Q1 2023 Talkspace Inc Earnings Call
Good day, everyone and welcome to Detox space first quarter 2023 earnings conference call.
Today's call is being recorded and all lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session and if he would like to ask a question. During this time simply press star one on your telephone keypad.
I would now like to turn the conference over to Janeen Heine. Please go ahead.
Good evening and welcome to Tox basis earnings conference call for the first quarter of 2023.
Jeanine I am director of Communications I Hope you've had the opportunity to access the press release, we posted on <unk> IR website and the presentation of our earnings results.
Well use this presentation to walk you through today's remarks, leading today's call are our CEO , Dr. Jon Cohen, and Jennifer <unk> Chief Financial Officer.
Management will offer their prepared remarks, and we'll then take your questions.
Certain measures, we'll discuss on this call are expressed on a non-GAAP basis and have been adjusted to exclude the impact of one off items.
Reconciliations of these non-GAAP measures are included in our earnings release and on our website <unk> Dot Com I also want to remind you that we will be discussing forward looking information today, which may include forecasts targets and other statements regarding our plans called strategic priorities and anticipated financial results.
While these statements represent our best current judgment about future results and performance as of today. Our actual results are subject to many risks and uncertainties that could cause actual results to differ materially from what we expect.
Important factors that may affect our future results are described in our most recent SEC reports and today's earnings press release.
For more information Please review, our safe Harbor disclaimer on slide two.
Now I will turn it over to Dr. Jon Cohen.
Thanks Jeanine.
Thank you all for joining us today.
Before I begin with the highlights of the quarter I would like to start with a reminder of the importance of our mission to provide access to high quality affordable mental health care at scale we.
We are very encouraged by the increasing focus we see everyday by multiple constituency groups across the nation on the need for more mental health care access and we have a privilege to continue to be a major player to help improve our country's mental health fitness.
As you May know May is mental health awareness month to highlight the importance of our societies mental health Fox Chase launched a campaign featuring our old members sharing personal stories of how therapy has helped them and published a comprehensive mental health condition library with vetted therapist off that articles that is.
Now available to all visitors on our website.
Let me now turn to the quarter's highlights we began the year with a very strong set of results driven by solid execution across the business and we made meaningful progress against our four strategic priorities.
Consolidated revenue grew 11% year over year to $33 3 billion.
Or 10% versus Q4, driven by a significant acceleration in our payer business, which registered a meaningful increase in sessions driven.
Higher capture rate, which represents the number of active members as a percentage of covered lives.
The increased sessions are driven by multiple factors, including a significant increase in the number of covered lives and increase in awareness that people can access therapy through talks space at little or no out of pocket costs.
And an increase in utilization of the service as we continue to make modifications of the product that make it easier for patients to use the service.
At the same time, we further reduced our quarterly operating expenses by almost another $2 million.
This resulted in a significant improvement in our forecasted adjusted EBITDA for the year and an acceleration of our guide to breakeven as I will discuss shortly.
Let me dive into the significant progress we continue to make on our strategic initiatives driven by our commitment to the okay. Our operational process that I laid out last quarter that focuses on delivering results.
Our first priority is to drive payer revenue growth.
We are pursuing this by expanding the number of active members who are covered by their behavioral health benefits and their employee assistance plans and by focusing our efforts to make people aware of these benefits.
<unk> revenue was $14 8 million.
In the first quarter up.
39% sequentially versus Q4, and up 83% year over year. This is driven primarily by an increase in sessions volumes, which were up 34% sequentially from 128000 to 172000 and up 90% year over year.
We are thrilled to have added approximately 20 million covered lives year to date.
Including 5 million additional lives in the first quarter primary or expanding further expanding our optima EAP relationship and recently, becoming an in network provider for a new large national payer for all of their behavior commercial book of business, which is another approximately 14 million lives.
This brings the total of Talk's base covered lives to 112 million people representing growth of 35 million lives since Q1 2022 up nearly 50%.
In addition to adding lives our marketing efforts and product improvements meaningfully increased our capture rate in the first quarter by 26% sequentially and over 60% year over year.
For the remainder of the year, we have line of sight for many more additional lives to be added and an active pipeline with several other national and local payers for additional lives as we expect to expand access to an even broader portion of the U S population, including underserved communities.
We have begun highly efficient at adding lives and have been able to accelerate our pace of implementation as new contracts are signed.
The size and scope of our payer network is providing us with the opportunity to develop new partnerships with other health care provider networks that are looking to add mental health services with payer coverage such as primary care physicians and large health care system.
Our second strategic initiative is to grow our direct to enterprise business.
Our DTE business was up 53% year over year to $8 7 million and flat sequentially as new customer wins were offset by attrition in legacy accounts.
One of my biggest objectives. When I first arrived was to rebuild a vigorous and experienced DTE team to continue to aggressively pursue this part of the business.
I'm happy to announce that we added five new folks this quarter, including several seasoned sales executives and someone devoted to the broker consultant channel, which we did not have recently.
We will continue to reinvest some of our SG&A savings in this business to grow the top line.
This is very much a work in progress however, our pipeline of new business remains very strong and continues to grow.
This quarter, we launched talk space engage a mental health engagement suite that helps HR professionals promote mental health awareness internally and drive therapy utilization.
We are also continuing to evolve our self guided library through the addition of new classes and workshops and response to our customers' feedback.
Our third strategic initiative is to be the platform of choice for providers.
Year to date, we have grown our provider network by approximately 800 therapists, a 26% increase at the beginning of the year. Moreover, we continue to experience incremental gains in productivity as average billable hours for our full time clinicians have increased by approximately 20% sequentially from Q4.
Of course, we remain extremely focused on clinical quality and access metrics, notably despite the significant increase in volumes in Q1, our average therapist time to match remained under 10 hours.
The investments we have made in our network are paying off the.
The changes we have implemented to enhance the provider experience both in terms of training and support we provide as well as product enhancements are resonating in the therapists community and strengthening our brands.
We have made progress on provider satisfaction and retention reducing provider churn by nearly half in the last two quarters.
Anecdotally, we are starting to receive more inbounds from therapist, who want to join our network and we have also introduced referral programs.
Our fourth initiative is to continue to achieve profitable growth by driving operational excellence.
Team has made substantial progress in driving cost efficiency shrinking our adjusted cost base by 31% year over year, while your revenues were up 11% in the same period of time as.
As a result, we were able to narrow our adjusted EBITDA loss of $6 4 billion down 65% year over year.
The work to optimize the business platform allowed us to streamline across our entire business and further reduce our labor media and vendor costs.
I want to mention two of our other business categories in the consumer category, we observed the lowest pace of revenue declines since we started optimizing our media spend in the second quarter of last year.
Despite a 6% further reduction in advertising spend in the first quarter. Our active consumer base has remained nearly flat since December a notable improvement versus the 14% consumer user declined registered in the fourth quarter of 2022.
Our product enhancements and more targeted marketing efforts have led to a 13% improvement in user retention in the first quarter.
We believe these initiatives will result in the next few quarters and the continued stabilization of our consumer category.
Additionally, we have a fast growing psychiatric business for Medicaid medication management, which has significant synergies with our core therapy business. This includes over 230 licensed.
Those practitioners and physician providers, we do not prescribed controlled substances and mostly prescribed medication for anxiety and depression.
25% of the U S population are taking prescription medications for their mental health and the average time to see a psychiatrist is one to three months.
50% of the U S counties have no psychiatrist.
Although the majority of our referrals come from the outside of our network. We have begun to develop a process through our large therapist network of about 4000 therapist to refer to our psychiatry providers for further psychiatric evaluation and prescriptions when necessary.
Integration of these two businesses provides a comprehensive suite of services when needed and we see the psychiatry market as a significant opportunity to grow our business.
The result of our strong progress to date has led us to upwardly revise our guidance for.
For 2023, we now believe we will achieve total revenue in the range of $130 million to $135 million up from $125 million to $135 million, while narrowing the adjusted EBIT loss range to $21 billion to $24 billion for the year.
As compared to the prior guidance of $28 million to $32 million for the year.
Based on this we now believe we will achieve breakeven adjusted EBITDA by the end of the first quarter of 2024, a quarter earlier than we had initially expected with over $95 million in cash on hand at the time of breakeven.
While continuing with the urgency of our path to breakeven. We are also actively working on a long range strategic plan, which includes growth initiatives to further expand our leadership position in the rapidly growing mental health care space.
Given the significant cash position, we will have flexibility to see compelling investment opportunities to continue to build our business and deliver on our mission.
Last quarter I discussed how mental health has entered the mainstream is no longer a nice to have but finally is recognized as an integral part of any health care delivery model.
We are facing the greatest mental health prices in history and are witnessing a seismic shift in the way the government employers and payers are prioritizing the for mental health services. However.
There remains a scarcity of available resources to meet increased levels of demand to.
<unk> Remodels.
<unk> solves this problem with a scalable accessible and affordable model, our proven texting platform makes therapy available within hours and live video available within seven days compared to wait times of weeks with other players.
Space has always been at the forefront of this revolution and we remain committed to advancing our collective mental health solutions, improving our existing products and creating new products and services to better serve our customers.
We believe that mental fitness should be a preventative habit and everyday lives as opposed to being a remedial intervention after crisis.
To conclude we have made great progress during the first quarter of 2023 building on our strong momentum we established in 2022.
Our strategy to shift the business to be to be enterprise with member growth predominantly through our payer model continues to gain significant traction.
With 112 million covered lives. We believe we have the largest payer network for telehealth mental health services in the country with that I'll turn the call over to Jennifer to run through the financials Jennifer.
Thank you John and good evening, everyone. My comments today will be based on first quarter results on a sequential quarter over quarter basis.
I will cover highlights across our financial and operational progress and then give you more context for John's comments on our revised 2023 guidance and breakeven timeline.
Turning to slide five total revenue for the first quarter was $33 3 million.
10% increase over the fourth quarter of 2022.
<unk> revenue increased approximately 39% sequentially.
$14 $8 million driven.
Primarily by an acceleration in session volume growth.
Behavioral health and EAP with.
With sessions growing 34% quarter over quarter.
A few points on this strong revenue growth.
As John noted our capture rate was up 26% from prior quarter demonstrating.
Demonstrating the exciting progress we made to optimize our marketing efforts across all member acquisitions.
Enhance the top of funnel member experience.
This is important as it highlights the significant growth opportunity we have in front of us.
We also continue expansion in covered lives and so on.
An increase in sessions per active user, which also contributed to strong revenue performance.
And while we typically experienced strong volume acceleration in the first quarter as the startup of the new year comes with renewed focus and investment in personal health.
We are very pleased by the sustained levels of new members joining talk space through April .
Last we have made significant progress in our revenue cycle management processes.
We in terms of success rates of claims those two important product adjustments to our claim systems, but also through refined processes in collaboration with payers.
We've recognized a partial impact of these improvements in Q1, but these efforts will be more meaningful in our financial results going forward.
Moving to the BBB DTE category.
First quarter revenue increased slightly to $8 7 million.
As John mentioned, our work here is in progress, but we are confident in the underlying market demand the competitiveness of our broad mental health care offering.
The powerful tools, we recently launched to support enterprises and the tenured sales executives to enthusiastic we deployed against the vast prioritize target list.
Regarding the consumer segment revenue declined 10% sequentially to $9 8 million in the first quarter importantly, and as John noted we saw early signs of stabilization with active users nearly flat over the quarter and retention up 13% sequentially.
Turning to gross margin total first quarter gross profit grew 4% sequentially to $16 7 million.
Gross profit margin ticked slightly lowered to 52% from 53, 5% in the fourth quarter, but slightly higher than the first quarter of last year.
The gross margin decline quarter over quarter was primarily attributable to revenue mix shift towards the <unk> payer category.
As well as higher member engagement.
Record number of new members start therapy in the first quarter.
And with Airbus typically spend more time with our new member is they need to establish the relationship and build a treatment plan.
We expect this effect to normalize going forward as a project a more steady pace of new member acquisition.
Turning to slide six GAAP operating expenses decreased 31% sequentially to $25 8 million.
Note that in Q4, we had a onetime noncash impairment charge of $6 1 million.
Excluding stock based compensation and nonrecurring expenses Q1 expense was approximately $23 5 million.
A reduction of $1 9 million on a comparable basis versus Q4, demonstrating significant incremental progress in streamlining our business across our three major categories of spend.
First in media, we were able to reduce spend in Q1 as we continue to optimize our media mix with a more robust and agile all member attribution model.
A couple of examples of customer acquisition efficiencies are first through organic search.
Organic traffic and new member acquisition through this channel were up significantly and we have exciting projects underway focused on further improving this channel performance.
We did this by focusing on our members and their journey through therapy.
Data from initial efforts show that leveraging our member testimonials is a powerful and highly effective strategy for continuing to grow our brand equity.
These examples are part of our unified member acquisition strategy across the marketing and product funnel.
The synergies the cross segments have resulted in a meaningful continued improvement and member acquisition costs over the last three quarters.
Regarding corporate infrastructure spend as we have advanced our operational agenda, we have also reorganized and reduced our corporate head count.
In the fourth quarter, we have streamlined our marketing and G&A functions as we unified our marketing approach.
In addition, we recently reorganized our product and technology teams with a leaner approach to our priority product initiatives.
These changes will amount to an incremental reduction in head count related costs of approximately $800000 per quarter going forward.
Lastly, in the third party spend and other corporate expense, we have been aggressive in prioritizing our vendors and reducing contractors work where feasible.
By streamlining our corporate spend we have made tremendous progress building, a robust internal controls and processes.
He is meaningful reductions to our cost base and our continued disciplined approach to investments result in what we believe is a highly scalable infrastructure.
The operating leverage from our capital light business model is important as we progressed to profitability and execute against our growth ambitions.
Moving to profitability in the quarter, both revenue growth and reductions in Opex resulted in a significant improvement in adjusted EBITDA loss by 28% sequentially to $6 4 million in Q1, demonstrating the important progress on our path to profitability.
Turning to the balance sheet, we ended the quarter with $125 million in cash and cash equivalents.
Cash outflows in the first quarter outpaced adjusted EBITDA by approximately $7 million.
This is primarily due to $3 5 million and litigation settlement payments accrued for in the fourth quarter two.
2022 employee bonus payments and the expansion in working capital driven by the acceleration in <unk> revenue growth and the associated longer payment cycle.
Turning to slide seven as John discussed we are revising our guidance upward based on the strong progress in the first quarter and what we believe are sustainable trends that we see thus far in the second quarter.
For full year 2023 revenue, we have narrowed our estimated range to $130 million to $135 million.
Which is the high end of our earlier range based primarily on Q1 results, including the strong payer revenue performance.
And for full year adjusted EBITDA loss, we are moving the range up to $21 million to $24 million.
Let me describe the key elements of our revisions.
First we continue to believe payer revenue growth will outpace other revenue categories.
This will be primarily driven through continued growth and capture rate.
<unk> per user as well as expansion in covered lives.
As we mentioned earlier, we maintain an exciting and competitive offering and DTE, but.
But as we said, it's likely to take more time for the renewed efforts to evolve.
And regarding the consumer category, we expect revenue to stabilize towards the middle of this year as a result of our improvements to the member experience, which is resulting in higher retention rate.
We are encouraged by the first quarter stable trends, we remain prudent given the macroeconomic backdrop.
Regarding gross margin we expect this to remain in the range of Q1 levels as the revenue mix shift towards data be payer categories and the higher user engagement, it's offset by continued product and price optimization.
Specifically progress in revenue cycle management initiatives.
And on Opex, we believe we have significant operating leverage from our current infrastructure and our operating costs will demonstrate incremental reductions from the actions we have taken specifically in labor and vendor cost.
Regarding breakeven adjusted EBITDA, we now expect to reach this point by the end of the first quarter of 2024 with more than $95 million of cash remaining on the balance sheet at that time.
This is a quarter earlier than we had initially forecasted.
The cash balance projections factors in the increase in networking capital expansion required by our growing <unk> category and also the organic investments, we will make to continue to grow revenue and enhance profitability overtime.
Before we open the call for questions I would like to summarize a few points from our remarks.
First we believe our Q1 financial results demonstrate meaningful progress against our operational priorities and our path to profitability.
Specifically the increase in capture rate in the <unk> category, our significant provider network expansion and our further streamline expense base.
Second our revised guidance reflects our enthusiasm about the sizable and growing covered member demand and payer coverage as well as our confidence in our operating leverage.
Lastly, we believe we have the execution capabilities and financial leverage to continue to grow talk space and be a leader in the rapidly growing mental health care services market and deliver long term value for our shareholders.
With that we will open the call for Q&A.
Thank you.
I'd like to ask a question on the phone lines today, you can press star one on your telephone keypad to remove yourself from the queue that is star one again.
Our first question from Charles <unk> with TD Cowen.
Yes, thanks for taking the questions.
You talked about <unk>.
Utilization in the.
DTC segment here one of your peers talked about kind of stabilizing check.
Maybe can you talk about what youre seeing there as well and.
Is there a scenario potentially if we see stabilization in costs related to customer acquisition debt.
This segment could become.
For our growth.
Chip back towards growth again.
Thanks Charles.
Yes.
We mentioned in the first quarter.
The early signs of stabilization.
Then.
Members paying cash out of pocket.
Come back to though with a longer term approach towards this category of revenue, which is really optimizing our media spend and our investments to acquire new customers across the entire member base.
And so it is not.
It's not a complete apples to apples to our historic approach towards this business and we don't see it as a separate opportunity for us going forward, having said that we are optimizing that spend to ensure we are maximizing the lifetime value and the value to talk space. So to the extent that we're able to bring in.
Further a proportion of cash people paying out of pocket for their therapy, we will certainly optimize those channels and those investments.
Our view is we see the biggest market potential in the mental health care space.
<unk> been through further accessibility and affordability as more and more people are paying cash out of pocket and Thats why we are.
Pain through.
So getting coverage through either their employers or are there in <unk>.
<unk> benefits and so it's why we are emphasizing and we're so excited by.
The growth in members leveraging those benefits in the first quarter and actually for the last several quarters.
Great that's helpful.
And John I think you mentioned right the big opportunity in terms of number of lives coming on and I guess I wanted to tie that in here because when I look at the guidance here, obviously, a real positive raising the guidance but.
If we if I look at it you're not really calling for much sequential improvement in revenue and I think if you just annualize the first quarter here kind of right in the middle of the range any anything to think about it.
Terms of what to expect in the back half.
Sorry.
As we move through the rest of this year.
That Mike.
Cost because it sounds like Jon your point to the potential for more members to come on which I would imagine would.
Lead to sequential improvements in revenue thanks.
Sure. So so thanks. So so first off yes, we are looking at this relatively conservatively.
As we remember were already through the first quarter of the year.
No question that we will be adding significant more lives in the subsequent quarters as we can.
Move forward as we said, where we're now up to 120 <unk> now up to 112 million covered lives having added.
Five this quarter, but then we announced as you know, adding another $14 million.
First month of this of the <unk>.
Good quarter so the.
We will continue to grow through a bunch of different channels that we see a very significant pipeline and the number of lives that will be added throughout the year. As a result of that of course is given our.
Capture rate, which is now increased 26% this quarter alone that will have a substantial impact going forward, we believe the top line.
Revenue so the opportunity to continue to be there and as I said is yes. The guidance is now 131 35, but we're trying to be conservative as we enter the second quarter.
Great.
Clarification.
Number of DTE declines for the quarter.
Well give the number of clients of DTE.
I think as you heard on the.
The discussion.
We continue to be really bullish on the <unk> side. The pipeline is growing significantly as you know.
Essentially.
Rebuilt that entire organization, adding five new people senior executive to two very senior executives actually three.
Within the last four weeks have all been trained and are ready to go we're seeing we're seeing a lot of momentum on the <unk> side, plus where we're looking at some pretty big enterprise.
Potential clients in the next several quarters that hopefully we'll be able to talk about Q2, and then into Q3. So we remain pretty bullish on the DTC side.
Great. Thanks, I'll jump back in the queue.
We will take our next question from Stephanie Davis with SBB Securities.
Hi, guys. This is <unk> on for Stephanie Congrats on the quarter. Thank you for taking my question.
First I was actually wanted to go back to the TTS segment and was hoping you could talk about what youre seeing in terms of demand trends, yes, our checks have consistently pointed to vendor consolidation around employee benefits packages and then other formulations to fly during the pandemic. So just curious if youre seeing any impact of that.
Ladies and the DTE channel since you did note some legacy client attrition there.
The.
As I'll reiterate is.
There's a lot of people talking about the macro environment and what's happening I will tell you that if you look at what the number one or two priority for HR executives. If you go to the meetings and you talk to them firsthand what theyre going to tell you is we need to continue to add mental health services to our employee there is no lack.
Of interest or need from any of the DTE employers about about the need for mental health services, where the employees and in fact I would say we're seeing.
We're seeing a significant interest in that I had the opportunity recently to go to one of these very large.
Employer conferences, and got a chance to walk the halls and talk to people and the interest in mental health continues to be just incredibly high.
So I think that that along with our reinvigoration of what we're doing on the DG side to be able to to look at the pipeline and grow the pipeline will have a significant significant impact. So I would say and answer. Your question is I know, we know what the macro environment looks like but we haven't seen any really significant impact there really much of an impact on that on our business.
<unk>.
Got it. Thank you that's very helpful. And then just a quick follow up John I was wondering if there is any update on how you're thinking about the business longer term.
CEOC.
Maybe talk about like the biggest lessons learned so far since joining the company.
Yes.
Yes.
So I would say that.
We and the team really continue to be focused on path to profitability. We said that from day. One we continue to lean in on that and as you can see from the from the upgraded guidance. We've now moved it from the first half of 2024 to the end of the first quarter, because we are really focused on profitability.
So thats a.
B is.
We had significant growth as we said we would to move to <unk> enterprise solution and you're seeing tremendous results on that.
And I would say I'm talking about the <unk> side and the stabilization of the consumer side you've heard.
But.
The whole business in terms of the large environment as I've said in my comments, there's just no. Other time like it's been in mental health relative to what everybody is looking for and what the need is so I would say.
One incredibly continue to be incredibly optimistic two really really happy with the results from both Q4 and.
Q1 of this year.
As we stated before we have a very very significant leverage or leverage of our model.
When you look at the need.
The real solution for significant parts of this country is to have a telehealth mental health solution that is large and is scalable compared to every other third most other options that are out there for therapy.
Thank you for that color and congrats again on the quarter.
As a reminder, everyone that is star one to ask a question or reenter the queue to ask additional questions.
Our next question from Ryan Daniels with William Blair.
Hey, everyone. This is Jack <unk> on for Ryan Daniels ill reiterate the comments on the solid quarter. So I know you are beginning to pivot your approach from that growth at all cost mindset to more of a focus on cost controls and profitability.
The last few quarters, you had said that you reduced head count and specifically really from from third quarter third quarter last year to this quarter and it sounds like or at least it sounds like in your prepared remarks I'm curious.
Was this the largest contributor to the pretty significant decrease in G&A compared to last year, both sequentially and year over year and then if so is the head count at an okay level now or are you planning on reducing head count even more I guess I'm just trying to parse out the cadence of G&A and kind of how we how we should think about that going forward. Thanks.
Thanks for the question Jack.
We can get into the ledger items, but I would say at a high level.
The significant progress we made on infrastructure in the last couple of quarters. So starting.
Late in the third quarter, and then finally with more recent efficiencies and reductions that we made at the end of the first quarter were really result of.
Progressing a lot of our operational capabilities and building infrastructure and then getting leaner.
And more efficient as we went so I would look at.
Q1, overall opex levels.
But the incremental reductions that we've recently made would be an additional 800000 on a net basis of savings to the bottom line and I would say between between.
Q3 of 2010, 2% of Q4 into Q1.
Count was a big part of that but there were several other items.
Earlier explained across all three major categories of our spend.
<unk> talked about media and I've talked about the efficiencies we've gained there.
Side of that what had been a pretty large cost for US was in third party spend contractors vendors.
Across the business as we were building capabilities to.
So what we see now is a really efficient and scalable infrastructure going forward.
Perfect. Thank you.
Then just as a quick follow up I know you that you guys saw an improvement in provider retention last quarter and I believe it sounded like it continued into this quarter again so.
I guess, just more like more higher level is it more admin burdens as wide varieties are leaving or I guess is there anything specifically to call out as to why this improved and then just as a quick second part for the providers that we're leaving where are they going to a competitor or possibly starting a new practice or something like that not sure. If you can get that granular, but just kind of curious on what you see here. Thanks.
Yes, so I would say.
First off when somebody leaves, we really don't know where theyre going.
So I don't want to be presumptuous, and trying to decide where they go or actually why they are usually leave it.
We do some post surveys but.
On the other side of the coin.
<unk> talked about.
Adding 800, plus therapists this quarter.
When you think about that that's a remarkable number.
The size and scope of this company.
The number of total therapists, we have and the reason that people are coming to talk space are pretty clear.
One they get enormous positive feedback and how we treat them, we're very engaged with our therapists, who got a bunch of focus groups. We know that they like working here. They know we know they like the flexibility. We've added actually we've made some recent product mountain modifications to make their lives what I'll say even better.
Not just in how theyre getting paid but really more about that they actually now can help select the type of clients that they want to interact with to some degree.
A different approach for our matching algorithm.
So not only can the member match now, but the therapist also to match so all in all our our not just depression, but our surveys are.
Therapists really like working here, they like coming here theyre satisfied they like the the feedback.
Honestly I think we've talked about it before but the average I guess the therapy time here or the therapist experience.
Is eight years or greater.
So it's not just that.
It's a very what I'll call mature group of therapists that are have been around a long time, they know what theyre looking for and they know where they're happy.
Understood. Thanks, Thanks, guys.
As a reminder, everyone that is star one to ask a question, we'll pause for a moment.
Alright, and there are no further questions at this time I would like to turn the call back over to Jon Cohen for closing remarks.
Thank you and thank you again for everybody who joined the call I wanted to take this opportunity to again emphasize my continued optimism around the business and its prospects. We believe we have a tremendous opportunity to leverage our great brand our market leadership position, our comprehensive product suite and our.
Nickel and operational capabilities to grow the business and to reach profitability in the near future. Thanks, everyone for joining us today and have a great evening.
Thank you that does conclude todays presentation. Thank you for your participation and you may now disconnect.
Please wait the conference will begin shortly.
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