Demo
AMWL NYSE· American Well Corporation
FundamentalsNews digest Peer analysis
Login
AMWL NYSE· American Well Corporation
Earnings report Q4 2023

AMWL Reports Strong Revenue Growth in Latest Quarter

Segments of Revenue

AMWL's revenue in the latest quarter was primarily driven by three segments. First, the company generated revenue from annual license fees, which increased as certain volume thresholds were exceeded. This growth reflects the growing value of AMWL's services to its clients. Second, revenue was derived from clinical fees, as clients utilized provider services from AMWL. Lastly, the company earned revenue from visit fees, which increased due to higher visit volume in urgent care, likely influenced by seasonal viruses and the Omicron variants, as well as visit volume from new clients. Additionally, there was an increase in other revenue, primarily from professional service revenue for new clients.

Strengths

AMWL demonstrated strong revenue growth in the latest quarter, driven by the growing adoption of digital care and the company's ability to maintain and expand its market share within the digital care market. The increase in visit revenue from urgent care visits indicates the company's ability to meet the demand for healthcare services during challenging times, such as the impact of seasonal viruses and emerging variants. The growth in revenue from new clients also highlights AMWL's success in attracting and serving a broader customer base.

Challenges

AMWL experienced a decrease in the number of visits compared to the previous year, which can be attributed to churn resulting from re-platforming and a decline in scheduled visits. This decline in scheduled visits may indicate challenges in retaining regular users or a shift in patient behavior. It is important for AMWL to address these challenges and ensure consistent visit volumes to sustain revenue growth.

Noteworthy

AMWL's overall revenue growth in the latest quarter was notable, particularly the increase in visit revenue from urgent care visits. This suggests that the company's digital care platform is effectively meeting the healthcare needs of patients during times of increased demand and uncertainty. The impact of seasonal viruses and emerging variants, such as the Omicron variant, likely contributed to the higher visit volume in urgent care.

Summary

AMWL reported strong revenue growth in the latest quarter, driven by increasing adoption of digital care and the company's ability to maintain and expand its market share. The company's revenue was primarily generated from annual license fees, clinical fees, and visit fees, with notable growth in visit revenue from urgent care visits. However, AMWL faced challenges with a decrease in the number of visits, potentially due to churn and a decline in scheduled visits. Overall, AMWL's performance reflects its position as a key player in the digital care market, but it should address the challenges to ensure sustained revenue growth.

Source documents

Form 10-K  filed on Feb 15, 2024
14 pages scanned

Reference data

Company financials Q4 revenue 70.7M
Analyst estimates Q4 EPS missed by -30.68%
Sign up to Fey

Get in-depth analysis on thousands of stocks for just $30/month. Cancel anytime.