Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $66.8 million, a 12% increase compared to Q1 2024, and a 25% increase when normalizing for the sale of Amwell Psychiatric Care [21] - Subscription software revenue accounted for 48% of total revenue at $32.2 million, up 30% year-over-year [22] - Adjusted EBITDA improved to negative $12.2 million, compared to negative $45.6 million in Q1 2024, indicating a significant reduction in losses [26] Business Line Data and Key Metrics Changes - The number of completed visits in Q1 was approximately 1.3 million, which is about 23% lower than the previous year, but normalized for APC, it was 21% lower [22] - AMG's visit revenue trended 14.3% lower than last year at $26.6 million, but normalized for APC, visits were higher by 6.6% [23] - CarePoint revenue increased to $8 million from $4.9 million in the previous quarter, reflecting variable revenues due to consumer buying patterns [24] Market Data and Key Metrics Changes - The military health system is now fully utilizing Amwell's platform for virtual visits, positioning the company strongly in the federal market [10] - Patient and provider satisfaction on the platform is reported at over 90% [11] - The company anticipates a significant shift towards technology-enabled care as consumer demand for online services increases [14] Company Strategy and Development Direction - The company aims to achieve positive cash flow from operations by 2026, focusing on increasing the mix of subscription software revenues [20] - Amwell is positioned as a key enabler in the shift towards technology-enabled care, providing a unified platform for payers and providers [15] - The company is committed to driving efficiencies and optimizing cash flow while expanding its market reach [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing partnership with the DHA and the renewal of the contract with Leidos, indicating a strong future outlook [29] - The company is optimistic about its ability to navigate macroeconomic challenges, viewing its platform as a solution for efficiency and cost savings [48] - Management highlighted the importance of their unique offerings in a growing market, with expectations for continued growth and expansion [19] Other Important Information - The company ended Q1 2025 with $222 million in cash and marketable securities and zero debt [26] - The guidance for 2025 remains unchanged, with expected revenue in the range of $250 million to $260 million, excluding anticipated revenue from APC [27] Q&A Session Summary Question: Can you talk about bookings trends for CONVERGE and the impact of Dan's hire? - Management noted good receptivity to the AMOLED platform beyond DHA, with a focus on improving consumer experience and data infrastructure [35] Question: Is the current gross margin rate sustainable for the rest of the year? - Management indicated that gross margins should improve as software revenues increase, with expectations of reaching 75-90% margins [42] Question: Have macroeconomic factors impacted sales timelines? - Management acknowledged market uncertainty but noted that their platform is seen as part of the solution, leading to an acceleration in interest [48] Question: What is the status of the DHA contract and other government opportunities? - Management expects no significant changes in the economics of the DHA contract and highlighted their successful execution as a competitive advantage for future opportunities [55] Question: What is the company's exposure to tariffs? - Management stated that direct exposure to tariffs is minimal, as most software is developed in the U.S., and emphasized the platform's ROI for clients [58] Question: How is churn being managed, and what is the outlook for the selling season? - Management reported lower-than-expected churn and noted increased interest from both payers and health systems, indicating a positive outlook for the selling season [83]

Financial Performance - Total subscription fees received were $32.2 million for the three months ended March 31, 2025, compared to $24.9 million for the same period in 2024, representing a 29.2% increase [98]. - For the three months ended March 31, 2025, the company reported revenue of $66.8 million, a 12% increase from $59.5 million in the same period of 2024, driven by subscription revenue growth and professional services [142]. - The company recorded a net loss of $18.4 million for the three months ended March 31, 2025, a 75% reduction compared to a net loss of $73.4 million in the same period of 2024 [142]. - Adjusted EBITDA for the three months ended March 31, 2025, was $(12.2) million, an improvement from $(45.7) million in the same period of 2024, reflecting operational efficiencies [121]. - The company incurred a loss from operations of $30.4 million for the three months ended March 31, 2025 [156]. - Cash used in operating activities was $25.1 million for the three months ended March 31, 2025, a decrease from $59.8 million in the same period in 2024 [159][160]. - The company expects to generate operating losses in future periods and may require additional equity or debt financing [158]. Client Engagement - Clients completed a total of 1.3 million visits using the enterprise software in the three months ended March 31, 2025, down from 1.7 million visits in the same period in 2024, indicating a 23.5% decrease [115]. - AMG providers accounted for 29% of total visits performed using the enterprise software in the three months ended March 31, 2025, compared to 24% in the same period in 2024 [115]. - The company has powered approximately 34.4 million virtual care visits since inception, with 1.3 million visits in the three months ended March 31, 2025 [93]. Revenue Sources - Fees received from AMG-related visits were $26.6 million for the three months ended March 31, 2025, down from $31.1 million in the same period in 2024, reflecting a 14.4% decline [108]. - Fees received from the provision of services and Carepoint devices were $8.0 million for the three months ended March 31, 2025, compared to $3.6 million in the same period in 2024, showing a 122.2% increase [112]. - Subscription revenue increased by $7.3 million due to timing of revenue recognition with strategic customers, while visit revenue decreased by $6.1 million due to the sale of APC [143]. Cost Management - Costs of revenue decreased by 23% to $31.6 million for the three months ended March 31, 2025, down from $41.2 million in 2024, primarily due to a reduction in provider costs following the sale of APC [142]. - Research and development expenses decreased by 17% to $22.1 million for the three months ended March 31, 2025, compared to $26.7 million in 2024, as the company optimizes its cost structure [142]. - Sales and marketing expenses saw a significant decrease of 51%, totaling $12.6 million for the three months ended March 31, 2025, down from $25.7 million in 2024, reflecting cost-saving measures [142]. - The company incurred severance and strategic transformation costs of $3.5 million in the three months ended March 31, 2025, compared to $8.7 million in the same period in 2024 [123]. - General and Administrative expenses decreased by $6.9 million, primarily due to a 25% reduction in headcount and decreased stock compensation [147]. Strategic Initiatives - The Amwell Converge™ platform is designed to support a hybrid care delivery model, integrating in-person, virtual, and automated care experiences [94]. - As of December 31, 2024, Amwell powered digital care programs for approximately 50 health plans, representing over 80 million covered lives [93]. - The company achieved a gain on divestiture of $10.7 million related to the sale of the APC Business, which was completed to streamline operations and focus on the Converge platform [140]. - The company expects research and development expenses to decrease over the next year and remain flat in future periods, aligning with its revenue growth strategy [132]. - Research and Development expenses decreased by $2.0 million due to an 8% reduction in headcount and lower stock compensation [145]. - Sales and Marketing expenses decreased by $7.9 million, driven by a 34% reduction in headcount and cost-saving measures [146]. Tax and Cash Position - Income tax expense was $0.6 million for the three months ended March 31, 2025, compared to $1.3 million for the same period in 2024 [151]. - Cash provided by investing activities was $19.4 million for the three months ended March 31, 2025, primarily from proceeds of $20.4 million from divestiture [161]. - The company had cash and cash equivalents of $222.4 million as of March 31, 2025, down from $228.3 million as of December 31, 2024 [155][170].

Financial Performance - Total revenue for Q1 2025 was $66.8 million, an increase from $59.5 million in Q1 2024[16] - Subscription revenue reached $32.2 million, while Amwell Medical Group visit revenue was $26.6 million[8] - Gross margin reported at 53%[8] - Net loss narrowed to $18.4 million compared to a net loss of $44.6 million in Q4 2024[8] - Adjusted EBITDA improved to a loss of $12.2 million from a loss of $22.8 million in Q4 2024[8] - Net loss for the three months ended March 31, 2025, was $18,356 thousand, a significant improvement from a net loss of $73,449 thousand in the same period of 2024, representing a reduction of approximately 75%[18] - Adjusted EBITDA for the three months ended March 31, 2025, was $(12,238) thousand, compared to $(45,651) thousand in the same period of 2024, indicating a 73% improvement year-over-year[24] Cash Flow and Liquidity - Cash flows from operating activities resulted in a net cash outflow of $25,108 thousand for Q1 2025, down from $59,756 thousand in Q1 2024, reflecting a 58% decrease in cash used[18] - Total cash, cash equivalents, and restricted cash at the end of Q1 2025 was $223,206 thousand, down from $309,394 thousand at the end of Q1 2024, a decrease of approximately 28%[18] - Cash paid for income taxes in Q1 2025 was $827 thousand, up from $630 thousand in Q1 2024, reflecting a 31% increase[18] Operational Metrics - Total visits for the quarter were 1.3 million, with projected AMG visits between 1.3 and 1.35 million[8] - The company reiterated its 2025 revenue guidance in the range of $250 to $260 million[8] - Q2 2025 revenue is expected to be between $62 million and $67 million, with adjusted EBITDA projected to be between ($12) million and ($10) million[8] Cost Management - Significant progress was made in revenue quality and cost alignment measures, targeting margin expansion for the year[3] - Stock-based compensation expense decreased to $7,339 thousand in Q1 2025 from $16,238 thousand in Q1 2024, a reduction of about 55%[18] - The company incurred $3,465 thousand in severance and strategic transformation costs in Q1 2025, compared to $8,659 thousand in Q1 2024, marking a 60% decrease[24] Revenue Recognition - Deferred revenue increased by $3,525 thousand in Q1 2025, compared to an increase of $14,589 thousand in Q1 2024, indicating a slowdown in revenue recognition[18] - The company reported a net gain on divestiture of $10,713 thousand in Q1 2025, which was not present in Q1 2024[18] - The company reported a decrease in accounts receivable by $6,120 thousand in Q1 2025, compared to a decrease of $27,506 thousand in Q1 2024, indicating a change in collection efficiency[18]

Core Insights - Amwell, a leading provider of a comprehensive SaaS-based technology-enabled healthcare platform, announced its financial results for the first quarter ended March 31, 2025 [1] Company Overview - Amwell offers a single, comprehensive, technology-enabled care platform for payers and health systems, enhancing patient access to convenient, affordable, and effective care [3] - The platform includes software and services that support various clinical programs, providing unified, personalized access to diversified clinical programs across the care continuum [3] - Amwell has been operational for almost two decades, serving some of the largest healthcare organizations in the U.S. and worldwide, enabling care for millions of patients [3]

Company Overview - Amwell is a leading provider of a comprehensive SaaS-based software platform for technology-enabled healthcare, offering a unified care platform for payers and health systems [1] - The platform enhances patient access to convenient, affordable, and effective care, integrating various clinical programs [1] - Amwell has been operational for almost two decades, serving major healthcare organizations in the U.S. and globally [1] Upcoming Events - Mark Hirschhorn, CFO and COO of Amwell, will participate in one-on-one meetings at the Needham & Co. Virtual Technology and Services Conference on May 8 [4] - On June 24, Hirschhorn will also participate in the Truist Securities Healthcare Disruptors & Digital Health Conference in New York City [4]

Core Insights - Amwell will report its first quarter 2025 operating results on May 1, 2025, after stock market trading hours [1] - A live conference call and webcast will be held at 5 p.m. ET to discuss the operating results and provide a business update [1][2] Company Overview - Amwell provides a comprehensive, technology-enabled care platform for payers and health systems, enhancing patient access to convenient and effective care [3] - The platform includes software and services that support various clinical programs, allowing for personalized access across the care continuum [3] - Amwell has been operational for nearly two decades, serving major healthcare organizations in the U.S. and globally [3]

Company Announcement - Amwell granted 220,844 restricted stock units (RSUs) to Dan Zamansky as an inducement for his employment as chief product and technology officer [1] - The RSUs will vest 25% on the six-month anniversary of the grant date, with the remaining 75% vesting in equal increments every three months over four years [1] - If Zamansky's employment is terminated without cause or for good reason, a portion of the RSUs will vest based on the time he would have remained employed [1] Compensation Committee Approval - The RSU grant was approved by Amwell's Compensation Committee under the Inducement Plan and in accordance with NYSE's Listed Company Manual Rule 303A.08 [2] Company Overview - Amwell provides a comprehensive, technology-enabled care platform for payers and health systems, enhancing patient access to affordable and effective care [3] - The platform supports various clinical programs and aims to deliver integrated, future-ready solutions for millions of patients [3] - Amwell has been serving major healthcare organizations in the U.S. and globally for nearly two decades [3]

Core Insights - Amwell has appointed Dan Zamansky as the new chief product and technology officer, effective immediately, to enhance its technology-enabled care platform [1][2] - Zamansky's focus will be on improving access to convenient, affordable, and effective care through Amwell's comprehensive platform for payers and health systems [2][4] - He brings over a decade of experience from Amazon, where he led initiatives in product management and technology, including founding AWS Health AI [3][4] Company Overview - Amwell provides a single, comprehensive technology-enabled care platform that enhances patient access to diverse clinical programs [5] - The platform is designed to deliver integrated, future-ready solutions, operating at a large scale to serve millions of patients [5] - Amwell has been a key player in the healthcare sector for nearly two decades, partnering with some of the largest healthcare organizations in the U.S. and globally [5]

Core Points - Amwell granted RSUs covering 16,737 shares of its Class A common stock to four new employees as an inducement for their employment [1][2] - The RSUs will vest 25% on the first anniversary of the grant date, with the remaining 75% vesting in equal increments every three months over three years [1] - The grants were approved by the Compensation Committee under Amwell's Inducement Plan and comply with NYSE's Listed Company Manual Rule 303A.08 [2] Company Overview - Amwell provides a comprehensive, technology-enabled care platform for payers and health systems, enhancing patient access to affordable and effective care [3] - The platform supports various clinical programs and offers integrated solutions for patients seeking care online, operating at a large scale to serve millions [3] - Amwell has been serving major healthcare organizations in the U.S. and globally for nearly two decades [3]

Company Overview - Amwell is a leading provider of a comprehensive SaaS-based technology-enabled healthcare platform, offering payers and health systems a unified care platform [2] - The platform enhances patient access to convenient, affordable, and effective care, integrating various clinical programs [2] - Amwell has been operational for almost two decades, serving major healthcare organizations in the U.S. and globally [2] Upcoming Events - Amwell will participate in the TD Cowen 24th Annual Health Care conference in Boston on March 4, 2025 [1] - Ido Schoenberg, M.D., the chairman and CEO of Amwell, will engage in a fireside chat at 9:10 a.m. ET, with an audio webcast available for investors [1]