Talkspace Q2 revenue up 19% YoY to $35.6M; net loss narrows 80%; raises FY guidance

Second Quarter 2023 Key Performance Metrics • Revenue increased 19% over the prior-year period to $35.6 million, driven by an 82% year-over-year increase in the B2B revenue categories, partially offset by a 41% year-over-year consumer revenue decline. • Gross profit increased 22% over the prior-year period to $17.8 million, and gross margin expanded to 50.0% from 48.7% year-over-year, driven by higher network productivity. • Operating expenses were $24.2 million, down 32% year-over-year, driven by a reduction across all our operating cost categories. • Net loss was $(4.7) million, an improvement from $(23.0) million in the second quarter of 2022, primarily driven by lower operating expenses and an increase in revenues. Financial Outlook The following guidance is based on current market conditions and expectations and what the Company knows today. For the Fiscal Year 2023, Talkspace expects: • Revenue to be in the range of $137 million to $142 million, improved from our previous