A significant event for investors is set to take place in San Francisco on May 20, as KeyBanc will host a meeting centered around TALK. This gathering aims to provide valuable insights and explore the company's performance, helping investors make informed decisions.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 5 analysts, the average target price for Talkspace Inc (TALK, Financial) is $5.00 with a high estimate of $6.00 and a low estimate of $4.00. The average target implies an upside of 67.79% from the current price of $2.98. More detailed estimate data can be found on the Talkspace Inc (TALK) Forecast page.
Based on the consensus recommendation from 7 brokerage firms, Talkspace Inc's (TALK, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Talkspace Inc (TALK, Financial) in one year is $3.02, suggesting a upside of 1.34% from the current price of $2.98. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Talkspace Inc (TALK) Summary page.
TALK Key Business Developments
Release Date: May 06, 2025
- Revenue: $52.2 million, a 15% increase compared to Q1 2024.
- Payer Business Growth: 33% increase from Q1 last year.
- Payer Sessions: Approximately 350,000, a 23% year-over-year increase.
- Unique Payer Members: 101,000, a 17% year-over-year increase.
- Gross Profit: $23.3 million, up 7% from the previous year.
- Gross Margin: 44.6%, compared to 44.2% in Q4 2024 and 47.8% a year ago.
- Operating Expenses: $24.4 million, an increase of $1 million versus Q1 last year.
- GAAP Net Income: $300,000, an improvement from a $1.5 million loss one year ago.
- Adjusted EBITDA: $2.0 million, an increase of $1.2 million versus the same period last year.
- Cash and Cash Equivalents: $108 million, down from $118 million in Q4.
- Share Repurchase: $7 million of stock repurchased in Q1.
- Full Year Revenue Outlook: $220 million to $235 million, representing 21% growth at the midpoint.
- Full Year Adjusted EBITDA Outlook: $14 million to $20 million, an increase of 144% at the midpoint.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Talkspace Inc (TALK, Financial) reported a 15% increase in revenue for Q1 2025 compared to the same period last year.
- The company has successfully expanded its reach, now covering nearly 200 million lives, including all Tricare members.
- Talkspace Inc (TALK) has made significant technological improvements, reducing drop-off rates by over 12% and enhancing user engagement.
- The company has launched several AI initiatives, including a personalized podcast feature, which has received positive feedback.
- Talkspace Inc (TALK) has shown strong clinical outcomes, particularly in the Medicare population, with 84% of members showing clinical improvement.
Negative Points
- Direct to enterprise (DTE) revenue declined by 3% year-over-year, indicating challenges in this segment.
- Consumer revenue decreased by over $2 million compared to Q1 2024, as more members utilize insurance coverage.
- Gross margin decreased to 44.6% from 47.8% a year ago, reflecting a shift towards a payer-focused strategy.
- The company experienced a $10 million sequential decline in cash and cash equivalents, partly due to stock repurchase activities.
- Talkspace Inc (TALK) faces uncertainties related to potential changes in behavioral health funding and market volatility.
