May 2, 2023

First Quarter 2023 Key Performance Metrics

  • Revenue increased 11% over the prior-year period to $33.3 million, driven by a 71% increase in the B2B revenue categories year-over-year, partially offset by a 40% year-over-year consumer revenue decline.
  • Gross profit increased 11% over the prior-year period to $16.7 million, and gross margin expanded to 50.2% year-over-year, driven by higher network productivity.
  • Operating expenses were $25.8 million, down 29% year-over-year, driven by a reduction across all our operating cost categories.
  • Net Loss was $(8.8) million, an improvement from $(20.4) million in the first quarter of 2022, primarily driven by lower operating expenses and an increase in revenues.

Financial Outlook

The following guidance is based on current market conditions and expectations and what the Company knows today.

For the Fiscal Year 2023, Talkspace expects:

  • Revenue to be in the range of $130 million to $135 million, improved from $125 million to $135 million
  • Adjusted EBITDA loss to be in the range of $(21) million to $(24) million, improved from $(28) million to $(32) million

The Company now expects to reach break-even Adjusted EBITDA by the end of the first quarter of 2024, one quarter earlier than initially guided, with a cash balance of over $95 million.