Virtual therapy company Talkspace earned $33.3 million in revenue in the first quarter of 2023, an 11 percent increase year over year.
Talkspace attributed that growth to a 71 percent increase in business-to-business revenue year over year, according to a May 2 news release from the company. It now has the largest payer network for mental telehealth in the U.S., CEO Jon Cohen, MD, said in a company earnings call.
"We have made great progress during the first quarter of 2023, building on our strong momentum we established in 2022," Dr. Cohen said in the call. "Our strategy to shift the business to a B2B enterprise with member growth predominantly through a payer model continues to gain significant traction."
Here are six other key metrics about the company's financial performance in the first quarter:
1. Gross profit hit $16.7 million, an annual increase of 11 percent.
2. The company saw a 40 percent decrease in consumer revenue compared to the first quarter of 2022.
3. Operating expenses were $25.8 million, down 29 percent from last year.
4. Net loss was $8.8 million, down from a $20.4 million net loss in the first quarter of 2022.
5. Based on these results, the company projects its revenue will hit $130 million to $135 million in 2023, up $125 million to $135 million in 2022.
6. The company expects to break-even on its adjusted earnings by the end of the first quarter of 2024, one quarter earlier than initially expected, with a cash balance of more than $95 million.