NASDAQ$TALK

Talkspace Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Talkspace's revenue increased, operating expenses decreased, and net loss improved.

Talkspace reported an 11% increase in revenue to $33.3 million, driven by B2B growth, while operating expenses decreased by 29%. The net loss improved to $8.8 million. The company raised its FY 2023 revenue and Adjusted EBITDA guidance and expects to reach break-even by Q1 2024.

  • Revenue increased by 11% year-over-year to $33.3 million, driven by a 71% increase in B2B revenue, offset by a 40% decline in consumer revenue.
  • Gross profit increased by 11% to $16.7 million, with gross margin expanding to 50.2%.
  • Operating expenses decreased by 29% year-over-year to $25.8 million.
  • Net loss improved to $(8.8) million from $(20.4) million in the first quarter of 2022.

Headline financials

Total Revenue

$33.3M

Previous: $30.2M+10.6%
EPS (adj)

-$0.05

Previous: -$0.13+61.5%
Capital Expenditures

-$9K

Previous: -$88K+89.8%
Free Cash Flow

-$8.77M

Previous: -$20.4M+57.1%
Net Income

-$8.76M

Previous: -$20.4M+57.0%
Operating Income

$9.04M

Previous: -$21.2M+142.6%
Gross Profit

$16.7M

Previous: $15M+11.5%
Cash & Equivalents

$125M

Previous: $184M-32.1%
Total Assets

$145M

Previous: $205M-29.5%
Stock-Based Comp

$2.3M

Previous: $2.37M-2.7%

Revenue & EPS history

Talkspace · Revenue · Quarterly

$33.3M

Q1 2023+10.6%vs Q1 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Talkspace · $9.07M total across 1 segment · Q2 2023

  • Consumer revenue
    $9.07M

Forward guidance

Talkspace expects revenue to be in the range of $130 million to $135 million and Adjusted EBITDA loss to be in the range of $(21) million to $(24) million for the fiscal year 2023. The Company now expects to reach break-even Adjusted EBITDA by the end of the first quarter of 2024.

Tailwinds

  • 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
  • Cash balance of over $95 million
  • Strong momentum in payor business

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-1.1%

Avg return

Earnings day

+0.1%

Avg return

5 days after

+5.5%

Avg return

30 days after

48%

10 / 21 earnings

Positive

+23.2%

Q2 2023

Best reaction

-38.3%

Q3 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.2%-0.2%+0.4%
Q4 2025+22.4%+14.8%+30.8%
Q3 2025+4.3%+20.9%+22.0%
Q1 2025+1.0%-3.5%+3.8%
Q4 2024-14.8%-23.8%-27.5%
Q3 2024+17.8%+16.7%+29.0%
Q2 2024-4.5%-4.5%+6.2%
Q1 2024-16.4%-11.6%-17.0%
Q4 2023+17.9%+23.1%+52.6%
Q3 2023-10.0%-11.1%+26.1%
Q2 2023+23.2%+21.8%+12.0%
Q1 2023+8.4%+7.5%+33.0%
Q4 2022-7.5%-5.5%-25.6%
Q3 2022+7.3%+17.5%+4.4%
Q2 2022-17.2%-14.6%-32.3%
Q1 2022-4.3%-7.1%+25.7%
Q4 2021+4.2%+4.2%+19.6%
Q3 2021-38.3%-36.0%-45.1%
Q2 2021-15.7%-8.0%-9.3%
Q4 2020-0.1%+0.9%-0.1%
Q3 2020-0.3%+0.5%+7.7%

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