B2B’s back, alright!

Earnings season is upon us, a time when industry analysts and enthusiasts of all kinds rejoice in the opportunity to peek under the hood of publicly-traded companies. Here in digital health land, Amwell and Talkspace both shared their results last week. Of particular interest was Talkspace’s announcement that its B2B revenue, which surpassed the company’s D2C revenue last year, continued its upward trajectory. Year-over-year, Talkspace's B2B payer sessions grew 90%, while its D2C business revenue declined 40% with 33% fewer active D2C members. As we noted back in January, reduced consumer spend and increased customer acquisition costs have pushed several digital health companies to eye B2B business models (although there are always exceptions; Teladoc’s recent earnings touted D2C growth thanks in part to its BetterHelp offering). According to Rock Health venture funding data, 34% of digital health startups that raised in Q1 2023 sold directly to consumers, compared to 41% of startups funded in 2021. While the grass might seem greener in B2B sales (think: more money on the table, contract stability), B2B models mean longer and more complex sales cycles, which can be tough for startups managing cash in today’s tighter economic market. We’ll be curious to see how these numbers trend as the prolonged path to a possible recession meanders on.

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Headlines

DEA Will Delay Telemedicine Restrictions For Buprenorphine, Adderall, And More
Pandemic policies will remain in place for now STAT

FDA Encourages Decentralized Trials With New Guidance
Additional regulatory clarity aims to boost trial diversity Fierce Healthcare

Comparing Physician and AI Chatbot Responses To Patient Questions
Study shows chatbot responses were preferred JAMA

As The Market Settles, Many Investors Maintain Bright Outlook For Digital Health Investing
Correction is inevitable, but optimism remains Fierce Healthcare

Recent Funding

  • Wearable manufacturer Embr Labs secures $35M or its hot flash regulation device
  • UWill pounces on $30M for its virtual mental health and wellness services for college students
  • Hygieia brings home $22M for its digital diabetes management and insulin dosing application
  • Inbox Health collects $22.5M for its suite of billing and payment support tools for providers
  • DarioHealth adds $14.3M for its digital chronic condition management and monitoring solutions
  • Personalized cognitive performance supplements companyThesis finds $13.5M
  • Lab management and workflow software developerGenemod grabs $4.5M
  • Automate AI adds $4M its suite of AI-powered healthcare and life sciences solutions
  • Life-sciences focused data management platformPluto Biosciences raises $3.6M