Talkspace (TALK)

Mike Lovell Director, Investor Relations
Doug Braunstein Chairman & Interim Chief Executive Officer
Jennifer Fulk Chief Financial Officer
Charles Rhyee Cowan
Vikram Kesavabhotla Baird
Ryan Daniels William Blair
Stephanie Davis SVB Leerink
Glen Santangelo Jefferies
Call transcript
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Good day and thank you for standing by. Welcome to the Talkspace First Quarter 2022 Earnings Conference Call. At this time, all participants' lines are in a listen-only mode. After the presentations, there will be a question-and-answer session. [Operator Instructions] Please be advised today’s conference maybe recorded. turn over now your I'd Instructions] the to conference Mr. [Operator Investor Relations Lovell, Director. Mike

Mike Lovell

Thanks XXXX access Good call. joining evening for everyone. Talkspace’s you've the release. I had first opportunity press to the hope earnings quarter

have on IR walk see you presentation you presentation remarks. today's use Talkspace's our materials site. earnings We that a should through the We to to

these available their we'll include forecasts, impact Financial We information exclude Doug Braunstein, Officer, remarks. results. also talkspace.com. will our Chief Officer, Fulk. included we on measures Interim may Jennifer Executive I will begin are following earnings be adjusted today, non-GAAP strategic to with expressed which other our this financial and and of comments plans, and for Reconciliations Both measures and in Certain you remind call discussing to goals, are website by one-off priorities, have been want of prepared forward-looking on that non-GAAP regarding from statements release items. targets, Chief questions basis our Chairman discuss and the followed a on anticipated are

reports are actual While are to uncertainties from current in represent our results future today's risks described results Important affect about press and and many what SEC as results earnings our factors cause to statements expect. of differ our that future we actual judgment could performance and today, release. most may our these results best subject materially recent that

Slide X. Doug, I'll will on For Harbor on over turn more disclaimer now, X. the Slide please call who information, And to Safe review begin our

Doug Braunstein

operational quarter the going begin executional fourth us financial call. priorities outlined the our quarter Thanks and first for then we earnings towards with today a we Mike. XXXX And our joining all the of making first to are you quarter progress discuss and performance during snapshot to I'm results. thank discuss

We franchise, our an driven the the national So at grew revenue significant which sessions quarterly growth relationship Optum QX. or you quarter, added year-over-year, lives. of Slide with on see and expansion XX% we demonstrated in new in BXB Beacon, of and can by our expanded year-over-year covered in a end revenues, X that account and

quarter XX employer direct or new business, accounts accounts Alliant. including national We DTE Restaurants, significant Gallagher in Kimpton such Hotels the also broker for and large our added to and two houses, & as

Our was essentially have business flat despite year-over-year, BXC changes acquisition implemented advertising our We in improvements to the that conversion modest in to reduced down but reduction metrics and our sequential yield another spend. quarter-on-quarter, March our funnel customer was in several begun costs.

turn that So the the improve impacted track our the if performance we in in we items towards we introduced January, X, be that progress first management the performance. highlights these the priorities, recall to would priorities some and quarter. outlined focused you on team Slide that we believe six QX X strategic KPIs represent of to you'll Page in and

our essentially consumer first, apps. we BXC unifying for tests through provider data customers making and to funnel, it a website in our So began March, BXB directly find easier and

our to each can this As believe a both early site these non-unique and quarter, reminder, drive from million penetration the We that, are we visitors utilization results have encouraging. business tests several our in overtime. and BXB

This lower and proprietary in our higher made process as that a well. on change change, made uses conversion based which algorithm In to quick quarterly deliver appropriate in matches, change March consumer and which our an favorably tech impacted addition, March, rate research matching drove results. we to and important a we

clinical a network. and talent, satisfaction competitive know, increasing taking Talkspace we providers. to The for to expanding continue towards we of today, steps marketplace are is make make progress clinical Second, you and as capacity our platform-of-choice undoubtedly for

improved environment. and We as to clinical licensing. we current well multi-state more policies, adjusted market transparent, it dashboard responsive provider compensation the both as We our have more making our accelerated

actions, As the from surveys. existing these had average month the are early grew new a quarter, year. therapist hourly satisfaction result our We during in our in of for seeing our and therapists strongest contracted improving therapists we engagement signs we March past our most recruiting recent of over

our QX build Third, for our product offering first new we we We quarter. larger targeting to our customers. sales BXB products now team resources, grew are in to of the in BXB business focus DTE XX% a business. and continuing our partners to and quarter in bundled Improved is add in over customers, and product, late a BXB the which introduced us includes pipeline Self-Guided helping DTE introduced focus our Talkspace

in was dollar first contract up average size large and QX our we year. plus signed account Our this million

the improved to deliver is cycle businesses optimize opportunities targeting consumer are these time be our continue Fourth, these While larger directly longer growth to often the our efficiencies. with revenue for force. sales clients we lumpier, we and can more today

As I we changes of to that acquisition modest in and funnel led our in conversion March a early metrics mentioned, implemented the improvements customer to compared we for quarter. number believe last

this trend data in our quarterly first is in the conversion past Company. for quarters the fact, In the four positive

increasing believe and base should as forward this And both a that members' but better changes revenue flat plans were products. into our in economics. service sequential flows. we in for traction manage to So, Adjusted spend for business, we while reduced while to sequentially further revenues reduce video BXC continue smaller increased improve was can our expect unit we the pursuant implement by result XX% do media tech as spend cash going management saw our to highest aggregate coming also We our to deficiencies experience quarter.

but across And suite to offer continue finally, for Talkspace customers. on expand ample resources over like that to to value as adopted flow sessions in we as set more Self-Guided progress, changes better BXB data the strategic cash to to the Our enhance significant us solution we adjustments and mentioned our been business product and as simplifying business, and on-boarding embraced shareholders, towards operating our minor in introducing evaluation reporting time, well as leverage we deliver KPIs, plan. innovate has as members basic our build to I priorities launches believe as operating driven do allow and continuing timelier, our focus enhance broader scorecards, organization both experience our product both us a well fifth on throughout real-time MBH make have process member their last initial and like broader like allowed cash optimizing our a for our to capabilities have ways call, our

positively in collections quarter capital. that this our cash reduced efficiencies working taken actions example, an As generated

quarter and mission. us, clearly the steps plenty while we understands got that we've in work path management the ongoing So we've our in of towards the important on that shareholder first ahead taken believe building our value delivering first reflect of and actions

that, provide all Jennifer financial to to call over on Jennifer, performance. with turn the operating over our So details and I'll to you.

Jennifer Fulk

we November and initiatives I'll Starting management on performance most that new presentation identified to Doug, results focus believe good X. XXXX as revenue the comments team, time. my to continue and is this given beginning at we mix, with Slide significant Thanks, everyone. evolving our operational sequential in the our evening, useful understand

fourth X% a from was basis First sequentially quarter reported million, up the $XX.X on quarter. revenue

was deferred with improved a The million users. number basis sequential up active quarter First were remaining consumer three offset with no quarter associated by of $XXX,XXX growth growth QX. the by $XX.X $XX.X reversal of up longer two to in lower non-cash percentage revenue was plans revenue BXB related percentage the points points on one-time revenue driven on active mix BXC million, partially from fourth platform. customers of reported percent a in a from X%

on that prior periods. additional sequential of $XXX,XXX revenue into lesser growth Normalizing included results recall primarily sessions X%, growth favorable XXXX will impact in for that QX from DTE a customer. from extent was You driven a BXB by receivables reserve adjustment,

profit Our a to BXB primarily $XX million, sequentially mix costs within of XX.X%, shift revenue and declined first with gross gross margin to QX down a business. higher clinician quarter compared the due X%

to Turning Slide X.

This costs in the was stock-based to fourth in were the quarter. non-recurring to XXXX quarter booked $XX compared million GAAP compensation operating due $XX of First expenses reduction severance elimination QX. million and lower

were quarter were services EBITDA spend fees. partially million and expenses and Fourth expenses employee non-recurring $XX professional higher was down net quarter adjusted as by loss items, related fourth offset lower million. the lower from media first quarter, $XX slightly Excluding was operating loss

to Our reduce our balance $X benefited the of one-time as $XXX taken for $XX a quarter end. benefit year reduction of cash March approximately million, the DSO XXst generated million actions of from million. in a which receivables, this was We from

We forward. generally our expect match burn cash going EBITDA to

for closer look Turning our a to X BXB Slide performance. at

ended available and lives Number with also X% XX grew eligible basis, approximately our quarter. sequentially, large we increase of in lives, an BXB that base. for payers. program. execute growth operational loss sequentially in DTE launch million for no plan of with quarter, to to normalized municipal relationships earlier, prior covered as covered partners Enterprise health with agenda, sessions increase in believe revenue quarter mentioned grow by reflection the quarter our of I $XX.X the opportunities the as and As continue customer offset partially We existing sessions XX,XXX. have on customer by a in an our new funding the XX% BXB to business, is a X% addition had as penetration We customers our almost coverage lives, completed well the we increased our to significant drive revenue of the XX% up driven first longer our versus expand

employers, We employees. continue from health seeking benefits to our mental see their demand pipeline expanded in strong for

X% which related The optimize offset continued Turning look ARPU, our X% to contribution. of a partially members. toward number by migrate video down sequentially, our mentioned revenue greater to Revenue by of was higher modestly of XX% reduction increase as led X% driven conversion quarterly reduced as closer we combination was higher Advertising to performance. with active earlier. modest subscription adjustment our a ROI. tiers deferred as members advertising grew the sessions, in Slide improved to spend, is to spending a The X improvement revenue continued BXC and at marginal a in for sequentially,

Turning to our conclusion X. Slide on

to Doug we keeping progress. as management We to on and look team a As on, believe initiatives questions. overtime. With are call to in value forward shareholder our drive the the will will remarks, that, profitability updated deliver open you and focused mentioned his continue growth we we


first Charles Cowan. with [Operator Rhyee question Instructions] from Our comes

Charles Rhyee

looked I performance expecting. If side, the -- much to wanted BXC the start results we were holding sense your is on than here. up get better with just obviously, could And

of maybe spend, that your reducing that marketing trends maybe, highlighted thoughts you're the wanted last seeing competitor Obviously, here? ad talk and your larger the your seeing thoughts now You the that. week more you right and sort get are mentioned recently you're relates can video on on about of just to market it there, that some as what visits, pricing kind ads the obviously your to in market, you

Doug Braunstein

So, Charles question, it thanks the like questions. for a quite few felt actually

So let me and it. try address back and step

in consistently address and have And have the we pressures relates our the results to the of continue process also that. I and we in the us. about first or we be calls anything with is, they advertising quarter we would through spend. did since reducing not that. What our advertising in a did reference is And in customers challenges in our going improve efficiency business. those We We began however, you what the we to you, through been making our of believed come our we're I website see did told as to quarter it business first this did these speaking improve you unique we the in to market. journey see customer opportunities different that our number conversion tell and as

the we but in impact to more number connected therapists are and quarter, of of the conversion, a reduction had that then year us were our a platform. second a in reducing So with number through how think CAC. implement we're a quarter and beginning to and our experience to we result be our customers a actually website, working importantly, adjustments can other going that things we of the further some on in meaningful retention increasing through the their of that, have And efficient throughout you additions expect journey will make we introducing the associated much and as continue that second March with

control. our So, to may I improve us I in what be to within others not of what speak side BXC a doing, think but completely can't may on the our economics is we lot front or have of

Charles Rhyee

Maybe to to the you the expand experience or give changed conversion better? little some just of make clear an a that example examples bit. Can what's

Doug Braunstein

function. changed Yes, matching our so we

try customer research now pod a So, optimizing we've said we is we're one we've on got is, fully Charles bunch of a the did conversion staffed of literally and focused to team, and our that going things conversion. a

data So, we've can in we And are at and and talent saying, scientists software conversion. engineering our addition added marketing improve we basically to where analytics looking team.

the prefer use was, our our they sets big got therapist. us to a from customers So, one of match to feedback of algorithm for to them we

And which from a had call it a capacity in so, for use actually we of actually match more the meaningful a on preferential our effectively match, a broader them, the and for and also We to the conversion. got experience think much actually impact way, improved pick them we we the the our algorithm, matching it the And both the speed went a match, consumer way queue. we system. what process therapist it the increases By to process. quicker,

a had for of it mostly improves it So, experience. couple the ancillary us, customer but benefits

Charles Rhyee

going That's the Can give quarter we is sort second for talk by industries, maybe would you, expect in topic in thinking now? And right of, that inflation thoughts and impacted the should costs then forward? Is you the forward? us quarter you, Maybe gross helpful, you your there something clinician we question payouts, Jennifer, sense what for all about this be how a about about for across increases as obviously further going thank you profit think a a helpful. are that, wage mentioned just clinicians. higher

Jennifer Fulk

And mentioned a of I we had the the optimizing Charles. lot for... Sure, clinicians. mentioned for increased previous experience Doug needs far as Yes. we QX, that, and -- a we in ensuring on addressing our we call, as are network had specifically wages that,

Doug Braunstein


Jennifer Fulk

as increased satisfaction scores, therapists' was as well on, on the capabilities. what it impact we QX, contract as wages effective improving which in and margins. worked in network, for Doug In we the the that for was our obviously XX.XX But QX. negative a improving network had after, were expanding the recruiting mentioned, hours

at So, efforts effective doing the again, was I QX that were think that.

I where in early Looking quarter, our just better having you, specifically opportunities think forward, without specific initiative have that's opportunity productivity, drive to really with that, regard that to our WX implement see we regard in drive salaried with numbers margin, optimal for largest to network we more second the to begun to work is do. the they

this of a those services, look in in broadly see price benefit, higher we more addition, also we as be as leverage at And having to that we the to offset of look to paying to need the a able the forward. we quality our see were our we So, services. as wages margin, help

are these So, margin parts forward. all going of

Charles Rhyee

you as the margin we expect? that it range would as be color you thank the to helpful, Any sort would bit? net, trend you. gross and maybe this the year, is net, of So little we think would quarter, a up expect think back right second about about Or

Doug Braunstein

stand. guess a us would talked the self-help Charles, where in of would of -- about for I Yes, much from margin in we the think number like BXC are that would say a I additional is position we cycle this we items bottom hope here, to a be I there


from Vikram comes question next Baird. Our Kesavabhotla with

Vikram Kesavabhotla

just the in behavior level, last love wanted you you're on would give the from seeing competitive any evolve what on BXC expecting us side. or particular, curious the some throughout competitive navigated landscape thoughts in to landscape the your to noticing start in year? the you're the I'm And today, the used how in on relative Can you're higher color I advertising consumer maybe today? being change types that you strategies a more get environment And to going to environment of forward? if

Doug Braunstein

to Yes, that on and happy as Charles so, Vikram, do that well. focused

in -- in So meaningful the cost. haven't let we things say we couple experienced quarter any if first advertising me increase

have increased in several Now experienced past through the largely the driven quarters, over increased space. pressure competition we

are on We of we the saying, focused are participate what spend certainly optimizing we aware in. but really others are that

And seen quarters. And conversion. now us, work our on sequentially now so for we've spend rise for continues begun on down to sequentially to trending come our you've ARPU three quarters, three our improving and

So, first driven weren't that opening by I we as until the much March. had positive in my remarks, really in mentioned launched in conversion formally in four was and quarters of trend a improvement that And in reduction initiatives an CAC.

-- are the piece can And really think very maintained us BXB and on BXC use business. our to to space invested the in performance. that a striving the brand we incremental with disciplined for conversion we continue other have I we what growing believe So, to drive do things with we have of capital improve is other equation say that would is the to leading return that our to of a ability we've network we customers.

demonstrating talk unique literally driven I call. in testing, customers heard unification in We've now in talked is quarter for extensive We our to penetration again increase some me implement about our you it this just about the and us quite BXB that our and results it this and of really funnel. exciting utilization about begun We consumer think to some through funnel the that is that interesting quarter. channel. fourth testing the third So, of talked

think from our BXB. So, is advertising also us that into benefit converted unique we consumer for spend, a

Vikram Kesavabhotla

in now. pieces follow-up you. of has you can Obviously, question lot process how the right macro there. there about just talk is Okay. I'm if on the maybe curious, evolved selling a And a moving Thank environment then side. BXB

adjustments just processes processes decision adjusting in of evolve continues what And competitive how wondering, types You their of to the this in as Thanks. your are and of approach kind are well. you that talked making as get making to environment? any customers thoughts to about well. I'm your environment, that. to landscape It marketing if there kind great react buying would to

Doug Braunstein

again, us, added lives. We tell million first $X annual customers. quarter, the revenue sessions. account. our Vikram, signed I'm covered for So, you going added first to added we actually, DTE We We

would have, add potential robust to QX. suggest, into a coming of our business reasonably to pipeline I DTE We customers

think, the huge and continues demand our solution still opposite. is powerful And this are companies medical unfortunately in the challenged. for pace account healthcare, a both of quite We and be, remains actually for to U.S. really is need, I not a and services It in for our still of BXB we unmet needs. seeing payers addressing behavioral mind in our change for think DTE access for the remarkably and for set those payers quite top

bit the So, we're those change say, remarks, general patterns. targeting not will increasingly selling cycle I large one prior take is, more RFPs. you time. the are I tend life, really in in worked might accounts, they buying longer. there my company the driven have They process at having are through go a and Those mentioned to seeing are larger and in caveat a we expect introductory accounts, as more, very a of little

and still line, of our lumpier up the we to swing pipeline robust in So, right. is nature be can those a have trend a they quarter-to-quarter while trend the have and but they'll opportunities, on


with next Blair. question Ryan Our from William comes Daniels

Ryan Daniels

and you towards goals out. guess, for all on really guys. I progress. congrats taking the laid the questions Yes, the Thanks

Let me start with one.

consumers trend you it What's see. a more? ARPU driving move sessions? marketing pushing something to nice is or Is is differently increasing, that the actively or just which that is adopting also to more are mentioned video You

Doug Braunstein

marketing ARPU. functionality. combination are driven like a a we think It's -- But demand honestly, I the some look, we it's higher from things standpoint, doing because a smart

BXB National seeing as improve ARPU seeing moving We only our an positive Jennifer or our to well. we mentioned the called but which we the from NPP, It business texting Provider are only Ryan, of plus clients. texting It's standpoint, to completely productivity from by an a that not way, WX the are There for They're is re-upping moving to video increasing our for live video. plans therapists, Practice. our opportunity as us. that, in are us is is

basic ways more that scheduling, manage by better live is It with job us One of their to to to do video, the allows do allows actually move forward we regular intend our also effectively a members which more to scheduling. us doing towards group schedules. some

has not efficacy. members. the it their a from in think so, that a but with because the duration fact, productivity only And benefit and manage and is work. And know best therapists will think we retention standpoint, to that able from we in we clinical increase news we're actively our Ultimately, it utilization improves more interaction

our actually And improves makes productive. more this so, think members healthier outcomes we and and

Ryan Daniels

not didn't helping driving I in algorithms the you It's you're the then, of also And conversion right them lengths experience. a is because that therapist. rates, the I mention assume longer only this, but treatment but getting with improvement is matching to better

Doug Braunstein

data excellent implemented Part we're misleading it standpoint. a so an the to will, reason it'd you an we to think We're on clearly It's it I don't eye yet. -- enough from we think is We question. in but have back come keeping that. data I mention of be March,

Ryan Daniels

news million on to the and good customers in then the dollar of the DXE sale. strength pipeline And

changes, Does pitching require needs benefit cetera? are of the market or the size employee that. way product it driven? anything sales with force it's that et change product, a changes though. The or there curious on like you your ROI in congrats whether any that going I'm So, to team? sales Just

Doug Braunstein

So, it's question. really a great

and adding quarter, individuals people us excited to mentioned, see come to we the very the added because first introductory target. were are about actually the team that basically was I folks hiring, We they -- more to As successful BXB. sales our because we again, our in in opportunity. were remarks, across In XX%

we've we're targeting. big gotten in thing way The is more other rigorous doing

are which increased about is that respond then, we've effective And cost are And we're really, as quality so, with get are real of we we In for would really continue of Jennifer that. increased we it's we variety more thought this be now efficacy therapists, are are But much our to success I talked third doing you I'll costs with having, improving. having reduced Obviously, the we we right we going relationships across part, And also say, our cost. turnover, days, ability dealing that really think thing our important. you the the reflect doing, drive the with benefit We're the cost. will got trying which maybe I important But services. medical fact and everyone some a adding, validate to tell early asked board. increased was than more is help that to and of to increased know customers that we're increased that's employees, research to us morale, people, for and the who a reduced satisfaction, to the reasons. do our use is their for.

the I'll haven't our this. Self-Guided, high add think offering self-help work as product both And done. I that customers. us which introducing We it of, efficacy for introduced a full of really And our started for suite been a know, us. think been say didn't exciting a to quite from early and We We And that talk going a our on customers, a full as therapy, -- what full thing, has more introduced we And got so, there really product both for suite positive. our in of but is is enough about DTE BXB payer is a We which reaction and as to I really that that pretty allows on, Talkspace to just utilizing really as and is, a to one this, is an is, driven as has suite of lot it a broad well I of psychiatry. set. applicability to BXB our digital we that's ROI have services. employers clinical set result I'm directly

can employers most be for. sort of what shop we for looking for behavioral stop one of needs are So, a


Stephanie from comes question Leerink. SVB Davis next Our with

Stephanie Davis

you Thank the quick have the business. my guys. question. I Hey, for taking just question of a arc on BXB

about wins something think the such greater enough from continuation about focus evolution, as the there we your Is enablement, employer end recent or how demand? else, As growth should wins? employer for fatigue, see available market pure-play EAP structurally we with and think on backdrop we or current a wallet payer

Doug Braunstein

referring I'm are not what again, exactly at to. Stephanie, sure or you looking

pretty a relationships the payer mentioned, is the first of And penetrated. side, of the have in signed got account another up and payer pipeline the as of across say, payer player, lives national quarter. big side, significant robust large that the we added the on at we we would On we their I national facing We members. board have everyone new challenges more a end not meeting demand with

got planned drive penetration the on of some the opportunity we've that cover. is to we side, So surface that utilization and lives. currently there think, a even really scratched things We of lot now of and the we of haven't

again accounts we continue incredibly are opportunity calls And of call think of robust, size inbound that DTE set. to we've all to while On we number an from individuals. relative the the side, experience I the the we're or pipeline proud it's is our added, small

where strength the continue circumstances to we have day. to like I the and because competition And better see more to the important. making win we're fair continue little competition. pitching We And product we're really And where very of say brand I really share just product. of there's there every think of is our people things is

question, reasonably the of I'm -- the BXB. predicate bit confused but can't by I opportunity little remain we So, optimistic said about a your

Stephanie Davis

Let's go, this another way for then. my follow-up

they've the lot that of in channel PM/PM fatigue are for two there's checks market, a that solutions the for exist past the We all through employers pitch in been years. seeing our and different that

So, employers candidly. facing well a aren't as lot recently, doing the just solutions of

lot offering just seeing where an as there this you're Or there market? pricing is is benefit? you insured such ways as a beyond PM/PM in rope of So creative a traction selling more were alternative

Doug Braunstein

opportunity us. business. think our our fact time over lot to say, there's would question the we clinical feel unilateral outcomes data. no of I efficacy had We've a our about very strongly there's approach So, we DTE and that drive pretty for to a

there going us absolutely. And so, for are be to more to opportunities be creative,

also think for to -- now. And active them I number us that we're right employers. of become a of more in there better with because partners discussions opportunities are with closer, our

fatigue not BXB to quite would So, -- any the opposite. use I'm again, adjective I describe would the our be that of not business,

pretty So, I And don't to right. things natural offering. have what with therapists. for speak of can I we efficacy digital is just are lot to view. into need competitors. it sessions I lot those more say out incorporates move a product. There's right product. a can't a And -- rigorously, got speak live I would extension this a then, workshops have offered we to offering, from good we the clinically, and to differentiated also therapy our has some there, individuals it. It that and real It's clinical demonstrably

look, it's want So, tough I out a Jennifer, to pretty you add optimistic. I world remain something? but -- there, pretty remain

Jennifer Fulk

the making and this the patients that hand. and with add, quarter-over-quarter. XX% million as want is we where into unifying customer the operational new is easier expanding are the for covered with driving, to say, These think relationships see covered that we, as opportunity. And payers. efforts drive are that growth agenda us efforts is it we where we I Doug all to Talkspace. mentioned, helping to related to have optimizing grew and ensuring just future. in funnel, out use that lives for experience, sessions described to business have, the those we wanted have playing we the just product a But, there's I in opportunity And This I the huge XX so the largest we


[Operator next Instructions] comes from with question Glen Jefferies. Our Santangelo

Glen Santangelo

do do question. Thanks a up I side, question Hey, I my this, BXC hate to for because is to on people. more taking Doug, good follow for this but I this want time, think one

about where the CAC recent side guess particular, some in a where, think that to, this doing share now, sort a be think of that's Talkspace become people lower obviously is week, to to investing things. financings. and the a wondering I and share. very And player of if some I to And competitors the period financing others is heavily more you efficient costs private your trying cut potentially private aware about, barriers last seem to they the and irrational into have where sort talked of at more are including meaningful seem leaves you business. at financially taking everyone some of listen of shift you I on gone and some one some in entry And seen time be your-self and

but that could So, how that dynamic plays spills I only BXC side. into not if if the on both your maybe was on on BXB also just thoughts wondering out provide side, you the ultimately that

Doug Braunstein

quarters. four for just the So, start reiterate -- a made for yes, look, changes those two would can March and let proceeding we I us, which that, I facts was the improved reduced of number with and able of not me off to I that conversion have say think, facts CAC, where that been and

our to high want are can we So to I going where on quarter I within our we from like continue you going where It's improve take a going can't be a towards. believe will number standpoint. to to to things the share we and had look cash conversion you, forward. us and a focused tell control are investments we CAC. return there world that, better are, still drive that's We reduce But of tell what

working every continue have We be own on are and our we that our efficiency day. of set to to cash to improve going expectations

unique, a raised I a a, capital, generated, to we a market. the will approaches is lot and have say, of product, I that have have different got have others what unique We just believe

to the not a in we've path that of few days, a on. coverage attracted fair have those last that's press amount chosen of go Some

We self-help are than really others. digital focused to different on is these and an which psychiatry, therapy capabilities, approach

I'm and have we've we've it So plans. going got got really but our wisely I is And last the begun in and generate time we've piece product, our a spend our of really which clearly the for advantage good we say, at of us, shareholder think money where, got think comes to more Over good out just today, solid BXB good presence objective not our to really I a all, momentum. take means and is side to return. of that business

and analytics, leader And for and to we data be in I I very care believe do great similarly situated. have behavioral. value-based eventually, are We a think well others not positioned are

Glen Santangelo

about guidance, cash, I of want cash still million quarter. right? XX from much sitting to capital relative maybe if lost don't to we million balance catch no too to Company sheet, unclear Doug, us from gets or in it we're the Company up? clue, rate Hey There's but with XXX better guessing just and structure look here, I forward, give the follow-up how I Sorry, on think should did here as that of today? you and so us mean, the a you burn stabilizes It's I'm the this

Doug Braunstein

a really it's No, question. good

for make quarter. we're let So the underlying just me the sure on clear

more income focused capital. balance statement real a this a we So, proactive than working are optimize cash and of in efficiency some cash finding to we that management actually, very again, across the And quarter, part burned we than because because we cash. sheet, little in team, little our ways on was actually the less a XX of of the use drove million

to a you said efficiency is in continue I'm what thing was the should the cash just we last for drive a said The about business correct. think should to time thing, the million, of are EBITDA And that and think, I going of quarter loss the Jennifer variety XX.X of more track was, if then second out remember number is, ways. EBITDA, I better over

will see down cash expectation time. our burn over that you is coming So,

for our good lot good good our for balance members, ultimately to have they're employees, good implement be customer, they're As a the continue these of we our and to for for they're both they're changes, sheet.

So, to of that's sort say. I'm what going

and lot We resources on need to to all seeing place really we where are are get the having the value. of highly a a focused shareholders cash


the remarks. back closing Braunstein Doug for question I'd to turn session. today's like and to call answer concludes That

Doug Braunstein

So, I want journey progress. to thank I we remember, everybody on for folks listening. together. to We look forward to want continue are make to a do engage and

think have financials. hope some forward. the to good I you starting I made that steps really in see we are

to in more should for progress continue mine, is focused team and the really which management the room be forward. hope go shareholders, with expectations on creating your going the have quarters Thanks. to to that We demonstrate value and consistent we


This concludes Thank conference call. you today's for participating.

You may now disconnect.