Talkspace(US:TALK)2025-05-09 12:38Financial Performance - Total revenue increased by $6.8 million, or 14.9%, to $52.2 million for the three months ended March 31, 2025, compared to $45.4 million for the same period in 2024[85]. - Payor revenue rose by $9.3 million, or 32.7%, to $37.8 million, while Consumer revenue decreased by $2.2 million, or 32.0%, to $4.8 million[85]. - Gross profit increased by $1.6 million, or 7.1%, to $23.3 million, with a gross margin of 44.6% for the three months ended March 31, 2025[87][88]. - The company reported a net income of $318,000 for the three months ended March 31, 2025, compared to a net loss of $1.5 million in the same period of 2024[84]. - Adjusted EBITDA for the three months ended March 31, 2025, was $1,955 thousand, up from $774 thousand in the same period of 2024, reflecting improved operating performance[99]. Customer Metrics - For the three months ended March 31, 2025, the company completed 350,000 Payor sessions, a 23.1% increase from 284,200 sessions in the same period of 2024[64]. - The number of health plan customers increased to 31 from 23, while the number of enterprise customers decreased to 173 from 195[69]. - The company had over 6,900 Consumer active members as of March 31, 2025, down from 11,100 in the same period of 2024[64]. Expenses and Cash Flow - Operating expenses rose by $1.0 million, or 4.1%, to $24.4 million, with significant increases in clinical operations expenses by 26.8% and sales and marketing expenses by 7.5%[89][91][92]. - Research and development expenses decreased by $0.4 million, or 11.2%, to $3.3 million, primarily due to reduced employee-related costs[90]. - Net cash used in operating activities decreased to $1,239 thousand for the three months ended March 31, 2025, compared to $3,391 thousand for the same period in 2024, indicating improved cash flow from operations[107]. - Net cash used in investing activities increased to $9,019 thousand for the three months ended March 31, 2025, primarily due to purchases of marketable securities and increased capitalized software development costs[109]. Capital and Funding - As of March 31, 2025, the company had $60.1 million in cash and cash equivalents and $48.3 million in marketable securities, down from $76.7 million and $41.1 million respectively as of December 31, 2024[100]. - The company had no debt as of March 31, 2025, and anticipates being able to fund its cash needs for at least the next 12 months using available cash[102]. - The company may require additional capital in the future for technological advancements, competitive dynamics, and potential acquisitions[102]. - Future capital requirements will depend on growth rate, contract renewals, and investments in product development and marketing activities[101]. Share Repurchase - The company repurchased 2,519,170 shares of its common stock for a total of $7.0 million during the three months ended March 31, 2025, with $22.1 million remaining under the Share Repurchase Program[104]. Legal and Risk Disclosures - The company did not have any material legal proceedings or significant long-term liabilities as of March 31, 2025[111]. - There were no material changes to market risk disclosures for the three months ended March 31, 2025, compared to the previous Annual Report[125]. Forward-Looking Statements - The company emphasizes that forward-looking statements are predictions based on current expectations and projections, which may be affected by various risks and uncertainties[122]. - Actual future results may differ materially from expectations, and the company cautions against undue reliance on forward-looking statements[123].