|
|
|
(State or other jurisdiction of incorporation)
|
(Commission File Number)
|
(I.R.S. Employer Identification No.)
|
(Address of principal executive offices)
|
(Zip Code)
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a‑12)
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Securities registered pursuant to Section 12(b) of the Act:
|
Title of each class
|
Trading
Symbol(s)
|
Name of each exchange
on which registered
|
||
|
|
|
||
|
|
|
Item 7.01. |
Regulation FD Disclosure.
|
Item 8.01.
|
Other Events.
|
Item 9.01. |
Financial Statements and Exhibits.
|
(d) |
Exhibits
|
Exhibit
Number
|
Description
|
Press Release issued by Talkspace, Inc., dated February 22, 2024.
|
|
104
|
Cover Page Interactive Data File (embedded within the Inline XBRL document).
|
Talkspace, Inc.
|
|||
Date: February 22, 2024
|
By:
|
/s/ Jennifer Fulk
|
|
Jennifer Fulk | |||
Chief Financial Officer |
Three Months
|
Full Year
|
|||||||||||||||
Unaudited
|
||||||||||||||||
Year Ended December 31, 2023
|
Results
|
Variance from
Prior Year %
|
Results
|
Variance from
Prior Year %
|
||||||||||||
(In thousands unless otherwise noted)
|
||||||||||||||||
Number of eligible lives at year end (in millions)
|
131
|
42
|
%
|
131
|
42
|
%
|
||||||||||
Number of completed Payor sessions
|
249.8
|
95
|
%
|
850.6
|
99
|
%
|
||||||||||
Number of Consumer active members at year end
|
11.7
|
(24
|
)%
|
11.7
|
(24
|
)%
|
||||||||||
Total revenue
|
$
|
42,418
|
40
|
%
|
$
|
150,045
|
25
|
%
|
||||||||
Gross profit
|
$
|
20,971
|
30
|
%
|
$
|
74,380
|
23
|
%
|
||||||||
Gross margin %
|
49.4
|
%
|
49.6
|
%
|
||||||||||||
Operating expenses
|
$
|
23,554
|
(37
|
)%
|
$
|
97,589
|
(32
|
)%
|
||||||||
Net loss
|
$
|
(1,306
|
)
|
93
|
%
|
$
|
(19,182
|
)
|
76
|
%
|
||||||
Adjusted EBITDA1
|
$
|
(306
|
)
|
97
|
%
|
$
|
(13,529
|
)
|
77
|
%
|
||||||
Cash and cash equivalents at year end
|
$
|
123,908
|
—
|
$
|
123,908
|
—
|
• |
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.
|
• |
Gross profit increased 30% over the prior-year period to $21.0 million, and gross margin declined to 49.4% from 53.5% year-over-year, driven by a shift in revenue mix towards Payor consistent with
our strategic objectives.
|
• |
Operating expenses were $23.6 million, down 37% year-over-year, driven by a reduction across all of our 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.
|
• |
Revenue increased 25% over the prior year to $150.0 million, driven by a 123% year-over-year increase in Payor revenue and a 19% year-over-year increase in DTE revenue; partially offset by a 35%
year-over-year consumer revenue decline.
|
• |
Gross profit increased 23% over the prior year to $74.4 million, and gross margin declined to 49.6% from 50.5% year-over-year, driven by a shift in revenue mix towards Payor.
|
• |
Operating expenses were $97.6 million, down 32% year-over-year, driven by a reduction across all of our operating cost categories.
|
• |
Net loss was $(19.2) million, an improvement from $(79.7) million net loss in 2022, primarily driven by lower operating expenses, and an increase in revenue.
|
• |
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.
|
Three Months Ended
December 31,
|
Year Ended
December 31,
|
|||||||||||||||||||||||
2023
|
2022
|
% Change
|
2023
|
2022
|
% Change
|
|||||||||||||||||||
(in thousands, except percentages, share and per share data)
|
Unaudited
|
Unaudited
|
||||||||||||||||||||||
Revenue:
|
||||||||||||||||||||||||
Payor revenue
|
$
|
25,362
|
$
|
10,665
|
137.8
|
$
|
80,823
|
$
|
36,168
|
123.5
|
||||||||||||||
DTE revenue
|
8,897
|
8,615
|
3.3
|
33,614
|
28,241
|
19.0
|
||||||||||||||||||
Consumer revenue
|
8,159
|
10,961
|
(25.6
|
)
|
35,608
|
55,158
|
(35.4
|
)
|
||||||||||||||||
Total revenue
|
42,418
|
30,241
|
40.3
|
150,045
|
119,567
|
25.5
|
||||||||||||||||||
Cost of revenues
|
21,447
|
14,066
|
52.5
|
75,665
|
59,229
|
27.7
|
||||||||||||||||||
Gross profit
|
20,971
|
16,175
|
29.7
|
74,380
|
60,338
|
23.3
|
||||||||||||||||||
Operating expenses:
|
||||||||||||||||||||||||
Research and development, net
|
3,867
|
4,866
|
(20.5
|
)
|
17,571
|
21,659
|
(18.9
|
)
|
||||||||||||||||
Clinical operations, net
|
1,478
|
277
|
433.6
|
6,159
|
6,591
|
(6.6
|
)
|
|||||||||||||||||
Sales and marketing
|
12,846
|
14,128
|
(9.1
|
)
|
52,544
|
72,842
|
(27.9
|
)
|
||||||||||||||||
General and administrative
|
5,363
|
11,801
|
(54.6
|
)
|
21,315
|
36,270
|
(41.2
|
)
|
||||||||||||||||
Impairment of goodwill
|
—
|
6,134
|
(100.0
|
)
|
—
|
6,134
|
(100.0
|
)
|
||||||||||||||||
Total operating expenses
|
23,554
|
37,206
|
(36.7
|
)
|
97,589
|
143,496
|
(32.0
|
)
|
||||||||||||||||
Operating loss
|
(2,583
|
)
|
(21,031
|
)
|
87.7
|
(23,209
|
)
|
(83,158
|
)
|
72.1
|
||||||||||||||
Financial (income), net
|
(1,330
|
)
|
(2,851
|
)
|
(53.3
|
)
|
(4,245
|
)
|
(3,740
|
)
|
13.5
|
|||||||||||||
Loss before taxes on income
|
(1,253
|
)
|
(18,180
|
)
|
93.1
|
(18,964
|
)
|
(79,418
|
)
|
76.1
|
||||||||||||||
Taxes on income
|
53
|
127
|
(58.3
|
)
|
218
|
254
|
(14.2
|
)
|
||||||||||||||||
Net loss
|
$
|
(1,306
|
)
|
$
|
(18,307
|
)
|
92.9
|
$
|
(19,182
|
)
|
$
|
(79,672
|
)
|
75.9
|
||||||||||
Net loss per share:
|
||||||||||||||||||||||||
Basic and Diluted
|
$
|
(0.01
|
)
|
$
|
(0.11
|
)
|
90.9
|
$
|
(0.12
|
)
|
$
|
(0.51
|
)
|
76.5
|
||||||||||
Weighted average number of common shares:
|
||||||||||||||||||||||||
Basic and Diluted
|
167,485,398
|
159,343,311
|
165,039,920
|
156,885,256
|
December 31, 2023
|
December 31, 2022
|
|||||||
(in thousands)
|
Unaudited
|
|||||||
ASSETS
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
$
|
123,908
|
$
|
138,545
|
||||
Accounts receivable
|
10,174
|
9,640
|
||||||
Other current assets
|
5,718
|
4,372
|
||||||
Total current assets
|
139,800
|
152,557
|
||||||
Property and equipment, net
|
314
|
677
|
||||||
Intangible assets, net
|
1,786
|
2,529
|
||||||
Other assets
|
321
|
491
|
||||||
Total assets
|
$
|
142,221
|
$
|
156,254
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Accounts payable
|
$
|
6,111
|
$
|
6,461
|
||||
Deferred revenues
|
3,069
|
4,355
|
||||||
Accrued expenses and other current liabilities
|
12,468
|
16,502
|
||||||
Total current liabilities
|
21,648
|
27,318
|
||||||
Warrant liabilities
|
1,842
|
939
|
||||||
Other liabilities
|
85
|
461
|
||||||
Total liabilities
|
23,575
|
28,718
|
||||||
STOCKHOLDERS’ EQUITY:
|
||||||||
Common stock
|
16
|
16
|
||||||
Additional paid-in capital
|
389,014
|
378,722
|
||||||
Accumulated deficit
|
(270,384
|
)
|
(251,202
|
)
|
||||
Total stockholders’ equity
|
118,646
|
127,536
|
||||||
Total liabilities and stockholders’ equity
|
$
|
142,221
|
$
|
156,254
|
Year Ended
December 31,
|
||||||||
2023
|
2022
|
|||||||
(in thousands)
|
Unaudited
|
|||||||
Cash flows from operating activities:
|
||||||||
Net loss
|
$
|
(19,182
|
)
|
$
|
(79,672
|
)
|
||
Adjustments to reconcile net loss to net cash used in operating activities:
|
||||||||
Depreciation and amortization
|
1,196
|
1,357
|
||||||
Stock-based compensation
|
8,395
|
12,116
|
||||||
Remeasurement of warrant liabilities
|
903
|
(3,131
|
)
|
|||||
Impairment of goodwill
|
—
|
6,134
|
||||||
Increase in accounts receivable
|
(534
|
)
|
(4,126
|
)
|
||||
(Increase) decrease in other current assets
|
(1,346
|
)
|
5,080
|
|||||
Decrease in accounts payable
|
(350
|
)
|
(968
|
)
|
||||
Decrease in deferred revenues
|
(1,286
|
)
|
(2,831
|
)
|
||||
(Decrease) increase in accrued expenses and other current liabilities
|
(4,034
|
)
|
4,862
|
|||||
Other
|
(155
|
)
|
102
|
|||||
Net cash used in operating activities
|
(16,393
|
)
|
(61,077
|
)
|
||||
Cash flows from investing activities:
|
||||||||
Purchase of property and equipment
|
(151
|
)
|
(350
|
)
|
||||
Proceeds from sale of property and equipment
|
10
|
33
|
||||||
Net cash used in investing activities
|
(141
|
)
|
(317
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Proceeds from exercise of stock options
|
2,707
|
3,181
|
||||||
Payments for employee taxes withheld related to vested stock-based awards
|
(810
|
)
|
(853
|
)
|
||||
Payments for reverse capitalization, net of transaction costs
|
—
|
(645
|
)
|
|||||
Net cash provided by financing activities
|
1,897
|
1,683
|
||||||
Net decrease in cash and cash equivalents
|
(14,637
|
)
|
(59,711
|
)
|
||||
Cash and cash equivalents at the beginning of the year
|
138,545
|
198,256
|
||||||
Cash and cash equivalents at the end of the year
|
$
|
123,908
|
$
|
138,545
|
Three Months Ended
December 31,
|
Year Ended
December 31,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
(in thousands)
|
Unaudited
|
Unaudited
|
||||||||||||||
Net loss
|
$
|
(1,306
|
)
|
$
|
(18,307
|
)
|
$
|
(19,182
|
)
|
$
|
(79,672
|
)
|
||||
Add:
|
||||||||||||||||
Depreciation and amortization
|
283
|
351
|
1,285
|
1,357
|
||||||||||||
Financial (income), net (1)
|
(1,330
|
)
|
(2,851
|
)
|
(4,245
|
)
|
(3,740
|
)
|
||||||||
Taxes on income
|
53
|
127
|
218
|
254
|
||||||||||||
Stock-based compensation
|
1,994
|
2,730
|
8,395
|
12,116
|
||||||||||||
Impairment of goodwill
|
—
|
6,134
|
—
|
6,134
|
||||||||||||
Non-recurring expenses (2)
|
—
|
2,947
|
—
|
4,880
|
||||||||||||
Adjusted EBITDA
|
$
|
(306
|
)
|
$
|
(8,869
|
)
|
$
|
(13,529
|
)
|
$
|
(58,671
|
)
|