It's been a mediocre week for Talkspace, Inc. (NASDAQ:TALK) shareholders, with the stock dropping 15% to US$2.66 in the week since its latest quarterly results. Talkspace reported revenues of US$45m, in line with expectations, but it unfortunately also reported (statutory) losses of US$0.01 per share, which were slightly larger than expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Taking into account the latest results, the current consensus from Talkspace's twin analysts is for revenues of US$188.6m in 2024. This would reflect a notable 16% increase on its revenue over the past 12 months. Losses are predicted to fall substantially, shrinking 86% to US$0.01. Before this earnings announcement, the analysts had been modelling revenues of US$184.6m and losses of US$0.015 per share in 2024. So it seems there's been a definite increase in optimism about Talkspace's future following the latest consensus numbers, with a very promising decrease in the loss per share forecasts in particular.

The consensus price target rose 6.7% to US$4.00, with the analysts encouraged by the higher revenue and lower forecast losses for next year.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Talkspace's growth to accelerate, with the forecast 22% annualised growth to the end of 2024 ranking favourably alongside historical growth of 15% per annum over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.7% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Talkspace to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for Talkspace going out as far as 2026, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Talkspace , and understanding these should be part of your investment process.

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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.