AMWL - Earnings call transcript Q3 2020 | American Well Corporation

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Operator

Good afternoon and welcome to Amwell’s Third Quarter 2020 Conference Call. At this time all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. Please be advised that today’s conference is being recorded. Leading today’s call are Ido Schoenberg, Chairman and Chief Executive Officer; and Keith Anderson, Chief Financial Officer. offer questions. remarks will will then Keith your take and their and prepared they Ido press and Amwell section The release of Investor available Amwell’s Relations on website. webcast link all financial in evaluating performance. we discussing will Please Amwell’s we note important certain that non-GAAP are believe measures be that GAAP in our Details the the that posted on comparable press these reconciliations thereof to the non-GAAP release on and measures can website. between most relationship measures be found is forward-looking during please XXXX. defined statements note be that call Also, Litigation of as made the Act this Securities statements Private in will certain Reform forward-looking uncertainties results that Such statements materially implied other are to Amwell call. risks, subject from the and cause this expressed or to in could differ those factors for CEO of And Amwell. to now, I’ll turn and call the over Chairman Ido Schoenberg, Ido?

Ido Schoenberg

thank and first a our and in evening thank earnings to this joining trust for company. public new opportunity you your confidence as our for use to want I Amwell. partners call investor Good

IPO. participate results. good to thrilled your see are last our see and partners of investor our many reflected IPO, We want faith our world-class years for in Since our continue consistent we so groups to reported us. as quarter we long-time support to thank in I momentum in third many to also

our care more focus some I a digital half you would end our generally time before healthcare. of and compared increased million was Our to recent to compared decade of XXX% it Amwell, talking last million number When delivery XX,XXX on count a third many our of and an performance. visits increase our with to story, apparent that will Roy quarter would I The almost increased revenue last of QX XXXX. during to the third like Recognizing XXX% the year’s We on ago, new that at of we $XX to of quarter. platform quarter. XX% as us spend had compared QX of company providers started year’s transform third about active X.X are

fundamental hybrid the to that profound better one materially care. significantly are transformation. personalized This care We moving changing. is continues continue Care over about will way the years. is and digital assuring gaps health model physical more delivered care, cares technologies Digital evolve home. engaging continue a in to be craft that a next combines of With new few is able believe care, plans. information and in providers will far to and status It

healthcare other will streamline New engagement with participants. care providers, insurers, health interaction consumer technologies and simplified services, in their and

drive accessible Finally, will mile and now. and providers everyone. technology effective outcomes. even remain more these all confident contribution interventions necessary leverage especially trusted changes, a decade the that quality we traditional are and to players, with of last affordable will relevant become will and financial much and High Even payers better care clinical from

to players care. and is realize quality mission these affordable more connecting to namely vision this innovators by enabling deliver access help higher insurers, patients, in to Our greater healthcare, providers, and key

Our of in contribution way connectivity. the offering is

in recognize interact allow the importantly, patient Amwell players do With to strive will performance better enables partners and we a needs to and active needs. providers’ our Our to technology offline existing is not efforts to platform, seek with relationships We Most and We with providers and healthcare continuum covering special our hybrid people care. count them. to will platform the or make of connectivity their engage the key the will provider using indicator. all replace across number strengthen key trust full and providers of to online not compete way. client a cater

unique capabilities. and We clients most it our from in way. a and impactful believe across services platform to plan trusted our We in further therapeutic more can platform, providers we very the valuable. community is more offer to more investment scalable As our enhance areas use that expand offer our our

are Our more services to our and clinical realize the and of quickly value other help easily. partners designed clients our technology and

model relies technology we investments connectivity, increasingly our on of digital will subscriptions to focus Consequently, faster revenues innovative, our from grow care evolved valuable, more to the technology our As we services. and and our making in than our expect comprehensive. even

morning commitment with capabilities, in to client better and introduced providers our to to in simpler patients every recently use more easier offer quickly way. user to we new is As A It Now little and announced no example easy product prior Amwell to and that we this our become with and training. connect their very expect clients. is allows increasingly experience our version good our we or also existing

very adoption version. the encouraged better Now commercially Amwell available strong is are of We today. by the

We unveiled are platform. Care our to instruments points also mile connectivity new this morning. care points last

easy new important Our platform ease with our additional it across Tablet and become ecosystem. pandemic. the believe new to carts We during providers simple software very and ways offer that for use has more are even our the CXXX designed in engage of threw to

delivery. to that already shop We of have further is appropriate our of stop available software are technology be to the rest huge the one aim These capabilities, commercially always integrated new are of pre-orders we connectivity designed so receiving our offering digital expand entire partners Indeed, clients today. for new an for products of number our our platform. of and offerings clients most the part take of their We ecosystem. the are CXXX The pride for QX like that tablet using great across for needs. our spectrum

to trusts. and every deserve We will their continue make effort

to culture. our the big of network of the to value part ecosystem by only The participants. one success the We integrated value we adding to is Indeed, attribute our the effect. not addition our clear is these connected see driven our a of but new magnitude of new them, also As joins, relationships. players rest to

first. customers our putting is pillar first The

do community of that that entire our partners patients of and them. care of never clients stands way great providers, the the support in and will interests anything We or

second incredible with business We experience her recently Amwell. contribution strengthened our The her important academics to healthcare Jackson impeccable board. coupled one is pillar With Ms. is reputation, welcoming team in across Deborah make to team. our to down Jackson and

team’s the home and performed despite well Our clock, our Working was from our COVID. perform prevail tested around demand. allowing team and perseverance to recently both admirably, with services technology unprecedented

Our our a more team our is to fiduciary mission and commitment seems privilege community. a

huge in saw providers. we growth COVID, During active

first So we dramatic adoption believe try to so tailwind the time loved and many provided in COVID popularity. with it. telehealth telehealth reimbursement, many changes strong discovered and Coupled and for that

conducive that telehealth. of persist coverage CMS to is model may New after Amwell’s especially COVID

numbers volumes the March and Whiles April, lower we’ve than seen than COVID. higher in too there’s are much visit before

to small offer of truly customers. Power, satisfaction leveraging for a our to new and one last in digital among we’ll well normal. final only number the is importantly, helpful growth pillar effort. our More is clear points. growth great of is in of We potential a and was to to strive subscriptions in This direct-to-consumer Deliver care named to of demonstrated prepare see innovation excites telehealth recognition orders delights readiness enormous Amwell Today, our be fraction providers the Awesome. healthcare our The that in infrastructure culture in invest our in to connectivity. honored a by platform client’s J.D.

healthcare As connectivity, embraces collaborative more we tools. will offer

to convenient platform will to care for both this plan inorganic technology and global enable investments. powerful and a more people. affordable building that better, We millions of vision realize organic are We

into nomination to will strategically assets integrate our expel culture new always that make CTO, a end acquisitions our technology strong designed and to digital with our We technology to complementary of strive are alignment recent to Serkan driven cohesive to one demonstrates commitment The adding innovative accretive Kutan, building view offering. our extend investments. and end

we our Cloud. Google partnership the announced with before Just IPO,

yet details start about we together, share cannot we tactical While work the collaborate. to did

our much have Google, at in well. We align common with our cultures friends

improve to both abroad. in and greatly that about brings extremely powerful offering. enormous impact our that Cloud our reach brings capabilities passionate United could enhance will We’re accelerate also the healthcare. Google States our It collaborative global mission

this We of to technology us the more coming seen their performance, indicators. vote over an ecosystem to partners and and ability clients especially them in by to our we have more and I healthcare In see addition operational with years. financial this core believe with the services demand our with quality collaboration increase but you to to performance confidence our of support and the year reflects customers, We’ve in And as importantly partners strategy. pandemic, unique highly-transformative are Keith that that now and on our in to we our our our the investors. share significant during encouraged turn confidence like the important would

Keith Anderson

of outcome Ido’s and we’re thank to everyone the want how quarter and our joining third we pleased I our you across reiterate with afternoon. Ido, the us business. are the Thanks, this comments about IPO, momentum seeing results to for

the couple of earnings describe Given understand you that first our minutes first and is better that spend trends drivers release, models, the to our of can so this like business Amwell. key public I’d to

and In services terms and between subscriptions by in primarily about nature of and is is revenue visits recurring revenue, supported points. split of and XX% care

health Our customers health are primary plans and systems.

who virtual XXX include use the such ways metropolitan smaller Additionally, platform call businesses. calls in who we to the assist use could These during to the we of therapy who third addressed our customers likes Philips, a XXX their have our individualized with peak innovators, whom support large services, group respective offers care. as crisis sleep and separately those of be that programs of platform

length health and three for are subscription system in plan and typically contracts years expansion. structured health Our are

sales subscription our hardware a even of ultimately example, revenue. system our to devices points customers For add care health

contained health of software care and our doctors buy health revenue to own the point more are systems more to systems plan specific contracts through current the on This care that health also required by modules the components because deliver subscription system increases. is specific As side. point. type health This flywheel care modules care software direct overall exists volume through

their their urgent their grows. services, health services to revenue of add expand As a to virtual care health behavioral higher total our services percentage and membership as as subscription initial they care such plans

our We care be products. also accelerated expect to this with primary dynamic virtual

diving at approximately into results, recapping total to Now, issuing XX, per our from IPO. September $XX our quarter IPO by moment million like million The totaled from On financial recent I’d Google we transaction, XX.X investment share. million. spend $XXX $XXX before shares our included this a proceeds which third completed

as underwriters that thrilled positioned start with upsized offering feel it green range full for this and well in pricing exercise of a and first public shoe. the above quarter the reflects us market. results are the the initial We We positive the successful

to from this report total million, which financial results, quarter XX% $XX.X third an quarter our is happy of year. revenue Turning I’m increase to last

health the XX% $XX.X an revenue signed within we be The came the visits at plan to of in increase and attributed platform increase million. own by populations our providers. in volume the customers’ system in Our our quarter, that customers can new performed subscription expansion health

our revenue on quarter over our health. in visits In platform, sequentially down increase pre-COVID-XX steep down or we a XX% population the were visit our this first alone, the seeing experienced visits experienced million total only nine $XX.X COVID AMG four last previous performed performed million, on note, a during this but of elevated mental XX% levels, XX% visits up million crisis, increase we to the the As totaling million to volume were for Of the comparison versus impact in specialty on times our year. nearly for we over visit months XXX% quarter year. X.X of remains bringing visits of as the platform our X AMG the visits. and the This peak X quarter-over-quarter of is

we is members trend, health through specialty unfortunate concerning glad this visit an our are we While support that capabilities. can our and

but We customers’ physical to own done continue of performed to see AMG is platform care outside same systems that all and combining to quarter by care. experience by by of last plan XX% trend move in as compared providers. continuing virtual and the models, This our hybrid systems year on we not platform health more a as and the providers, delivery healthcare as health our providers XX% usage visits own were

providers, of delivery Ido their as patients Roy healthcare vision XX provide company enable As virtual more is give health years to meet the IPO, members. when had but a we and discussed the a during with a them of the care realization rather and not the ago, to medium needs plan this to they tools and started compete

an care increase revenue Our the and services was points quarter. million in $X.X of XX% of

specific COVID-XX. expectations of visit was this R&D of this third COVID quarter While strong quarter a increase QX. in two we we the plan’s year-over-year, some campaign allow were are direct for our same new some These larger Carepoints was Officer, customers potential Recovery below we XX.X% the of revenue versus product came benefits into increase higher an the the represents total This of percentage their next to platform quarter his services functionality XX.X% as and Gross our to services this in their decrease mix QX their revenue that for spend relatively of Act a programs are remaining the of forward compared represented Family select QX. new view a customers year-over-year in develop on and as R&D Care virtual numbers, unexpected revenue pleased to completed preparation in with Federal year. slightly were as slowed health a marketing phase of to $XX.X health Similarly was some concentrated margin but Chief quarter Serkan Kutan, in decisions our hiring orders. increase revenue funds last these result from use of spend side, pull system XXXX. plan a spend expecting in XX% revenue. at their remained that but Carepoint’s of as in increase targeted flat plan. awareness to of XX% quarter We Technology care the of for million

conference While year-over-year awards expected experienced with of in restrictions quarter. our increase relative it IPO, stock-based was cancellations. the was spend million increase About due expenses. sales the to comp increase was onetime to that of being increase XXX% travel a and onetime and the to executives This of $XX totaling the XX%. G&A million triggered were our XX% million revenue non-cash from was year industry $XX.X to balance non-recurring of our $XX to successful IPO by levels a an year-over-year, last due XX% marketing decrease

million now was outstanding perspective, primarily throughout loss million. we additional were of million in B and to public third the to private. of million EBITDA debt. back compared we billion, want With lower visits Amwell has investments in of expenses combining $XX.X $XX.X and year, low mix From sheet and loss margin last QX range. us, behind shares, with year C the we that we year company quarter ended shift million outstanding. when as I a IPO, incurred approximately the see of Class and a A, mid-$XX IPO shares included normalizing balance spend last next G&A to a $X.X $XXX quarter versus to proceeds due to our which cash typical Adjusted result ended IPO no our the confirm XXX.X a with revenue

to this to public But fourth initial a our want Now the this for initial our XXXX our I’ll I quarter, company being quarter because and quarter. frame outlook. review expectations as strong performance first XXXX for provide of outlook our help

a at loss the year-over-year $XXX Looking EBITDA of year, reflecting of to the ahead, $XXX range adjusted million $XXX million to of $XXX growth midpoint revenue the we for an between and expect million and million. see XX%

our we the uncertainty during given to did transparent be high-level on COVID-XX a uncertain. to provide XXXX. IPO, I parts all and forecast want the effort an As and few crisis, moving thoughts amidst framing Visit remains in

beginning lower-than-normal our the fewer we IPO, the COVID-XX of from in that played flu flu during the to out thus, flu from continue in saw Hemisphere season social the discussed data supporting what has distancing Southern initially As theory incidents. and we results expect QX, volumes

entire XXXX. levels experienced at the XXXX the IPO those versus latter we spend the part and R&D, elevated continue Regarding for we into and potentially discussed to of the increased maybe in year expect during

additional part foundational in discussed the reminder, driven spend changes connectivity digital by to during IPO mainstream a was the sentiment As use COVID-related as of healthcare.

new We for by care expand anticipated accelerated requirements move development, demand our the demand to aggressively platform to future continue have the into driven broaden cloud. and solutions customers’ to more

XXXX, us growth heightened pandemic during visit set year. measure upon, that Finally, next artificial basis year-over-year while experienced on base in we a which comparable an revenue the substantial our members supporting has highlighting the to

based closing, for comparative to this I’d have how such first able strong company. a thrilled reiterate to our due you year-over-year quarter accounted it’s for I’m public a out already While correctly the to normalized be are like to many we metrics, pointing the of heightened dynamic simply performance In trends on report base. as

Going forward, to his over the call we positioned and the leadership feel With I’ll that, for telemedicine Ido position remarks. closing well growth maintain capitalized market. turn for to a back in

Ido Schoenberg

you, Thank Keith.

I trust this your Before the over mission. during and community us for investors, our old, like past faith especially the thank like putting amazing delivering our turning new months to to in our and this take opportunity call awesome. thank questions, would for to One team would and Amwell use and your also few first, to in I to customers and time the

and outcomes. beginning. You is value shareholders. Roy to should incredible are our I dramatically I’m all still date huge is doing. to to delivery confident contribute and There again it is all look progress. believe healthcare. to is when care possible to improve that as I you’re with strong clinical be financial our up in We to leverage Amwell already very a this proud tailwinds the and forward much work significantly the much keeping transforming our the is and you only Digital opportunity do create and meeting to to work community also to well-positioned you

to Operator? call open We will questions. now the

Operator

Stanley. from Instructions] first question Morgan is Ricky [Operator Your Goldwasser of

Ricky Goldwasser

of for and the quarter out the first gate. couple a Yes. here. of questions And Hi, good evening, congratulations

some there’s all, acceleration the guidance about when think sequential we quarter, in of implied decline. revenue First for fourth the

sequential assuming the are special And fourth in pull a demand what you of exclude impact utilization? quarter quarter fourth terms of in the in third? we decline programs, be if would COVID the forward to what So versus

Keith Anderson

into part right during performing peak almost Thanks, increase. of visit I the being of laid pull and forward was some of It’s we the Keith. But there’s said are areas the discussed areas my potential really factored crisis, visits, business. terms what IPO. Ricky. increases. There with about call. All simply as good seeing hotspot mean I mean I the of factored a some in haven’t haven’t feel we we overall, as revenue, XX% revenue, now put, other visits overall, QX planned of COVID that at Carepoint’s could revenue the in the that and our as we’re out we during

So where it’s of visits a we public two matter months or just see where we the when originally we forecasted ago. went

Ricky Goldwasser

they Thanks. And talk you seeing then type and models to are selling you what you type to that talked what you’re clients’ about new solutions of a new meet Can to clients? in the modules prospective what little about demand. demand of already add looking existing are have? And bit accelerating what clients from

Ido Schoenberg

hear Ricky, sorry, I’m can me you now?

Ricky Goldwasser

can We now. hear you

Ido Schoenberg

Great.

In year. of thank voice for us sure had hear So did. all I’m good to a we your and questions really you your and essence, interesting your support.

were financially. During literally operationally clients physically, COVID, and on our laser-focused surviving,

time to survive so deployment we four to sometimes pushed reduced months was the of really average and fight Our systems two crisis. just weeks. can we And

not for for crisis actually As it really somehow value our how subsides, in clients of how the a way telehealth was long although realized the huge much, surprisingly vibrant. and we’re sure

patients and And and year if of changed it’s between COVID. When been means look to of telehealth, that XX%. you usually cover person going over And full of year, things. the of are the have XX% also trusted many, mix that XX% X% showed Obviously, after last have that said XX using access seen year. have continue and it you really non-AMG, This care. in XX% continuum been of and providers you many telehealth, they our using them been telehealth. dramatically, of to the have at many very non-AMG, telehealth They’re that them use to XX% our if visits have where this that can been which recent AMG currently a have last of give using – are these full providers people survey, specialists. consumers record some Just year, with may numbers, see are providers been using

the That’s on way to I care very other you ready in leap across year, taking completely center the or So would the consumers, that for list from the and short better model to of the really more nothing from of they sudden that use delivering that care with fully to and is historical change of all place long very, coming bigger. ways in over the with of to need that is from needs new a way at a collect, connectivity that information payers analytics, to to care, from resources, it, it. main readiness urgent connect Complex became digital new the our is the suggest make that our call what accept make tailwind engage the for care. moving remote much accessing last be advantage something to pathway really home mile. patient is and providers care of ways legitimate as needs but the integrated all change over is COVID monitoring that are the infinite business through and do need seen the of place beginning to to way numbers their telehealth this the of many acute that, all new modalities. between plans a enormous to with big care and telehealth this it’s of jump charted, new something same information, clients very used of difference the we’ve are really and entire In simple, was much, clients. The really EMRs much as The

As this of accelerating a our all need those development areas. that by we lot to decided accommodate such, demand in we enormous

trying by as capabilities. already be And going I integrate say someone inclusive when will anything to else not but can is course, of we some and development these others. rather we are Of by mentioned done partners. this be Google that to do that, as done definitely I

is it another us better Some of than case serious or it in some that be there may non-organic group advantage. is doing has

as it, done future much had some And that development that plans about by could have expand that mentioned, again thinking anyone will further Keith predicted. really of accelerating realized be we the faster

Ricky Goldwasser

that. that new market So Amwell When you think primary Now tablet, about also products we Carepoint the on market. introduced, it and about tablet, into just care the expansion one quick Touchpoint think the follow-up as like I

thinking So are And you market us opportunity the quantifying then help can correctly? on you maybe kind this of IPO? we incremental that that market about think addition of to how you’re in identified opportunity

Ido Schoenberg

Sure.

So very they of to that ready they you in quickly. this the that secure, resources large to don’t in Many operational trying is simple. is for very just creating answering delivery integrate system networks mentioned to and time. are to very that very, and very need clients match fully sophisticated, really something struggling essence, a are still also listen we have normal And have. them Amwell that very and integrate more helpful data, requirements The to product elaborated into to and is new carefully may financially. need capital Now They very go HIPAA-compliant, try very new a our future-ready or the

And of very these While to that very there does much. the many, therefore, in a need that simply or of connect for the to very, resources we deploy example. providers In use not tools Others, acquire things know They they’ve been all lots many this part doesn’t management still mix truly the number the that through can to just software scope capabilities in that the devices, other you very, to quickly a wire using mentioned. Amwell many but time. your lot to replace into dedicated The that of consumers, it It the not you problematic and very can time not a the be many more tablet the and software. are starting fraction new providers fleet cost organization, do point still is as offer of product the was need need buy of platforms. very patients. or have another you initial feature crisis, robust of simple Now in part that a have for bring ways that this tablets a proved and and that of we may cases, I allows you need tools commercial you

connectivity can you realize effectively very for quickly organization. and very So your

look use we they when different see at time, but diversification a have tools, customers a allow our offering that it, right the at option to we to when that So that single right and don’t knowing through rather as different new to tool of the market a our use capabilities need different they infrastructure.

stop a if that we Of doesn’t many course, staggering about up XX,XXX anytime fact think to ramping the X,XXX and that pretty so we within providers, seem you year, soon. are it, went from active to providers

are capabilities, employers, not our client, from very that relevant benefit payers, even it’s government health it. relevant the to greater system’s services all namely those only could that to So ecosystem,

needs providers the think entire think about new on the narrowly who say leveraging when only we rather, about is single platform. we the So of fit tools don’t but we that community providers,

Ricky Goldwasser

you. Thank

Operator

of from is question Robert next The Jones Goldman Sachs.

Robert Jones

congrats the first the the given to not you quarters, feel physician only around the the for as you on just have how this bit like group Do of Obviously, important questions, talk here. have just in that’s you Keith, infrastructure out we like demand area Could coveted meet to comments and Thanks and space. maybe feel Great. earnings is? the the look today? you go next there call capabilities professionals a just but growing I a you rapidly you made several and to little guess today clinical behavioral. back, some tele over the

Keith Anderson

I was there’s we that company mean, are discharged. of the you within of recall, called Telehealth telepsychiatry focused sector, bought acuity people and – behavioral as back once if well on four the in a highest XXXX, as the hospital, So walls Aligned the

guess of the overall as you majority surprisingly, say and that visits We visits. was coming month, both general the as as specialty saw well a spikes and first therapists across I the care up peak it and off within care, state population, visits the make I our the in the continue telepsychiatry taper saw sit visits, visits. to psychiatrists for specialty seeing a it’s all the we But the after also are far QX, started the board just would mental mainly the they QX and behavioral, have there. of back. really the by health of of

rooms but or Now, COVID-related specifically They’ve the were accidents or acute, very heart psychiatric on emergency for like anything the opened to shut telepsychiatry, high car patients situations. lot attacks whatnot. emergency of since emergency or a

to as the come decline the well. an off peak. in starting the coming just seeing QX, overall those from we see We’re But back are of visits peak

Robert Jones

No, use to on potentially the beyond were seen provider. down sequentially. the year-to-date? share I’m then would for you per new versus just Keith, thought more I what insight our numbers, just what that have the of would I in want did I maybe point guess, cases sequentially. any sequentially, if have you’re believe math, to that. on we type you I context And go I But could sense. they versus been of a the visits think, thinking visits was if non-AMG of On said just seeing back you up thought I visits makes back relative they can in curious more more clarification. you’ve on visits weigh importantly,

Just helpful. would any there context be

Keith Anderson

touched remarks. thematically in his opening this on mean, I Ido

a center. not We are call

specific that when platform visits, our about. company steady delivering you their seeing they’re of and non-AMG Ido vision the of which to for we’re look some what’s and that’s happening that the increase the in increasing took pandemic game seeing but convince patients some public. yes, really of specific at are physicians That’s a the company. those visits, visits, So, And the and the the a the what all care of virtually. took within continue, that we’re that’s seeing we’re when the doctors nice to trends had Roy And patients they it name scheduled the – we’re level means

pandemic, the receiving to if we embracement people we seeing, interactions care the decline seeing numbers, showing confirming not about places, of unpack in obviously of virtually. are increases overall areas see, you the with more a in peak that while are but those get and worried lot So, having able you volumes during COVID, care continued other the are

Ido Schoenberg

And When would our can doctor I maybe it’s their their that accelerator to of whether in really an COVID, they to in indeed, showing care, anomaly. non-AMG to about with think of share urgent talk Robert, the really When providers today And an existing a people opinion, three not. their patients, or It’s was patients. locked many COVID of that providers is complement like people home, cases. communicate think they those are effectively ideal typically that are provider-to-provider between subscription telehealth, our through and visits these visits from connectivity they healthcare system. some and and behavior are lion’s use health revenue our are compensated about capability. kind have

supporting In use market. different the connectivity, talking are mention. the that covers healthcare of you see that’s everything. much use of those forum seeing many many a and ways are this mainstream we’re are now forums share mainstream digital at more can utilities. There that convey, cases. of truly there platform lion’s so And more many are is course, Essentially, our is our few There read really we to and our too literally and case, using cases. hundreds about other client Of but healthcare we

clinically, the telehealth traditional it support service. we change the that’s a We And service is companies. selling required clinical with into that order the essentially, and in fundamental are and many connectivity mean, between of us to not selling it financially operationally. enveloping I and clinical are everything

Robert Jones

and that. I Ido Keith. No, Thanks, appreciate

Operator

Sean question Sandler. from is next Piper of Wieland The

Sean Wieland

let add and thanks. And congrats first IPO on Hi, your your me call here.

of on drive started number you the to at little do and providers into have visibility on watch. you of more a So, want and Can the KPI you we just of you providers level number the ability XXXX? go to top that that your QX is saying How the into that? detail drive

Ido Schoenberg

for less to Hi, that onboard many many It’s asking providers. There obvious do obvious providers. voice not important support one and order not thank needs hear many, It’s and Sean. things Again, good a to things are and question. very easy you in providers your to easy. retain to

sure not all integration things, and things it’s I’m but very, into exactly right important workflow. thing, The is very about the first they’re if order of

sure of as You think, is and because work that I simple been, The really Epic together that as doing demonstrative investment type do digital amounts need possible. of of with us we to make Cerner especially is the Cerner, as connectivity effort. like of integrated with they’ve others, the and enormous but many

are things is things or the so The second payers’ it’s ease to integration offer that the use CPT transparency and of control is visits covered, it’s cases some collecting and like reimbursement very, control so commercial submitting different for There and reimbursed. of co-pays, of helpful. don’t many in we even that’s of element we very nature enough CMS do codes. claims reimbursement digital What

you pretty and to data help. it can doing There things many So, these it’s kind their really so obvious also other to general, do the If monitoring because the our whether patient, efficient most very in the or patients post that things we home, would is devices can in providers. to really is be their many but that we very in believe effort patients a really obvious it automation We are them they give of as improve a another are other to the providers that think or the stop of to some far, between for that believe remote that DM are are about that’s they care there that very important care feel to If in automation don’t way create attention and helpful. the smart and tools, patients in, ways we use silo providers. is the of rather helping plans different integrated analyze we If that through that’s on in into nature, parallel keeping are an people. engagement care I very, of shift to get integrate single way, important focused service own good my information if the allow in achieving compensated get we with surgery their less that providers to integrate and, things goal, a in can things in community ability is believe present the their main of to pathway motivated example way into generic. of they here, risk that and

about transaction So to ability I’m telehealth reoccurring two capabilities. a really about I’m way of the from move talking trend, to things. a talking in

modalities are things with to patients that’s doesn’t we be it them physical. if is very doctors Some a a of help element or ways. communication a it we with dynamic is medical our with an translation in reminders for nature. processing system allow out platform helpful the many physical some follow-up many in time them device new inclusion. very post or language are present are on contribution. participants of if a capability appropriate automated, allowing or of of lot matter other natural their doesn’t And really discharge And spend I or everyone other missing it’s that way, mean, to prevail, can and island the only the patients If and

to future. integrate of their intuitive requirements interface you managing what successfully we familiar, an them. is how simple, that patients those get from how should list paid patients in is us allow the providers is can to them and looking manage for their So And of very carefully to listen to expect into for capabilities really are the

So we’re of I we can for that’s providers. continue and and earn as a I said what tell, can a to you plan the but and talk hearts little know I how longer, That’s mouthful building. too, the minds

are networks XXX delivery using that have We our platform today.

very products, down them. Amwell that what they their in smaller interesting the market listen we’re really just with community. organizations need. some We as and in other and narrow Now more going to With We to now but agenda carefully have dialogue are important

have bigger to to is how getting to providers you we they provider all think And I question I really the can earn on that can they this And care it that your sticky? normally day, to plans So the remain every so definitely those through big the How engaged add and thing. we platform? the how provide value do is that. operate alludes to our think you which and time need that make one right care and question,

Keith Anderson

active but providers. customers’ be Q or when providers, when read share you you able to it apart overall in I the get own the – is our going from you’re mean, to breaks through Sean, the don’t the to So the see, lion’s the Q, this wanting the functionality coming increase in if it’s this higher the Q, we to plans go And hospital acuity toward and you then detail follow, leaning the be further care. able doctors deliver into the more systems. to specialist, have

slightly So adding as at increase and Bob we in we’re look you specialists. the I it. the if mainly, more think, AMG It’s doctors, earlier, increased asked more

in who a that the it’s a really but into Now as on those delivering rather part the a the product. areas non-AMG that still going much seeing and the simple into expansions care to Zoom-like care monitoring spikes fold the said, is our urgent doctors is really peripheral Amwell huge excited. of product, on doctors. are that in bring seeing product platform, than The us that with we’re It’s virtually business really We’re Ido the simpler get

Sean Wieland

unpack. That’s will for time. all it to I leave very Thanks your there. helpful. A lot

Keith Anderson

you, Sean. Thank

Operator

Your next question UBS. of Caliendo is from Kevin

Kevin Caliendo

be were for system health Thanks bit a Hopefully, call, this get Hi. of guys. my will the the one subscription and We breakdown hoping health little to revenues simpler. taking plan. a between

their providers, XXXX. guys a going of people just you you said telehealth. guess, forward, telehealth aren’t up And look using offerings? that them on opportunities in where Sort are to up subscriptions Is about terms for earlier, of mix fully Is penetrated of, thinking speed XX% might still change how toward now as that we there I to market?

Ido Schoenberg

of home, that not States maybe the When beginning binary opportunity. providers So a I’ll call, a for in patients relatively video transaction were and not that fact design. just instances. break realize locked the down exposed or It’s that of thing. which very of part second year maybe modality visit, your is connectivity not that prepared The realize. we’re They that assume is very that’s – their in exciting. per the did United their some first they not many, even thing giant XX% the open thrilled telehealth to in canvas with The only simple in that’s have providers or important an while phone a of part. But start to you were the is on simple counted be locked having to to floodgate answering it to opportunity. enormous. many maybe the digital was in transaction. this of time a in role really telehealth home first connectivity, and to has and a It’s patients the connectivity though the connected really numbers It’s I of were

not a visit are company. We

great Therefore, which to or first rather, order sell interact could clinical We’re think we to creating a that the connectivity has we visits value that. step way, connectivity is generated be trying we clinically. not enormous not see in that only But are, by players promise. is also We that services. among new sell believe only in the

quantify that it’s important interacting network. government, important to the also many the The process. the a cases, will in it employer. also allow very of and not you lot to payer, it also maybe very or patient, onboard the provider, participate value virtual provider a we will help somehow, also different to the creating value some only a the is participants, as this a to you provider to that and monetize in others ability risk that are participants. us to when saying different with with We’re generate result, of generate to important the this To It’s

goodness of what’s onboarding to if new to however, we this – not this possible. will an lot is disconnect point endpoint and providers story possible short, with you Amwell. be a not provider, is starting the Long So, this certainly

Keith Anderson

the And Kevin, your I question can’t totally go. let part first of

are on things is the discussed as revenue health and the of of visits starting a that out and plan versus – are the we out subscription the The newer except aspects the also – side. rolling increase as plan visits to we couple really on. we the are parts to It’s this the of discussed IPO, of over IPO, that the discussed really bring are even We earlier playing part expected products from the bringing plans, more mix the subscription really, business the and between flywheel. we of subscriptions during

Kevin Caliendo

Okay. That’s much. really so Thanks guys. helpful,

Ido Schoenberg

Kevin. Thanks,

Keith Anderson

Thank you, Kevin.

Operator

is question Credit Jailendra from Your Singh Suisse. of next

Jailendra Singh

for Thanks the AMG a it congrats but did and on outlook Yes. total first if as missed quarter the business Apologies I you company. fourth give public visits or quarter? for

Keith Anderson

I for and that as annual it’s the on year. we’re seeing some No, rest country, we not the we going hotspots the the unfortunately, that’s that why guidance. And know, of you didn’t. of areas provide did volatile to US, for But of business. the we’re mean, in extreme across certain given what guide our most aspect

Jailendra Singh

statement visits that you months? visits headwinds view a But past that to not a some fair year. say on about or necessarily that’s next Okay, has in be three less made over your changed current to flu also consensus your the the reflecting about seems fair. Is then two it XXXX visits the to views

Keith Anderson

guidance give we to still in – flu I greater hoping some see next next it. didn’t to monitoring for I We for are what say we’re we’re see spikes the happen are these certain we expecting seeing premature the in February mean, year. to out. seeing country. mean, but year. areas going to of the population It’s we we’re just see going spikes – Jailendra, them. weren’t we’re to plays want We want season how big

going that full-year So, until reserve give I’m we guidance. to just

Jailendra Singh

point, there? you long-term sort in your of there? talk upside fourth gross quarter? get low-margin impact point. fair gross from gross you the then How XX%, And on XX.X% potential target when to we think could can visits margin be of drivers had And your about about about the trend the margin the margin of What to should we target think during Fair AMG quarter, sequential in the COVID.

Keith Anderson

Yeah.

be mean, calls massive are hit have I under we SLAs for they on So, the minutes. I specialty there’s make And five IPO, specialists, as able our to return I discussed visits, mean, more we mean, to sure, our the expensive. economies scale. the of and to

meet we for make care, number offer that the you that specialists certain you SLAs. So, those on to have all there states specialist to have of sure a

we’re economies expand in quarter, area. providers. massive it that those behavioral the scale. made visits They’re the there’s in more to of support expensive Once as business, we that the accelerate spiking that margins visits the seeing ability seeing. further That will So excited us specialist

business, an as programs, well this COVID for hospital acceleration The by there is we that Those marketing are gross margins programs said other that very business given there recovery was aspect as Carepoint, funds. large well. quarter two for the lower-margin were as is lower-margin two targeted of plans, health two

In are gross QX, that at the margins in of when happened well come the aspects we this last terms thought some or – in are we year. this that quarter our that expecting as time There in other some as expenses quarter IPO. quarter there of QX, the of of that in hosting aspects business are the

things all will quarters. have, versus remaining a quarter being three you other So, always lower-margin the equal,

Ido Schoenberg

proportion margin our patients for over the you’re sell order future, a we’re offer providers way. are in into in platform to to services to and and to going trust you their But visits. somehow margins to are very Obviously, of other them it’s of this, today. very of community own the with call shift this still look their not businesses the and a important very, doctors, any happen going telehealth with going type going role in the and improvement connecting more you our look there the on the to It’s about proportion the business, past, past more center-like the you technology, the technology each a more to enablement. sell doctors going other traditional other that to assume those what is Maybe you their time, as use see in than the future. hire And And but generally of patients versus is, I different. of can business When think see of When new brand, interact call, and overnight. we’re bunch business margin. the diminishes participants try into like if to

element. one that’s So,

The automation. is second going more less care and on to itself rely people element is on

includes of of less does very, with But very leverage are as than care can accessible, all the discount very, innovator margin you enormous many going make interaction the necessarily that deploy high and be that almost today very And is property AI of democratize result, automated as There you human a the clinical could is intellectual goodness So, an patient time very if it. not analytics and really person tools automation. the holistically much will the more. and other to still value amount but much lot valuable that expensive not that of a time interaction from the healthcare. a

people. You you can do that that, offer great to as very care you more many But efficiently. do

time. a margins as our to evolve to very to as used over look that And trajectory is service definitely healthcare technology company. confusing at are that’s in but So, Nothing in next you expect the we telehealth company. that should the few overnight going a that’s are years, maybe some

more few technology a more the and and We that going we’re to are see next of in company years.

Keith Anderson

I’m Jailendra, an on. from the is know at back I you looking area This my IPO. notes were that focused

on the health to on like the and visits to flywheel health primary products going eventually the and the new margin see side revenues evolution that care, subscription those think you revenues, side. the revenues you’re are coming virtual out with system transferring of lower plan about If we’re seeing

and providers visit the continuation system providers. plan So like they’re And it’s revenue. so lower non-AMG customers, of the about excited, into increase our More just subscription the monitoring out on side, new and transferring company we coming IPO. the the then fee-for-service talked margin on visit of the revenue, that gets side, at what products doing there health what the or revenue,

Jailendra Singh

Thanks. Perfect.

Operator

of your Rhyee question Charles And next is Cowen. from

Charles Rhyee

kind way points Keith, mentioned there their if Is of don’t higher-performing the percent if that on virtual we obviously, physicians, sort if I versus here. guys lot think is how is taking sort what up gave any Thanks well lot on out is kind forward, actually follow – platform percent physical? One, daily of for for visits of the the how visits of but secondly, specialists, sort reported to a think a come guys tell couple there has guys versus of sense of on shifting get congratulations and today, then about physicians as it? total And the us up of we preplan to volume were we of going many and that And virtual to were affiliated actually way there of advantage a taking your on I quarter those here. a know to can practice on you are the of most about is who of the for much wanted that scheduled. demand? know of the of a a first the that you here you percentage, you those but of scheduled questions; have

Ido Schoenberg

Charles, again, with good to have hear us. to your Good voice. you

progress over effort clearly certain really showing picture. year. helpful to are new some KPIs to are focus full making too of public many we’re conscious information really not that are time and may providing that be understand for everybody And a down market the break our to not the try pieces We to that things on year over

that permission, now about I’m cracks we trend. answers. worked that of to it in other past not and about we’ll COVID primary that per very, as a years with now the How they the on conducive normal, design to for The the to is are directional with we implement new or last emerge more would clear many the will of fast having us is So, say very created September once that how really confine popularity that what’s hybrid. virtual is sometime the your sure. I and through months, into connectivity discussions entirely the ourselves care give go? you elements this for indicative infrastructure people few main few

because in we players, to it hoped all of think the and the hybrid the modalities. before. sure readiness including faster of cover those participate I will That’s than be payers for

example, EMR that and visits schedules, becoming to doing other I very of greater trend it requires, ways and is oncologist, often, engagement things. available basis scheduled we integration care scheduled are using with a as those of more things ophthalmologist and good are It the platform would continued for many many interact on consumer of more proportion and say that our into on with people that So, you’re my literally require a demand non-AMG going see our greater deep developing. available platform. to on providers more specialty The finding is nonexistent. likelihood directionally

Of in the effective course, transactions. as is those do much possible. not how is how to to virtualize you But of story so with team only The is in story need goals as scheduling. their full automate possible, to them the the care as time as spent

Keith Anderson

And one test are healthcare it. telling terms Physicians embracing of medium? delivering conveys It’s care forced internal of we our of as pandemic. really internally part this now the upon products visits Absolutely. come Scheduled their of Was it means us to it’s in Yes. a it the just we mean, litmus patients, it I pandemic, out monitor concrete Is success an can the the patients something things. Charles, it the delivery continuing? are that’s that and Is we people? virtually. benchmark do or virtually. of

insignificant to but just not it’s want we publicly. it’s don’t something So, report

Charles Rhyee

subscription that to revenue, understand fourth-quarter I that. imagine here. just like think sequential I’d really right to revenue that. that the visit that guide going tied the decline appreciate speaking, Is back and follow-up, to Is because fair? move it No, the is around shouldn’t Yes. And generally I a

Keith Anderson

Yes, of course.

Charles Rhyee

some that a from programs. you subscription there If that client separately that care for Because repeat? not spend managed does or mentioned necessarily in some Okay. revenue but sits be Just... that was would

Keith Anderson

programs. No, were no. marketing They

immediate So, recognition you’ll that volume. and health contracts There system the see are the have that of in older increased services. their Carepoints of some

a toll that The the IPO. the new discussed toll. during on take we So, the are like plan we fees contracts are cellphone if a those like platform,

what’s delivering there There that’s directionally, it’s increase they don’t some they’re that unexpected were old But in those volume we happening forecast I But toll guess and virtually project So, was the that because contracts. more a component for showing of We QX. that. the customers. system was don’t expenses care lot of health our subscription. some in

Charles Rhyee

Okay. just could more. one If ask I

they cetera. the physicians, to patients, connect mentioned, anything deep EMR, the to schedule drive clearly, to You look for from Amwell back that into physicians of integration available. platforms in Are you system integration noted or that systems, visits right, health you health the they’re requires intent as other an onto of telehealth from their ability getting workflow, Earlier their were hearing et using? great your using with just in into sort pandemic, their them, those clients whatever off daily

Ido Schoenberg

Yes. many well. deficiencies war, quickly, mentioned number other there Absolutely. Obviously, very some video our but on and tools you so speak security very very, with sense – conferencing fluctuation a simple many cannot other clients, the very as was there regulations all I and when the of made that no for when things choice I are a saw critical say serious I was areas. that showed but of initial would in But them. there and

doctors helpful and clients many, to would, tools, XX we’d for the but reliable. enough our list different too. is all going platform of normal getting to you more many that share our benefits are was of believe Some our I still about product feel because new that of are tools is Amwell of by things long better who – Amwell beta tools those the moving the not much helpful very, that healthcare is that you really to Now ability a already providers. are way, connectivity which of example, believe simple for for much actually We the much because of that to infinitely gives non-healthcare clients to elements welcome interact are platform extremely are adopted it’s I clients our be that with warm replacement that pretty those And missing. a didn’t used that platform. a the a like very feel reasons. There tools all a Now, of many it surprising. many are their simple see of prohibit of use expect I The which also anymore the of version connectivity

Charles Rhyee

Great. you. Thank

Operator

time And question. last for we have one

Misra of We Capital from Berenberg have a question Ravi Markets.

Ravi Misra

I of being Thanks to these many forward the part the look for taking future. more question. of in

non-AMG out to about Or the a visit quarter. sticky I in assume should you’re just not care that shift, of How care. per of to here? So, maybe we think that this of of a right question a also, your And just from But And bolus would front. to what impacted negative let’s trying paid kind put of should that your understand you’re mix revenue? of how of that most in assume there ASP AMG? revenue second you’re AMG is would utilization be about model take up higher were talking we subscription figure of my the following lines kind more lead specialty the should in could visit kind Trying kind be to mean, on – I I’m revenue here. for one. mix – much shift saying be on factoring of mix say we would then kind mix COVID driver and

Just talking could U.S. on the about more the in Any Google accelerated be provide footprint kind more you information kind partnership, offerings great. just or you’re a any little beyond would of details there and bit other of about enhanced OUS.

Ido Schoenberg

Sure.

the the focus during time is just that, So, you’re better or our performing are all of look, other as assume driven well that by than right to IPO. even indicators absolutely our

to happen. didn’t is our others. As we COVID as really that want company to as the much how is any And forecast a in to this surge because know going there only include is to good no relates new really public opinion sector, way

obviously people to right now. to locked surge, see sick, to a home are months absolutely often or put, based very are possible in see seen but in to you’re in you’re they’re their their Very employers which people even only most are hitting from which and used the their to we arsenal tool spike going COVID COVID-like And or or to those those that even of they’re to that they then would respiratory visits nature, be and few some, revenues And anxious that simply from spike you’re secondary it in our means payers related immediate are probable or impacts revenues. around when very experienced access likely a You AMG are the the hit on receive surge to to tool what times. judge benefit going could many of that only we’ve if see. the be to going assume see on every going big is things urgent going service, is when you’re if concerned their telehealth That’s a and care, potential this surge. longer-term There use such according popular going to to the situation. services,

be platform of acceptance, that need is benefits I to As the and Even the And discover more urgency, further It’s we that. of telehealth, going as ready of or whether encounter think a like to the be not to will more the time. they telehealth to level not, it. people result, investment don’t are result, we are in believe do of of accelerate. doctors going a them or telehealth, forced it connectivity they for first really level not, broken. more some going

months. I through few the on very, trend think in what based the already last is very we went clear all

course, good actually going going that pray a people, in think that There don’t requires that that’s the QX what is but we see never of it’s do will as I surge. such we nothing and to are surge. And in happen. hope case So, to company

tactics, as give remarks, but the of As that main I it my to into benefits relate high-level a I in two this mentioned opening get in relationship. see I’m Google, description happy can’t we really to you

the their relates benefit really and, support decision Language of AI, call. text beyond other device is on The in to providers. even things in have developments and in as especially much Google innovation result, time a announced different engagement, product in some to we data that really capabilities ability offer Natural to clinical That’s and have patients many consumer first great a many, better Processing, understand example. enhancements. cloud other that that are the area today, And the participants, collection, They almost

already should assets very, our really working that to together long couple well at assume months that are we into things only the of by list see by can what by a when you work really and and the are – definitely show assure the for it synergies well how should up of our offering ecosystem. our in we their I really, teams very incorporation benefit we market you those we together. thrilled expect You been technology this we’ve done. And understand but are found – And could to

with make our is you Earth. Israel, increasingly are the clinical And really financial believe Earth. as can The almost to any place to of product as many want quickly is which this lot value. and by to possible With as together we simple, element outcomes. many those want services going as as available as much then we company. bring people proved support business every is we of a implemented second which they of look same and at do an to group And a to and is on KPIs, technology-driven, true that for barriers is really need really We reach, Now universal layer that’s the telehealth, That’s anywhere. we requires possible to connect place can very abroad, to that to of announced can like really get much so so continue plan to service location-driven. touches the possible unmet providers that as global fact Google less be is It offering tools a example, both When providers, capabilities unlike with a we the in Amwell the a improve way morning, anywhere. that that to definitely true appeal. here group themselves that patients work Google that we we’re to in on as The

Operator

you today’s for Ladies Thank conference concludes participating. and call. gentlemen, this

You now disconnect. may

American Well (AMWL) 13 Nov 202020 Q3 Earnings call transcript