Amwell(AMWL) - 2024 Q1 - Quarterly Results

Q1 2024 Performance Highlights Amwell reported Q1 2024 total revenue of $59.5 million, a net loss of $73.4 million, and Adjusted EBITDA of -$45.7 million, with strategic platform deployment and migration progress Q1 2024 Key Financial and Operational Metrics | Metric | Value | | :--- | :--- | | Total Revenue | $59.5 million | | Subscription Revenue | $24.9 million | | AMG Visit Revenue | $31.1 million | | Gross Margin | 31% | | Net Loss | ($73.4) million | | Adjusted EBITDA | ($45.7) million | | Total Visits | 1.7 million | | Visits on Converge | 68% of total visits | - Strategic advancements in Q1 include completing critical milestones for the Military Health System deployment and migrating a significant portion of visit volume from strategic payer clients onto the Converge platform[1] - The company is focusing on optimizing its cost structure and believes its sales transformation will drive a return to growth[1] Financial Outlook Amwell reiterated its 2024 guidance, provided a preliminary 2025 outlook with higher revenue and improved EBITDA, and aims for Adjusted EBITDA breakeven by 2026 Full-Year 2024 Financial Guidance | Metric | 2024 Guidance | | :--- | :--- | | Revenue | $259M - $269M | | AMG Visits | 1.6M - 1.7M | | Adjusted EBITDA | ($160)M - ($155)M | Preliminary 2025 Financial Outlook | Metric | 2025 Preliminary View | | :--- | :--- | | Revenue | $335M - $350M | | Adjusted EBITDA | ($45)M - ($35)M | - The company has a stated objective to achieve Adjusted EBITDA breakeven in 2026[3] Consolidated Financial Statements Consolidated financial statements show decreased total assets, a $73.4 million net loss (improved year-over-year), and increased net cash used in operating activities Condensed Consolidated Balance Sheets The balance sheets reflect a decrease in total assets to $548.4 million from $589.7 million, driven by reduced cash and cash equivalents Condensed Consolidated Balance Sheets (in thousands) | Balance Sheet Item | March 31, 2024 (in thousands) | December 31, 2023 (in thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | $308,599 | $372,038 | | Total current assets | $414,197 | $449,582 | | Total assets | $548,383 | $589,705 | | Total current liabilities | $108,426 | $93,797 | | Total liabilities | $125,025 | $109,519 | | Total stockholders' equity | $423,358 | $480,186 | Condensed Consolidated Statements of Operations Q1 2024 statements of operations show a $73.4 million net loss, a significant improvement from Q1 2023 due to the absence of goodwill impairment Condensed Consolidated Statements of Operations (in thousands) | Income Statement Item | Three Months Ended Mar 31, 2024 (in thousands) | Three Months Ended Mar 31, 2023 (in thousands) | | :--- | :--- | :--- | | Revenue | $59,522 | $64,001 | | Loss from operations | ($75,032) | ($397,322) | | Net loss | ($73,449) | ($398,509) | | Net loss per share | ($0.25) | ($1.42) | - The significant decrease in net loss year-over-year is primarily due to a $330.3 million goodwill impairment charge recorded in the first quarter of 2023, which was not repeated in 2024[12] Condensed Consolidated Statements of Cash Flows Q1 2024 cash flow statements show increased net cash used in operating activities to $59.8 million, resulting in a $63.4 million net decrease in cash Condensed Consolidated Statements of Cash Flows (in thousands) | Cash Flow Item | Three Months Ended Mar 31, 2024 (in thousands) | Three Months Ended Mar 31, 2023 (in thousands) | | :--- | :--- | :--- | | Net cash used in operating activities | ($59,756) | ($29,148) | | Net cash used in investing activities | ($4,608) | ($397,739) | | Net cash provided by financing activities | $956 | $1,556 | | Net decrease in cash | ($63,439) | ($425,659) | Non-GAAP Financial Measures Amwell uses Adjusted EBITDA, a non-GAAP financial measure, to evaluate operating performance by adjusting net loss for various non-cash and non-recurring items - Adjusted EBITDA is defined as net loss adjusted to exclude interest income, taxes, depreciation and amortization, goodwill impairment, stock-based compensation, severance/strategic transformation costs, and capitalized software costs[16] Reconciliation of Net Loss to Adjusted EBITDA The reconciliation details adjustments from net loss to Adjusted EBITDA, showing Q1 2024 Adjusted EBITDA at -$45.7 million, an increase from Q4 2023 Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | Reconciliation Item (in thousands) | Q1 2024 | Q1 2023 | Q4 2023 | | :--- | :--- | :--- | :--- | | Net loss | ($73,449) | ($398,509) | ($50,043) | | Depreciation and amortization | $8,238 | $7,243 | $8,265 | | Interest income and other income (expense), net | ($3,784) | ($940) | ($8,172) | | Expense from income taxes | $1,275 | $1,475 | $547 | | Goodwill impairment | — | $330,309 | — | | Stock-based compensation | $16,228 | $20,997 | $12,631 | | Severance and strategic transformation costs | $8,659 | $1,575 | $1,074 | | Capitalized software costs | ($2,818) | ($6,751) | ($1,220) | | Adjusted EBITDA | ($45,651) | ($44,601) | ($36,918) |