NASDAQ$TALK

Talkspace Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Talkspace's financial performance improved with revenue growth and reduced net loss.

Talkspace reported a 19% increase in revenue to $35.6 million, driven by significant growth in B2B revenue, alongside a reduction in net loss to $4.7 million. The company also raised its full-year revenue and adjusted EBITDA guidance and reaffirmed its expectation to reach break-even by the end of Q1 2024.

  • Revenue increased by 19% year-over-year to $35.6 million, driven by an 82% increase in B2B revenue.
  • Gross profit increased by 22% year-over-year to $17.8 million, with gross margin expanding to 50.0%.
  • Operating expenses decreased by 32% year-over-year to $24.2 million.
  • Net loss improved to $(4.7) million compared to $(23.0) million in the same quarter of the previous year.

Headline financials

Total Revenue

$35.6M

Previous: $29.8M+19.4%
EPS (adj)

-$0.03

Previous: -$0.15+80.0%
Capital Expenditures

-$10K

Previous: -$160K+93.8%
Free Cash Flow

-$4.71M

Previous: -$23.2M+79.7%
Net Income

-$4.7M

Previous: -$23M+79.6%
Operating Income

$6.41M

Previous: -$21.1M+130.4%
Gross Profit

$17.8M

Previous: $14.5M+22.4%
Cash & Equivalents

$126M

Previous: $167M-24.3%
Total Assets

$141M

Previous: $187M-25.0%
Stock-Based Comp

$2.13M

Previous: $3.84M-44.5%

Revenue & EPS history

Talkspace · Revenue · Quarterly

$35.6M

Q2 2023+19.4%vs Q2 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 $137 million to $142 million and adjusted EBITDA loss to be in the range of $(16) million to $(19) million for the fiscal year 2023. The company expects to reach break-even Adjusted EBITDA by the end of the first quarter of 2024, with a cash balance of over $100 million.

Tailwinds

  • Revenue to be in the range of $137 million to $142 million, improved from previous expectations of $130 million to $135 million.
  • Adjusted EBITDA loss to be in the range of $(16) million to $(19) million, improved from previous expectations of $(19) million to $(21) million.
  • The Company expects to reach break-even Adjusted EBITDA by the end of the first quarter of 2024.
  • Company expects a cash balance of over $100 million.
  • Expanding relationships with commercial partners while activating a growing proportion of our member base.

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 Q2 2023

Historical avgQ2 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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