On November 1, 2023, American Well Corp (AMWL, Financial), a leader in hybrid care enablement, announced its financial results for the third quarter ended September 30, 2023. The company reported a net loss of $137.1 million, reflecting non-cash goodwill impairment charges of $78.9 million recorded in the third quarter of 2023 and $27.3 million recorded in the second quarter of 2023.
Financial Performance
The company recorded total revenue of $61.9 million, with subscription revenue of $28.4 million and Amwell Medical Group (“AMG”) visit revenue of $26.7 million. The gross margin stood at 35%. The adjusted EBITDA improved to ($38.5) million compared to ($45.3) million in the second quarter of 2023. Total active providers were 104,000, and total visits were 1.4 million, with visits on Converge growing to 50% of total visits, from 43% in the second quarter of 2023.
Balance Sheet and Cash Flow
As of the end of the quarter, the company had cash and short-term securities of approximately $418.1 million. The net cash used in operating activities for the nine months ended September 30, 2023, was $106.7 million. The company's total assets stood at $635 million, while total liabilities were $115.3 million.
Company's Outlook
For 2023, the company's guidance calls for revenue in line with the prior guidance range of $257 to $263 million, AMG visits between 1.525 and 1.575 million, and a new Adjusted EBITDA range of between ($162) million to ($167) million, compared to previous guidance of ($160) million to ($165) million. This reflects incremental Research and Development investment in Q4 associated with the deployment of the previously announced Defense Health Agency “Digital First” win.
CEO's Commentary
“In Q3, our business moved forward in three important ways. We won a major new opportunity supporting the United States Defense Health Agency’s Digital First initiatives across the Military Health System. We are inspired by this important validation of our Converge™ platform, and the expanded opportunity it affords us,” said Ido Schoenberg, M.D., chairman and CEO of Amwell. “We also accomplished our goal for client migrations and reached our metric of 50% of visits on Converge one quarter ahead of schedule. And we made significant progress in transforming our growth organization to maximize the impact of our new platform.”
Explore the complete 8-K earnings release (here) from American Well Corp for further details.
