Specialist
Former VP at Headspace Inc
Agenda
- Recent trends and developments in the digital behavioural health market
- Merger of Headspace and Ginger to create Headspace Health, including revenue synergies across B2B and D2C channels
- Potential integration challenges and ability to eliminate duplicate costs
- Merged entity's updated competitive positioning across digital behavioural health landscape
- Outlook, further consolidation in the telehealth market and strategic assessments
Questions
1.
What major trends or developments have you been following in the digital behavioural health and wellness market over the past 12 months or so?
2.
How would you quantify Headspace’s TAM opportunity? How much additional greenspace does merging with Ginger Mental Health present for the company?
3.
What’s your growth outlook for the digital behavioural health market over the next few years? How much of this growth may come from D2C vs B2B channels, respectively?
4.
Are engagement levels in B2B very different from D2C?
5.
What are your thoughts on Headspace’s proposed merger with Ginger Mental Health to create Headspace Health, valued at USD 3bn? What do you believe was the strategic rationale behind the merger? Were you surprised by the announcement?
6.
Could you expand on the value of Headspace Health’s holistically integrated mental health treatment solution, including the synergies that can be realised from controlling the end-to-end patient experience?
7.
Do you expect any integration challenges from meshing the two company cultures or existing infrastructure, or could it be relatively frictionless?
8.
Can you discuss the cost-reduction opportunity from eliminating duplicate expenses, such as labour and IT overlap? Where might most of these cuts come from?
9.
What additional service lines or care options can Headspace Health effectively cover in the behavioural health market outside of general mental health? Could it be an effective treatment model for substance abuse, eating disorders or any other ancillary segments?
10.
Could Headspace move into SMI [serious mental illness]? What are the benefits and drawbacks of treating higher-acuity patients?
11.
How would you assess the value of Headspace getting clinically validated for meditation therapy? What business expansion doors does this open?
12.
Do you expect Headspace to move further into the B2B channel? Are there major hurdles around dealing with payers or enterprises, or is it relatively seamless, especially with the Ginger acquisition?
13.
What are your thoughts on Headspace’s strategic partnerships with media companies such as Netflix and Spotify? What’s important for us to understand about these relationships and what marketing or commercial advantages do they present?
14.
How is D2C CAC [customer acquisition cost] trending for providers such as Better Help or Headspace? Do you expect any near-term CAC shifts?
15.
Do you consider B2B or D2C the more favourable channel for customer acquisition or commercialisation?
16.
Could you compare the unit economics in B2B vs D2C? How might the Ginger merger affect Headspace Health’s unit economics? How much does the company stand to benefit from their increased scale?
17.
What can Headspace do to mitigate churn and encourage retention or stickiness in its D2C user base?
18.
How would you assess the supply-demand dynamics for therapists and wellness coaches for Ginger? What’s important for us to understand about hiring and retaining talented mental health treatment professionals? Is adequate staffing a material concern?
19.
How does the Ginger-Headspace JV compare to more intense programmes such as Spring Health, Lyra Health or Talkspace? Can they coexist in this environment or must they eventually compete against each other?
20.
How much ability does the Headspace-Ginger JV have to undercut competitors on price? Do you think their increased scale could contribute here?
21.
How would you compare Headspace to some newer D2C players, such as Calm? How is the company positioned vs similar companies and what’s differentiated about Headspace’s D2C strategy?
22.
How are you assessing increasing consolidation industry-wide? How might this dynamic evolve over the next year or so? Do you expect telehealth incumbents such as Teladoc or Amwell to be especially active?
23.
Are there any tuck-in targets that Headspace may pursue for inorganic growth, once integration is more fully realised? What names might be attractive take-out targets?
24.
Would you expect Headspace Health to be acquired at some point? Is this even likely given its size and valuation multiple? Which names might be strategic buyers?
25.
How would you assess Headspace’s international opportunity? Which areas make the most sense to expand into and how do you assess its efforts to penetrate ex-US geographies?
26.
Is there anything we haven’t discussed about Headspace Health that is especially important to highlight?
27.
What is your 12-18-month outlook for Headspace Health, perhaps mentioning the most important factors to monitor over that time frame?
