Business
Talkspace Announces Second Quarter 2023 Results
B2B payor revenue grew 135% year-over-year 2Q 2023 Operating expenses of $24.2 million, down 32% year-over-year Reduced Net Loss to $4.7 million and Adjusted
About this update from Talkspace, Inc.
[{"type":"text","content":"B2B payor revenue grew 135% year-over-year 2Q 2023 Operating expenses of $24.2 million, down 32% year-over-year Reduced Net Loss to $4.7 million and Adjusted EBITDA1 loss to $4.0 million, down 80% and 77% year-over-year, respectively Raises FY 2023 Revenue and Adjusted EBITDA guidance; Reaffirms break-even by end of 1Q 2024 NEW YORK, July 27, 2023 (GLOBE NEWSWIRE) -- Talkspace, Inc. (NASDAQ: TALK), today reported second quarter 2023 financial results. Three Months Six MonthsPeriod Ended June 30, 2023 (Unaudited) Results Variance fromPrior Year % Results Variance fromPrior Year %(In thousands unless otherwise noted) Number of B2B eligible lives at period end (in millions) 110 42% 110 42%Number of completed B2B sessions 200.5 109% 372.2 100%Number of Consumer active members at period end 13.7 (32)% 13.7 (32)% Total revenue $35,645 19% $68,981 15%Gross profit $17,812 22% $34,560 17%Gross margin % 50.0% 50.1% Operating expenses $24,220 (32)% $50,007 (30)%Net loss $(4,704) 80% $(13,462) 69%Adjusted EBITDA1 $(3,977) 77% $(10,407) 71%Cash and cash equivalents at period end $126,104 — $126,104 —(1) Adjusted EBITDA is a non-GAAP financial measure. For a definition of the measure and a reconciliation to the most directly comparable GAAP measure, see “Reconciliation of Non-GAAP Results to GAAP Results.” Dr. Jon Cohen, CEO of Talkspace, said, “We built on the first quarter’s strong momentum in our payor business by expanding our relationships with commercial partners while activating a growing proportion of our member base. We continued to introduce product innovations and grow our clinical network while maintaining stringent quality standards, driving gains in access and engagement metrics and improving network productivity. As we look to the second half of the year and beyond, we remain confident in our ability to capitalize on the growing need for covered mental health services and to deliver profitable growth.” Jennifer Fulk, CFO of Talkspace, said, “Our revenue growth continued to accelerate in the second quarter, with the business-to-business (“B2B”) categories contributing an increasing portion of overall revenue as planned. We unlocked significant efficiencies in our cost structure as we drove further operating leverage, accelerated collection timing and enhanced treasury operations, which enabled us to achieve positive cash flow fo...