Amwell� Announces Results for Fourth Quarter and Full Year 2020

Amwell® Announces Results for Fourth Quarter and Full Year 2020

March 24, 2021

Total year-end active providers increased ~950%, or 65,000 over the prior year, to ~72,000

Q4 total visits increased 300% to 1.6 million compared to the prior year

Total 2020 visits increased 400% to 5.9 million compared to the prior year

Q4 revenue increased 34% to $60.4 million and full year increased 65% to $245.3 million

Provides initial 2021 guidance

BOSTON--(BUSINESS WIRE)-- Amwell (NYSE: AMWL) (the "Company") a national telehealth leader, today announced strong financial results for the fourth quarter and full year ended December 31, 2020.

“Our fourth quarter results were strong across all of our performance metrics, closing out a year of significant growth. Throughout 2020, the pandemic stressed the entire healthcare system and drove a rapid evolution in the way care is delivered from simple and convenient urgent care replacement service to a mission critical, digital care delivery infrastructure across the full continuum of care. This change is profound and irreversible in our opinion and we were thrilled to see our platform embraced by our clients’ providers across the community and used in ways that strengthens existing patient provider relationships. The Amwell platform was able to support overall care delivery in the new hybrid world by rapidly launching new modules and care points like Amwell Now, the Amwell Connect EHR module and the home and hospital enabled C500 Carepoint,” said Dr. Ido Schoenberg, Chairman and Co-CEO.

Dr. Schoenberg continued, “Responding to the post-pandemic market’s demand to use telehealth in a new, much more comprehensive, scalable and sophisticated way, we are accelerating our investment in our technology platform and its modules and programs. We help our clients and partners enable hybrid care models that support both episodic and longitudinal care. We also work to offer much greater diversity of use cases and solutions on our platform by accommodating innovations of third parties as well as our clients and partners.”

Fourth quarter 2020 Financial Highlights:

All comparisons, unless otherwise noted, are to the three months ended December 31, 2019.

• Total active providers grew to ~72,000, compared to ~7,000 last year and ~62,000 last quarter
• Total visits were ~1,600,000, compared to 355,000
• Amwell Medical Group (“AMG”) visits were ~360,000 or 23% of total visits, compared to ~235,000 or 66% of total visits
• Total Revenue was $60.4 million, compared to $45.0 million
• Subscription revenue was $26.3 million, compared to $22.9 million
• Visit revenue was $26.2 million, compared to $15.0 million
• Gross margin was 37.4%, compared to 44.7%, as a result of revenue mix shift towards visits
• Net loss was $50.6 million, compared to $22.7 million
• Adjusted EBITDA was $(35.4) million, compared to $(16.9) million

Full Year 2020 Financial Highlights:

All comparisons, unless otherwise noted, are to the full year ended December 31, 2019.

• Total visits were ~5.9 million, compared to ~1.1 million
• AMG visits were ~1.6 million or 27% of total visits, compared to ~760,000 or 66% of total visits
• Total Revenue was $245.3 million, compared to $148.9 million
• Subscription revenue was $98.4 million, compared to $83.7 million
• Visit revenue was $117.2 million, compared to $40.7 million
• Average contract values increased from $282,000 to $334,000 for Health Systems and from $546,000 to $612,000 for Health Plans
• Revenue per visit increased from $54 to $73
• Gross margin was 36.1%, compared to 46.3%, as a result of revenue mix shift towards visits
• Net loss was $228.6 million, compared to $88.4 million
• Adjusted EBITDA was $(92.7) million, compared to $(72.7) million
• Cash and Short-term securities as of quarter-end were approximately $1.0 billion

Financial Outlook

The company is providing the initial outlook for 2021 and expects:

• Revenue between $260 and $270 million
• AMG visits 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, March 24, 2021 at 5:00 p.m. E.T. to discuss its financial results.

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 55 health plan partners with over 36,000 employers, covering over 80 million lives.

Non-GAAP Financial Measures:

To supplement our financial information presented in accordance with generally accepted accounting principles in the United States, we use adjusted EBITDA, which is a non-U.S GAAP financial measure to clarify and enhance an understanding of past performance.

Reconciliation of Adjusted EBITDA to Net Loss**

(unaudited)