Talkspace highlights B2B sales growth but net loss widens

teletherapy company Talkspace reported $30.2 million in revenue for Q4 and its total 2022 profit was around $120 million, all driven by business-to-business revenue growth.

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 the third quarter, though it’s an improvement from the $21 million loss. dollars in the fourth quarter of 2021.

In 2022, the company posted a net loss of $80 million compared to $63 million in 2021.

Its gross margin is down 10% in 2022 to $60 million from $66 million in 2021. The company said the decline was primarily due to a shift in revenue away from direct-to-consumer B2B categories, as well as an increase in physician remuneration.

“With the disciplined and focused plan we have put in place to achieve our FY 2023 goals, we provide the following break-even recommendations. Our revenue will be in the range of $125 million to $135 million from minus $32 million to minus $28. million adjusted EBITDA loss for the full year 2023.

“These benchmarks will help mark our progress towards break-even Adjusted EBITDA with a cash balance of at least $95 million by the end of the first half of 2024. Please note that this targeted approach to keeping cash on our path to profitability provides us with ample room for additional strategic initiatives.” Dr. John Cohen, CEO of Talkspace, said during the call about fourth-quarter earnings and losses.

BIG TREND

In early 2021, the company announced its plans to go public following a merger with a special deal to acquire Hudson Executive Capital LP in a $1.4 billion deal. Five months later, the New York-based company was listed on the Nasdaq after the completion of the SPAC, opening at $8.90 per share.

But the company has run into financial difficulties since going public and has tried to shift its focus to B2B sales. In November Talkspace received a letter warning that it could be delisted from the Nasdaq because its shares had closed below the low of $1 a share for 30 consecutive business days. The company’s shares are currently trading at around $0.90 per share and have only fluctuated slightly over several weeks.

Late last year, Israeli business publication Calcalist reported on the telemedicine giant. Amwell was in talks to acquire the struggling teletherapy company for about $200 million, or $1.50 a share. Both companies declined to comment on the rumors.