Amwell(US:AMWL)2025-05-01 20:13Financial 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].