Talkspace, Inc. (NASDAQ:TALK) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Talkspace, Inc. operates as a virtual behavioral healthcare company in the United States. The US$551m market-cap company's loss lessened since it announced a US$19m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$1.4m, as it approaches breakeven. As path to profitability is the topic on Talkspace's investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

Talkspace is bordering on breakeven, according to the 6 American Healthcare analysts. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$1.1m in 2024. The company is therefore projected to breakeven around 12 months from now or less. We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 58% is expected, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

We're not going to go through company-specific developments for Talkspace given that this is a high-level summary, however, keep in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there's one aspect worth mentioning. Talkspace currently has no debt on its balance sheet, which is rare for a loss-making growth company, which typically has high debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

There are too many aspects of Talkspace to cover in one brief article, but the key fundamentals for the company can all be found in one place – Talkspace's company page on Simply Wall St. We've also put together a list of pertinent factors you should further examine:

1. Valuation: What is Talkspace worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Talkspace is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Talkspace's board and the CEO's background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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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.