Amwell Announces Results for Second Quarter 2023

August 2, 2023

BOSTON--(BUSINESS WIRE)-- 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.

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.

AMERICAN WELL CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share amounts) (unaudited)

	June 30, 2023	December 31, 2022
Assets
Current assets:
Cash and cash equivalents	$161,356	$538,546
Investments	297,326	-
Accounts receivable	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	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	6,600	6,289
Total liabilities	128,488	133,706
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.01 par value	-	-
Common stock, $0.01 par value	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,
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	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)
Net loss	(93,515)	(69,652)	(492,024)	(139,905)
Net loss attributable to non-controlling interest	(1,040)	(507)	(1,861)	(723)
Net loss attributable to American Well Corporation	$(92,475)	$(69,145)	$(490,163)	$(139,182)
Net loss per share attributable to common stockholders, basic and diluted	$(0.33)	$(0.25)	$(1.74)	$(0.51)
Weighted-average common shares outstanding, basic and diluted	283,059,929	273,320,740	281,504,945	273,615,031

AMERICAN WELL CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands, except share and per share amounts) (unaudited)

	Six Months Ended June 30,
Cash flows from operating activities:
Net loss	$ (492,024)	$ (139,905)
Adjustments to reconcile net loss to net cash used in operating activities:
Goodwill impairment	357,585	—
Depreciation and amortization expense	14,950	13,132
Changes in operating assets and liabilities, net of acquisition:
Accounts receivable	10,161	5,763
Net cash used in operating activities	(68,776)	(105,399)
Cash flows from investing activities:
Purchases of property and equipment	(36)	(58)
Purchases of investments	(389,990)	(499,223)
Net cash used in investing activities	(308,866)	(376,260)
Cash flows from financing activities:
Proceeds from exercise of common stock options	569	4,465
Net cash provided by (used in) financing activities	1,251	(5,529)
Net decrease in cash, cash equivalents, and restricted cash	(377,190)	(489,227)
Cash, cash equivalents, and restricted cash at end of period	$ 162,151	$ 257,984