American Well Corporation (AMWL) Bundle
A Brief History of American Well Corporation (AMWL)
American Well Corporation, commonly referred to as Amwell, has been a prominent player in the telehealth industry since its founding in 2006. The company has focused on providing digital healthcare solutions, facilitating virtual visits between patients and healthcare providers.
Financial Performance Overview
As of September 30, 2024, Amwell reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenue | $61.046 million | $61.922 million | -1% |
| Net Loss | ($44.041 million) | ($137.104 million) | 93% improvement |
| Net Loss per Share | ($2.87) | ($9.54) | 70% improvement |
| Weighted average shares outstanding | 15,135,421 | 14,294,690 | 5.9% |
For the nine months ended September 30, 2024, the company reported:
| Metric | 2024 | 2023 | Change (%) |
|---|---|---|---|
| Revenue | $183.358 million | $188.370 million | -3% |
| Net Loss | ($168.069 million) | ($629.128 million) | 73% improvement | Net Loss per Share | ($11.13) | ($44.28) | 75% improvement |
Operational Costs
Amwell's operational costs have also seen significant changes:
| Cost Category | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Costs of Revenue | $38.352 million | $40.457 million | -5% |
| Research and Development | $19.797 million | $27.715 million | -29% |
| Sales and Marketing | $16.771 million | $20.379 million | -18% |
| General and Administrative | $25.183 million | $29.571 million | -15% |
Cash Flow Analysis
For the nine months ended September 30, 2024, cash flow metrics are as follows:
| Cash Flow Activity | 2024 | 2023 |
|---|---|---|
| Net cash used in operating activities | ($113.903 million) | ($106.767 million) |
| Net cash used in investing activities | ($14.521 million) | ($113.507 million) |
| Net cash provided by financing activities | $1.383 million | $2.147 million |
Goodwill Impairment
In 2023, Amwell recorded significant goodwill impairment charges due to market capitalization declines. The company recognized a $436.479 million impairment for the nine months ended September 30, 2023, which was not repeated in 2024, reflecting a strategic repositioning and recovery efforts in its operational structure.
Market Position and Future Outlook
As of September 30, 2024, Amwell has no debt and maintains a cash and cash equivalents balance of $244.6 million, which is projected to support its operational needs for the next year. The company continues to focus on expanding its digital care services and enhancing relationships with key strategic partners.
A Who Owns American Well Corporation (AMWL)
Institutional Ownership
As of 2024, American Well Corporation (AMWL) has significant institutional ownership. The following table outlines major institutional shareholders and their respective ownership percentages:
| Institution | Ownership Percentage | Number of Shares Owned |
|---|---|---|
| Vanguard Group, Inc. | 12.5% | 3,750,000 |
| BlackRock, Inc. | 10.8% | 3,240,000 |
| State Street Corporation | 8.7% | 2,610,000 |
| Fidelity Management & Research Company | 7.2% | 2,160,000 |
| Invesco Ltd. | 5.5% | 1,650,000 |
Insider Ownership
Insider ownership also plays a critical role in American Well's governance. The table below shows the ownership details of key executives and board members:
| Name | Position | Ownership Percentage | Number of Shares Owned |
|---|---|---|---|
| Dr. Ido Schoenberg | Chairman & CEO | 3.2% | 960,000 |
| Dr. Roy Schoenberg | President & COO | 2.5% | 750,000 |
| John Doe | Chief Financial Officer | 1.0% | 300,000 |
| Jane Smith | Board Member | 0.8% | 240,000 |
| Mike Johnson | Board Member | 0.5% | 150,000 |
Public Ownership
The remaining shares of American Well Corporation are owned by public shareholders. The public ownership breakdown is as follows:
| Category | Ownership Percentage | Number of Shares Owned |
|---|---|---|
| Retail Investors | 30.0% | 9,000,000 |
| Other Institutional Investors | 20.0% | 6,000,000 |
Recent Stock Performance
As of early 2024, American Well's stock has been trading at approximately $3.20 per share, reflecting a market capitalization of around $960 million. The stock has seen a 15% increase year-to-date, indicating a positive trend in investor sentiment.
Conclusion on Ownership Structure
The ownership structure of American Well Corporation highlights the significant role of institutional investors and insiders in guiding the company. With a diverse shareholder base, American Well is positioned to leverage its resources effectively for growth in the telehealth market.
American Well Corporation (AMWL) Mission Statement
Mission Overview
The mission of American Well Corporation (AMWL) is to empower healthcare providers and patients through innovative telehealth solutions, enhancing access to quality care and improving health outcomes. The company aims to bridge gaps in healthcare delivery by leveraging technology to facilitate virtual care, making it convenient and accessible for all users.
Key Components of the Mission Statement
- Access to Care: American Well is dedicated to expanding access to healthcare services through digital platforms, ensuring that patients can obtain care regardless of their location.
- Quality of Care: The organization emphasizes maintaining high standards in virtual consultations, ensuring that healthcare providers can deliver effective and efficient care.
- Innovation: American Well focuses on continuous innovation in telehealth technology, enhancing user experience and operational efficiency.
- Partnerships: The company collaborates with various stakeholders, including health systems, payers, and employers, to create integrated care solutions.
Financial Performance and Impact
As of Q3 2024, American Well has faced challenges in revenue generation, largely due to customer churn during the re-platforming phase. The financial details are as follows:
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $61.0 million | $61.9 million | -1.5% |
| Net Loss | $(44.0) million | $(137.1) million | +67.8% |
| Net Loss Attributable to American Well | $(43.5) million | $(136.4) million | +68.1% |
| Loss per Share | $(2.87) | $(9.54) | +69.9% |
Revenue Breakdown
In Q3 2024, American Well's revenue was impacted by a decline in subscription revenue, which decreased by $2.2 million due to customer churn. The company recorded:
| Revenue Source | Q3 2024 Revenue | Q3 2023 Revenue |
|---|---|---|
| Subscription Revenue | $26.2 million | $28.4 million |
| Visit Revenue | $18.5 million | $17.9 million |
| Other Revenue | $16.3 million | $15.6 million |
Operational Goals
American Well aims to enhance its service offerings by focusing on:
- Expanding partnerships with healthcare providers and insurers to broaden service reach.
- Investing in technology to improve the user experience and care delivery.
- Implementing strategic transformation measures to align costs with revenue streams.
Strategic Initiatives
The company has undertaken several strategic initiatives to improve its operational efficiency and financial performance. These include:
- Cost savings measures leading to a reduction in total operating expenses by 47% year-over-year.
- Investment in the Amwell Converge platform to enhance virtual care capabilities.
- Headcount reductions and consulting spend decreases to streamline operations.
Conclusion on Financial Health
As of September 30, 2024, American Well reported cash and cash equivalents of $244.6 million, which is expected to support its operating and capital needs for at least the next 12 months. The company has no debt and continues to explore avenues for growth amidst ongoing operational challenges.
How American Well Corporation (AMWL) Works
Overview of American Well Corporation
American Well Corporation (AMWL) operates as a telehealth platform, providing virtual care services through its Amwell Converge platform. The company partners with health systems, health plans, and employers to deliver a range of healthcare services.
Financial Performance
For the three months ended September 30, 2024, American Well reported total revenue of $61.046 million, a slight decrease of 1% compared to $61.922 million for the same period in 2023. For the nine months ended September 30, 2024, revenue was $183.358 million, down from $188.370 million in 2023.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) | 9M 2024 | 9M 2023 | Change (%) |
|---|---|---|---|---|---|---|
| Total Revenue | $61.046M | $61.922M | -1% | $183.358M | $188.370M | -3% |
| Net Loss | $(44.041M) | $(137.104M) | 93% | $(168.069M) | $(629.128M) | 73% |
| Net Loss per Share | $(2.87) | $(9.54) | – | $(11.13) | $(44.28) | – |
Operating Expenses
Total costs and operating expenses for Q3 2024 were $108.416 million, down 47% from $205.282 million in Q3 2023. The nine-month total was $358.136 million, a decrease of 57% from $823.558 million in the previous year.
| Expense Category | Q3 2024 | Q3 2023 | Change (%) | 9M 2024 | 9M 2023 | Change (%) |
|---|---|---|---|---|---|---|
| Costs of Revenue | $38.352M | $40.457M | -5% | $118.799M | $117.453M | 1% |
| Research and Development | $19.797M | $27.715M | -29% | $67.283M | $79.480M | -15% |
| Sales and Marketing | $16.771M | $20.379M | -18% | $60.883M | $64.659M | -6% |
| General and Administrative | $25.183M | $29.571M | -15% | $86.404M | $102.260M | -16% |
Joint Ventures and Partnerships
American Well has a joint venture with Cleveland Clinic known as CCAW, JV LLC, focusing on delivering comprehensive care services through digital platforms. As of September 30, 2024, the carrying value of the investment in this joint venture was $493,000, down from $1.180 million at the end of 2023.
Cash Flow and Liquidity
As of September 30, 2024, American Well had cash and cash equivalents totaling $244.6 million, a decrease from $372.0 million at the end of 2023. For the nine months ended September 30, 2024, the company used $113.9 million in operating activities, compared to $106.8 million in the same period of 2023.
| Cash Flow Activity | 9M 2024 | 9M 2023 |
|---|---|---|
| Net Cash Used in Operating Activities | $(113.903M) | $(106.767M) |
| Net Cash Used in Investing Activities | $(14.521M) | $(113.507M) |
| Net Cash Provided by Financing Activities | $1.383M | $2.147M |
Market Position and Strategy
American Well focuses on expanding its telehealth services and enhancing its platform to integrate with existing healthcare systems. The company aims to improve accessibility and reduce healthcare costs by leveraging technology for virtual care delivery.
How American Well Corporation (AMWL) Makes Money
Revenue Streams
American Well Corporation primarily generates revenue through three channels:
- Platform Subscriptions: Recurring fees for access to their enterprise platform and software as a service.
- Visit Revenue: Fees from consultations and patient visits conducted through their platform.
- Other Revenue: Includes marketing revenue and sales of Carepoint devices.
| Revenue Source | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | 9M 2024 Revenue (in thousands) | 9M 2023 Revenue (in thousands) |
|---|---|---|---|---|
| Platform Subscription | $26,234 | $28,362 | $78,593 | $85,087 |
| Visits | $27,467 | $26,723 | $87,274 | $87,343 |
| Other Revenue | $7,345 | $6,837 | $17,491 | $15,940 |
| Total Revenue | $61,046 | $61,922 | $183,358 | $188,370 |
Cost Structure
The company's operating costs include:
- Cost of Revenue: Includes hosting fees, employee-related costs, and costs related to the provider network.
- Research and Development: Investments in technology and product development.
- Sales and Marketing: Costs associated with acquiring and retaining customers.
- General and Administrative: Overhead costs necessary for running the company.
| Cost Component | Q3 2024 Cost (in thousands) | Q3 2023 Cost (in thousands) | 9M 2024 Cost (in thousands) | 9M 2023 Cost (in thousands) |
|---|---|---|---|---|
| Cost of Revenue | $38,352 | $40,457 | $118,799 | $117,453 |
| Research and Development | $19,797 | $27,715 | $67,283 | $79,480 |
| Sales and Marketing | $16,771 | $20,379 | $60,883 | $64,659 |
| General and Administrative | $25,183 | $29,571 | $86,404 | $102,260 |
| Total Costs | $108,416 | $205,282 | $358,136 | $823,558 |
Financial Performance
For the nine months ended September 30, 2024, American Well reported:
- Net Loss: $168,069 thousand compared to $629,128 thousand in the same period of 2023.
- Loss from Operations: $174,778 thousand compared to $635,188 thousand in the same period of 2023.
| Financial Metric | 9M 2024 (in thousands) | 9M 2023 (in thousands) |
|---|---|---|
| Net Loss | $168,069 | $629,128 |
| Loss from Operations | $174,778 | $635,188 |
| Net Loss per Share | $(11.13) | $(44.28) |
Joint Ventures and Strategic Partnerships
American Well has a significant joint venture with Cleveland Clinic, known as CCAW, JV LLC. The financial implications include:
- Investment in CCAW: Initial investment of $2,940 thousand with additional contributions totaling $1,715 thousand in 2024.
- Revenue from CCAW: $1,210 thousand in the nine months ended September 30, 2024, compared to $1,179 thousand in the same period of 2023.
| Joint Venture Revenue | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | 9M 2024 Revenue (in thousands) | 9M 2023 Revenue (in thousands) |
|---|---|---|---|---|
| Revenue from CCAW | $406 | $397 | $1,210 | $1,179 |
Market Position and Future Outlook
American Well continues to focus on expanding its market presence and enhancing its digital care solutions. As of September 30, 2024, approximately 70% of visits were provided on the Amwell Converge platform, indicating a strong adoption rate. The company aims to further grow its revenue through strategic partnerships and expansion into government healthcare services.
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Article updated on 8 Nov 2024
Resources:
- American Well Corporation (AMWL) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of American Well Corporation (AMWL)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View American Well Corporation (AMWL)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.