On July 31, 2024, American Well Corp (AMWL, Financial) released its 8-K filing detailing the financial results for the second quarter ended June 30, 2024. American Well Corp, a telehealth company, enables digital delivery of care through its platform, Amwell, which supports health systems, health plans, government, and innovator clients.
Performance and Challenges
American Well Corp (AMWL, Financial) reported total revenue of $62.8 million for Q2 2024, surpassing the analyst estimate of $61.61 million. The company achieved subscription revenue of $27.5 million and Amwell Medical Group (AMG) visit revenue of $28.7 million. Despite these gains, the company reported a net loss of $49.9 million, an improvement from the $73.4 million loss in Q1 2024.
Dr. Ido Schoenberg, Chairman and CEO of Amwell, commented, “In Q2, we drove progress on all fronts. We continued the deployment of our solution for the U.S. Military Health System and our ongoing rigorous cost alignment efforts resulted in an improved outlook for 2024 adjusted EBITDA.”
Financial Achievements
American Well Corp (AMWL, Financial) reported a gross margin of 37% and an adjusted EBITDA of ($35.0) million, compared to ($45.7) million in Q1 2024. The company also recorded 1.5 million total visits, with approximately 70% of these visits conducted on the Converge platform.
Income Statement Highlights
| Metric | Q2 2024 | Q1 2024 |
|---|---|---|
| Total Revenue | $62.8 million | $61.61 million (estimate) |
| Net Loss | ($49.9) million | ($73.4) million |
| Adjusted EBITDA | ($35.0) million | ($45.7) million |
Balance Sheet and Cash Flow
As of June 30, 2024, American Well Corp (AMWL, Financial) reported cash and cash equivalents of $276.9 million, down from $372.0 million at the end of 2023. The company’s total assets stood at $507.8 million, with total liabilities of $129.9 million. The decrease in cash is attributed to net cash used in operating activities amounting to ($81.5) million for the first half of 2024.
Financial Outlook
American Well Corp (AMWL, Financial) issued improved guidance for 2024 Adjusted EBITDA, forecasting a range of ($150) million to ($145) million, up from the previous range of ($160) million to ($155) million. The company reiterated its 2024 revenue guidance of $259 to $269 million and AMG visits between 1.6 and 1.7 million.
Analysis
American Well Corp (AMWL, Financial) continues to show resilience and growth in the telehealth sector, with significant improvements in revenue and adjusted EBITDA. The company's focus on cost alignment and strategic deployments, such as the U.S. Military Health System, positions it well for future growth. However, the persistent net losses highlight the ongoing challenges in achieving profitability in the competitive telehealth market.
For more detailed insights and to access the full earnings report, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from American Well Corp for further details.
