The chart below shows how AMWL performed 10 days before and after its earnings report, based on data from the past quarters. Typically, AMWL sees a +3.12% change in stock price 10 days leading up to the earnings, and a -8.19% change 10 days following the report. On the earnings day itself, the stock moves by +0.60%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Software Revenue Surge: Software revenue grew over 30% compared to Q3, driven by strategic client deployments.
Subscription Revenue Surge: Subscription revenue reached $37 million in Q4, a 36% increase year-over-year, highlighting strong growth in the core business.
EBITDA Improvement Noted: Adjusted EBITDA improved to negative $20.8 million, a significant reduction from negative $30.6 million in Q4 2023, indicating operational efficiency gains.
Financial Stability Boost: The divestiture of AmWell Psychiatric Care added up to $30 million in cash to the balance sheet, strengthening financial stability.
ACV Growth in Health Sector: Average annual contract value (ACV) for health plans increased to $963,000 from $902,000, and for health systems to $488,000 from $415,000, reflecting successful expansion efforts.
Negative
Revenue Stagnation in Q4: Total revenue for Q4 was $71 million, flat compared to Q4 2023, indicating stagnation in growth despite previous expectations for improvement.
Q4 Visit Decline: Visits completed in Q4 were approximately 1.4 million, an 18% decrease from the previous year, reflecting ongoing market-wide execution challenges.
Q4 Adjusted EBITDA Performance: Adjusted EBITDA for Q4 was negative $22.8 million, an improvement from negative $36.9 million in Q4 2023, but still indicating significant ongoing losses.
Rising Administrative Expenses: General and Administrative expenses rose to $34.8 million, a 38% increase from the previous quarter, primarily due to a one-time bad debt accrual, highlighting cost management issues.
2025 Adjusted EBITDA Guidance: The guidance for 2025 includes an expected adjusted EBITDA range of negative $55 million to negative $45 million, indicating continued financial struggles despite efforts to improve margins.
Earnings call transcript: American Well Q4 2024 shows mixed results
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