Talkspace Inc · Q3 2024 earnings

Briefing

Revenue increased, driven by Payor and DTE growth, with net income turning positive and adjusted EBITDA also showing profitability.

Talkspace reported a strong third quarter in 2024, marked by a 23% increase in total revenue compared to the previous year. This growth was primarily driven by a substantial rise in Payor revenue and Direct to Enterprise (DTE) revenue, although partially offset by a decline in Consumer revenue. The company also achieved a net income of $1.9 million, a significant improvement from the net loss in the same quarter of the previous year, and reported adjusted EBITDA profitability.

• Total revenue grew by 23% year-over-year, reaching $47.4 million.
• Payor revenue increased by 45% year-over-year.
• Net income improved to $1.9 million, compared to a net loss of $4.4 million in the prior year.
• Adjusted EBITDA was $2.4 million, a notable improvement from $(2.8) million in the third quarter of 2023.

Headline financials

Revenue & EPS history

Talkspace continues to expect fiscal year 2024 revenue to be in the range of $185 million to $195 million, growth of 23-30%, and adjusted EBITDA to be in the range of $4 million to $8 million.