Q3 2024 American Well Corp Earnings Call Transcript
Key Points
- American Well Corp (AMWL) announced a significant milestone in modernizing the military health system for the Defense Health Agency, with plans for enterprise-wide deployment by the end of 2024.
- The company has aligned its cost structure to focus on efficiency and effectiveness, resulting in improved EBITDA guidance for 2024.
- AMWL has positioned its growth organization to deliver high-quality growth in 2025, with a focus on higher-margin revenue.
- The company reported strong client satisfaction, with patient and provider ratings across converged deployments remaining well over 90%.
- AMWL ended the third quarter with a strong balance sheet, holding $245 million in cash and marketable securities and no debt.
- Total revenue for the third quarter was flat compared to the previous year, with subscription revenue down 5% from the last quarter.
- The company experienced a 4.6% decline in visit volumes compared to the previous year, with expectations for this softness to continue into Q4.
- AMWL revised its 2024 revenue guidance downward due to ongoing softness in visits and client execution challenges.
- The company faces execution risks in achieving its target of being cash flow positive by 2026, particularly in terms of revenue growth and cost management.
- There is a competitive landscape challenge, as other vendors are providing similar services to AMWL's clients, potentially impacting market share.
Ladies and gentlemen, good afternoon. My name is Abby and I will be your conference operator today.
At this time, I would like to welcome everyone to the Amwell third quarter, 2024 earnings call.
All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session and if you would like to ask a question during that time, simply press the star key, followed by the number one on your telephone keypad.
If you would like to withdraw your question, press star one a second time we ask that you do. Please limit yourself to one question.
Thank you. And I would now like to hand the call over to Sue Dooley head of investor relations with Amwell. You may begin.
Hello, everyone. Welcome to Amwell's conference call to discuss our third fiscal quarter of 2024. This is Sue Dooley of Amwell investor relations. And joining me today are Amwell's Chairman and CEO Dr Ito Sberg and Mark Hirshorn. Our CFO earlier today, we
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