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$HEC $TALK Talkspace in an online and mobile therapy company founded in 2012 by Oren and Roni Frank
It is set to generate $ 125m in sales in 2021, growing 69% and scoring 64% gross margins
An easy thread
It is set to generate $ 125m in sales in 2021, growing 69% and scoring 64% gross marginsAn easy thread
It now counts 46,000 active members, 2,650 providers and has already served 2m members
The app enables its 1m users to schedule consultations online, have virtual meetings with licensed therapists and track treatment progress
Talkspace claims that 44% (vs 25% for alternatives) of its users experience clinically significant change with its solutions after 8 weeks
80% of users found Talkspace to be as effective or more effective than traditional therapy
80% of users found Talkspace to be as effective or more effective than traditional therapy
The company relies on high-profile spokespeople such as Michael Phelps and Demi Lovato
And ranks first in terms of consumer awareness when compared to MD Live, Teladoc and Better Help
And ranks first in terms of consumer awareness when compared to MD Live, Teladoc and Better Help
Is it betting that users demand more accessible, convenient and affordable care
It claims that 80% of Talkspace users return for a second visit, versus 44% for in-person visits
It claims that 80% of Talkspace users return for a second visit, versus 44% for in-person visits
Great! But what is the market saying?
Talkspace sees its TAM reaching $ 588B by 2025, growing 3.5% each year from 2019 levels
In the USA only, the market is worth $ 73B and set to reach $ 90B by 2025
Talkspace sees its TAM reaching $ 588B by 2025, growing 3.5% each year from 2019 levels In the USA only, the market is worth $ 73B and set to reach $ 90B by 2025
To grow, Talkspace is chasing corporate accounts where it follows a land & expand model
To date, it has covered over 39m users through its corporate offering, up from 2m in Q4 2019
To date, it has covered over 39m users through its corporate offering, up from 2m in Q4 2019
On the financial side, sales are expected to grow 94% over the 2019 - 2020 period and reach $ 74m
Gross profit is expected to reach $ 47m and gross margins to grow from 51% to 63% in 2020
Gross profit is expected to reach $ 47m and gross margins to grow from 51% to 63% in 2020
Looking forward, the company expects sales to reach $ 285m by 2023 and gross margins to stay constant at 62%
The firm expects an EBITDA-positive year by 2022 and to grow EBITDA margins to 15% by 2023
The firm expects an EBITDA-positive year by 2022 and to grow EBITDA margins to 15% by 2023
$HEC is the SPAC taking Talkspace public - the deal values the company at 11 times its 2021 sales
$250m of growth capital is expected to reach the balance sheet
$250m of growth capital is expected to reach the balance sheet
Bottom Line At a $ 1.4B enterprise value, the $HEC SPAC offers a reasonably priced entry into the virtual care segment Talkspace is set to grow by 69% in 2021 while preserving gross margins and achieving profitability by 2023
The online therapy space is competitive (BetterHelp, Headspace, Calm) and competitors are little differentiated We stay on the sidelines for now and wait for the merger to closeDon’t MISS any UPDATE on $HEC $TALK
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