Amwell� Announces Results for Third Quarter 2020
Amwell® Announces Results for Third Quarter 2020
November 12, 2020
Total active providers of approximately 62,000 at the end of the third quarter increased 930% compared to a year ago
Total visits of 1,414,000 in the third quarter increased 450% compared to a year ago
Revenue of $62.6 million in the third quarter increased 80% compared to a year ago
Announced new products: Amwell Now, Touchpoint Tablet software, and C500 telemedicine cart
Provides initial 2020 guidance
BOSTON--(BUSINESS WIRE)-- Amwell (NYSE: AMWL) (the "Company") a national telehealth leader, today announced financial results for the third quarter ended September 30, 2020.
“We are pleased to announce that third quarter results reflect our business’ momentum and ongoing role in responding to the continued, widespread demand for telehealth infrastructure. Our platform’s unique ability to simplify high-quality, virtual care delivery that supports existing patient-physician relationships differentiates us in the growing market,” said Ido Schoenberg, Chairman and Co-CEO.
Dr. Schoenberg continued, “During the quarter, we expanded the number of entry points to our ecosystem connectivity platform in order to simplify access to telehealth and enhance our partners’ user experience. We now look to end the year with accelerated momentum as our story evolves in the public markets.”
Third quarter 2020 Financial Highlights:
All comparisons, unless otherwise noted, are to the three months ended September 30, 2019.
- Total active providers were ~62,000, compared to ~6,000
- 450% visit growth driven by provider clients accelerated adoption of our platform
- Total visits were ~1,414,000, compared to 255,000
- Amwell Medical Group™ (AMG) visits were ~378,000 or 27% of total visits, compared to ~159,000 or 62% of total visits
- Total Revenue was $62.6 million, compared to $34.7 million
- Subscription revenue was $25.8 million, compared to $22.0 million
- Visit revenue was $28.5 million, compared to $7.2 million
- Gross margin was 32.7%, compared to 45.1% impacted by low margin AMG visit growth during COVID
- Net loss was $(64.6) million, compared to $(24.1) million
- Adjusted EBITDA was $(26.2) million, compared to $(20.3) million
- Cash and Short-term securities as of quarter-end were $1.1 billion
Financial Outlook
For 2020, the company expects:
- Revenue between $235 and $239 million
- Adjusted EBITDA between ($110) million and ($105) million
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. For more information please visit https://business.amwell.com/.
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.
Reconciliation of Adjusted EBITDA to Net Loss (unaudited)
| Three months ended September 30 | Nine months ended September 30 | |||
|---|---|---|---|---|
| (in thousands) | 2020 | 2019 | 2020 | 2019 |
| Net loss | $(64,596) | $(24,071) | $(178,040) | $(65,643) |
| Add: | ||||
| Depreciation and amortization | 2,576 | 1,868 | 7,371 | 5,668 |
| Interest and other income, net | (255) | (1,286) | (1,410) | (4,547) |
| Expense (Benefit) from income taxes | 78 | (392) | 330 | (22) |
| Stock-based compensation | 34,420 | 3,604 | 106,516 | 8,675 |
| Initial public offering expenses | 1,362 | — | 2,039 | 6 |
| Acquisition-related expenses | — | — | (48) | 95 |
| COVID-19-related expenses(1) | 191 | — | 5,933 | — |
| Adjusted EBITDA | $(26,224) | $(20,277) | $(57,309) | $(55,768) |
(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.