American Well (AMWL) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $62.8 million, up 1% year-over-year, with subscription revenue at $27.5 million and AMG visit revenue at $28.7 million.

• Net loss for Q2 2024 improved to $(49.9) million from $(92.5) million in Q2 2023, and adjusted EBITDA loss narrowed to $(35.0) million from $(45.3) million last year.

• Cost-cutting and operational efficiency initiatives led to improved 2024 EBITDA guidance and a streamlined organization.

• Major deployments and expansions included the Defense Health Agency (DHA) Digital First initiative and new agreements with Elevance, Aultman Health System, and CommonSpirit.

• Transitioned to a single CEO structure, with Roy Schoenberg moving to Executive Vice Chairman and a new board member, Ricky Goldwasser, joining.

Financial highlights

• Q2 2024 revenue: $62.8 million (up 1% year-over-year); six-month revenue: $122.3 million (down 3%).

• Q2 2024 net loss: $(49.9) million; six-month net loss: $124.0 million (improved from $492.0 million in 2023).

• Adjusted EBITDA for Q2 2024 was $(35.0) million, improving from $(45.6) million last quarter and $(45.3) million last year.

• Cash and cash equivalents at June 30, 2024, totaled $276.9 million, down from $372.0 million at year-end 2023.

• No debt outstanding as of June 30, 2024.

Outlook and guidance

• 2024 revenue expected in the range of $259 million to $269 million, with subscription revenue roughly flat year-over-year.

• 2024 Adjusted EBITDA guidance improved by $10 million to a range of $(150) million to $(145) million.

• Gross margin for 2024 expected to remain in the high 30% range, with a significant increase to over 50% projected for 2025 due to DHA contract expansion.

• Management targets adjusted EBITDA breakeven in 2026, with a step function in growth anticipated for 2025.

• Existing cash is expected to be sufficient for at least the next 12 months.