Talkspace COO resigns following review of conduct at company offsite event

Teletherapy firm Talkspace introduced Monday that president and chief working officer Mark Hirschhorn had resigned following an inside evaluate of his conduct “in reference to an organization offsite that happened late final week.”

In a statement, the corporate mentioned that Hirschhorn’s resignation was efficient instantly and that Talkspace’s government workforce would deal with his tasks.

Hirschhorn was employed by Talkspace in February 2020. He had beforehand labored at telehealth big Teladoc Well being, although he introduced his resignation in 2018, not lengthy after the Southern Investigative Reporting Foundation launched a report alleging he had given inventory tricks to an worker he was having an affair with.

Traders had filed a class action lawsuit towards Teladoc, Hirschhorn and the corporate’s CEO, alleging insider buying and selling and that the worker in query had acquired undeserved promotions. Teladoc denied the insider buying and selling allegations, saying its investigation had solely discovered violations of its office relationship coverage. The case was dismissed in late September. 

The resignation comes every week after Talkspace cofounder and CEO Oren Frank and cofounder and head of scientific providers Roni Frank stepped down from their roles

The corporate additionally introduced its monetary outcomes for the quarter ended Sept. 30 final week, reporting $26.4 million in internet income, a 23% year-over-year enhance, which fell beneath its steering expectations. Talkspace’s adjusted earnings earlier than curiosity, taxes, depreciation and amortization (EBITDA) was a lack of $20.8 million, in contrast with a lack of $2 million within the prior-year interval.

“Whereas Web Income grew 23% year-over-year, pushed by continued momentum within the B2B enterprise, the general monetary outcomes for the third quarter had been disappointing. Q3 Web Income got here in under administration expectations as a consequence of a decrease variety of B2C prospects and a one-time non-cash reserve adjustment for credit score losses on receivables associated to prior intervals.

“The $223 million of obtainable liquidity as of September 30 will permit Talkspace to spend money on vital operational enhancements and new initiatives that can proceed to drive long-term progress,” Talkspace chief monetary officer Jennifer Fulk mentioned in an announcement.

Talkspace went public in June by a merger with a special purpose acquisition company, a way of public exit that has been standard with digital well being firms. 

Digital psychological well being and behavioral well being is a aggressive house, racking up $3.1 billion in investor {dollars} to date in 2021, according to Rock Health’s quarterly report.

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