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American Well (AMWL)
NYSE:AMWL
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American Well
(NYSE:AMWL)
46Neutral
Positive Factors
Contract Developments
DHA deployment is progressing smoothly, and AMWL is confident about getting the 3-year extension for the contract, with potential revenue worth $80M.
Cost Management
AMWL is actively taking costs out of the business, expecting R&D expense to be down 10%+ y/y, sales and marketing expense down ~25% y/y, and G&A expense down 20%+ y/y.
Financial Performance
Amwell posted a beat on the top and bottom line in Q4, with revenue above the Street estimate and an EBITDA loss better than expected.
Negative Factors
Client Churn
Provider visits of ~1.4M were down -13% y/y in 4Q:24 due to the churn of a few large clients.
Revenue Growth Challenges
Slower revenue growth is causing break-even EBITDA timing to be longer than expected.
Revenue Guidance
The latest earnings report showed a materially weaker than expected topline guide for FY25, coming in nearly 20% below consensus expectations.
American Well (AMWL) vs. S&P 500 (SPY)
Market Cap
$108.96M
Dividend YieldN/A
Average Volume (3M)46.98K
Price to Earnings (P/E)―
Beta (1Y)2.31
Revenue Growth-1.81%
EPS Growth70.88%
CountryUS
Employees877
SectorHealthcare
Sector Strength66
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)-13.94
Shares Outstanding13,962,695
10 Day Avg. Volume39,264
30 Day Avg. Volume46,978
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.48
Price to Cash Flow (P/CF)-2.30
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$11.00Price Target Upside57.59% Upside
Rating ConsensusHold
Number of Analyst Covering7
American Well Business Overview & Revenue Model
Company DescriptionAmerican Well (AMWL), commonly known as Amwell, is a leading telehealth company that operates within the healthcare sector. The company provides a digital platform that connects healthcare providers, insurers, and patients, facilitating virtual healthcare visits through video, phone, and secure messaging. Amwell's core services include telemedicine consultations, digital care delivery, and comprehensive telehealth solutions for hospitals and health systems, health plans, and employers.
How the Company Makes MoneyAmwell primarily generates revenue through a subscription-based model, where healthcare providers, health systems, and insurers pay for access to its telehealth platform. The company charges fees for its software-as-a-service (SaaS) solutions, which include telehealth infrastructure, digital care services, and enterprise solutions. Additionally, Amwell earns money by facilitating individual telehealth visits, for which it charges a fee per visit. Strategic partnerships with health systems, technology companies, and insurance providers further enhance its revenue streams by expanding its service offerings and market reach.
American Well Financial Statement Overview
Summary
American Well is facing significant financial difficulties, with no revenue generated in 2024 and persistent losses. The balance sheet presents moderate leverage but declining equity, while cash flows remain negative. The company needs to address operational inefficiencies and improve revenue generation to stabilize its financial condition.Income Statement
American Well has faced declining revenues over recent years, with a significant drop from $259M in 2023 to $0 in 2024. The company has persistently negative net profit margins, exacerbated by negative EBIT and EBITDA margins, indicating ongoing challenges in profitability and operational efficiency.30
Negative
Balance Sheet
The balance sheet shows a relatively low debt-to-equity ratio, which indicates conservative leverage. However, the consistent decline in stockholders' equity from 2020 to 2024 raises concerns about the company's financial stability. The equity ratio has decreased, impacting financial resilience.45
Neutral
Cash Flow
Cash flow analysis highlights negative operating and free cash flows over the years, with a worsening trend in 2024. The company's inability to generate positive free cash flow is concerning, especially given the lack of revenue in the latest period.35
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 254.36M | 259.05M | 277.19M | 252.79M | 245.26M |
| Gross Profit | ||||
| 98.95M | 94.76M | 116.77M | 104.31M | 88.47M |
| EBIT | ||||
| -217.53M | -692.14M | -275.85M | -179.15M | -227.43M |
| EBITDA | ||||
| -184.56M | -225.99M | -249.69M | -162.20M | -216.93M |
| Net Income Common Stockholders | ||||
| -208.14M | -675.16M | -269.79M | -173.65M | -226.44M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 228.32M | 372.04M | 538.55M | 746.42M | 1.04B |
| Total Assets | ||||
| 435.97M | 589.71M | 1.22B | 1.45B | 1.38B |
| Total Debt | ||||
| 8.20M | 11.79M | 14.84M | 16.61M | 7.65M |
| Net Debt | ||||
| -220.12M | -360.25M | -523.70M | -729.80M | -933.96M |
| Total Liabilities | ||||
| 119.72M | 109.52M | 133.71M | 184.96M | 130.45M |
| Stockholders Equity | ||||
| 304.77M | 464.22M | 1.06B | 1.24B | 1.22B |
| Cash Flow | Free Cash Flow | |||
| -127.34M | -163.59M | -202.77M | -142.10M | -115.78M |
| Operating Cash Flow | ||||
| -127.34M | -148.34M | -192.32M | -141.54M | -112.46M |
| Investing Cash Flow | ||||
| -18.65M | -19.17M | -11.63M | -59.63M | -66.76M |
| Financing Cash Flow | ||||
| 1.38M | 2.15M | -3.61M | 5.75M | 983.12M |
American Well Technical Analysis
Negative
6.98
Price Trends
8.77
Negative
8.94
Negative
8.90
Negative
Market Momentum
-0.41
Negative
42.88
Neutral
65.86
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMWL, the sentiment is Negative. The current price of 6.98 is below the 20-day moving average (MA) of 7.26, below the 50-day MA of 8.77, and below the 200-day MA of 8.90, indicating a bearish trend. The MACD of -0.41 indicates Negative momentum. The RSI at 42.88 is Neutral, neither overbought nor oversold. The STOCH value of 65.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AMWL.
American Well Risk Analysis
American Well disclosed 67 risk factors in its most recent earnings report. American Well reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
American Well Peers Comparison
Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Neutral | $164.01M | ― | -95.42% | ― | 26.87% | -104.94% | |
51 Neutral | $5.19B | 3.13 | -40.94% | 2.95% | 17.94% | 2.00% | |
46 Neutral | $108.96M | ― | -54.13% | ― | -1.81% | 70.88% | |
45 Neutral | $117.77M | ― | -23.91% | ― | -13.92% | -2.86% | |
35 Underperform | $141.69M | ― | -25.95% | ― | ― | ― | |
33 Underperform | $107.15M | ― | -98.10% | ― | -58.64% | -40.05% |
* Healthcare Sector Average
Performance Comparison
AMWL
American Well
7.16
-3.89
-35.20%
EDIT
Editas Medicine
1.33
-4.27
-76.25%
LNSR
LENSAR
13.79
10.54
324.31%
SEER
Seer
1.97
0.30
17.96%
FDMT
4D Molecular Therapeutics
3.08
-23.31
-88.33%
American Well Earnings Call Summary
Earnings Call Date: Feb 12, 2025 | % Change Since: -43.48% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant achievements, particularly in strategic deployments and financial improvements, but also acknowledged challenges in visit metrics and a one-time expense impacting G&A. Overall, the company expressed strong confidence in its growth trajectory and strategic initiatives.Highlights
Military Health System Deployment
Completion of a stage launch of Amwell's full solution across the Military Health System, marking the company's most significant growth initiative in its history.
Subscription Revenue Growth
Subscription revenue grew by 36% in Q4 year-over-year, driven by strategic client deployments, including the Military Health System.
Improved Adjusted EBITDA
Adjusted EBITDA improved by approximately 60% year-over-year, demonstrating progress towards profitability.
Expansion of Leadership Roles
Mark Hirschhorn's role expanded beyond CFO to include Chief Operating Officer, aimed at improving company focus and efficiency.
Divestiture of Non-Core Assets
Sale of Amwell Psychiatric Care for up to $30 million in cash, allowing a focus on core platform and strengthening the balance sheet.
Lowlights
Decline in Visit Metrics
Completed approximately 1.4 million visits in Q4, an 18% decrease from the previous year due to market-wide and client execution-related softness.
One-Time Bad Debt Accrual
A 38% increase in G&A expenses due to a one-time bad debt accrual related to losses caused by a cyber event.
Flat Total Revenue
Total revenue for Q4 was $71 million, which was flat compared to Q4 2023.
Company Guidance
During Amwell's Fourth Quarter 2024 earnings call, the company provided guidance for 2025, highlighting several key metrics and strategic initiatives. Amwell anticipates total revenue for 2025 to range between $250 million and $260 million, with subscription revenue expected to constitute nearly 60% of total revenues, reflecting significant growth in this area. The company is focusing on expanding its software offerings, projecting adjusted EBITDA to improve by over 60%, reaching a range of negative $55 million to negative $45 million. Amwell also highlighted its efforts to achieve positive cash flow by 2026, driven by a reduction in R&D expenses by over 10%, and a 25% decrease in sales and marketing costs. Additionally, the divestiture of Amwell Psychiatric Care is expected to bolster the balance sheet by adding up to $30 million in cash. The company emphasized its progress in deploying its solution across the Military Health System, which is expected to significantly contribute to growth in 2025.American Well Corporate Events
Executive/Board Changes
Amwell Appoints Dan Zamansky as New CTO
Neutral
Mar 3, 2025
On February 25, 2025, Amwell entered into a separation agreement with Vaughn Paunovich, EVP of Enterprise Platforms, whose employment will end on March 2, 2025. Paunovich will receive a one-time bonus and reimbursements as part of the agreement. On March 3, 2025, Amwell announced the appointment of Dan Zamansky, a former Amazon executive, as the new chief product and technology officer. Zamansky’s extensive experience in innovation and technology is expected to enhance Amwell’s platform and drive profitable growth, succeeding Paunovich’s contributions to the company’s re-platforming efforts.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.