Talkspace, Inc. (NASDAQ: TALK) saw its stock fortunes move sharply upward Thursday, on reports fourth-quarter financial results.
The company reported Thursday revenue increased 40% over the prior-year period to $42.4 million, driven by a 138% year-over-year increase in Payor revenue and a 3% year-over-year increase in DTE revenue; partially offset by a 26% year-over-year consumer revenue decline. Operating expenses were $23.6 million, down 37% year-over-year, driven by a reduction across all its operating cost categories.
Net loss was $(1.3) million, an improvement from $(18.3) million net loss in the fourth quarter of 2022, primarily driven by lower operating expenses, and an increase in revenue.
CFO Jon Cohen said, “2023 was a pivotal year for Talkspace, demonstrating our commitment to strategic execution. Our achievements and streamlined strategy have significantly fortified our foundation for 2024. We're poised for substantial growth in Payor revenue and continue to lead in covered mental healthcare. The opportunities in Direct to Enterprise are vast, and with our scalable infrastructure, we are set for profitable expansion.”
For 2024 Talkspace expects revenue to be in the range of $185 million to $195 million, and adjusted EBITDA to be in the range of $4 million to $8 million.
TALK shares popped 36 cents, or 15.4%, to $2.70.
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