Talkspace is a subscription-based teletherapy platform that connects individuals with a network of 3,000 licensed mental health providers, covering more than 21 specializations through virtual counseling, psychotherapy, and psychiatry. It provides text-based therapy through its mobile app and website, allowing users to send unlimited messages 24/7 via texts, video, or audio messages. Similar to traditional treatments, Talkspace healthcare providers can treat mental health conditions, such as schizophrenia-spectrum disorders, bipolar disorders, and depression, including through prescription medication and management.
The company initially launched as a B2C business comprising individuals who subscribe directly to the platform and later ventured into the B2B market consisting of large enterprise clients such as Google and Expedia as well as health plans and employee assistance programs such as Aetna, Cigna, Humana, and Optum. The B2C service includes online therapy, psychiatric medication and evaluation, couples therapy, and teen therapy, covering a range of conditions. Talkspace’s personalized text-based sessions are available under five different plans costing between USD 260–396 per month. As of September 2021, the company had 60,300 active members receiving care through its B2C and B2B channels, including 28,000 B2C active members and 75.3 million B2B covered lives. The company’s enterprise client base grew to more than 90 at the end of March 2021, while active members in its B2C business reached 60,300 at the end of September 2021.
Its May 2019 Series D funding round followed by a January 2021 grant brought the company’s total funds raised up to USD 114 million. Talkspace’s revenue grew 67% YoY to USD 84.5 million in 9M 2021, driven by increased B2C member Subscriptions, the increase in existing health plan clients, as well as the 72% YoY growth of enterprise clients to 139. The company expects revenue to increase by 69% YoY to USD 125 million in 2021 and estimates revenue to reach USD 285 million by the end of 2023. Adjusted EBITDA is anticipated to turn positive in 2022.
Talkspace began trading its common shares and warrants on the Nasdaq in June 2021, following the special purpose acquisition company (SPAC) merger with Hudson Executive Investment Corp. The move establishes Talkspace as the only publicly listed pure-play virtual behavioral health company. The transaction is expected to bring USD 250 million in growth capital, which the company intends to utilize for global expansion, explore other mental health conditions, grow its user base, and add more partnerships.