The Talkspace, Inc. (TALK) stock significantly declined in the after-hours. The Talkspace stock dropped by 16.22% with respect to its previous close to reach $2.84. Previously, the stock closed at $3.39. The number of shares that were traded are 651.56K. Here we will discuss some facts which triggered the decline.
The stock went down as the two Co-Founders of Talkspace, Inc. (TALK) stepped down two significant roles:
The CEO and co-founder of Talkspace, Inc. (TALK) Oren Frank have announced that he is stepping down from the roles as the CEO and board member of the board of Talkspace, Inc. (TALK). Also, the other co-founder and head of clinical services, Roni Frank also announced to step down from her position. As the news hit the market, Talkspace, Inc. (TALK) stocks lost 16.22% at the current time of this writing.
Financial overview of their third quarter:
Although their third quarter was not bad in terms of numbers, the sudden stepping down of the two co-founders really had a significant effect on the share price in the market. Some of the key highlights of their third-quarter are:
- The increase of 23% in the revenue was witnessed over the prior-year period. The net revenue for the third quarter was $26.4 million.
- Gross profit saw a decline due to some increase in the reserve for the losses in credit on receivables. The third-quarter gross margin is $14.2 million while in the prior-year quarter it was $15.1 million. This sums up as 54% Gross profit as compared to 70% over a year ago.
- The total net income was $1.5 million. This was a positive number as compared to a loss of -$2.7 million in the prior-year period.
- Talkspace, Inc. (TALK) adjusted EBITDA loss of ($20.8) million in the third quarter as compared to ($2.0) million in the prior-year period.
Key milestones achieved in the third quarter:
- The total number of responsive members saw an increase of 21% year-over-year to almost 60,300.
- As of September 30, 2021, the B2B eligible lives grow by 92% year-over-year to more than 75 million.
- B2B sessions increased by 96%. The number of completed B2B sessions was 71,300.
Conclusion:
Talkspace, Inc. (TALK) has an interim CEO right now and is looking for a permanent candidate for the position. Whoever will they select for the job will have an impact on the stock of Talkspace, Inc. (TALK).
