Yahoo Finance

• Total Revenue: $71 million for Q4, flat compared to Q4 2023.

• Subscription Revenue: $37 million in Q4, up 36% year-over-year.

• Visits Completed: Approximately 1.4 million in Q4, 18% lower than the previous year.

• Average Annual Contract Value (ACV): Health plan ACV grew to $963,000; Health systems ACV expanded to $488,000.

• AMG Visit Revenue: $29.2 million, 9% lower than last year.

• Average Revenue Per Visit: $77, a 7% increase from the previous year.

• Gross Profit Margin: 48% in Q4, up 11 points from Q3.

• R&D Expenses: $18.8 million, a 29% decline from Q4 2023.

• Sales and Marketing Expenses: $15.4 million, 8% lower than last quarter and 29% lower year-over-year.

• G&A Expenses: $34.8 million, 38% higher than last quarter due to a one-time bad debt accrual.

• Adjusted EBITDA: Negative $22.8 million, improved from negative $36.9 million in Q4 2023.

• Cash and Marketable Securities: $228 million at the end of Q4, with zero debt.

• 2025 Revenue Guidance: $250 million to $260 million.

• 2025 Adjusted EBITDA Guidance: Negative $55 million to negative $45 million.

• 2025 AMG Visits Guidance: 1.3 million to 1.35 million visits.

• Q1 2025 Revenue Guidance: $59 million to $61 million.

• Q1 2025 Adjusted EBITDA Guidance: Negative $18 million to negative $20 million.

• Warning! GuruFocus has detected 9 Warning Signs with AMWL.

Release Date: February 12, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• American Well Corp (NYSE:AMWL) achieved significant progress in its strategic initiatives, including the successful deployment of its solution across the Military Health System, marking the most significant growth initiative in the company's history.

• The company reported a substantial increase in subscription software revenue, which grew by over 30% compared to the previous quarter, driven by strategic client deployments.

• AMWL improved its adjusted EBITDA for the third consecutive quarter, reflecting effective cost reduction measures and a focus on high-margin revenue growth.

• The divestiture of Amwell Psychiatric Care strengthened the company's balance sheet by adding up to $30 million in cash, allowing AMWL to focus on its core platform.

• The company has a strong cash position with $228 million in cash and marketable securities and zero debt, providing financial stability and flexibility for future growth initiatives.

Negative Points

• Total revenue for Q4 2024 was flat compared to Q4 2023, indicating a lack of overall revenue growth despite strategic initiatives.

• The number of completed visits in Q4 decreased by approximately 18% year-over-year, reflecting market-wide and client execution-related challenges.

• AMWL's adjusted EBITDA remained negative at $22.8 million for the quarter, although it showed improvement from the previous year.

• The company experienced significant churn in 2024, which impacted its revenue and required managed attrition of clients not aligned with its strategic direction.

• There is a dependency on the successful renewal and expansion of government contracts, such as the DHA, which could impact future revenue growth if not secured.