Teletherapy company Talkspace reported a total of $30.2 million in revenue for Q4, with its total earnings for 2022 at around $120 million, all driven by growth in the business-to-business revenue.
But the New York-based company reported a net loss of $18.3 million in the fourth quarter, comparable to the $18 million net loss it reported in Q3, though an improvement from the $21 million loss in Q4 2021.
For 2022, the company’s net loss was $80 million compared to $63 million in 2021.
Its gross profit declined 10% in 2022 to $60 million from $66 million in 2021. The company said the decline was primarily due to the shift in revenue from direct-to-consumer to B2B categories, as well as an increase in clinician compensation.
“With the disciplined and focused plan we have put in place to deliver on our fiscal 2023 goals, we are providing the following breakeven guidance. We will be within a range of $125 million to $135 million in revenue with a minus $32 million to minus $28 million in adjusted EBITDA loss for the full year of 2023.
“These guideposts will help mark our progress on the way to break even adjusted EBITDA with a cash balance of at least $95 million by the end of the first half of 2024. Note that this targeted approach to cash preservation while on our path to profitability provides us with sufficient room for additional strategic initiatives,” Dr. Jon Cohen, CEO of Talkspace, said during the Q4 earnings call.
THE LARGER TREND
In early 2021, the company announced its plans to go public after a merger with special purpose acquisition company Hudson Executive Capital LP in a deal worth $1.4 billion. Five months later, the New-York based company hit the Nasdaq after completing the SPAC, opening at $8.90 per share.
But the company has struggled financially since it went public, and it has tried to shift its focus to B2B sales. In November, Talkspace 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 $0.90 per share and has only slightly fluctuated for several weeks.
Late last year, the Israeli business publication Calcalist reported telehealth giant Amwell was in talks to acquire the struggling teletherapy company for about $200 million or $1.50 per share. Both companies declined to comment on the rumors.
