Q3 2024 Talkspace Inc Earnings Call Transcript
Key Points
- Talkspace Inc (TALK) reported a 23% year-over-year increase in revenue for the third quarter, reaching $47.4 million.
- The company achieved its third consecutive profitable quarter with an adjusted EBITDA of $2.4 million.
- The payer segment, Talkspace Inc (TALK)'s largest revenue category, grew by 45% year-over-year, demonstrating strong relationships with key payer partners.
- Talkspace Inc (TALK) expanded its reach to nearly 160 million covered lives, a 40% increase year-over-year, and increased total sessions by 38% year-over-year.
- The company launched a significant partnership with Amazon Health Services, enhancing discoverability and access to mental health services for millions of users.
- The direct-to-consumer revenue segment saw an 8% sequential decline and a 30% year-over-year decrease, reflecting challenges in this area.
- Gross margin for the third quarter was 45.6%, which is lower than the previous year due to a revenue mix shift towards the payer segment.
- Sequentially, direct-to-enterprise revenue was down 2% due to certain contract expirations earlier in the year.
- Despite growth in covered lives, the impact on revenue from new Medicare and military initiatives is expected to be more significant in 2025 rather than the current year.
- The company faces ongoing challenges in optimizing traffic conversion and checkout mix, particularly in the consumer segment.
The impact of one off items, reconciliations of these non-GAAP measures are included in our earnings release and on our website talkspace dotcom.
I also want to remind you that we will be discussing forward-looking information today which may include forecasts, targets and other statements regarding our plans, goals, strategic priorities and anticipated financial results.
While these statements represent our best current judgment about future results and performance. As of today, our actual results are subject to many risks and uncertainties that could cause actual results to differ materially from what we expect. Important factors that may affect our future results are described in our most recent sec reports and today's earnings press release.
For more information, please review our safe harbor disclaimer on slide 2. Now I will turn it over to Dr Jon Cohen.
Thanks Jen, good morning and thank you for joining us for our third quarter, 2024 call which reflects our continued
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