Demand Signals: Mental Health

In today's rapidly evolving health and wellness landscape, understanding the nuances of demand signals in mental health has never been more crucial. These data points are more than just numbers; they are the foundation upon which we build strategic initiatives that differentiate us in the market and meet the needs of those seeking mental health support with empathy and precision. By breaking down these demand signals and applying first principles thinking, we can uncover unique insights that transform into actionable strategies and innovative solutions. Let’s explore the vital signals shaping the future of mental health and harness the power of first principles thinking to lead with vision and purpose.

Meditation

Calm: ~$4.8M MRR & iPhone Top Grossing Health & Fitness App ~#3-8

• Calm Business: "...3,500+ organizations... supporting 10 million+ employees across the globe"

Headspace: ~$3.6M MRR & iPhone Top Grossing Health & Fitness App ~#10-14

Insight Timer: ~$1.2M MRR & iPhone Top Grossing Health & Fitness App ~#23-29

Waking Up: ~$1.2M MRR & iPhone Top Grossing Health & Fitness App ~#26-32

Breeze: ~$790K MRR & iPhone Top Grossing Health & Fitness App ~#25-34

10% Happier: ~$330K MRR & iPhone Top Grossing Health & Fitness App ~#40-70

Therapy

BetterHelp

• Q1 2024: "BetterHelp segment revenue decreased 4% to $269.0 million"  
• FY 2023: "Revenue... increased 11% to $1,133.6 million for the BetterHelp segment"

Talkspace

• Q1 2024: "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"  
• FY 2023: "Revenue increased 25% over the prior year to $150.0 million, driven by a 123% year-over-year increase in Payor revenue and a 19% year-over-year increase in DTE revenue; partially offset by a 35% year-over-year consumer revenue decline."

LifeStance

• Q1 2024: "Revenue grew 19% to $300.4 million. Strong revenue growth in the first quarter was driven primarily by higher visit volumes from net clinician growth and improvements in total revenue per visit."  
• FY 2023: "Fourth quarter revenue of $280.6 million increased 22% and full year revenue of $1,055.7 million increased 23%"

Grow Therapy: "In the past three years, the company has facilitated over 3 million patient visits, with 94% in-network."

Headway: "4,500,000+ hours of mental health care delivered" [in 2023]

Lyra Health: "...[M]ore than 300 leading companies have partnered to offer Lyra’s mental health benefits to their employees... giving more than 15 million people access..."

Spring Health: "...10 million covered lives..."

Thriveworks: "We’ve served nearly 164,000 people in just the last year"

Kaiser Family Foundation (KFF): "Among larger firms offering health benefits, 30% of firms with 1,000 to 4,999 workers and 44% of firms with 5,000 or more workers took steps within the past 12 months to increase the number of mental health providers in their plan networks."

Rock Health: "Compared to 2022, the proportion of respondents that prefer virtual care to in-person care increased for... mental health services (41%, 3pp increase)."

Journaling

Day One: ~$320K MRR & iPhone Top Grossing Health & Fitness App ~#66-98

The Five Minute Journal: "2K+ bought in past month" (on Amazon)

Other Data Points - Consumers

American Psychological Association (APA): "When asked to quantify their average level of stress, adults in the U.S. said it’s a five out of 10 (on a scale of 1–10 where 1 is “little to no stress” and 10 is a “great deal of stress”). This remains unchanged since last year. Still, a quarter of adults (24%) rated their average stress between eight and 10. This is up from 19% in 2019, before the pandemic. This increase is mirrored across all age groups except those 65+."

Google Trends (United States, searches as compared to 12 months ago)

• "Stress": Flat  
• "Anxiety": Up ~10%  
• "Depression": Down ~5%  
• "Therapy": Flat  
• "Therapist near me": Down ~20%  
• "Meditation": Down ~10%  
• "Meditation app": Down ~10%  
• "Journaling": Flat

Pew Research Center: "Close friends, therapists and family members top the list of people Americans would feel comfortable talking to about their mental health"

Rock Health: "Among respondents who previously used or were using GLP-1s, diet (70%), exercise (60%), and stress management (36%) were the most common weight loss methods used alongside GLP-1s."

Other Data Points - Employers & Employees

American Psychological Association (APA): "Nearly one-quarter of American workers (24%) reported their overall mental health as being fair or poor, as opposed to good or excellent. That number is down slightly from 2023 (28%) but up slightly from 2022 (19%)."

SHRM: "[In 2023], mental health coverage [by U.S. employers] decreased in prevalence by 2 percentage points to 89%, despite widespread publicity about Americans’ mental health challenges. However, the prevalence is still higher than rates both before and during the height of the pandemic (84% and 85%)."

Mercer: 67% of US employers consider depression / anxiety either a concern (46%) or serious concern (21%).

Alight: "33% of [U.S. employees] said they needed mental health care but didn’t receive it"

Kaiser Family Foundation (KFF): "The sufficiency of mental health providers in plan networks remains a concern for employers in 2023, with only 59% of large employers offering health benefits believing that there are a sufficient number of behavioral health providers in their plan’s network to provide timely access to services for workers and their family members."

Other Data Points - Fundraising & Other Significant Deals

Rock Health: "Mental health again topped the list of top-funded clinical indications in digital health with $682M raised in H1 2024"

Headway: $100M raised at $2.3B valuation in July 2024

Grow Therapy: $88M raised in April 2024

Brightside Health: $33M raised in March 2024

Tava Health: $20M raised in March 2024

BrainCheck: $15M raised in March 2024

Twill: Acquired for ~$36M in February 2024 with ~$18M in revenue

Matter Neuroscience: $20M raised in January 2024

Understanding the nuanced data available today is pivotal in refining your vision and long-term growth strategy. By thoroughly assessing your unique situation and comprehending how these data points impact your present and future, you can drive sustained growth and success. Engage your leadership team, evaluate the data rigorously, and remember that we are here to support you every step of the way. The right refinement today will lay the foundation for your company’s long-term success and your legacy.

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