American Well Corporation (NYSE:AMWL) Q4 2024 Earnings Conference Call February 12, 2025 5:00 PM ET Company Participants Sue Dooley - Head of Investor Relations Ido Schoenberg - Chairman & Chief Executive Officer Mark Hirschhorn - Chief Financial Officer Conference Call Participants Craig Hettenbach - Morgan Stanley Stan Berenshteyn - Wells Fargo Securities Jailendra Singh - Truist Securities Eric Percher - Nephron Research Charles Rhyee - TD Cowen Matt Shea - Needham & Company Kevin Caliendo - UBS David La ...

American Well Corporation (AMWL) reported $71.01 million in revenue for the quarter ended December 2024, representing a year-over-year increase of 0.5%. EPS of -$2.77 for the same period compares to -$3.40 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $66.57 million, representing a surprise of +6.67%. The company delivered an EPS surprise of +1.77%, with the consensus EPS estimate being -$2.82.While investors closely watch year-over-year changes in headline numbers -- revenue a ...

Digital Care Platform and Market - As of December 31, 2024, Amwell powers digital care programs for approximately 50 health plans covering over 80 million lives and has facilitated more than 33.1 million virtual care visits since inception, including 5.9 million in 2024[19]. - The total addressable market (TAM) for Amwell's hybrid care platform is estimated at approximately $31 billion, projected to grow to roughly $50 billion over the next four years[35]. - The TAM for virtual clinical services offered through Amwell's platform is part of a growing $40 billion virtual care market opportunity[36]. - Amwell's enterprise platform enables a member-centric hybrid care experience, integrating various care modalities including primary, urgent, and behavioral health[21]. - The company has identified over 290 million lives enrolled in insurance plans as potential subscribers to its platform, along with 930 health systems that could benefit from its services[37]. Platform Adoption and User Experience - In Q4 2024, 67% of visits were conducted on the Amwell Converge™ platform, up from 52% in Q4 2023, indicating a significant increase in platform adoption[26]. - The Amwell Converge platform received a patient satisfaction rating of over 90% for the full-year period ended December 31, 2024, reflecting high user approval[31]. - Amwell's platform is designed to be flexible and scalable, allowing clients to expand their hybrid care delivery as their needs evolve[43]. - Amwell's platform enables seamless integration of third-party and first-party applications, enhancing client capabilities and patient care delivery[44]. Services and Technology Integration - The company offers a full suite of value-added services, including licensed medical staffing through AMG, to support clients' hybrid care strategies[34]. - The company is focusing on creating a digital formulary to provide high-quality vetted apps and services, responding to client demand for fewer technology partners[45]. - Amwell's platform integrates with EHR systems like Epic and Oracle Health, streamlining administrative functions and improving workflows for clients[47]. - The platform is built on FHIR standards, ensuring interoperability with healthcare systems and enabling third-party developers to enhance its capabilities[70]. Financial Performance and Client Base - In 2024, the company incurred net losses of $212.6 million, $679.2 million, and $272.1 million for the years ended December 31, 2024, 2023, and 2022, respectively, with an accumulated deficit of $1,965.9 million as of December 31, 2024[153]. - The largest client, Elevance Health, accounted for 27% of total revenue in 2024, with the top ten clients contributing 58% of total revenue[154]. - The company generates most of its revenue from clients purchasing access to its enterprise platform, with contracts typically having initial terms of three years[169]. Research, Development, and Innovation - Amwell's research and development team focuses on enhancing usability, functionality, and performance of products, with development offices in Israel and Colombia[81]. - The company has invested significant resources in research and development to enhance its existing solutions and introduce new products[174]. - The company continues to focus on expanding its services and investing in research and development to increase its client and patient base[153]. Environmental, Social, and Governance (ESG) Initiatives - The company has made significant progress on its ESG goals, reporting on advancements in its 2024 Corporate Responsibility Report[121]. - The company is committed to lowering carbon emissions and the overall environmental impact of healthcare delivery[124]. - The ESG strategy is overseen by a task force comprising experts from various departments and is connected to strategic business initiatives[123]. - The company is focused on three pillars in its ESG approach: People, Products, and Operations[125]. Regulatory and Compliance Challenges - The company is subject to various international privacy and data protection laws, including GDPR and UK GDPR, which impose stringent requirements[112]. - The company must comply with state and federal health information privacy laws, including HIPAA, which establishes standards for the protection of personal health information[103]. - Violations of GDPR or UK GDPR could result in significant regulatory penalties and reputational damage for the company[118]. Operational and Market Risks - The company faces competition from various players, including Teladoc and Amazon, which could lead to pricing pressures and impact sales[162]. - Economic uncertainties could disproportionately affect demand for the company's solutions, impacting revenue and financial results[194]. - The sales cycle for the company's solutions can be long and unpredictable, leading to fluctuations in results of operations[192]. - The company incurs significant upfront costs in client relationships, which must be recovered over time through successful client retention[191]. Workforce and Talent Management - As of December 31, 2024, the company had 877 full-time employees, with 83% based in the United States and women representing nearly 49% of the global workforce[129][130]. - The company has implemented a competitive intern program and partnerships with universities to build a strong talent pipeline[130]. - The company’s total rewards framework includes competitive compensation packages linked to individual and company performance, as well as a robust suite of benefits[132]. Technical and Infrastructure Challenges - The company relies on two geographically dispersed data centers to serve U.S. clients, which may expose it to risks if agreements with data center operators cannot be renewed on commercially reasonable terms[200]. - Security breaches or failures in the company's or third-party vendors' systems could lead to unauthorized access to sensitive data, harming reputation and incurring significant liabilities[207]. - The company must continuously update its information systems to protect against vulnerabilities, with increased risks due to the ongoing conflict in Russia and Ukraine[211].

Exhibit 99.1 AMWELL® ANNOUNCES RESULTS FOR FOURTH QUARTER AND FULL YEAR 2024 BOSTON, Feb. 12, 2025 –Amwell® (NYSE: AMWL), a leading provider of a comprehensive SaaS-based technology-enabled healthcare platform, today announced financial results for the fourth quarter and full year ended Dec. 31, 2024. "During 2024, we advanced our business in ways that put us much closer to unlocking the value of Amwell and advancing our mission to modernize healthcare with our unified platform," said Ido Schoenberg, MD, ch ...

Core Insights - Amwell announced its financial results for Q4 and the full year ended December 31, 2024, highlighting its position as a leading provider of a comprehensive SaaS-based healthcare platform [1] Company Overview - Amwell is recognized as a leading hybrid care delivery enablement platform in the U.S. and globally, connecting providers, payers, patients, and innovators to enhance access to affordable, high-quality care [3] - The company supports digital health needs across various care types, including urgent, acute, post-acute, chronic care management, and healthy living [3] - Amwell has nearly two decades of experience and powers the digital care of 50 health plans, covering over 80 million lives, and collaborates with many of the largest health systems in the nation [3]

Group 1 - Analysts project that American Well Corporation (AMWL) will report a quarterly loss of $2.82 per share, an increase of 17.1% year over year [1] - Revenues for the upcoming quarter are expected to be $66.57 million, reflecting a decline of 5.8% from the same quarter last year [1] - The consensus EPS estimate has remained unchanged over the past 30 days, indicating a reassessment by covering analysts [1] Group 2 - The average prediction for 'Revenue- Platform subscription' is $32.56 million, showing a year-over-year increase of 19.4% [4] - Analysts estimate 'Revenue- Other' will be $8.47 million, indicating a decline of 24.8% year over year [4] - The estimated 'Revenue- Visits' is projected at $25.70 million, reflecting a decrease of 20% from the previous year [4] Group 3 - Over the past month, American Well shares have increased by 33.2%, outperforming the Zacks S&P 500 composite, which rose by 4.2% [5] - Based on its Zacks Rank 3 (Hold), AMWL is expected to perform in line with the overall market in the near future [5]

Company Overview - Amwell is a leading hybrid care delivery enablement platform in the United States and globally, connecting providers, payers, patients, and innovators to enhance access to affordable, high-quality care [3] - The company offers a comprehensive platform that supports various digital health needs, including urgent, acute, post-acute care, chronic care management, and healthy living [3] - Amwell has nearly two decades of experience and powers the digital care of over 50 health plans, representing more than 100 million covered lives, along with many of the largest health systems in the nation [3] Upcoming Earnings Report - Amwell will report its fourth quarter 2024 operating results after stock market trading hours on February 12, 2025 [1] - Following the earnings alert, the management team will host a live conference call and webcast at 5 p.m. ET to review the operating results and provide a general business update [1][2] - The full earnings report and the live audio webcast can be accessed through the Investors section of the company's website, with a replay available for approximately 90 days [2]

Partnership Overview - Vida Health partners with Amwell to provide personalized, high-touch care, aiming to reduce member friction, improve health outcomes, and lower costs [1] - The collaboration integrates Vida's cardiometabolic care solutions, including GLP-1s and anti-obesity medications, into Amwell's platform [7][9] Program Details - The program, Amwell Cardiometabolic Care Powered by Vida, offers a suite of services including obesity, diabetes prevention, management, and behavioral health support [5] - Care is tailored based on social factors such as food security, financial barriers, cultural norms, and beliefs [5] - Vida's services are available alongside Amwell's existing virtual primary care, urgent care, and behavioral health programs [5] Industry Context - Over 40% of American adults struggle with obesity, which increases the risk of diabetes, heart disease, and cancer [1] - Obesity and diabetes collectively cost the U S healthcare system more than $500 billion annually [1] Company Profiles - Amwell is a leading hybrid care delivery platform, connecting providers, payers, patients, and innovators to deliver affordable, high-quality care [6] - Amwell powers digital care for over 50 health plans, representing more than 100 million covered lives [6] - Vida Health is a virtual obesity and metabolic care provider, offering personalized care with a holistic approach combining human care and AI-powered insights [8] - Vida operates on a value-based pricing model, focusing on measurable outcomes and serving members in all 50 states [8] Strategic Impact - The partnership allows Amwell's health plan clients to offer members a single entry point for clinical and behavioral health support related to obesity and related illnesses [9] - Vida's programs adapt to patient needs, providing a personalized, cost-effective approach to weight loss and chronic disease management [9] - Amwell's clinical programs portfolio features virtual and digital care products from partners, offering a unified and comprehensive care model [9]

Company Performance and Financials - American Well is expected to post a quarterly loss of $2 82 per share in its upcoming report representing a year-over-year change of +17 1% [2] - Revenues are expected to be $66 57 million down 5 8% from the year-ago quarter [2] - The consensus EPS estimate for the quarter has remained unchanged over the last 30 days [3] - American Well Corporation (AMWL) shares rallied 18 8% in the last trading session to close at $8 58 [5] Industry and Peer Comparison - American Well is part of the Zacks Medical Info Systems industry [3] - Standard BioTools (LAB) another stock in the same industry closed the last trading session 26 4% higher at $2 06 [3] - LAB has returned -14 7% in the past month [3] - For Standard BioTools the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0 03 representing a change of +62 5% from what the company reported a year ago [4] Strategic Transactions - American Well sold its Amwell Psychiatric Care (APC) business to Avel eCare for approximately $21M in cash at closing and an additional earn-out payment [1] - The transaction will strengthen American Well's balance sheet while emphasizing the focus on growing accretive software contribution in the product mix [1]

Divestment of Amwell Psychiatric Care intended to focus product portfolio on key growth initiatives Company reiterates guidance for 2024 BOSTON, Jan. 09, 2025 (GLOBE NEWSWIRE) -- Amwell® (NYSE: AMWL), a global leader in digital care, today announced it has sold its Amwell Psychiatric Care (APC) business to Avel eCare, a national leading provider of clinician-to-clinician telehealth services. With the divestiture of APC, a virtual psychiatric care service that Amwell purchased in 2019, Amwell continues to s ...