Talkspace, Inc. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Shareholders of Talkspace, Inc. (NASDAQ:TALK) will be pleased this week, given that the stock price is up 13% to US$3.13 following its latest quarterly results. Revenues were US$47m, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at US$0.01, an impressive 700% ahead of estimates. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Talkspace

Taking into account the latest results, the most recent consensus for Talkspace from three analysts is for revenues of US$232.5m in 2025. If met, it would imply a substantial 28% increase on its revenue over the past 12 months. Talkspace is also expected to turn profitable, with statutory earnings of US$0.061 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$227.2m and earnings per share (EPS) of US$0.054 in 2025. So it seems there's been a definite increase in optimism about Talkspace's future following the latest results, with a nice increase in the earnings per share forecasts in particular.

With these upgrades, we're not surprised to see that the analysts have lifted their price target 14% to US$4.00per share. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Talkspace analyst has a price target of US$5.00 per share, while the most pessimistic values it at US$3.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Talkspace's past performance and to peers in the same industry. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 22% growth on an annualised basis. That is in line with its 22% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 6.7% per year. So although Talkspace is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Talkspace following these results. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on Talkspace. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Talkspace going out to 2026, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 1 warning sign for Talkspace you should know about.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.