Talkspace Announces Fourth Quarter and Full Year 2024 Results
Talkspace (NASDAQ: TALK) reported strong financial results for Q4 and full year 2024. The company achieved full-year revenue growth of 25% to $187.6 million, with a net income of $1.1 million and adjusted EBITDA of $7.0 million.
Q4 2024 performance showed 15% year-over-year revenue growth to $48.7 million, driven by a 34% increase in Payor revenue and 7% growth in Direct to Enterprise revenue, partially offset by a 35% decline in Consumer revenue. The quarter delivered a net income of $1.2 million and adjusted EBITDA of $2.7 million.
For 2025, Talkspace provided guidance projecting revenue between $220-235 million and adjusted EBITDA between $14-20 million. The company highlighted its strategic shift towards the payor market, growing covered lives to nearly 200 million and establishing a competitive advantage in providing comprehensive behavioral health services.
Talkspace (NASDAQ: TALK) ha riportato risultati finanziari solidi per il quarto trimestre e l'intero anno 2024. L'azienda ha registrato una crescita del fatturato annuale del 25% raggiungendo i 187,6 milioni di dollari, con un utile netto di 1,1 milioni di dollari e un EBITDA rettificato di 7,0 milioni di dollari.
Le performance del quarto trimestre 2024 hanno mostrato una crescita del fatturato del 15% rispetto all'anno precedente, arrivando a 48,7 milioni di dollari, trainata da un aumento del 34% nel fatturato dei pagatori e una crescita del 7% nel fatturato diretto alle imprese, parzialmente compensata da un calo del 35% nel fatturato dei consumatori. Il trimestre ha generato un utile netto di 1,2 milioni di dollari e un EBITDA rettificato di 2,7 milioni di dollari.
Per il 2025, Talkspace ha fornito indicazioni prevedendo un fatturato tra i 220 e i 235 milioni di dollari e un EBITDA rettificato tra i 14 e i 20 milioni di dollari. L'azienda ha evidenziato il suo spostamento strategico verso il mercato dei pagatori, aumentando le vite coperte a quasi 200 milioni e stabilendo un vantaggio competitivo nella fornitura di servizi di salute comportamentale completi.
Talkspace (NASDAQ: TALK) informó resultados financieros sólidos para el cuarto trimestre y el año completo 2024. La compañía logró un crecimiento de ingresos anual del 25% alcanzando los 187.6 millones de dólares, con una ganancia neta de 1.1 millones de dólares y un EBITDA ajustado de 7.0 millones de dólares.
El desempeño del cuarto trimestre 2024 mostró un crecimiento de ingresos del 15% interanual alcanzando los 48.7 millones de dólares, impulsado por un aumento del 34% en los ingresos de pagadores y un crecimiento del 7% en los ingresos directos a empresas, parcialmente compensado por una disminución del 35% en los ingresos de consumidores. El trimestre generó una ganancia neta de 1.2 millones de dólares y un EBITDA ajustado de 2.7 millones de dólares.
Para 2025, Talkspace proporcionó una guía proyectando ingresos entre 220 y 235 millones de dólares y un EBITDA ajustado entre 14 y 20 millones de dólares. La compañía destacó su cambio estratégico hacia el mercado de pagadores, aumentando las vidas cubiertas a casi 200 millones y estableciendo una ventaja competitiva en la provisión de servicios de salud conductual integrales.
Talkspace (NASDAQ: TALK)는 2024년 4분기 및 연간 재무 결과가 강하다고 보고했습니다. 회사는 연간 수익 성장률 25%를 달성하여 1억 8,760만 달러에 도달했으며, 순이익은 110만 달러, 조정 EBITDA는 700만 달러에 달했습니다.
2024년 4분기 성과는 전년 대비 수익 성장률 15%를 기록하며 4,870만 달러에 도달했습니다. 이는 지불자 수익이 34% 증가하고 기업 직접 수익이 7% 성장한 데 의해 주도되었으며, 소비자 수익은 35% 감소하여 부분적으로 상쇄되었습니다. 이 분기는 순이익 120만 달러와 조정 EBITDA 270만 달러를 기록했습니다.
2025년을 위해 Talkspace는 2억 2천만에서 2억 3천5백만 달러 사이의 수익과 1천4백만에서 2천만 달러 사이의 조정 EBITDA를 예상했습니다. 회사는 거의 2억 명의 보장된 생명을 확대하고 포괄적인 행동 건강 서비스를 제공하는 데 있어 경쟁 우위를 확립하는 지불자 시장으로의 전략적 전환을 강조했습니다.
Talkspace (NASDAQ: TALK) a rapporté de solides résultats financiers pour le quatrième trimestre et l'année complète 2024. L'entreprise a réalisé une croissance des revenus annuelle de 25% atteignant 187,6 millions de dollars, avec un bénéfice net de 1,1 million de dollars et un EBITDA ajusté de 7,0 millions de dollars.
Les performances du quatrième trimestre 2024 ont montré une croissance des revenus de 15% par rapport à l'année précédente atteignant 48,7 millions de dollars, soutenue par une augmentation de 34% des revenus des payeurs et une croissance de 7% des revenus directs aux entreprises, partiellement compensée par une baisse de 35% des revenus des consommateurs. Le trimestre a généré un bénéfice net de 1,2 million de dollars et un EBITDA ajusté de 2,7 millions de dollars.
Pour 2025, Talkspace a fourni des prévisions projetant des revenus entre 220 et 235 millions de dollars et un EBITDA ajusté entre 14 et 20 millions de dollars. L'entreprise a souligné son changement stratégique vers le marché des payeurs, augmentant les vies couvertes à près de 200 millions et établissant un avantage concurrentiel dans la fourniture de services de santé comportementale complets.
Talkspace (NASDAQ: TALK) hat für das vierte Quartal und das gesamte Jahr 2024 starke finanzielle Ergebnisse berichtet. Das Unternehmen erzielte ein Jahreswachstum des Umsatzes von 25% auf 187,6 Millionen Dollar, mit einem Nettogewinn von 1,1 Millionen Dollar und einem bereinigten EBITDA von 7,0 Millionen Dollar.
Die Leistung im vierten Quartal 2024 zeigte ein Umsatzwachstum von 15% im Jahresvergleich auf 48,7 Millionen Dollar, angetrieben durch einen Anstieg der Einnahmen aus Zahlungen um 34% und ein Wachstum der direkten Unternehmensumsätze um 7%, das teilweise durch einen Rückgang der Verbrauchereinnahmen um 35% ausgeglichen wurde. Das Quartal lieferte einen Nettogewinn von 1,2 Millionen Dollar und ein bereinigtes EBITDA von 2,7 Millionen Dollar.
Für 2025 gab Talkspace eine Prognose ab, die einen Umsatz zwischen 220 und 235 Millionen Dollar und ein bereinigtes EBITDA zwischen 14 und 20 Millionen Dollar vorsieht. Das Unternehmen hob seinen strategischen Wechsel zum Zahlermarkt hervor, indem es die abgedeckten Leben auf fast 200 Millionen erhöhte und einen Wettbewerbsvorteil bei der Bereitstellung umfassender Verhaltensgesundheitsdienste etablierte.
- Full year revenue growth of 25% to $187.6 million
- Achieved profitability with $1.1 million net income in 2024, up from $19.2 million loss in 2023
- Q4 2024 revenue increased 15% year-over-year to $48.7 million
- Payor revenue grew 34% year-over-year in Q4
- Operating expenses decreased 11% year-over-year in Q4
- Strong 2025 guidance: Revenue $220-235M, Adjusted EBITDA $14-20M
- Consumer revenue declined 35% year-over-year in Q4
- Gross margin declined to 44.2% from 49.4% in Q4 year-over-year
- Full year gross margin decreased to 45.8% from 49.6%
Insights
Talkspace's transformation from a direct-to-consumer telehealth platform to a payor-focused behavioral health provider is showing strong results, with the company achieving its first profitable year. The 25% revenue growth to $187.6 million in 2024 demonstrates the success of this strategic pivot, particularly evident in the 54% growth in Payor revenue.
The company's expansion to nearly 200 million covered lives represents a significant competitive advantage in the behavioral health market. This scale provides substantial recurring revenue potential and stronger barriers to entry compared to the consumer-direct model. The deliberate reduction in Consumer segment revenue (
The margin compression (gross margin declining to
The 2025 guidance of
The comprehensive nature of Talkspace's solution, including coverage for teens, seniors, and military members, positions it well in a market where access to mental health services remains challenging. The shift from growth-at-all-costs to profitable growth, evidenced by the
Full year 2024 total revenue grew
Full year 2024 net income of
4Q 2024 total revenue grew
4Q 2024 net income of
NEW YORK, Feb. 20, 2025 (GLOBE NEWSWIRE) -- Talkspace, Inc. (“Talkspace” or the “Company”) (NASDAQ: TALK), today reported fourth quarter and full year 2024 financial results.
| Three Months Ended December 31, 2024 | Year Ended December 31, 2024 | |||||||||
| Unaudited | Results | % Variance from Prior Year | Results | % Variance from Prior Year | ||||||
| (In thousands unless otherwise noted) | ||||||||||
| Number of eligible lives at year end (in millions) | 179.4 | 179.4 | ||||||||
| Number of completed Payor sessions during the period | 330.0 | 1,229.2 | ||||||||
| Number of Consumer active members at year end | 7.2 | (38)% | 7.2 | (38)% | ||||||
| Total revenue | ||||||||||
| Gross profit | ||||||||||
| Gross margin % | ||||||||||
| Operating expenses | (11)% | (7)% | ||||||||
| Net income | * | * | ||||||||
| Adjusted EBITDA (1) | * | * | ||||||||
| Cash and cash equivalents at year end | — | — | ||||||||
| Short-term marketable securities | — | — | ||||||||
| * Percentage not meaningful. | ||||||||||
| (1) | Adjusted EBITDA is a non-GAAP financial measure. For a definition of the measure and a reconciliation to the most direct comparable GAAP measure, see “Reconciliation of GAAP Results to Non-GAAP Results.” | |||||||||
“We closed out 2024 with a strong fourth quarter, delivering revenue and adjusted EBITDA growth as expected. We continued to broaden our reach, drive awareness and adoption, enhance the provider and member experience, and deliver high-quality care. I’m proud of all that Talkspace has accomplished this year to build a sustainable, profitable business,” said Dr. Jon Cohen, CEO of Talkspace.
Dr. Cohen continued, “Over the last three years, we've undergone a significant strategic shift, focusing on the payor market and growing our total covered lives to nearly 200 million. We've leveraged our well-known brand to drive awareness of Talkspace as an affordable way to access care for not just commercially insured adults, but also teens, seniors, and active members of the military. Talkspace has established a clear competitive advantage in the marketplace with the comprehensive nature of our solution, and we remain dedicated to meeting the escalating demand for accessible, high-quality behavioral health services in the U.S.”
Fourth Quarter 2024 Key Performance Metrics
- Revenue increased
15% over the prior-year period to$48.7 million , driven by a34% year-over-year increase in Payor revenue and a7% year-over-year increase in Direct to Enterprise (“DTE”) revenue; partially offset by a35% year-over-year decline in Consumer revenue. - Gross profit increased
3% over the prior-year period to$21.5 million , and gross margin declined to44.2% from49.4% in the prior-year period, driven by a shift in revenue mix towards Payor. - Operating expenses were
$21.0 million , a decrease of11% year-over-year. - Net income was
$1.2 million , an improvement from$(1.3) million net loss in the fourth quarter of 2023, primarily driven by an increase in revenues and a decrease in operating expenses, partially offset by an increase in cost of revenues. - Adjusted EBITDA was
$2.7 million , an improvement from$(0.3) million adjusted EBITDA loss in the fourth quarter of 2023, primarily driven by an increase in revenues and a decrease in operating expenses, partially offset by an increase in cost of revenues.
Full Year 2024 Key Performance Metrics
- Revenue increased
25% over the prior-year to$187.6 million , driven by a54% year-over-year increase in Payor revenue and a14% year-over-year increase in DTE revenue; partially offset by a30% year-over-year decline in Consumer revenue. - Gross profit increased
15% over the prior-year to$85.8 million , and gross margin declined to45.8% from49.6% in the prior-year, driven by a shift in revenue mix towards Payor. - Operating expenses were
$90.3 million , a decrease of7% year-over-year. - Net income was
$1.1 million , an improvement from$(19.2) million net loss in 2023, primarily driven by an increase in revenues and a decrease in operating expenses, partially offset by an increase in cost of revenues. - Adjusted EBITDA was
$7.0 million , an improvement from$(13.5) million adjusted EBITDA loss in 2023, primarily driven by an increase in revenues and a decrease in operating expenses, partially offset by an increase in cost of revenues.
Financial Guidance
The following guidance is based on current market conditions and expectations and the information available to the Company today. For 2025, Talkspace expects:
- Revenue to be in the range of
$220 million to$235 million - Adjusted EBITDA to be in the range of
$14 million to$20 million
Conference Call, Presentation Slides, and Webcast Details
The Fourth Quarter 2024 earnings conference call and webcast will be held Thursday, February 20, 2025, at 8:30 a.m. E.T. The conference call will be available via audio webcast at investors.talkspace.com and can also be accessed by dialing (888) 596-4144 for U.S. participants, or +1 (646) 968-2525 for international participants, and referencing participant code 1149251. A replay will be available shortly after the call’s completion and remain available for approximately 90 days.
About Talkspace
Talkspace (NASDAQ: TALK) is a leading virtual behavioral healthcare provider committed to helping people lead healthier, happier lives through access to high-quality mental healthcare. At Talkspace, we believe that mental healthcare is core to overall health and should be available to everyone.
Talkspace pioneered the ability to text with a licensed therapist from anywhere and now offers a comprehensive suite of mental health services, including therapy for individuals, teens, and couples, as well as psychiatric treatment and medication management (18+). With Talkspace’s core therapy offerings, members are matched with one of thousands of licensed therapists within days and can engage in live video, audio, or chat sessions, and/or unlimited asynchronous text messaging sessions.
All care offered at Talkspace is delivered through an easy-to-use, fully-encrypted web and mobile platform that meets HIPAA, federal, and state regulatory requirements. More than 179 million Americans have access to Talkspace through their health insurance plans, employee assistance programs, our partnerships with leading healthcare companies, or as a free benefit through their employer, school, or government agency.
For more information, visit www.talkspace.com.
For Investors:
ICR Westwicke
TalkspaceIR@westwicke.com
For Media:
John Kim
SKDK
(310) 997-5963
jkim@skdknick.com
Forward Looking Statements
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking, including statements regarding our financial condition, anticipated financial performance, achieving profitability, business strategy and plans, market opportunity and expansion and objectives of our management for future operations. These forward-looking statements generally are identified by the words “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “forecast,” “future,” “intend,” “may,” “might,” “opportunity,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “strategy,” “strive,” “target,” “will,” or “would,” the negative of these words or other similar terms or expressions. The absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many important factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: (i) rapid technological change in our industry; (ii) our ability to secure clients' contract renewals; (iii) our ability to maintain and expand our network of therapists, psychiatrists and other providers; (iv) a decline in the prevalence of enterprise-sponsored healthcare or the emergence of new technologies may adversely impact our DTE business; (v) if our or our vendors’ security measures fail or are breached; (vi) changes in healthcare laws, regulations or trends and our ability to operate in the heavily regulated healthcare industry; and (vii) and the other factors, risks and uncertainties described under the caption “Risk Factors” in our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 13, 2024, subsequent quarterly reports on Form 10-Q and our other documents filed from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and we assume no obligation and do not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise unless required to do so under applicable law. We do not give any assurance that we will achieve our expectations.
| Talkspace, Inc. Consolidated Statements of Income | ||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||
| 2024 | 2023 | % Change | 2024 | 2023 | % Change | |||||||||
| (in thousands, except percentages, share and per share data) | Unaudited | Unaudited | Unaudited | |||||||||||
| Revenue: | ||||||||||||||
| Payor revenue | 33.5 | 53.8 | ||||||||||||
| DTE revenue | 9,555 | 8,897 | 7.4 | 38,466 | 33,614 | 14.4 | ||||||||
| Consumer revenue | 5,318 | 8,159 | (34.8) | 24,788 | 35,608 | (30.4) | ||||||||
| Total revenue | 48,720 | 42,418 | 14.9 | 187,593 | 150,045 | 25.0 | ||||||||
| Cost of revenues | 27,187 | 21,447 | 26.8 | 101,757 | 75,665 | 34.5 | ||||||||
| Gross profit | 21,533 | 20,971 | 2.7 | 85,836 | 74,380 | 15.4 | ||||||||
| Operating expenses: | ||||||||||||||
| Research and development | 2,256 | 3,867 | (41.7) | 10,510 | 17,571 | (40.2) | ||||||||
| Clinical operations, net | 1,740 | 1,478 | 17.7 | 6,542 | 6,159 | 6.2 | ||||||||
| Sales and marketing | 12,039 | 12,846 | (6.3) | 50,654 | 52,544 | (3.6) | ||||||||
| General and administrative | 4,929 | 5,363 | (8.1) | 22,627 | 21,315 | 6.2 | ||||||||
| Total operating expenses | 20,964 | 23,554 | (11.0) | 90,333 | 97,589 | (7.4) | ||||||||
| Income (loss) from operations | 569 | (2,583) | * | (4,497) | (23,209) | 80.6 | ||||||||
| Financial (income), net | (616) | (1,330) | (53.7) | (5,739) | (4,245) | 35.2 | ||||||||
| Income (loss) before income taxes | 1,185 | (1,253) | * | 1,242 | (18,964) | * | ||||||||
| Income tax (benefit) expense | (29) | 53 | * | 94 | 218 | (56.9) | ||||||||
| Net income (loss) | * | * | ||||||||||||
| Net income (loss) per share: | ||||||||||||||
| Basic | * | * | ||||||||||||
| Diluted | * | * | ||||||||||||
| Weighted average shares used to compute net income (loss) per share: | ||||||||||||||
| Basic | 169,202,561 | 167,485,398 | 168,906,900 | 165,039,920 | ||||||||||
| Diluted | 176,711,336 | 167,485,398 | 176,495,872 | 165,039,920 | ||||||||||
| * Percentage not meaningful. | ||||||||||||||
| Talkspace, Inc. Consolidated Statements of Comprehensive Income (Loss) | |||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||
| 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||
| Unaudited | Unaudited | Unaudited | |||||||||||
| (in thousands) | |||||||||||||
| Net income (loss) | * | * | |||||||||||
| Other comprehensive income: | |||||||||||||
| Change in unrealized gains on marketable debt securities | 2 | — | 100.0 | 2 | — | 100.0 | |||||||
| Total other comprehensive income | 2 | — | 100.0 | 2 | — | 100.0 | |||||||
| Total comprehensive income (loss) | * | * | |||||||||||
| * Percentage not meaningful. | |||||||||||||
| Talkspace, Inc. Consolidated Balance Sheets | ||||
| December 31, 2024 | December 31, 2023 | |||
| (in thousands) | Unaudited | |||
| ASSETS | ||||
| CURRENT ASSETS: | ||||
| Cash and cash equivalents | ||||
| Marketable securities | 41,118 | — | ||
| Accounts receivable, net | 9,643 | 10,174 | ||
| Other current assets | 2,729 | 5,718 | ||
| Total current assets | 130,182 | 139,800 | ||
| Other long-term assets | 8,495 | 2,421 | ||
| Total assets | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
| CURRENT LIABILITIES: | ||||
| Accounts payable | ||||
| Accrued expenses and other current liabilities | 8,031 | 12,468 | ||
| Deferred revenues | 3,282 | 3,069 | ||
| Total current liabilities | 19,023 | 21,648 | ||
| Warrant liabilities | 1,690 | 1,842 | ||
| Other liabilities | 569 | 85 | ||
| Total liabilities | 21,282 | 23,575 | ||
| STOCKHOLDERS’ EQUITY: | ||||
| Common stock | 17 | 16 | ||
| Additional paid-in capital | 386,612 | 389,014 | ||
| Accumulated deficit | (269,236) | (270,384) | ||
| Accumulated other comprehensive income | 2 | — | ||
| Total stockholders’ equity | 117,395 | 118,646 | ||
| Total liabilities and stockholders’ equity | ||||
| Talkspace, Inc. Consolidated Statements of Cash Flows | ||||
| Year Ended December 31, | ||||
| 2024 | 2023 | |||
| (in thousands) | Unaudited | |||
| Cash flows from operating activities: | ||||
| Net income (loss) | ||||
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||
| Depreciation and amortization | 859 | 1,196 | ||
| Stock-based compensation | 9,173 | 8,395 | ||
| Remeasurement of warrant liabilities | (152) | 903 | ||
| Decrease (increase) in accounts receivable | 531 | (534) | ||
| Decrease (increase) in other current assets | 2,989 | (1,346) | ||
| Increase (decrease) in accounts payable | 1,599 | (350) | ||
| Increase (decrease) in deferred revenues | 213 | (1,286) | ||
| Decrease in accrued expenses and other current liabilities | (4,437) | (4,034) | ||
| Other | (219) | (155) | ||
| Net cash provided by (used in) operating activities | 11,704 | (16,393) | ||
| Cash flows from investing activities: | ||||
| Purchases of marketable securities | (41,118) | — | ||
| Capitalized internal-use software costs | (5,443) | — | ||
| Other | (171) | (141) | ||
| Net cash used in investing activities | (46,732) | (141) | ||
| Cash flows from financing activities: | ||||
| Proceeds from exercise of stock options | 2,010 | 2,707 | ||
| Payments for employee taxes withheld related to vested stock-based awards | (3,195) | (810) | ||
| Repurchase and cancellation of common stock | (11,003) | — | ||
| Net cash (used in) provided by financing activities | (12,188) | 1,897 | ||
| Net decrease in cash and cash equivalents | (47,216) | (14,637) | ||
| Cash and cash equivalents at the beginning of the year | 123,908 | 138,545 | ||
| Cash and cash equivalents at the end of the year | ||||
Non-GAAP Financial Measures
In addition to our financial results determined in accordance with GAAP, we believe adjusted EBITDA, a non-GAAP measure, is useful in evaluating our operating performance, and our management uses it as a key performance measure to assess our operating performance. Because adjusted EBITDA facilitates internal comparisons of our historical operating performance on a more consistent basis, we use this measure for business planning purposes and in evaluating acquisition opportunities. We also use adjusted EBITDA to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that this non-GAAP financial measure, when taken together with the corresponding GAAP financial measures, provides meaningful supplemental information regarding our performance by excluding certain items that may not be indicative of our business, results of operations or outlook. We believe that the use of adjusted EBITDA is helpful to our investors as it is a metric used by management in assessing the health of our business and our operating performance. However, non-GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP.
Some of the limitations of adjusted EBITDA include (i) adjusted EBITDA does not necessarily reflect capital commitments to be paid in the future and (ii) although depreciation and amortization are non-cash charges, the underlying assets may need to be replaced and adjusted EBITDA does not reflect these requirements. In evaluating adjusted EBITDA, you should be aware that in the future we will incur expenses similar to the adjustments described herein. Our presentation of adjusted EBITDA should not be construed as an inference that our future results will be unaffected by these expenses or any unusual or non-recurring items. Our adjusted EBITDA may not be comparable to similarly titled measures of other companies because they may not calculate adjusted EBITDA in the same manner as we calculate the measure, limiting its usefulness as a comparative measure. Adjusted EBITDA should not be considered as an alternative to income (loss) before income taxes, net income (loss), income (loss) per share, or any other performance measures derived in accordance with U.S. GAAP. When evaluating our performance, you should consider adjusted EBITDA alongside other financial performance measures, including our net income (loss) and other GAAP results.
A reconciliation is provided below for adjusted EBITDA to net income (loss), the most directly comparable financial measure stated in accordance with GAAP. Investors are encouraged to review our financial statements prepared in accordance with GAAP and the reconciliation of our non-GAAP financial measure to its most directly comparable GAAP financial measure, and not to rely on any single financial measure to evaluate our business. We do not provide a forward-looking reconciliation of adjusted EBITDA guidance as the amount and significance of the reconciling items required to develop meaningful comparable GAAP financial measures cannot be estimated at this time without unreasonable efforts. These reconciling items could be meaningful.
Adjusted EBITDA
We calculate adjusted EBITDA as net income (loss) adjusted to exclude (i) depreciation and amortization, (ii) interest and other expenses (income), net, (iii) tax benefit and expense, (iv) stock-based compensation expense, and (v) certain non-recurring expenses, where applicable.
| Talkspace, Inc. Reconciliation of GAAP Results to Non-GAAP Results (Unaudited) | ||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||
| 2024 | 2023 | 2024 | 2023 | |||||
| (in thousands) | ||||||||
| Net income (loss) | ||||||||
| Add: | ||||||||
| Depreciation and amortization | 207 | 283 | 859 | 1,285 | ||||
| Financial (income), net | (616) | (1,330) | (5,739) | (4,245) | ||||
| Income tax (benefit) expense | (29) | 53 | 94 | 218 | ||||
| Stock-based compensation | 1,883 | 1,994 | 9,173 | 8,395 | ||||
| Non-recurring expenses | — | — | 1,427 | — | ||||
| Adjusted EBITDA | ||||||||
FAQ
What was Talkspace's (TALK) revenue growth in Q4 2024?
How much net income did Talkspace (TALK) report for full year 2024?
What is Talkspace's (TALK) revenue guidance for 2025?
How did Talkspace's (TALK) Payor revenue perform in Q4 2024?
What happened to Talkspace's (TALK) consumer revenue in Q4 2024?
What is Talkspace's (TALK) adjusted EBITDA guidance for 2025?
