Amwell® (NYSE: AMWL), a leader in hybrid care enablement, today announced financial results for the second quarter ended June 30, 2023.
Amwell Second Quarter 2023 Highlights:
-
Recorded Total Revenue of $62.4 million
- Achieved subscription revenue of $28.0 million
- Recorded AMG Visit revenue of $28.1 million
- Reported gross margin of 39%
- Net loss was ($93.5) million, compared to ($398.5) million in first quarter of 2023. Net loss reflects non-cash goodwill impairment charges of $27.3 million recorded in the second quarter of 2023 and $330.3 million recorded in the first quarter of 2023
- Adjusted EBITDA was ($45.3) million compared to ($44.6) million in the first quarter of 2023
- Total active providers were 106,000
- Total visits were 1.5 million; visits on Converge grew to 43% of total visits, from 36% in first quarter of 2023
- Cash and short-term securities as of quarter-end were approximately $458.7 million.
“The second quarter of 2023 was another solid quarter for our company. With most of Converge development behind us, we made progress continuing to migrate health systems, and payer migrations are underway,” said Dr. Ido Schoenberg, chairman and CEO of Amwell. “We expanded our list of strategic clients on Converge, and our automated care programs are resonating in the market. We are also putting important strategies in place, as we work to reaccelerate our bookings momentum.”
Financial Outlook
The Company revised its guidance, which calls for:
- Revenue in the range of $257 to $263 million, compared to previous guidance of $275 to $285 million
- AMG visits between 1.525 and 1.575 million, compared to previous range of 1.45 and 1.65 million
- An Adjusted EBITDA range of between ($160) million to ($165) million, compared to previous guidance of ($150) million to ($160) million.
Other than with respect to GAAP Revenue, the Company only provides guidance on a non-GAAP basis. The Company does not provide a reconciliation of forward-looking Adjusted EBITDA (non-GAAP) to GAAP net income (loss), due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation. Because other deductions used to calculate projected net income (loss) vary dramatically based on actual events, the Company is not able to forecast on a GAAP basis with reasonable certainty all deductions needed in order to provide a GAAP calculation of projected net income (loss) at this time. The amount of these deductions may be material and, therefore, could result in projected GAAP net income (loss) being materially less than projected Adjusted EBITDA (non-GAAP).
Quarterly Conference Call Details
The company will host a conference call to discuss its financial results today at 5:00 p.m. Eastern Time, Wed., Aug. 2, 2023. The call can be accessed via a live audio webcast at https://investors.amwell.com or by dialing 1-888-510-2008 for U.S. participants, or 1-646-960-0306 for international participants, referencing conference ID #7830032. A replay of the call will be available via webcast for on-demand listening shortly after the completion of the call, at the same web link, and will remain available for approximately 90 days.
About Amwell
Amwell provides a leading hybrid care enablement platform in the United States and globally, connecting and enabling providers, insurers, patients, and innovators to deliver greater access to more affordable, higher quality care. Amwell believes that hybrid care delivery will transform healthcare. The Company offers a single, comprehensive platform to support all digital health needs from urgent to acute and post-acute care, as well as chronic care management and healthy living. With nearly two decades of experience, Amwell powers the digital care of more than 55 health plans, which collectively represent more than 90 million covered lives, and many of the nation’s largest health systems, representing over 2,000 hospitals, have access to Amwell solutions. For more information, please visit https://business.amwell.com/.
American Well, Amwell, Converge, Conversa, SilverCloud and Carepoints are registered trademarks or trademarks of American Well Corporation in the United States and other countries. All other trademarks used herein are the property of their respective owners.
Forward-Looking Statements
This press release contains forward-looking statements about us and our industry that involve substantial risks and uncertainties and are based on our beliefs and assumptions and on information currently available to us. All statements other than statements of historical facts contained in this press release, including statements regarding our future results of operations, financial condition, business strategy and plans and objectives of management for future operations, are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “will,” or “would,” or the negative of these words or other similar terms or expressions.
Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements represent our beliefs and assumptions only as of the date of this release. These statements, and related risks, uncertainties, factors and assumptions, include, but are not limited to: weak growth and increased volatility in the telehealth market; inability to adapt to rapid technological changes; increased competition from existing and potential new participants in the healthcare industry; changes in healthcare laws, regulations or trends and our ability to operate in the heavily regulated healthcare industry; our ability to comply with federal and state privacy regulations; the significant liability that could result from a cybersecurity breach; and other factors described under ‘Risk Factors’ in our most recent form 10-K filed with the SEC. These risks are not exhaustive. Except as required by law, we assume no obligation to update these forward-looking statements, or to update the reasons actual results could differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future. Further information on factors that could cause actual results to differ materially from the results anticipated by our forward-looking statements is included in the reports we have filed or will file with the Securities and Exchange Commission. These filings, when available, are available on the investor relations section of our website at investors.amwell.com and on the SEC’s website at www.sec.gov.
AMERICAN WELL CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share amounts) (unaudited) | ||||||||
June 30, 2023 | December 31,
| |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 161,356 | $ | 538,546 | ||||
Investments | 297,326 | — | ||||||
Accounts receivable ($91 and $2,597, from related parties and net of
| 48,399 | 58,372 | ||||||
Inventories | 8,532 | 8,737 | ||||||
Deferred contract acquisition costs | 1,534 | 1,394 | ||||||
Prepaid expenses and other current assets | 18,294 | 19,567 | ||||||
Total current assets | 535,441 | 626,616 | ||||||
Restricted cash | 795 | 795 | ||||||
Property and equipment, net | 586 | 1,012 | ||||||
Goodwill | 79,421 | 435,279 | ||||||
Intangible assets, net | 134,953 | 134,980 | ||||||
Operating lease right-of-use asset | 11,770 | 13,509 | ||||||
Deferred contract acquisition costs, net of current portion | 4,520 | 3,394 | ||||||
Other assets | 2,197 | 1,972 | ||||||
Investment in minority owned joint venture | 2,493 | — | ||||||
Total assets | $ | 772,176 | $ | 1,217,557 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 4,521 | $ | 7,236 | ||||
Accrued expenses and other current liabilities | 42,581 | 54,258 | ||||||
Operating lease liability, current | 2,932 | 3,057 | ||||||
Deferred revenue ($706 and $1,665 from related parties, respectively) | 60,214 | 49,505 | ||||||
Total current liabilities | 110,248 | 114,056 | ||||||
Other long-term liabilities | 1,645 | 1,574 | ||||||
Operating lease liability, net of current portion | 9,995 | 11,787 | ||||||
Deferred revenue, net of current portion ($4 and $10 from related
| 6,600 | 6,289 | ||||||
Total liabilities | 128,488 | 133,706 | ||||||
Commitments and contingencies | ||||||||
Stockholders’ equity: | ||||||||
Preferred stock, $0.01 par value; 100,000,000 shares authorized, no shares issued or outstanding as of June 30, 2023 and as of December 31, 2022 | — | — | ||||||
Common stock, $0.01 par value; 1,000,000,000 Class A shares authorized, 251,076,995 and 244,193,727 shares issued and outstanding, respectively; 100,000,000 Class B shares authorized, 27,390,397 shares issued and outstanding; 200,000,000 Class C shares authorized 5,555,555 issued and outstanding as of June 30, 2023 and as of December 31, 2022 | 2,834 | 2,766 | ||||||
Additional paid-in capital | 2,204,387 | 2,160,108 | ||||||
Accumulated other comprehensive income | (8,869 | ) | (16,969 | ) | ||||
Accumulated deficit | (1,572,777 | ) | (1,082,028 | ) | ||||
Total American Well Corporation stockholders’ equity | 625,575 | 1,063,877 | ||||||
Non-controlling interest | 18,113 | 19,974 | ||||||
Total stockholders’ equity | 643,688 | 1,083,851 | ||||||
Total liabilities and stockholders’ equity | $ | 772,176 | $ | 1,217,557 | ||||
AMERICAN WELL CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (in thousands, except share and per share amounts) (unaudited) | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Revenue | ||||||||||||||||
($983, $1,163, $1,971 and $2,377 from related parties, respectively) | $ | 62,447 | $ | 64,516 | $ | 126,448 | $ | 128,748 | ||||||||
Costs and operating expenses: | ||||||||||||||||
Costs of revenue, excluding depreciation and amortization of intangible assets | 38,244 | 36,497 | 76,996 | 73,262 | ||||||||||||
Research and development | 25,842 | 37,067 | 51,765 | 74,548 | ||||||||||||
Sales and marketing | 21,554 | 18,721 | 44,280 | 39,875 | ||||||||||||
General and administrative | 36,319 | 34,911 | 72,689 | 67,627 | ||||||||||||
Depreciation and amortization expense | 7,718 | 6,724 | 14,961 | 13,322 | ||||||||||||
Goodwill Impairment | 27,276 | — | 357,585 | — | ||||||||||||
Total costs and operating expenses | 156,953 | 133,920 | 618,276 | 268,634 | ||||||||||||
Loss from operations | (94,506 | ) | (69,404 | ) | (491,828 | ) | (139,886 | ) | ||||||||
Interest income and other income (expense), net | 2,332 | 764 | 3,272 | 872 | ||||||||||||
Loss before expense from income taxes and loss from equity method investment | (92,174 | ) | (68,640 | ) | (488,556 | ) | (139,014 | ) | ||||||||
Expense from income taxes | (716 | ) | (461 | ) | (2,191 | ) | (129 | ) | ||||||||
Loss from equity method investment | (625 | ) | (551 | ) | (1,277 | ) | (762 | |||||||||
