8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(D)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): May 7, 2024

Talkspace, Inc.

(Exact name of registrant as specified in its charter)

Delaware	001-39314	84-4636604
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

622 Third Avenue, New York, New York	10017
(Address of principal executive offices)	(Zip Code)

(212) 284-7206

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, $0.0001 par value per share	TALK	Nasdaq Global Select Market
Warrants to purchase common stock	TALKW	Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition.

Talkspace, Inc. (the “Company”) issued a press release on May 7, 2024 announcing its financial results for the quarter ended March 31, 2024. A copy of the press release issued in connection with this announcement is furnished as Exhibit 99.1 attached hereto.

The information in this Item 2.02, including the information contained in Exhibit 99.1 of this Current Report on Form 8-K, is being furnished hereby and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”), or otherwise subject to the liabilities of such section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 7.01. Regulation FD Disclosure.

On May 7, 2024, the Company posted supplementary slides (the “Slides”) regarding the Company’s financial results for the quarter ended March 31, 2024 on the Company’s investor relations website at https://investors.talkspace.com/investor-relations. The Slides are furnished as Exhibit 99.2. The Company may use the Slides, in whole or in part, and possibly with minor modifications, in connection with presentations to investors after such date.

The information contained in the Slides is summary information that is intended to be considered in the context of the Company’s Securities and Exchange Commission (“SEC”) filings and other public announcements that the Company may make, by press release or otherwise, from time to time. The Company undertakes no duty or obligation to publicly update or revise the information contained in this report, although it may do so from time to time as its management believes is warranted. Any such updating may be made through the filing of other reports or documents with the SEC, through press releases or through other public disclosures.

This information in this Item 7.01, including the information contained in Exhibit 99.2 of this Current Report on Form 8-K, is being furnished hereby and shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of such section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits
 

Exhibit Number	Description
99.1	Press Release issued by Talkspace, Inc. dated May 7, 2024.
99.2	Supplementary Slides: Talkspace, Inc. 2024 First Quarter Earnings Presentation dated May 7, 2024.
104	Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

			Talkspace, Inc.
Date:	May 7, 2024	By:	/s/ Jennifer Fulk
			Jennifer Fulk Chief Financial Officer

EX-99.1

Exhibit 99.1

 

Talkspace Announces First Quarter 2024 Results

1Q 2024 Total revenue grew 36% year-over-year

1Q 2024 Payor revenue grew 92% year-over-year

Reduced GAAP Net loss to $1.5 million from $8.8 million year-over-year

Delivers first profitable quarter with Adjusted EBITDA1 of $0.8 million

NEW YORK, New York - May 7, 2024 – Talkspace, Inc. (NASDAQ: TALK), today reported first quarter 2024 financial results.

	Three Months
Three Months Ended March 31, 2024 (Unaudited)	Results	% Variance from Prior Year
(In thousands unless otherwise noted)
Number of eligible lives at period end (in millions)	131.4	34%
Number of completed Payor sessions	284.2	65%
Number of Consumer active members at period end	11.1	(26)%
Total revenue	$45,416	36%
Gross profit	$21,731	30%
Gross margin %	47.8%
Operating expenses	$23,410	(9)%
Net loss	$(1,466)	83%
Adjusted EBITDA1	$774	112%
Cash and cash equivalents at period end	$120,278	—

(1) Adjusted EBITDA is a non-GAAP financial measure. For a definition of the measure and a reconciliation to the most direct comparable GAAP measure, see “Reconciliation of Non-GAAP Results to GAAP Results.”

Dr. Jon Cohen, CEO of Talkspace, said, “We kicked off 2024 with strong momentum, building on our pivotal achievements from last year. Our first quarter results showcase a 36% year-over-year increase in revenue, driven by our deepening engagement and expanding reach within our Payor category. We also made exciting progress with our recent launches in New York City and the Baltimore County Public School system, two initial clients underpinning our efforts to combat the teen mental health crisis.”

“Importantly, this also marks our first quarter of profitability on an adjusted EBITDA basis. Our cash position, our streamlined operations, and our defined growth strategy give me confidence we are well-equipped to continue advancing our mission to deliver accessible and high-quality mental healthcare. As we continue to scale, our dedication to operational excellence is not only providing greater access to mental healthcare, but also enhancing the quality of care we provide for our members and the experience for our provider network,” added Dr. Cohen.

1

First Quarter 2024 Key Performance Metrics

•Revenue increased 36% over the prior-year period to $45.4 million, driven by a 92% year-over-year increase in Payor revenue and a 14% year-over-year increase in Direct to Enterprise (“DTE”) revenue; partially offset by a 29% year-over-year consumer revenue decline.

•Gross profit increased 30% over the prior-year period to $21.7 million, and gross margin declined to 47.8% from 50.2% year-over-year, driven by a shift in revenue mix towards Payor.

•Operating expenses were $23.4 million, down 9% year-over-year, driven primarily by efficiencies in Research & Development and Clinical Operations.

•Net loss was $(1.5) million, an improvement from $(8.8) million net loss in the first quarter of 2023, primarily driven by an increase in revenues and a reduction in operating expenses.

•Adjusted EBITDA was $0.8 million, an improvement from $(6.4) million in the first quarter of 2023, primarily driven by an increase in revenues and a reduction in operating expenses.

Financial Guidance

Full fiscal year 2024 guidance remains unchanged. Based on current market conditions and expectations and what the Company knows today, Talkspace expects revenue to be in the range of $185 million to $195 million, growth of 23-30%, and adjusted EBITDA to be in the range of $4 million to $8 million.

2

Conference Call, Presentation Slides, and Webcast Details

The conference call will be available via audio webcast at investors.talkspace.com and can also be accessed by dialing (888) 330-2391 for U.S. participants, or +1 (240) 789-2702 for international participants, and referencing participant code 2348878. A replay will be available shortly after the call’s completion and remain available for approximately 90 days.

About Talkspace

Talkspace (NASDAQ: TALK) is a leading virtual behavioral healthcare provider committed to helping people lead healthier, happier lives through access to high-quality mental healthcare. At Talkspace, we believe that mental healthcare is core to overall health and should be available to everyone.

Talkspace pioneered the ability to text with a licensed therapist from anywhere and now offers a comprehensive suite of mental health services, including therapy for individuals, teens, and couples, as well as psychiatric treatment and medication management (18+). With Talkspace’s core therapy offerings, members are matched with one of thousands of licensed therapists within days and can engage in live video, audio, or chat sessions, and/or unlimited asynchronous text messaging sessions.

All care offered at Talkspace is delivered through an easy-to-use, fully-encrypted web and mobile platform that meets HIPAA, federal, and state regulatory requirements. More than 131 million Americans have access to Talkspace through their health insurance plans, employee assistance programs, our partnerships with leading healthcare companies, or as a free benefit through their employer, school, or government agency.

For more information, visit www.talkspace.com.

For Investors:

ICR Westwicke

TalkspaceIR@westwicke.com

For Media:

John Kim

SKDK

(310) 997-5963

jkim@skdknick.com

3

Forward Looking Statements

This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking, including statements regarding our financial condition, anticipated financial performance, achieving profitability, business strategy and plans, market opportunity and expansion and objectives of our management for future operations. These forward-looking statements generally are identified by the words “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “forecast”, “future”, “intend,” “may,” “might”, “opportunity”, “plan,” “possible”, “potential,” “predict,” “project,” “should,” “strategy”, “strive”, “target,” “will,” or “would”, the negative of these words or other similar terms or expressions. The absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many important factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to factors and the other risks and uncertainties described under the caption “Risk Factors” in our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 13, 2024, and our other documents filed from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and we assume no obligation and do not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise unless required to do so under applicable law. We do not give any assurance that we will achieve our expectations.

4

Talkspace, Inc.

Condensed Consolidated Statements of Operations

	Three Months Ended March 31,
	2024	2023	% Change
(in thousands, except percentages, share and per share data)	Unaudited	Unaudited
Revenue:
Payor revenue	$28,508	$14,811	92.5
DTE revenue	9,913	8,676	14.3
Consumer revenue	6,995	9,849	(29.0)
Total revenue	45,416	33,336	36.2
Cost of revenues	23,685	16,588	42.8
Gross profit	21,731	16,748	29.8
Operating expenses:
Research and development	3,739	5,353	(30.2)
Clinical operations, net	1,464	1,601	(8.6)
Sales and marketing	13,009	13,469	(3.4)
General and administrative	5,198	5,364	(3.1)
Total operating expenses	23,410	25,787	(9.2)
Operating loss	(1,679)	(9,039)	81.4
Financial (income), net	(378)	(424)	(10.8)
Loss before taxes on income	(1,301)	(8,615)	84.9
Taxes on income	165	143	15.4
Net loss	$(1,466)	$(8,758)	83.3
Net loss per share:
Basic and Diluted	$(0.01)	$(0.05)	80.0
Weighted average number of common shares:
Basic and Diluted	168,846,946	161,797,781

5

Talkspace, Inc.

Condensed Consolidated Balance Sheets

	March 31, 2024			December 31, 2023
(in thousands)	Unaudited
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	120,278		$	123,908
Accounts receivable		11,035			10,174
Other current assets		4,417			5,718
Total current assets		135,730			139,800
Other long-term assets		2,546			2,421
Total assets	$	138,276		$	142,221
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	5,805		$	6,111
Deferred revenues		2,883			3,069
Accrued expenses and other current liabilities		6,998			12,468
Total current liabilities		15,686			21,648
Warrant liabilities		2,988			1,842
Other liabilities		24			85
Total liabilities		18,698			23,575
STOCKHOLDERS’ EQUITY:
Common stock		16			16
Additional paid-in capital		391,412			389,014
Accumulated deficit		(271,850	)		(270,384	)
Total stockholders’ equity		119,578			118,646
Total liabilities and stockholders’ equity	$	138,276		$	142,221

6

Talkspace, Inc.

Condensed Consolidated Statements of Cash Flows

	Three Months Ended March 31,
	2024			2023
(in thousands)	Unaudited			Unaudited
Cash flows from operating activities:
Net loss	$	(1,466	)	$	(8,758	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		201			306
Stock-based compensation		2,252			2,303
Remeasurement of warrant liabilities		1,146			189
Increase in accounts receivable		(861	)		(2,820	)
Decrease in other current assets		1,301			559
(Decrease) increase in accounts payable		(306	)		1,213
Decrease in deferred revenues		(186	)		(232	)
Decrease increase in accrued expenses and other current liabilities		(5,470	)		(6,702	)
Other		(2	)		(95	)
Net cash used in operating activities		(3,391	)		(14,037	)
Cash flows from investing activities:
Purchase of property and equipment		(385	)		(9	)
Proceeds from sale of property and equipment		—			28
Net cash used in investing activities		(385	)		19
Cash flows from financing activities:
Proceeds from exercise of stock options		741			621
Payments for employee taxes withheld related to vested stock-based awards		(595	)		(65	)
Net cash provided by financing activities		146			556
Net decrease in cash and cash equivalents		(3,630	)		(13,462	)
Cash and cash equivalents at the beginning of the period		123,908			138,545
Cash and cash equivalents at the end of the period	$	120,278		$	125,083

7

Non-GAAP Financial Measures

In addition to our financial results determined in accordance with GAAP, we believe adjusted EBITDA, a non-GAAP measure, is useful in evaluating our operating performance, and our management uses it as a key performance measure to assess our operating performance. Because adjusted EBITDA facilitates internal comparisons of our historical operating performance on a more consistent basis, we use this measure for business planning purposes and in evaluating acquisition opportunities. We also use adjusted EBITDA to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that this non-GAAP financial measure, when taken together with the corresponding GAAP financial measures, provides meaningful supplemental information regarding our performance by excluding certain items that may not be indicative of our business, results of operations or outlook. We believe that the use of adjusted EBITDA is helpful to our investors as it is a metric used by management in assessing the health of our business and our operating performance. However, non-GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP.

Some of the limitations of adjusted EBITDA include (i) adjusted EBITDA does not necessarily reflect capital commitments to be paid in the future and (ii) although depreciation and amortization are non-cash charges, the underlying assets may need to be replaced and adjusted EBITDA does not reflect these requirements. In evaluating adjusted EBITDA, you should be aware that in the future we will incur expenses similar to the adjustments described herein. Our presentation of adjusted EBITDA should not be construed as an inference that our future results will be unaffected by these expenses or any unusual or non-recurring items. Our adjusted EBITDA may not be comparable to similarly titled measures of other companies because they may not calculate adjusted EBITDA in the same manner as we calculate the measure, limiting its usefulness as a comparative measure. Adjusted EBITDA should not be considered as an alternative to loss before income taxes, net loss, loss per share, or any other performance measures derived in accordance with U.S. GAAP. When evaluating our performance, you should consider adjusted EBITDA alongside other financial performance measures, including our net loss and other GAAP results.

A reconciliation is provided below for adjusted EBITDA to net loss, the most directly comparable financial measure stated in accordance with GAAP. Investors are encouraged to review our financial statements prepared in accordance with GAAP and the reconciliation of our non-GAAP financial measure to its most directly comparable GAAP financial measure, and not to rely on any single financial measure to evaluate our business. We do not provide a forward-looking reconciliation of adjusted EBITDA guidance as the amount and significance of the reconciling items required to develop meaningful comparable GAAP financial measures cannot be estimated at this time without unreasonable efforts. These reconciling items could be meaningful.

8

Adjusted EBITDA

We calculate adjusted EBITDA as net loss adjusted to exclude (i) depreciation and amortization, (ii) interest and other expenses (income), net, (iii) tax benefit and expense, and (iv) stock-based compensation expense.

Talkspace, Inc.

Reconciliation of Non-GAAP Results to GAAP Results

	Three Months Ended March 31,
	2024			2023
(in thousands)	Unaudited			Unaudited
Net loss	$	(1,466	)	$	(8,758	)
Add:
Depreciation and amortization		201			306
Financial (income), net (1)		(378	)		(424	)
Taxes on income		165			143
Stock-based compensation		2,252			2,303
Adjusted EBITDA	$	774		$	(6,430	)

(1) For the three months ended March 31, 2024, financial (income), net, primarily consisted of $1.6 million of interest income from our money market accounts partially offset by $1.1 million in losses resulting from the remeasurement of warrant liabilities. For the three months ended March 31, 2023, financial (income), net, primarily consisted of $0.6 million of interest income from our money market accounts partially offset by $0.2 million in losses resulting from the remeasurement of warrant liabilities

9

EX-99.2

2024 First Quarter Earnings Presentation MAY 7, 2024 Exhibit 99.2

Disclaimer This presentation contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. All statements contained in this presentation that do not relate to matters of historical fact should be considered forward-looking, including statements regarding our financial condition, anticipated financial performance, achieving profitability, business strategy and plans, market opportunity and expansion and objectives of our management for future operations. These forward-looking statements generally are identified by the words “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “forecast”, “future”, “intend,” “may,” “might”, “opportunity”, “plan,” “possible”, “potential,” “predict,” “project,” “should,” “strategy”, “strive”, “target,” “will,” or “would”, the negative of these words or other similar terms or expressions. The absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many important factors could cause actual future events to differ materially from the forward-looking statements in this presentation, including but not limited to: our history of losses; the rapid evolution of our business and the markets in which we operate; our ability to continue growing at the rates we have historically grown, or at all; the development of the virtual behavioral health market; a deterioration in general economic conditions as a result of inflation, increased interest rates or otherwise; competition in our industry; and our relationships with affiliated professional entities to provide physician and other professional services. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in under the caption “Risk Factors” in our Annual Report on Form 10-K for the annual period ended December 31, 2023 filed with the Securities and Exchange Commission (“SEC”) on March 13, 2024 and in our other documents filed from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and we assume no obligation and do not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. We do not give any assurance that we will achieve our expectations. Certain information contained in this presentation relate to or are based on studies, publications, surveys and other data obtained from third-party sources and the Company’s own internal estimates and research. While the Company believes these third-party sources to be reliable as of the date of this presentation, it has not independently verified, and makes no representation as to the adequacy, fairness, accuracy or completeness of, any information obtained from third-party sources, and you are urged not to give undue weight to such third-party information. While the Company believes its internal research is reliable, such research has not been verified by any independent source. This presentation may contain the measure Adjusted EBITDA, Adjusted EBITDA margin, and non-GAAP costs and expenses (including non-GAAP cost of revenue, research and development, sales and marketing, and general and administrative) which are non-GAAP financial measure. For additional information about the measure and a reconciliation to the most closely comparable GAAP measure see the Talkspace Investors Relations website at investors.talkspace.com. 2 2024 FIRST QUARTER EARNINGS PRESENTATION

Q1’23 $5 $3934% Q1’24 USD, Millions 2024 FIRST QUARTER EARNINGS PRESENTATION Q1’23 $50 $40 $30 $20 $10 $0 Revenue1 and % Composition $33.3 $6454% $3934% Payor Sessions2 Adjusted EBITDA3 PAYOR DTE 1Q 2024 Performance Highlights 3 $9.8 30% $8.7 26% $14.8 44% Q1’24 $45.4 $7.0 15% $9.9 22% $28.5 63% CONSUMER Q1’23 300 150 0 Q1’24 Thousands USD, Millions $0.8 ($6.4) $0 ($5) ($10) Revenue is presented on an as-reported basis. Includes sessions from Managed Behavioral Health (“MBH”) and Employee Assistance Programs (“EAP”). Adjusted EBITDA is a non-GAAP financial measure. For a reconciliation to the most directly comparable GAAP measure, see the appendix to this presentation. $6454% $3934% 172 284

4 First Quarter of Adjusted EBITDA1 Profitability Adjusted EBITDA1 of $0.8M Achieved profitability for first time in history Revenue growth of 36% year-over-year Continued Strong Payor Progress Payor Revenue increased 92% year-over-year and 12% sequentially Sessions increased 65% and unique members increased 39% Anthem commercial BH launch progress Direct-to-Enterprise Teens Momentum Revenue increased 14% Education and teen offerings seeing early traction in NYC and Baltimore County Employer headwinds but robust growing pipeline for additional teen contracts Provider Network Expansion Grew providers to 5,600+ 47% year-over-year growth and 6% sequentially Clinical outcomes highlighted in JAMA AI-backed provider documentation launched 1Q 2024 Business Highlights 2024 FIRST QUARTER EARNINGS PRESENTATION (1) Adjusted EBITDA is a non-GAAP financial measure. For a reconciliation to the most directly comparable GAAP measure, see the appendix to this presentation.

2024 FIRST QUARTER EARNINGS PRESENTATION Revenue PAYOR DTE Revenue and Gross Profit 5 CONSUMER $0 $10 $20 $30 Q2‘23 $35 $35.6 Q3‘23 $18.5 $9.1 $7.9 $25 $15 $5 $9.5 $18.5 $18.5 $8.0 $38.6 $8.5 $22.1 $8.0 $40 Q4‘23 $45 $50 $42.4 $8.2 $25.4 $8.9 $7.0 $28.5 $9.9 $45 .4 Q1‘24 Q1‘23 $33.3 $9.8 $14.8 $8.7 USD, Millions Gross Profit and % Margin GROSS PROFIT MARGIN $0 $5 $10 $15 Q2‘23 $17.8 Q3‘23 $18.5 $18.5 $18.8 $20 Q4‘23 $25 $21.0 $21.7 Q1‘24 Q1‘23 $16.7 USD, Millions 50.2% 50.0% 48.8% 49.4% 47.8% 65% 60% 55% 50% 45% 40% 35%

2024 FIRST QUARTER EARNINGS PRESENTATION Operating Expenses NORMALIZED OPEX Operating Expense and Adjusted EBITDA1 6 SBC + NON-RECURRING $0 $10 $15 $20 Q2‘23 Q3‘23 $18.5 $2.1 $7.9 $9.5 $18.5 $22.1 $2.0 $22.1 $25 Q4‘23 $30 $23.6 $21.6 $21.2 Q1‘24 Q1‘23 $25.8 $2.3 $23.5 USD, Millions Adjusted EBITDA1 $24.2 $24.0 $2.0 $2.3 $23.4 51% 57% 62% 47% 70% $0 USD, Millions Q1‘23 Q3‘23 $(4.0) Q4‘23 $(2.8) $(2) $(4) $(6) $2 $(0.3) $0.8 Q1‘24 Q2‘23 $(6.4) NORMALIZED OPEX AS % OF REVENUE (1) Adjusted EBITDA is a non-GAAP financial measure. For a reconciliation to the most directly comparable GAAP measure, see the appendix to this presentation.

2024 Guidance1 Unchanged 7 Guidance based on current market conditions and expectations and what we know today. Adjusted EBITDA is a non-GAAP financial measure. We do not provide a forward-looking reconciliation of our guidance for adjusted EBITDA as the amount and significance of items required to develop meaningful comparable GAAP financial measures cannot be estimated at this time without unreasonable efforts. These special items could be meaningful. Reduce stress, build resilience, and increase self-understanding with self-guided courses, online classes, reflections and journal prompts Building mental fitness Revenue ~ $185M to $195M +23% to +30% Y/Y Adjusted EBITDA2 $4M to $8M +$18M to $22M Y/Y 2024 FIRST QUARTER EARNINGS PRESENTATION

Strong Long-Term Growth Plan 8 Grow Covered Lives Grow Capture Rate Continued DTE momentum with teens Pioneer investments in clinical A.I. tools Grow Revenue Grow Profitability Launch needle-moving strategic partnerships 2024 FIRST QUARTER EARNINGS PRESENTATION

Appendix 9 2024 FIRST QUARTER EARNINGS PRESENTATION

Non-GAAP Financial Measures In addition to our financial results determined in accordance with GAAP, we believe adjusted EBITDA, a non-GAAP measure, is useful in evaluating our operating performance, and our management uses it as a key performance measure to assess our operating performance. Because adjusted EBITDA facilitates internal comparisons of our historical operating performance on a more consistent basis, we use this measure for business planning purposes and in evaluating acquisition opportunities. We also use adjusted EBITDA to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that this non-GAAP financial measure, when taken together with the corresponding GAAP financial measures, provides meaningful supplemental information regarding our performance by excluding certain items that may not be indicative of our business, results of operations or outlook. We believe that the use of adjusted EBITDA is helpful to our investors as it is a metric used by management in assessing the health of our business and our operating performance. However, non-GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. Some of the limitations of adjusted EBITDA include (i) adjusted EBITDA does not necessarily reflect capital commitments to be paid in the future and (ii) although depreciation and amortization are non-cash charges, the underlying assets may need to be replaced and adjusted EBITDA does not reflect these requirements. In evaluating adjusted EBITDA, you should be aware that in the future we will incur expenses similar to the adjustments described herein. Our presentation of adjusted EBITDA should not be construed as an inference that our future results will be unaffected by these expenses or any unusual or non-recurring items. Our adjusted EBITDA may not be comparable to similarly titled measures of other companies because they may not calculate adjusted EBITDA in the same manner as we calculate the measure, limiting its usefulness as a comparative measure. Adjusted EBITDA should not be considered as an alternative to loss before income taxes, net loss, loss per share, or any other performance measures derived in accordance with U.S. GAAP. When evaluating our performance, you should consider adjusted EBITDA alongside other financial performance measures, including our net loss and other GAAP results. A reconciliation is provided below for adjusted EBITDA to net loss, the most directly comparable financial measure stated in accordance with GAAP. Investors are encouraged to review our financial statements prepared in accordance with GAAP and the reconciliation of our non-GAAP financial measure to its most directly comparable GAAP financial measure, and not to rely on any single financial measure to evaluate our business. We do not provide a forward-looking reconciliation Adjusted EBITDA guidance as the amount and significance of the reconciling items required to develop meaningful comparable GAAP financial measures cannot be estimated at this time without unreasonable efforts. These reconciling items could be meaningful. 10 2024 FIRST QUARTER EARNINGS PRESENTATION

Reconciliation of Net Loss to Adjusted EBITDA Adjusted EBITDA We calculate adjusted EBITDA as net loss adjusted to exclude (i) depreciation and amortization, (ii) interest and other expenses (income), net, (iii) tax benefit and expense, (iv) stock-based compensation expense, (v) impairment of goodwill, and (vi) certain non-recurring expenses, where applicable. 11 2024 FIRST QUARTER EARNINGS PRESENTATION

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Cover Page	May 07, 2024
Document Information [Line Items]
Document Type	8-K
Amendment Flag	false
Document Period End Date	May 07, 2024
Entity Registrant Name	Talkspace, Inc.
Entity Central Index Key	0001803901
Entity Incorporation, State or Country Code	DE
Securities Act File Number	001-39314
Entity Tax Identification Number	84-4636604
Entity Address, Address Line One	622 Third Avenue
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10017
City Area Code	212
Local Phone Number	284-7206
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Common Stock [Member]
Document Information [Line Items]
Title of 12(b) Security	Common stock, $0.0001 par value per share
Trading Symbol	TALK
Security Exchange Name	NASDAQ
Warrants to purchase common stock [Member]
Document Information [Line Items]
Title of 12(b) Security	Warrants to purchase common stock
Trading Symbol	TALKW
Security Exchange Name	NASDAQ