NYSE$AMWL

American Well Corp · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Revenue increased slightly, gross margins expanded, and visit volume decreased.

Amwell reported a slight increase in revenue and an expansion of gross margins, but experienced a decrease in total visits. The company is adjusting its visit forecast downwards due to the resurgence of mask mandates and other factors related to the COVID-Delta variant.

  • Revenue increased 5% over last quarter to $60.2 million.
  • Gross margins increased 600 bps to 44% of revenue versus 38% last quarter.
  • Total visits decreased to 1.3 million compared to 1.6 million last quarter.
  • The company is adjusting down its visit forecast for the remainder of the year.

Headline financials

Total Revenue

$60.2M

Previous: $68.6M-12.2%
EPS (adj)

-$3.00

Previous: -$39.86+92.5%
Total Visits

1.3M

No prior period
Gross Margin

43.7%

Previous: 38.0%+15.0%
Capital Expenditures

-$283K

No prior period
Free Cash Flow

-$38.1M

No prior period
Net Income

-$37.9M

Previous: -$86.7M+56.3%
Operating Income

-$37.5M

Previous: -$87.8M+57.3%
Gross Profit

-$37.5M

Previous: $24.7M-251.7%
Cash & Equivalents

$975M

No prior period
Total Assets

$1.29B

No prior period
Stock-Based Comp

$10.7M

No prior period

Revenue & EPS history

American Well · Revenue · Quarterly

$60.2M

Q2 2021-12.2%vs Q2 2020
Beat estimate in 5 of 9 quarters(56%)
ActualEstimate

Revenue by segment

American Well · $54.3M total across 2 segments · Q2 2021

  • AMG Visit Revenue
    $27.5M
  • Subscription Revenue
    $26.8M

Forward guidance

For 2021, Amwell is adjusting their previous visits outlook to account for changes related to COVID-Delta variant and now expects revenue between $252 and $262 million and Adjusted EBITDA between ($154) and ($146) million.

Tailwinds

  • Technology subscription revenues and services & care points revenues are confirmed as these businesses are operating at or above original forecast levels.
  • Guidance adjusted solely for changes in visits outlook due to factors related to COVID-Delta variant, mainly flu season estimates.
  • Acknowledges gross margin and operational efficiencies of $12 million netted against $10 million EBITDA burden from two acquisitions.

Headwinds

  • Revenue between $252 and $262 million from the previous range of $260 to $270 million
  • Narrowed and adjusted AMG visit volume to between 1.4 and 1.5 million from previous range of 1.5 to 1.7 million
  • Adjusted EBITDA between ($154) and ($146) million from the previous range of ($157) and ($147) million

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

+1.4%

Avg return

Earnings day

+2.1%

Avg return

5 days after

-2.2%

Avg return

30 days after

41%

9 / 22 earnings

Positive

+33.8%

Q2 2024

Best reaction

-20.9%

Q1 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.0%+27.2%+34.0%
Q4 2025+24.7%+34.9%+29.8%
Q3 2025-9.5%-20.0%-20.6%
Q1 2025+19.7%+9.5%+8.9%
Q4 2024-5.0%-3.6%-35.5%
Q3 2024-5.0%-5.4%-0.7%
Q2 2024+33.8%+13.9%-1.1%
Q1 2024+2.0%+11.4%-16.3%
Q4 2023+23.6%+20.8%-16.0%
Q3 2023+14.5%+4.3%+11.1%
Q2 2023-8.3%-13.9%-35.2%
Q1 2023-3.9%-2.9%+17.9%
Q4 2022-13.1%-19.2%-37.3%
Q3 2022-2.2%+14.9%-8.3%
Q2 2022+9.2%+6.8%-4.8%
Q1 2022-10.8%+8.8%+37.6%
Q4 2021+7.2%+1.0%-8.0%
Q3 2021-7.4%-3.7%-29.7%
Q2 2021+0.7%-1.7%+0.8%
Q1 2021-20.9%-5.7%+9.5%
Q4 2020-4.1%-10.8%-1.5%
Q3 2020-11.9%-19.8%+17.1%
Q2 2020
Q1 2020
Q4 2019
Q3 2019
Q2 2019
Q1 2019

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