Pear Therapeutics, Inc.

Pear reported third-quarter revenue of $4.1 million, up 24% from the prior quarter and up 211% from the same quarter last year. Total prescriptions were more than 11,400; fulfillment rate was 60%; payment rate was 49% of fulfilled prescriptions; and average selling price was $1,345 per script. Operating expenses were $30.7 million, down $5.4 million from Q2, and cash, cash equivalents and short-term investments were $83.6 million at September 30. For the full year, the company confirmed 2022 revenue guidance of $14 million to $16 million. For 2023, management guided to revenue of $27 million to $37 million, said non-GAAP operating expenses would be less than $100 million, and expects about $10.7 million of additional 2023 OpEx reduction from the workforce cut. The company also said it expects to extend runway into 2024 with a $40 million financing assumption and a revenue assumption in line with 2023 guidance.

Corey McCann framed the quarter as evidence that Pear can grow while cutting costs, saying the company is focusing resources on the most mature part of the business: addiction products sold to states. He emphasized that state demand is attractive because of coverage density and public funding tied to addiction treatment, and said the company has only begun the opportunity across the 10 states already paying for its products. His tone was confident but pragmatic, repeatedly stressing sustainability in a difficult capital environment.

Chris Guiffre highlighted the financial discipline theme, pointing to $4.1 million of Q3 revenue, $30.7 million of operating expenses, and $83.6 million of cash and investments at quarter-end. He said Q3 prescription volume, fulfillment rate, payment rate, and ASP were all broadly in line with expectations, though payment rate at 49% was slightly below expectations. On capital allocation, he said the workforce reduction affects about 59 employees, should cut 2023 operating expenses by about $10.7 million, and is intended to reduce reliance on fundraising; he also said the company expects a roughly $40 million financing need to get to 2024.

Analysts focused on the workforce reduction, the runway to 2024, and where the company is concentrating commercially. Management said the cuts affect almost all departments, are meant to support the shift toward short-term state sales, and do not change the strategy of prioritizing reSET and reSET-O. On coverage, Corey McCann said the company is targeting states and commercial payers where coverage is more likely, citing Massachusetts, Oklahoma, and North Carolina as examples where state coverage is starting to pull through to commercial coverage. Management also said the COEUS/Magellan arrangement could streamline state contracting, but it is early and they were not ready to quantify the impact.