Amwell(US:AMWL)2022-08-04 16:00Financial Performance - Total subscription fees for Q2 2022 were $29.6 million, up from $26.8 million in Q2 2021, representing a 10.4% increase [118]. - AMG-related visit fees for Q2 2022 were $29.7 million, compared to $27.5 million in Q2 2021, marking an 8.0% increase [124]. - For the three months ended June 30, 2022, revenue increased by $4.3 million (7%) to $64.5 million compared to $60.2 million in the same period of 2021 [159]. - Subscription revenue for the three months ended June 30, 2022, increased by $2.8 million, driven by expanded use of the Amwell Platform by existing customers [160]. - Total costs and operating expenses for the three months ended June 30, 2022, increased by $36.2 million (37%) to $133.9 million compared to $97.8 million in the same period of 2021 [159]. - Net loss for the six months ended June 30, 2022, was $139.9 million, compared to a net loss of $77.9 million for the same period in 2021, reflecting an increase of $62 million (80%) in losses [170]. - Adjusted EBITDA for the three months ended June 30, 2022, was $(42,804) thousand, compared to $(23,652) thousand for the same period in 2021, indicating a worsening performance [142]. - The net loss for the three months ended June 30, 2022, was $(69,652) thousand, compared to $(38,136) thousand for the same period in 2021 [142]. Operational Metrics - Total visits on the Amwell Platform reached 3.3 million in the six months ended June 30, 2022, up from 2.9 million in the same period of 2021, reflecting a 13.8% increase [132]. - Scheduled visits increased to 2.4 million in the six months ended June 30, 2022, compared to 2.1 million in the same period of 2021, a rise of 14.3% [132]. - The Amwell Platform powered over 17.7 million telehealth visits since inception, with 3.3 million visits in the six months ended June 30, 2022 [113]. - Total overall visits for the quarter ended June 30, 2022, were 1,525,000, a decrease of 14% from 1,775,000 in the previous quarter [133]. - The number of total active providers increased to 103,500 as of June 30, 2022, up from 102,000 in the previous quarter, representing a growth of 1.5% [135]. - Approximately 12,000 active providers were added to the Amwell Platform in the current quarter, all from health system and health plan customers [134]. Expenses and Investments - Research and development expenses for the three months ended June 30, 2022, increased by $13.9 million (29%) to $36.5 million, primarily due to increased consulting services and employee-related costs [162]. - Sales and marketing expenses for the three months ended June 30, 2022, increased by $14.7 million (66%) to $37.1 million, driven by higher employee-related costs and marketing campaigns [163]. - Cash used in operating activities for the six months ended June 30, 2022, was $105.4 million, primarily driven by the net loss of $139.9 million [172]. - Cash used in investing activities for the six months ended June 30, 2022, was $376.3 million, primarily due to purchases of short-term investments [177]. Cash and Liquidity - The company had cash, cash equivalents, and short-term investments totaling $630.1 million as of June 30, 2022, down from $746.4 million as of December 31, 2021 [170]. - The company expects existing cash and cash equivalents to be sufficient to meet working capital and capital expenditure needs for at least the next 12 months [171]. - As of June 30, 2022, the company had cash and cash equivalents totaling $257.2 million, down from $746.4 million as of December 31, 2021 [186]. - The company held investments totaling $372.9 million as of June 30, 2022, with no investments held as of December 31, 2021 [186]. Market and Regulatory Environment - The company aims to grow its market share in telehealth, driven by increased adoption and utilization of its platform [130]. - The regulatory environment remains uncertain post-COVID-19, with potential reinstatement of restrictions that could adversely affect business operations [136]. - The company does not believe that a 100 basis point change in interest rates would materially affect its financial condition or results of operations [187]. - A substantial majority of the company's revenue has been denominated in U.S. dollars, with limited operations outside the United States [188]. - The company may consider international expansion in the future, which could increase exposure to foreign currency exchange risk [188]. - The company does not believe inflation had a material effect on its business in the last two years [189]. Strategic Developments - The recent acquisitions of SilverCloud and Conversa enhance the platform's capabilities in behavioral healthcare and automated virtual healthcare [128]. - Subscription contracts typically last three years, with potential for longer terms for strategic partners, allowing for revenue growth as clients expand usage [117]. - The company’s accounting estimates may change as new events occur and as the operating environment evolves [181]. - There have been no material changes to the company's contractual obligations and commitments as of June 30, 2022 [180].