- Total active providers of approximately 81,000 at the end of
the first quarter increased 240% compared to a year ago
- Total visits of 1.6 million in the first quarter increased 120%
compared to a year ago
- Total visits since inception surpassed 10 million in the first
quarter with 5.9 million added in 2020
- Revenue of $57.6 million in the first quarter increased 7% over
COVID enhanced volume first quarter last year
Amwell®, (NYSE: AMWL) (the "Company") a national
telehealth leader, today announced financial results for the first
quarter ended March 31, 2021.
“Our first quarter results represent a strong start to the year
and demonstrate continued momentum across our business.
As telehealth evolved from a complimentary service to a
fundamental enabler of mainstream healthcare, we too have advanced
our innovation and investment strategy: our next generation
platform Converge is designed to enable healthcare’s most trusted
players to carry out digitally empowered, full-spectrum, unified
online and in-person care. At its core, we believe Converge offers
exceptional usability, reliability, scalability and flexibility.
With its modular open architecture and longitudinal capabilities,
we believe Converge will simplify innovative collaboration across
the ecosystem. We expect Converge to expand our market opportunity
and enhance our own efficiencies over time. We also expect it to
accelerate innovators’ ability to impact clinical and financial
outcomes by creating a faster path to implement new technologies
and services in a single integrated platform,” said Dr. Ido
Schoenberg, Chairman and Co-CEO.
First quarter 2021 Financial Highlights:
All comparisons, unless otherwise noted, are to the three months
ended March 31, 2020.
- Total active providers grew to ~81,000, compared to ~24,000
last year and ~72,000 last quarter
- Total visits were ~1.6 million, compared to ~725,000
- Amwell Medical Group (“AMG”) visits were 20% of total visits,
compared to 50% of total visits
- Total visits since inception surpassed 10 million in the first
quarter with 5.9 million added in 2020
- Total Revenue was $57.6 million, compared to $53.7 million
- Subscription revenue was $24.6 million, compared to $21.8
million
- Visit revenue was $27.8 million, compared to $26.5 million
- Gross margin was 38.0%, compared to 38.5%
- Net loss was $39.8 million, compared to $25.2 million
- Adjusted EBITDA was $(26.4) million, compared to $(17.7)
million, as a result of increased R&D investment in the
Converge technology platform
Financial Outlook
For 2021, the company reiterates their previous outlook of:
- Revenue between $260 and $270 million
- AMG visit volume between 1.5 and 1.7 million
- Adjusted EBITDA between ($157) million and ($147) million
Quarterly Conference Call Details
The company will host a conference call to review the results
today, Wednesday, May 12, 2021 at 5:00 p.m. E.T. to discuss its
financial results. The call can be accessed via a line audio
webcast at https://investors.amwell.com or by dialing
1-833-979-2840 for U.S. participants, or 1-263-384-2051 for
international participants, referencing conference ID #4793448. 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 is a leading telehealth 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 digital care delivery will
transform healthcare. The Company offers a single, comprehensive
platform to support all telehealth needs from urgent to acute and
post-acute care, as well as chronic care management and healthy
living. With over a decade of experience, Amwell powers telehealth
solutions for over 2,000 hospitals and over 55 health plan partners
with over 36,000 employers, covering over 80 million lives. For
more information please visit https://business.amwell.com/.
American Well, Amwell, Converge and Amwell Medical Group 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.
CONDENSED CONSOLIDATED BALANCE
SHEETS (in thousands, except share and per share amounts)
(unaudited)
March 31, 2021
December 31, 2020
Assets
Current assets:
Cash and cash equivalents
$
896,382
$
941,616
Investments
99,997
99,963
Restricted cash
795
1,095
Accounts receivable ($1,182 and $12,053,
from related parties and net of allowances of $1,514 and $1,556,
respectively)
37,679
45,296
Inventories
9,366
9,128
Deferred contract acquisition costs
2,205
2,134
Prepaid expenses and other current
assets
14,882
14,055
Total current assets
1,061,306
1,113,287
Property and equipment, net
3,383
3,836
Goodwill
193,877
193,877
Intangible assets, net
53,600
55,528
Operating lease right-of-use asset
4,999
6,609
Deferred contract acquisition costs, net
of current portion
1,124
1,327
Other assets
1,391
1,430
Investment in minority owned joint
venture
2,481
752
Total assets
$
1,322,161
$
1,376,646
Liabilities, Convertible Preferred
Stock and Stockholders’ Deficit
Current liabilities:
Accounts payable
$
6,797
$
5,797
Accrued expenses and other current
liabilities
23,386
42,135
Operating lease liability, current
4,931
6,357
Deferred revenue ($3,176 and $14,421 from
related parties, respectively)
63,202
66,693
Total current liabilities
98,316
120,982
Other long-term liabilities
45
64
Operating lease liability, net of current
portion
970
1,296
Deferred revenue, net of current portion
($32 and $486 from related parties, respectively)
7,455
8,107
Total liabilities
106,786
130,449
Commitments and contingencies
Stockholders’ deficit:
Preferred stock
—
—
Common stock
2,396
2,357
Treasury stock
—
(37,568
)
Additional paid-in capital
1,860,123
1,841,405
Accumulated other comprehensive income
279
297
Accumulated deficit
(668,871
)
(582,359
)
Total American Well Corporation
stockholders’ equity
1,193,927
1,224,132
Non-controlling interest
21,448
22,065
Total stockholders’ equity
1,215,375
1,246,197
Total liabilities, preferred stock and
stockholders’ equity
$
1,322,161
$
1,376,646
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (in thousands,
except share and per share amounts) (unaudited)
Three Months Ended March
31,
2021
2020
Revenue
($8,845 and $13,248 from related parties,
respectively)
$
57,599
$
53,714
Costs and operating expenses:
Costs of revenue, excluding depreciation
and amortization of intangible assets
35,705
33,027
Research and development
23,040
14,936
Sales and marketing
13,732
13,874
General and administrative
21,354
15,342
Depreciation and amortization expense
2,506
2,286
Total costs and operating expenses
96,337
79,465
Loss from operations
(38,738
)
(25,751
)
Interest income and other income
(expense), net
61
847
Loss before expense from income taxes and
loss from equity method investment
(38,677
)
(24,904
)
Expense from income taxes
(309
)
—
Loss from equity method investment
(819
)
(320
)
Net loss
(39,805
)
(25,224
)
Net loss attributable to non-controlling
interest
(617
)
(843
)
Net loss attributable to American Well
Corporation
$
(39,188
)
$
(24,381
)
Net loss per share attributable to common
stockholders, basic and diluted
$
(0.16
)
$
(0.58
)
Weighted-average common shares
outstanding, basic and diluted
243,544,647
42,383,251
Net loss
$
(39,805
)
$
(25,224
)
Other comprehensive income (loss), net of
tax:
Unrealized gain on available-for-sale
investments
34
43
Foreign currency translation
(52
)
(171
)
Comprehensive loss
(39,823
)
(25,352
)
Less: Comprehensive loss attributable to
non-controlling interest
(617
)
(843
)
Comprehensive loss attributable to
American Well Corporation
$
(39,206
)
$
(24,509
)
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (in thousands, except share and per share
amounts) (unaudited)
Three Months Ended March
31,
2021
2020
Cash flows from operating
activities:
Net loss
$
(39,805
)
$
(25,224
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization expense
2,506
2,286
Provisions for doubtful accounts
260
165
Amortization of deferred contract
acquisition costs
335
271
Amortization of deferred contract
fulfillment costs
173
168
Stock-based compensation expense
8,642
4,458
Loss on equity method investment
819
320
Changes in operating assets and
liabilities, net of acquisition:
Accounts receivable
7,357
(1,710
)
Inventories
(238
)
(612
)
Deferred contract acquisition costs
(203
)
(458
)
Prepaid expenses and other current
assets
(167
)
(2,401
)
Other assets
39
(355
)
Accounts payable
1,023
(45
)
Accrued expenses and other current
liabilities
(17,666
)
(4,922
)
Other long-term liabilities
(19
)
(254
)
Deferred revenue
(4,195
)
(3,780
)
Net cash used in operating activities
(41,139
)
(32,093
)
Cash flows from investing
activities:
Purchases of property and equipment
(148
)
(1,254
)
Investment in less than majority owned
joint venture
(2,548
)
(2,940
)
Purchases of investments
—
(29,777
)
Proceeds from sales and maturities of
investments
—
39,611
Net cash (used in) provided by investing
activities
(2,696
)
5,640
Cash flows from financing
activities:
Proceeds from issuance of Series C
convertible preferred stock, net of issuance costs
—
12,564
Proceeds from exercise of common stock
options
9,297
2
Payments for the purchase of treasury
stock
(9,383
)
—
Payment of deferred offering costs
(1,613
)
—
Net cash (used in) provided by financing
activities
(1,699
)
12,566
Net decrease in cash, cash equivalents,
and restricted cash
(45,534
)
(13,887
)
Cash, cash equivalents, and restricted
cash at beginning of period
942,711
138,816
Cash, cash equivalents, and restricted
cash at end of period
$
897,177
$
124,929
Cash, cash equivalents, and restricted
cash at end of period:
Cash and cash equivalents
896,382
123,834
Restricted cash
795
1,095
Total cash, cash equivalents, and
restricted cash at end of period
$
897,177
$
124,929
Supplemental disclosure of cash flow
information:
Cash paid for income taxes
$
741
$
—
Supplemental disclosure of non-cash
investing and financing activities:
Additions to property and equipment
included in accrued expenses and accounts payable
$
23
$
—
Exercises of common stock
$
833
$
—
Repurchase of common stock
$
388
$
—
Common stock issuance costs
$
—
$
143
Non-GAAP Financial Measures:
To supplement our financial information presented in accordance
with generally accepted accounting principles in the United States,
of US GAAP, we use adjusted EBITDA, which is a non-U.S GAAP
financial measure to clarify and enhance an understanding of past
performance. We believe that the presentation of adjusted EBITDA
enhances an investor’s understanding of our financial performance.
We further believe that adjusted EBITDA is a useful financial
metrics to assess our operating performance from period-to-period
by excluding certain items that we believe are not representative
of our core business. We use certain financial measures for
business planning purposes and in measuring our performance
relative to that of our competitors. We utilize adjusted EBITDA as
the primary measure of our performance.
We calculate adjusted EBITDA as net loss adjusted to exclude (i)
interest income and other income, net, (ii) tax benefit and
expense, (iii) depreciation and amortization, (iv) stock-based
compensation expense, (v) public offering expenses, (vi)
acquisition-related income and expenses, (vii) litigation expenses
related to the defense of our patents in the patent infringement
claim filed by Teladoc and (viii) other items affecting our results
that we do not view as representative of our ongoing operations,
including direct and incremental expenses associated with the
COVID-19 pandemic.
We believe adjusted EBITDA is a commonly used by investors to
evaluate our performance and that of our competitors. However, our
use of the term adjusted EBITDA may vary from that of others in our
industry. Adjusted EBITDA should not be considered as an
alternative to net loss before taxes, net loss, loss per share or
any other performance measures derived in accordance with U.S. GAAP
as measures of performance.
Adjusted EBITDA has important limitations as an analytical tool
and you should not consider it in isolation or as a substitute for
analysis of our results as reported under U.S. GAAP. Some of the
limitations of adjusted EBITDA include (i) adjusted EBITDA does not
properly reflect capital commitments to be paid in the future, and
(ii) although depreciation and amortization are non-cash charges,
the underlying assets may need to be replaced and adjusted EBITDA
does not reflect these capital expenditures. Our IPO and
acquisition-related expenses, including legal, accounting and other
professional expenses, reflect cash expenditures and we expect such
expenditures for acquisitions to recur from time to time. Our
adjusted EBITDA may not be comparable to similarly titled measures
of other companies because they may not calculate adjusted EBITDA
in the same manner as we calculate the measure, limiting its
usefulness as a comparative measure.
In evaluating adjusted EBITDA, you should be aware that in the
future we will incur expenses similar to the adjustments in this
presentation. Our presentation of adjusted EBITDA should not be
construed as an inference that our future results will be
unaffected by these expenses or any unusual or non-recurring items.
Adjusted EBITDA should not be considered as an alternative to loss
before benefit from income taxes, net loss, earnings per share, or
any other performance measures derived in accordance with U.S.
GAAP. When evaluating our performance, you should consider adjusted
EBITDA alongside other financial performance measures, including
our net loss and other GAAP results.
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 (such as COVID
expenses and acquisition related expenses) 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).
The following table presents a reconciliation of adjusted EBITDA
from the most comparable GAAP measure, net loss, for the three
months ended March 31, 2021 and 2020:
Three Months Ended March
31,
(in thousands)
2021
2020
Net loss
$
(39,805
)
$
(25,224
)
Add:
Depreciation and amortization
2,506
2,286
Interest income and other income
(expense), net
(61
)
(847
)
Expense from income taxes
309
—
Stock-based compensation
8,642
4,458
Public offering expenses
1,223
151
Acquisition-related income
—
17
COVID-19-related expenses(1)
—
1,413
Litigation expense
739
—
Adjusted EBITDA
$
(26,447
)
$
(17,746
)
(1)
COVID-19-related expenses include
non-recurring provider bonus payments, emergency hosting licensing
fees and non-medical provider temporary labor costs related to
on-boarding non-AMG providers incurred in response to the initial
outbreak of the COVID-19 virus as Amwell attempted to scale quickly
to meet unusually high patient and non-AMG provider demand.
(2)
Public offering expenses include
non-recurring expenses incurred in relation to our initial public
offering for the three months ended March 31, 2020 and our
secondary offering for the three months ended March 31, 2021.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210512005929/en/
Media Contact: Holly Spring press@amwell.com
781.888.8219
Investor Contact: Asher Dewhurst investors@amwell.com
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