Page 1

talk space Talkspace Reports Second Quarter 2021 Results August 9 , 2021 Q2 Net revenue grew 73 % year - over - year to approximately $ 31 million Q2 Total active members grew more than 40 % year - over - year to approximately 61,500 Reaffirm FY 2021 Net revenue guidance , expecting 64 % year - over - year growth NEW YORK , Aug. 09 , 2021 ( GLOBE NEWSWIRE ) -- Talkspace , Inc. ( " Talkspace " ) ( Nasdaq : TALK ) , a leading virtual behavioral healthcare company , today reported financial results for the second quarter ended June 30 , 2021 . Oren Frank , Co - founder and CEO of Talkspace , said , " We continued to experience broad - based momentum throughout our business in the second quarter , driven by significant demand tailwinds and a generational shift to virtual care . Our differentiated and comprehensive product portfolio continues to resonate in the marketplace , and we are seeing traction in both expanding our offering within existing clients as well as adding new clients . We are ideally positioned to address the vast , unmet and growing demand for mental health services in innovative ways , and we are excited to keep executing on our strategy . " Second Quarter 2021 Financial Highlights The following table summarizes the Company's performance during the second quarter of 2021 , compared to the same period in 2020 : Period- ( amounts in thousands , except percentages ) Number of B2B eligible lives at period end 2021 Three Months Ended June 30 , 2020 Over - Period Change Total number of active members at period end 56,039.0 61.5 33,560.5 67.0 % 43.5 41.5 % Net revenue Gross profit Gross margin % Operating expenses Net loss Adjusted EBITDA ( 1 ) * - not meaningful $ 30,983 $ 17,877 73.3 % 19,286 12,307 56.7 % ( 660 ) basis 62.2 % 68.8 % points 46,847 12,948 261.8 % 30,441 646 ( 11,872 ) $ ( 291 ) ( 1 ) Adjusted EBITDA is a non - GAAP financial measure . Refer to " Reconciliation of Non - GAAP Results to GAAP Results " table below . Outlook for Third Quarter 2021 and Full Fiscal Year 2021 The Company is reaffirming its net revenue guidance of $ 125 million for the full year ending December 31 , 2021. The Company's outlook for net revenue is $ 32 million for the third quarter ending September 30 , 2021 . Conference Call Details The Company will host a conference call at 5:00 p.m. E.T. to discuss these results and management's outlook for future financial and operational performance . A live audio webcast will be available online at https://investors.talkspace.com/ . The conference call can also be accessed by dialing ( 800 ) 773-2954 for U.S. participants , or ( 847 ) 413-3731 for international participants , and referencing participant code 50201358. A replay of the call will be available via webcast for on - demand listening shortly after the completion of the call , at the same web link , and will remain available for approximately 90 days . Key Business Metrics Active Members : We consider members " active " ( i ) in the case of our B2C members , commencing on the date such member initiates contact with a provider on our platform until the term of their monthly , quarterly or bi - annual subscription plan expires , unless terminated early , and ( ii ) in the case of our B2B members , if such members have engaged on our platform during the preceding 25 days , such as sending a text , video or audio message to , or participating in a video call with , a provider , completing a satisfaction or progress report survey or signing up for our platform . B2B Eligible Lives : We consider B2B lives " eligible " if such persons are eligible to receive treatment on the Talkspace platform , in the case of its enterprise clients , for free when their employer is under an active contract with Talkspace , or , in the case of health plan clients , at an agreed upon reimbursement rate through insurance under an employee assistance program or other network behavioral health paid benefit program . About Talkspace Talkspace is a leading virtual behavioral healthcare company enabled by a purpose - built technology platform . As a digital healthcare company , all care is delivered through an easy - to - use and fully encrypted web and mobile platform , consistent with HIPAA and other state regulatory requirements . Today , the need for care feels more urgent than ever . When seeking treatment , whether it's psychiatry or adolescent , individual or couples therapy ,