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AMWELL ANNOUNCES RESULTS FOR FIRST QUARTER 2023

BOSTON, May 3, 2023 --(BUSINESS WIRE)-- Amwell ® (NYSE: AMWL), a leader in digital healthcare enablement, today announced financial results for the first quarter ended March 31, 2023.

Amwell First Quarter 2023 Highlights:

• Recorded Total Revenue of $64.0 million
o Achieved subscription revenue of $28.7 million
o Recorded AMG Visit revenue of $32.5 million

• Reported gross margin of 39.5%

• Net loss was ($398.5) million, compared to ($61.6) million in fourth quarter of 2022 which reflects a non-cash goodwill impairment charge of $330.3 million recorded in the first quarter of 2023

• Adjusted EBITDA was ($44.6) million compared to ($43.4) million in fourth quarter of 2022

• Total active providers rose 8% to 108,000 compared to 100,000 in the first quarter of 2022

• Total visits were 1.7 million; visits on Converge grew to 36% of total visits, from 28% in fourth quarter of 2022

• Cash and short-term securities as of quarter-end were approximately $507.2 million

"Q1 was a very busy quarter for our company, one that provided a strong start to the year," said Dr. Ido Schoenberg, Chairman and CEO of Amwell. "We made great progress with customer migrations and strategic clients went live on Converge, our unique, one-stop-shop, hybrid care enablement platform. These successes provide valuable, in-market validation of the power and scale of Converge. Converge streamlines the simple, cohesive, and efficient delivery of hybrid healthcare. We also had a successful quarter of initiatives aimed at accelerating our momentum in the market."

Schoenberg continued, "With an expanding stable of reference accounts, we are demonstrating our role as an enabling partner for healthcare leaders, empowering hybrid, digital-first approaches to healthcare as they converge and consolidate their own transformative strategies."

Financial Outlook

The Company reiterated its guidance, which calls for:

• Revenue in the range of $275 and $285 million
• AMG visits between 1.45 and 1.65 million
• An Adjusted EBITDA range of between ($150) million and ($160) million

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.

Quarterly Conference Call Details

The company will host a conference call to review the results today, Wed., May 3, 2023 at 5:00 p.m. E.T. to discuss its financial results. The call can be accessed via a live audio webcast. A replay of the call will be available via webcast for on-demand listening shortly after the completion of the call, 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.

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.

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

March 31, 2023 December 31, 2022
Assets
Current assets:
Cash and cash equivalents $112,887 $538,546
Investments 394,309 -
Accounts receivable 55,871 58,372
Inventories 8,438 8,737
Deferred contract acquisition costs 1,472 1,394
Prepaid expenses and other current assets 15,275 19,567
Total current assets 588,252 626,616
Restricted cash 795 795
Property and equipment, net 719 1,012
Goodwill 106,707 435,279
Intangible assets, net 135,401 134,980
Operating lease right-of-use asset 12,609 13,509
Deferred contract acquisition costs, net of current portion 3,645 3,394
Other assets 2,199 1,972
Investment in minority-owned joint venture 178 -
Total assets 850,505 1,217,557
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $7,050 $7,236
Accrued expenses and other current liabilities 39,922 54,258
Operating lease liability, current 3,011 3,057
Deferred revenue 65,607 49,505
Total current liabilities 115,590 114,056
Other long-term liabilities 1,611 1,574
Operating lease liability, net of current portion 10,850 11,787
Total liabilities 8,178 6,289
Stockholders' equity:
Common stock, $0.01 par value; 1,000,000,000 Class A shares authorized 2,801 2,766
Additional paid-in capital 2,182,627 2,160,108
Accumulated other comprehensive income (10,588) (16,969)
Accumulated deficit (1,479,717) (1,082,028)
Total stockholders' equity 714,276 1,083,851
Total liabilities and stockholders' equity $850,505 $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 March 31,
2023 2022
Revenue
$64,001 $64,232
Costs and operating expenses:
Costs of revenue, excluding depreciation and amortization of intangible assets 38,752 36,765
Research and development 25,923 37,481
Sales and marketing 22,726 21,154
General and administrative 36,370 32,716
Depreciation and amortization expense 7,243 6,598
Goodwill Impairment 330,309 —
Total costs and operating expenses 461,323 134,714
Loss from operations (397,322) (70,482)
Interest income and other income (expense), net 940 108
Loss before expense from income taxes and loss from equity method investment (396,382) (70,374)
(Expense) Benefit from income taxes (1,475) 332
Loss from equity method investment (652) (211)
Net loss (398,509) (70,253)
Net loss per share attributable to common stockholders, basic and diluted $(1.42) $(0.26)

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

Three Months Ended March 31,
2023 2022
Cash flows from operating activities:
Net loss $ (398,509) $ (70,253)
Adjustments to reconcile net loss to net cash used in operating activities:
Goodwill impairment 330,309 —
Depreciation and amortization expense 7,242 6,598
Changes in operating assets and liabilities, net of acquisition:
Accounts receivable 2,340 4,290
Inventories 299 (495)
Net cash used in operating activities (29,148) (62,191)

Non-GAAP Financial Measures:

To supplement our financial information presented in accordance with generally accepted accounting principles, we use adjusted EBITDA, which is a non-U.S GAAP financial measure to clarify and enhance an understanding of past performance. We calculate adjusted EBITDA as net loss adjusted to exclude certain items that we believe are not representative of our core business.

Three Months Ended March 31,
(in thousands) 2023 2022
Net loss $ (398,509) $ (70,253)
Add:
Depreciation and amortization 7,243 6,598
Goodwill Impairment 330,309 —
Adjusted EBITDA $(44,601) $(47,135)