• In its first profit since going public, Amwell posted third-quarter revenue of $ 62.6 million, an 80% increase from $ 34.7 million last year.
• Amwell, which went public with a $ 100 million investment from Google at the end of September, was particularly driven by $ 28.5 million in visitor revenue, almost 300% more compared to just $ 2 million for the year past. Subscription growth was also notable with revenue of $ 25.8 million, up 17% from $ 22 million in the third quarter of 2019.
• The total number of visits for the quarter exceeded 1.4 million, an increase of 455% year-on-year. Executives at Amwell conveyed this growth to the supplier’s new customers when they called Investor Aftermarket on Thursday. However, after around 2 million views in the second quarter, that number has gradually decreased by about a third.
Telemedicine companies grew exponentially in 2020, driven by the favorable wind of COVID-19, which generated a wave of investor interest, mergers and acquisitions, and high-profile public offerings. It’s unclear how far this momentum will continue, as research has shown telemedicine volumes plummeted in May and June as providers resumed non-emerging treatments and services and eased government lockdowns.
However, virtual care is still significantly higher than before COVID-19, and COVID-19 cases are increasing in the United States, which could lead to an increase in telemedicine volume in late 2020.
“Although the visitor volume is lower than the numbers we saw in March and April, they are still much higher than before COVID,” said Ido Schoenberg, CEO of Amwell. Amwell has had about 4 million visits since the beginning of the year.
Last year, Amwell’s in-house medical group, Amwell Medical Group, accounted for the majority of all visits at about 62%. However, in the third quarter, the provider’s physicians made up the majority of 73%, indicating a much wider acceptance of telemedicine as a legitimate means of care, Schönberg said.
The total number of active providers on the Amwell platform increased 930% year-over-year to 62,000.
Chief Financial Officer Keith Richards said on the conference call that he expects this trend to continue as more hospitals and health care systems transition to a hybrid model of care that combines the physical and virtual. As that shift continues, Amwell, which has more than 2,000 hospitals and 55 health plan partners, is likely to become more of a technology provider and less of a service provider, the executives said, noting that “ “ They expect Amwells Technology’s subscription revenue to increase. ”faster than services.
This logic is part of Google’s partnership with Amwell in Boston, announced in August. The two companies plan to partner with Amwell to develop new virtual nursing capabilities based on Google Cloud’s expertise in artificial intelligence and machine learning.
Including Google’s $ 100 million investment, Amwell raised about $ 922 million when it went public in September.
Amwell’s rival Teladoc announced its third-quarter results in late October. The New York-based vendor achieved nearly $ 289 million in revenue and had 2.84 million views in the quarter. The two companies are currently involved in patent infringement litigation. No company has made a profit yet. Teladoc reported a net loss of $ 35.9 million and Amwell a loss of $ 64.6 million for the third quarter.
For the full year, Amwell expects revenue between $ 235 million and $ 239 million and an adjusted EBITDA loss of $ 105 million to $ 110 million.