Talkspace, Inc. Quarterly Report: Financial Statements and Analysis

Press release · 05/10 07:32
Talkspace, Inc. Quarterly Report: Financial Statements and Analysis

Talkspace, Inc. Quarterly Report: Financial Statements and Analysis

Talkspace, Inc. reported a net loss of $1.7 million in the first quarter of 2024, with revenue of $24.4 million. The company’s cash and cash equivalents increased to $169.6 million. Talkspace’s total assets were $214.2 million, while total liabilities amounted to $10.7 million. The company’s stock had 169.6 million shares outstanding.

Company Overview

Talkspace is a virtual behavioral healthcare company that connects people with licensed therapists through video sessions. As of March 31, 2024, Talkspace served over 131 million eligible lives through health insurance plans, employee assistance programs, and direct-to-employer relationships.

Key Metrics

  • Eligible Lives: 131.4 million as of March 31, 2024, up from 98 million a year earlier
  • Completed Payor Sessions: 284,200 during Q1 2024, up from 171,700 in Q1 2023
  • Unique Payor Active Members: 86,300 during Q1 2024, up from 61,900 in Q1 2023
  • Health Plan Customers: 23 as of March 31, 2024, up from 20 a year earlier
  • Enterprise Customers: 195 as of March 31, 2024, down from 227 a year earlier

Revenue

  • Total Q1 2024 revenue was $45.4 million, up 36% from $33.3 million in Q1 2023.
  • Payor revenue was $28.5 million, up 93% year-over-year. Growth driven by more eligible lives and higher utilization.
  • Direct-to-employer (DTE) revenue rose 14% to $9.9 million.
  • Consumer revenue fell 29% to $7 million as Talkspace focused more on payor members.

Expenses

  • Cost of revenue rose 43% to $23.7 million due to more therapist hours to meet increased demand.
  • Operating expenses fell 9% to $23.4 million through cuts in R&D, clinical operations, sales and marketing, and G&A.

Profitability

  • Gross margin narrowed to 48% from 50% as revenue mix shifted towards lower-margin payor business.
  • Operating loss narrowed by 81% to $1.7 million.
  • Net loss narrowed by 83% to $1.5 million.

Cash Flow

  • Used $3.4 million in operating activities versus $14 million a year earlier due to lower net loss and better working capital management.
  • Invested $0.4 million in product development and technology.
  • Ended Q1 2024 with $120 million of cash and no debt.

Outlook

Talkspace expects to fund operations for at least the next 12 months through existing cash balances. Profitability is improving through revenue growth and cost controls. Prioritizing payor member growth, which could further pressure consumer revenue and margins. Well positioned to benefit from rising utilization of virtual care.