Teletherapy company Talkspace reported its first quarter financial results for the year, showing a 36% increase in revenue over the prior-year period to $45.4 million and a 30% increase in gross profit to $21.7 million.
Operating expenses were down 9% from the prior year to $23.4 million, while payor revenue increased 92% from the first quarter of 2023, and direct-to-enterprise revenue increased 14%.
Net loss substantially improved in the first quarter of this year to $1.5 million, compared to $8.8 million last year, which the company said was driven by increased revenue and lower operating expenses.
Adjusted EBITDA was $0.8 million in the first quarter of 2024, improved from a loss of $6.4 million in Q1 2023.
“We kicked off 2024 with strong momentum, building on our pivotal achievements from last year. Our first quarter results showcase a 36% year-over-year increase in revenue, driven by our deepening engagement and expanding reach within our Payor category. We also made exciting progress with our recent launches in New York City and the Baltimore County Public School system, two initial clients underpinning our efforts to combat the teen mental health crisis,” Dr. Jon Cohen, CEO of Talkspace, said in a statement.
“Importantly, this also marks our first quarter of profitability on an adjusted EBITDA basis. Our cash position, our streamlined operations and our defined growth strategy give me confidence we are well-equipped to continue advancing our mission to deliver accessible and high-quality mental healthcare.”
THE LARGER TREND
Talkspace announced the launch of its Behavioral Health Consortium last month, an offering allowing clinicians to refer insured members with high-acuity needs to in-network specialty-care providers for alcoholism, eating disorders and substance use treatments.
The network includes collaborations with virtual opioid use treatment company Bicycle Health, outpatient mental health support company Charlie Health and alcohol use treatment organization Ria Health.
The company also launched a wellness platform, dubbed Health Collective, which pairs patients with high-quality behavioral health care through partnerships with wearables maker Oura, women’s health company Evernow and depression-focused Options MD.
Talkspace reported numerous other collaborations over the past year, including a partnership with telemedicine company Thirty Madison to expand access to care for migraines and women’s health, virtual care staffing and services vendor Wheel, virtual opioid use disorder treatment company Bicycle Health and menopause-focused telehealth startup Evernow.
The company also partnered with Finland-based Oura, maker of its namesake health tracking ring, to allow Oura wearers to share their personalized sleep and daily movement data with Talkspace therapists.
The teletherapy company went public via a SPAC in 2021, and it’s stock (TALK) is trading on the NASDAQ at $2.57 per share, down from an all-time high of $11.95 per share in 2021.