Amwell® (NYSE: AMWL), a digital care delivery leader,
today announced financial results for the second quarter ended June
30, 2022.
Amwell Second Quarter 2022 Highlights:
- Recorded Total Revenue of $64.5 million in the second quarter
of 2022, representing a 7% increase compared to $60.2 million in
the second quarter of 2021
- Achieved subscription revenue of $29.6 million, a 10% increase
over $26.8 in the second quarter of 2021
- Recorded AMG Visit revenue of $29.7 million, representing 8%
growth over the second quarter of 2021
- Reported gross margin of 43.4%
- Improved adjusted EBITDA to ($42.8) million from ($47.1)
million in the first quarter of 2022
- Total active providers grew 46% to 103,500, compared to 71,000
in the second quarter of 2021
- Total visits grew 19% to 1.5 million compared to the second
quarter of 2021
- Cash and short-term securities as of quarter-end were
approximately $630.1 million
“Q2 was another important quarter for our company as we make
progress on delivering our industry-leading digital care delivery
enablement platform,” said Dr. Ido Schoenberg, Chairman and
co-Chief Executive Officer of Amwell, “We are executing well during
this transition year. Customer migrations are underway, we are
seeing healthy engagement across our products, and large, strategic
customers are rolling out our solution.”
Dr. Schoenberg continued, “Our teams are gearing up to
accelerate out of this transitional time. We are going to market
with a plan for Converge that demonstrates the ROI benefits of our
unified, future ready, enterprise offering that allows clients to
select the modules and programs they need now and expand when they
are ready.”
Financial Outlook
The Company is reiterating the following outlook for 2022 and
expects:
- Revenue between $275 and $285 million
- AMG visits between 1.4 and 1.5 million
- Adjusted EBITDA between ($200) million and ($190) million
Quarterly Conference Call Details
The company will host a conference call to review the results
today, Thursday, August 4, 2022 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
1-888-510-2008 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 is a leading digital care delivery 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 digital
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 over a decade of experience,
Amwell powers digital health solutions for over 2,000 hospitals and
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, 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, 2022
December 31,
2021
Assets
Current assets:
Cash and cash equivalents
$
257,189
$
746,416
Investments
372,880
—
Accounts receivable ($82 and $2,054, from
related parties and net of allowances of $1,452 and $1,809,
respectively)
44,675
51,375
Inventories
7,921
7,530
Deferred contract acquisition costs
1,781
1,697
Prepaid expenses and other current
assets
22,148
20,278
Total current assets
706,594
827,296
Restricted cash
795
795
Property and equipment, net
1,498
2,235
Goodwill
433,840
442,761
Intangible assets, net
136,434
152,409
Operating lease right-of-use asset
14,511
16,422
Deferred contract acquisition costs, net
of current portion
2,202
2,028
Other assets
1,233
1,722
Investment in minority owned joint
venture
1,366
168
Total assets
$
1,298,473
$
1,445,836
Liabilities and Stockholders’
Equity
Current liabilities:
Accounts payable
$
5,490
$
12,156
Accrued expenses and other current
liabilities
43,649
58,711
Operating lease liability, current
3,174
1,918
Deferred revenue ($867 and $1,860 from
related parties, respectively)
63,971
68,841
Total current liabilities
116,284
141,626
Other long-term liabilities
3,677
5,136
Contingent consideration liabilities, net
of current portion
—
16,450
Operating lease liability, net of current
portion
12,842
14,694
Deferred revenue, net of current portion
($16 and $22 from related parties, respectively)
4,777
7,055
Total liabilities
137,580
184,961
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, 2022 and as of December 31, 2021
—
—
Common stock, $0.01 par value;
1,000,000,000 Class A shares authorized, 240,397,065 and
229,402,453 shares issued and outstanding, respectively;
100,000,000 Class B shares authorized, 27,390,397 and 26,913,579
shares issued and outstanding, respectively; 200,000,000 Class C
shares authorized 5,555,555 issued and outstanding as of June 30,
2022 and as of December 31, 2021
2,734
2,620
Additional paid-in capital
2,108,576
2,054,275
Accumulated other comprehensive income
(20,845
)
(6,353
)
Accumulated deficit
(950,466
)
(811,284
)
Total American Well Corporation
stockholders’ equity
1,139,999
1,239,258
Non-controlling interest
20,894
21,617
Total stockholders’ equity
1,160,893
1,260,875
Total liabilities and stockholders’
equity
$
1,298,473
$
1,445,836
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,
2022
2021
2022
2021
Revenue
( $1,163, $1,462, $2,377 and $3,089 from
related parties, respectively)
$
64,516
$
60,217
$
128,748
$
117,816
Costs and operating expenses:
Costs of revenue, excluding depreciation
and amortization of intangible assets
36,497
33,889
$
73,262
$
69,594
Research and development
37,067
22,378
$
74,548
$
45,418
Sales and marketing
18,721
14,789
$
39,875
$
28,521
General and administrative
34,911
24,212
$
67,627
$
45,566
Depreciation and amortization expense
6,724
2,484
$
13,322
$
4,990
Total costs and operating expenses
133,920
97,752
268,634
194,089
Loss from operations
(69,404
)
(37,535
)
(139,886
)
(76,273
)
Interest income and other (expense)
income, net
764
224
$
872
$
285
Loss before expense from income taxes and
loss from equity method investment
(68,640
)
(37,311
)
(139,014
)
(75,988
)
Benefit (Expense) from income taxes
(461
)
(103
)
$
(129
)
$
(412
)
Loss from equity method investment
(551
)
(722
)
$
(762
)
$
(1,541
)
Net loss
(69,652
)
(38,136
)
(139,905
)
(77,941
)
Net loss attributable to non-controlling
interest
(507
)
(277
)
$
(723
)
$
(894
)
Net loss attributable to American Well
Corporation
$
(69,145
)
$
(37,859
)
$
(139,182
)
$
(77,047
)
Net loss per share attributable to common
stockholders, basic and diluted
$
(0.25
)
$
(0.15
)
$
(0.51
)
$
(0.31
)
Weighted-average common shares
outstanding, basic and diluted
273,320,740
249,366,652
273,615,031
246,471,733
Net loss
$
(69,652
)
$
(38,136
)
$
(139,905
)
$
(77,941
)
Other comprehensive income (loss), net of
tax:
Unrealized (loss) gain on
available-for-sale investments
(111
)
(119
)
(1,362
)
(85
)
Foreign currency translation
(10,179
)
(20
)
(13,130
)
(72
)
Comprehensive loss
(79,942
)
(38,275
)
(154,397
)
(78,098
)
Less: Comprehensive loss attributable to
non-controlling interest
(507
)
(277
)
(723
)
(894
)
Comprehensive loss attributable to
American Well Corporation
$
(79,435
)
$
(37,998
)
$
(153,674
)
$
(77,204
)
AMERICAN WELL CORPORATION CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands, except
share and per share amounts) (unaudited)
Six Months Ended June
30,
2022
2021
Cash flows from operating
activities:
Net loss
$
(139,905
)
$
(77,941
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization expense
13,132
4,990
Provisions for credit losses
(308
)
(57
)
Amortization of deferred contract
acquisition costs
847
731
Amortization of deferred contract
fulfillment costs
288
351
Noncash compensation costs incurred by
selling shareholders
3,993
—
Stock-based compensation expense
27,598
19,368
Loss on equity method investment
762
1,541
Deferred income taxes
(1,164
)
—
Changes in operating assets and
liabilities, net of acquisition:
Accounts receivable
5,763
9,809
Inventories
(391
)
199
Deferred contract acquisition costs
(1,135
)
(618
)
Prepaid expenses and other current
assets
(1,714
)
284
Other assets
489
184
Accounts payable
(6,525
)
(624
)
Accrued expenses and other current
liabilities
(490
)
(16,063
)
Other long-term liabilities
(15
)
(38
)
Deferred revenue
(6,624
)
(9,506
)
Net cash used in operating activities
(105,399
)
(67,390
)
Cash flows from investing
activities:
Purchases of property and equipment
(58
)
(283
)
Investment in less than majority owned
joint venture
(1,960
)
(2,548
)
Purchases of investments
(499,223
)
—
Proceeds from sales and maturities of
investments
124,981
100,000
Net cash used in and provided by investing
activities
(376,260
)
97,169
Cash flows from financing
activities:
Proceeds from exercise of common stock
options
4,465
16,733
Proceeds from employee stock purchase
plan
1,501
—
Payments for the purchase of treasury
stock
—
(11,628
)
Payment of deferred offering costs
—
(1,613
)
Proceeds from Section 16(b)
disgorgement
295
Payment of contingent consideration
(11,790
)
—
Net cash used in and provided by financing
activities
(5,529
)
3,492
Effect of exchange rates changes on cash,
cash equivalents, and restricted cash
(2,039
)
—
Net decrease in cash, cash equivalents,
and restricted cash
(489,227
)
33,271
Cash, cash equivalents, and restricted
cash at beginning of period
747,211
942,711
Cash, cash equivalents, and restricted
cash at end of period
$
257,984
$
975,982
Cash, cash equivalents, and restricted
cash at end of period:
Cash and cash equivalents
257,189
975,187
Restricted cash
795
795
Total cash, cash equivalents, and
restricted cash at end of period
$
257,984
$
975,982
Supplemental disclosure of cash flow
information:
Cash (refunded) paid for income taxes
$
13
$
955
Supplemental disclosure of non-cash
investing and financing activities:
Issuance of common stock in settlement of
earnout
$
17,243
$
—
Receivable related to exercise of common
stock options
$
—
$
71
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
metric 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 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
noncash compensation costs incurred by selling shareholders and
adjustments made to the contingent consideration.
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 public offering
expenses, including legal, accounting and other professional
expenses, reflect cash expenditures and we expect such expenditures
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 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 and
six months ended June 30, 2022 and 2021:
Three Months Ended
June 30,
Six Months Ended June
30,
(in thousands)
2022
2021
2022
2021
Net loss
$
(69,652
)
$
(38,136
)
$
(139,905
)
$
(77,941
)
Add:
Depreciation and amortization
6,724
2,484
13,322
4,990
Interest income and other (expense)
income, net
(764
)
(224
)
(872
)
(285
)
Benefit (Expense) from income taxes
461
103
129
412
Stock-based compensation
14,907
10,726
26,992
19,368
Public offering expenses(1)
—
—
—
1,223
Acquisition-related expenses
—
587
—
587
Noncash expenses and contingent
consideration adjustments(2)
1,259
—
4,996
—
Litigation expense
4,261
808
5,399
1,547
Adjusted EBITDA
$
(42,804
)
$
(23,652
)
$
(89,939
)
$
(50,099
)
(1)
Public offering expenses include
non-recurring expenses incurred in relation to our secondary
offering for the six months ended June 30, 2021.
(2)
Noncash expenses and contingent
consideration adjustments include, noncash compensation costs
incurred by selling shareholders and adjustments made to the
contingent consideration.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220804005691/en/
Media: Lindsay Sharifipour Press@amwell.com
Investors: Sue Dooley sue.dooley@amwell.com
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