Amwell’s Q3 2024: Strategic Focus Amid Revenue Challenges

American Well Corporation ( (AMWL) ) has realeased its Q3 earnings. Here is a breakdown of the information American Well Corporation presented to its investors.

American Well Corporation, also known as Amwell, is a prominent provider in the healthcare industry, specializing in hybrid care delivery platforms that facilitate digital health services for providers, payers, patients, and innovators across the United States and globally.

In its latest third-quarter financial report for 2024, Amwell highlighted a strategic focus on achieving cash flow positivity by aligning its cost structure for enhanced efficiency, while also expanding its growth organization. The company also emphasized its ongoing collaboration with Leidos to implement the Defense Health Agency’s Digital First Initiative.

Amwell reported a total revenue of $61 million for the third quarter, with subscription revenue contributing $26.2 million and Amwell Medical Group visit revenue accounting for $27.5 million. The company’s gross margin stood at 37%, and it recorded a net loss of $44 million, an improvement from the previous quarter’s $49.9 million loss. The adjusted EBITDA also improved to a loss of $31 million from $35 million in the second quarter. Total visits were 1.4 million, with 70% occurring on the Converge platform.

Looking forward, Amwell has revised its revenue guidance to a range of $247 to $252 million, slightly lower than previously anticipated. However, the company has improved its adjusted EBITDA forecast, indicating a more favorable financial outlook than earlier guidance. Amwell continues to focus on its strategic initiatives to drive higher-margin growth and enhance customer satisfaction.

Overall, Amwell remains committed to transforming healthcare through its hybrid care model and aims to capitalize on opportunities to expand its digital health solutions, despite the current financial challenges and adjustments to its financial projections.