Talkspace reported an 11% increase in revenue in the first quarter that was driven by an increase in its business-to-business sales.
The teletherapy company reported $33.3 million in revenue compared with $30.2 million in the prior-year period. It noted a 71% increase in its B2B revenue year-over-year and 40% decline in its consumer revenue.
The New York-based company reported a net loss of $8.8 million compared with $18.3 million in Q4 2022 and $20.4 million during the same period last year.
The company attributes the progress in its net loss to increased revenue and lower operating expenses, which were reported as being down 29% year-over-year to $25.8 million due to a “reduction across all operating cost categories.” Adjusted EBITDA loss was $6.4 million.
“For 2023, we now believe we will achieve total revenue in the range of $130 million to $135 million, up from $125 million to $135 million, while narrowing the adjusted EBITDA loss range to $21 million to $24 million for the year as compared to the prior guidance of $28 million to $32 million for the year,” Dr. Jon Cohen, CEO of Talkspace, said during the company’s Q1 earnings call.
“Based on this, we now believe we will achieve breakeven adjusted EBITDA by the end of the first quarter of 2024, a quarter earlier than we had initially expected with over $95 million in cash on hand at the time of breakeven.”
THE LARGER TREND
In 2021, Talkspace announced its plans to go public through a merger with special purpose acquisition company, Hudson Executive Capital.
The New-York based company subsequently hit the Nasdaq later that year, but has since struggled financially.
In November, it received a letter warning that it could be delisted from Nasdaq since its stock had closed below the minimum $1.00 per share for 30 consecutive business days. The company’s stock is now trading around $0.86 per share.
Earlier this year, a class action suit was filed against Talkspace, claiming it misled new patients about how many online therapists were available through its platform. The suit alleges it enrolled consumers in automatic subscription renewals without their consent.