the to number currently of in large employers of of That's the in top One XXX

Operator

line from Mr. Charles Please And on Rhyee our question Cowen. go ahead. last from you. comes Thank

Charles Rhyee

like I and Yes. are Thanks of that appreciate sort Mark, But year? of that just peak, pricing. optimizing about taking the up. for customer what little is here. saying to ask right CAC if there EBITDA for same a like the about of you follow of certainly are wanted acquisition rest bit the for sounds environment, kind thing around costs for you now uncertainties kind and time this the

million basis. loss one the million EBITDA roughly other think EBITDA it as in let's rate else run we sorry, last on of an would call year, anything Is adjusted think quarter quarter, from or so roughly, rest was $XX.X the think And or for our $XX.X about the the the ballpark about of should I pull to sort $XX.X we million at in it way the that of right look model? that that in

Mark Hirschhorn

year. first is assume Charles, this of months the seen very that in we've to it's to experiencing fair what metrics the think third reported quarter I similar six

platform additional coming that So to I don't where into have will insight CAC this approach suggest we've would your We be. any Clearly that lives on contracted. already really is correct. the pricing

can revenues that, likely we is those We several our some develop spend we'll will from the are on just the retail the and as but degree going demand. typically that, Can't experiences QX be optimize additional brand. most really next going away of to apply we'll to months. QX on plan there's additional of obviously but which ensure we to to in highest If continue inflation begin that CAC a obviously all today spend result that we a pull seen our see channels. offset run to contributing as clearly rate to moderate But lower throughout investing

Operator

Mark you. over Thank to at the There are for like comments. turn closing further I'd any questions Hirschhorn time. call to this no

Mark Hirschhorn

of the of everyone. Thanks very to year We're for that, excited decade rest I help rest in people and Talkspace for positioned the is need. uniquely of quarter millions this mentioned this perhaps much, and the as very

industry With tail this prioritization. of the finally recognition, getting right that's away the right,

trust for your again and for thanks your So support.

Operator

you thank conference. you today' and Thank And this for gentlemen, ladies participating. concludes

You may disconnect. now