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Jun 30, 2021
American Well Q2 2021 Earnings Report
Revenue increased slightly, gross margins expanded, and visit volume decreased.
Key Takeaways
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.
Revenue by Segment
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.
Positive Outlook
- 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.
Challenges Ahead
- 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
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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