Business
Talkspace Reports Third Quarter 2021 Financial Results
Net Revenue grew 23% year-over-year to approximately $26 million, driven by continued strong momentum in B2B B2B eligible lives and completed B2B sessions
About this update from Talkspace, Inc.
[{"type":"text","content":"Net Revenue grew 23% year-over-year to approximately $26 million, driven by continued strong momentum in B2B B2B eligible lives and completed B2B sessions grew 92% and 96%, respectively, versus the prior-year period Active members grew 21% year-over-year to approximately 60,300 NEW YORK, Nov. 15, 2021 (GLOBE NEWSWIRE) -- Talkspace, Inc. (“Talkspace”) (Nasdaq: TALK), a leading virtual behavioral healthcare company, today reported its financial results for the third quarter ended September 30, 2021. Jennifer Fulk, Chief Financial Officer of Talkspace, commented: “While Net Revenue grew 23% year-over-year, driven by continued momentum in the B2B business, the overall financial results for the third quarter were disappointing. Q3 Net Revenue came in below management expectations due to a lower number of B2C customers and a one-time non-cash reserve adjustment for credit losses on receivables related to prior periods. The $223 million of available liquidity as of September 30 will allow Talkspace to invest in important operational enhancements and new initiatives that will continue to drive long‐term growth.” Third Quarter 2021 Financial Highlights Net Revenue of $26.4 million, a 23% increase over the prior-year periodGross Profit of $14.2 million; Gross Margin of 54% compared to 70% in the prior-year periodAdjusted EBITDA loss of ($20.8) million, compared to ($2.0) million in the prior-year periodNet income of $1.5 million, compared to a net loss of ($2.7) million in the prior-year period Key Operating Metrics Total active members grew 21% year-over-year to approximately 60,300 as of September 30, 2021B2B eligible lives grew 92% year-over-year to over 75 million as of September 30, 202171,300 completed B2B sessions, a 96% increase versus the prior‐year period Revenue Net Revenue for the third quarter was $26.4 million, a 23% year‐over‐year increase. This metric came in below expectations due to a lower number of acquired customers in the direct‐to‐consumer business and an adjustment to reserves, which was only partially offset by growth in B2B Gross Revenue.In the third quarter we increased the allowance for credit losses on receivables by $3.4 million, of which $2.8 million related to prior quarters. Excluding the impact of this one‐time non‐cash adjustment, consolidated Revenue would have been $29.2 million, up 37% year‐over‐year....