Earnings call transcript Q2 2023

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Operator

Good afternoon. My name is David and I'll be your conference operator today. At this time, I'd like to welcome everyone to the Amwell Q2 to 2023 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there'll be a question-and-answer session. Instructions]. [Operator like Investor call may Relations now Dooley, to begin. hand of Head at to would over the Sue I Amwell, you

Sue Dooley

second Relations. Hello, to is Amwell’s to Dooley quarter our Sue Investor everyone, This of Amwell conference of XXXX. welcome discuss call

are our and CEO, sources. today investors.amwell.com is on announcement. Shepardson, This and website Ido a distributed and Chairman archived. is today being the on where of be call available conference our news Earlier a release This CFO. we Amwell’s from is press me replay will Schoenberg Bob live Joining our release normal page also detailing posted webcast IR our

and begin projected forward-looking to opportunity we we anticipated this to or may we the call, This Before statements. you results and subject actual operating the is I revise market as information make opportunities. by described Except course risks prepared with take to filings to in update statements SEC no forward-looking obligation materially. required results of would will events this and regarding our like or that, our these uncertainties remarks, remind differ during undertake the law,

call of GAAP to financial posted On will we refer A to over Ido. With that, to measures release. earnings to GAAP non-GAAP this the financial like measures. both reconciliation turn is provided call, our our non-GAAP and in would I

Ido Schoenberg

you, Thank everyone. Sue. And hello,

pleased our Converge added our quarter migrations of we quarter payer migrating of to With further second I'm systems made continue The we we to strategic for the of approach underway. company. as health Converge are announce list XXXX solid another market. validated behind clients also progress was most our development us of to and

discussing to results. we'll pieces the important before into work place highlights go you're I our putting some like would to financial seeing reaccelerate cover also of market. we details QX more Then, our what the in bookings momentum. on are is We in

a XX% pace visits visits on maintain from rules of steady we to quarter. of migrations, last Converge During QX, up total XX% QX, client in

We driver in Health during on successful A of migration [indiscernible] implementations also I'm Arizona Northern Intermountain of metric drive examples few to of successful who Health this to and availability these report for continues teams a pleased other our our superb major to successfully include clients. Converge proud California. QX. and levels that continue and the I'm migrations executed migrations, Health, and of deliver value of

on highlight was strategic also successful I'm large very key to and launch very that payer announce Converge. client the of QX a new happy of

the We pair to technical best powering are to success class live, go rapidly deliver approach the in for client scaled proud be Upon engine provider the their hybrid respire a this care their This rates products by visits. in demonstrates care. technical their us especially valuable power This soared. connective metrics success because independent example purchased platform the payers. and of client value infrastructure of for is traditional urgent to

the propelling call fact has efficiencies center. In already by a own in reduction Converge support on the load meaningful clients delivered

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care our the their evolution this spectrum for new in has true standards priorities as delivery look the broad pair us are set operational they capabilities important leading adopt partner We as industry. and solve a and honored, chosen to of to innovative hybrid and

With live an devices Virtual of currently nursing additional care including multiple and leverage virtual prevention, handle incorporate teams additional variety we monitor nursing at the for Bernard to and escalate our a team and at facilities is expansion expand care live had efficiently for an emerging and improve patient is Saint consults. Bernard. the the by nursing overall organization our aimed rooms deployment hospital alleviating meaningful go capabilities, our solution virtual alerts, with opportunity experience. with software rounding, enabled to represents activities, plan capability virtual nursing across Continuing which in with shortage of a exciting solution fall pharmacy us. to services, rooms, Saint specialty

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payer The and As was we solution selling across engagement enterprise sales to ramp quarter with provider methodology. continue our busy universe. the

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is seeds reap to benefits new team the sales sowing Our platform. the of our

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and While our total flagship think addressing. our leveraging the international English U.S., validate larger Israel. sales speaking these presence with we planting the efforts starting focused countries, winds in are opportunity in we extend the expansion in We and addressable are are seed and for market, further Europe our in established partners

margins, environment driving growth. field, underscore Out interactions focus to on comment leaders in The the to strain priorities my to staffing shortages, continue in our revenue improving sales, spending. require conversation Now Improving I'd the like priorities. sources to patient real. leaders is take healthcare and of a and in their establishing and healthcare outcomes experience lists. moment top healthcare on of the their solving new rigorously on to These with consistently budgets rise prioritize

patient long-term investigations conversations leading involves experience key approach and by to are provider a us. evolving this more efficiency. more leveraging a strategic provides of to outcomes about And first to hybrid technology Increasingly digital a essential. enhance Converge and to for improve this that In are Converge These environment can tailwind involved, operational how care. demonstrated

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over of the driven can cases core While an The as Converge selling shift shorten to retention. experience changes sales process, selling high for our streamlined. in we more they long and platform sale cycles solution long the are will partnerships become we based some to this in conversation from our result platform customer at cases as proof ROI approach methodology, value the points used we which to business quickly sales them believe Converge, view our term requires we for and and run extend and can, and a proven a approach, and in solution accumulate, gain positive expect

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of of our this In was Kathy to addition Weiler. the growth regard, that I'm leader the new organization, a say of pleased highlight QX

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and we these is in evolve programs, crucial with tools. as patient we provider ensure care and hybrid However, automated integrate that to confidence it

and are address is think rapidly. that where unique that methodology doing over context, to our that believe Clients is review selling But Amwell beyond becoming Bob? of some With to our demonstrate we and financials, services the the given we've some would seeing the care we care like to experience. closing, examples call that that fragmentation technological build metrics suited adapting benefits our looking approach tonight the can complex. main yourself are transformation. combination to light, are journey is rapidly In it move to the and be hybrid forward. today. access our I digital ideally With technologies, QX guidance, the Bob turn the I stop shop as client clients of We key one our highway

Bob Shepardson

take with Overall, comment important migrations on to to do feedback. being in and our results I we our start and legacy for many guidance by impacted degree With a everyone. our to of moment platform, Ido, to financial of validation hello, our that year. I'll business that strong by metrics, revised successful then new customer context, anticipated. of want customers for are are as platform review many metrics and progress the the Thank you, a encouraged a and results our churn operating customer we turn quarter, second with of that previously our

the ended last active We growth represents compared quarter declines replatforming quarter efforts to from X% second year ago. during a providers of as can with a XXX,XXX temporary representing occur. X% This decline

migrate continue onto providers in were indicator and the platform. providers to clients as And approximately million second down Converge important X% an our increase Total existing our as our of will that we X.X active sustained platform. active We quarter our continue new the anticipate clients last view of in we over year. to see implement value number visits

Scheduled total year-over-year our in a of due visits line represented to with visits factors. combination over total few XX% We the experience declined believe visits years. of last

declines legacy seasonality during typical And returning was the believe and visit platform. volume, a on second, saw we which some impact more we prominent are First, we less pandemic. the to of

We steady for migrations two drove and XX% XX. continue up first our successfully clients the quarter platform to progress Converge in of the to on successful the visits XX%, migrating to quarter from new make

customers, majority should to toward visits migrations and as drive have our And year, over XX% we intend Converge the on remainder for As to this Ido this migrations provider look by year-end. of the said of we payer complete begun.

Given results. cycle related are year. to see the at expect visits to payer Converge financial payer now our tied visits enrollment year-end, next we on transitioned And to to

was legacy our the first of successfully revenue quarter last our year million balance platforms. this slightly Converge second was associated on from reflecting in from is we Converge the quarter, churn as headwind $XX expect and with the down Customer in also quarters come. Total $XX and a the we to revenue million quarter on to lessen Revenue excellent customers experience migrate to for quarter, down slightly the ago subscription from

revenue per believe on period care historical Moving ‘XX at higher declined trended XXXX visits, than AMG our to the $XX, more far second $X and this XXXX. urgent million. versus quarter visits lower year in of visit with due line primarily lower quarter average visits second X% $XX to a was XXXX X% AMG visit experience revenue visit looking are and last between seasonal so mix. we year, Based with patterns the than the and

and an on $X.X was from quarter, last earned implemented by professional million clients of services revenue strategic as represents we which million care primarily for revenue $X.X services driven points increase to Our Converge. the we quarter,

These the buying well are deployments. care revenues did precede from professional services that customer as lumpy points as a timing quarter-to-quarter patterns for of

the also of our our on relationships, long activity services discussed see strategic They on increase indicator deploying a long-term calls, term As the revenue see of the platform. ROI client they in and expect highlight Converge. in we to are professional have we leading prior nature

in Turning advance to the in business. our to our and clients last higher of gross from onboarding declined rate quarter margin versus profitability, this quarter, Care negatively revenue XX.X% reaching Psychiatric XX.X% subscription quarter clinician impacted was last prior by run profit year. costs second lower Gross volumes and periods margin new Amwell XX.X%

million Turning $XX.X expenses, software costs. after for versus and quarter $XX.X of million capitalized expense adjusting operating flat R&D to last was was million $X.X at

expect R&D down year, in R&D discussed, fourth peak. our will percent we of in represented decline half second to have As Converge progress year the of given spend. the that the delivering And that QX’s spend our we ending quarter this we peak believe XXXX compared mid-XXs

last quarter be the also compared We and this half to $XX.X Sales minimal decline the approximately flat expect we the to XX% quarter, lower capitalization second the marketing costs to compensation half declined and of flat last year. versus G&A was XXXX, of million first of primarily in this expense. SG&A expense spend to was second software for the Adjusted negative quarter. expect half to quarter due EBITDA in stock-based X%

a decline non the Also, a we of capitalization. as in cash result our recorded goodwill market impairment

our based XXth, As of the of as the equity value We of on premium. compared our fair June carrying a estimated cap equity to our and XXXX. value market related control

of million As a impairment this goodwill recorded result interim we assessment, quantitative impairment charge. $XX the non-cash

marketable period temporary million cash as we financial and flexibility have strategic substantial are pursue sheet to $XXX strategic Transitioning with a our the this goals. as and fund to we ended cash well the to of opportunities which of the balance with that position provides investing, securities, resources aligned quarter

of to financial and ongoing guidance replatforming. expanding based growth In this And of Converge. that we near-term the process in are client delays our impact opportunity and facing the The timing in we we Amwell and Care our implementation are sales fit different set on structure to partners ramp expansion Psychiatric temporary first now half. second we on will updating optimization second our business subscriptions, transitioning clients existing visits has some our with the up outlook, new Turning are impact our in to and the relating some the and half. and quarter some with dialogue had our dynamics XXXX our new of churn organization

geographies, APC licensing to work build deliver to hire our services our that states. we beyond implementation necessary clinicians these in with the find we for acquire slightly are our as As and clients APCs traditional credentialing durations business we extended and

million. $XXX changes, range Given $XXX guidance revenues for our we are annual revising to these of a to

subscription be half. percent the color higher in first we the additional will revenue mid-single expect digits second than for provide To half,

for to five visits XXXX. will was spot in a visits, million it spot the we be per range to the one visit are same one tightening of X expect XXX visit For our year revenue, million to estimate revenue and paid as approximately

our range expect EBITDA negative million. adjusted of for $XXX further We in to the the negative $XXX be year to

associated elements cash following our we of replatforming, some our long facing the remain the headwinds we breakeven near-term elements. by model with Although to confident in bolstered flow are term and path

R&D steadily of much clear Converge to spend our us. development We have normalizing behind visibility with

reliability market Our solution class in performance in best providing resonating the and clients. is is with our and

are accelerate and commercial in the existing With and well customers with We a view We to taking than are our estimate profitability we significantly informed grow steps our circa million. deal applying of our our $XXX believe new win We overall drive estimate at velocity term subscription revenue. market bookings million, efficiency, cost high the in the learnings underway, XXXX rapidly. market, our and software and margin reach sales Converge we transformation structure. can of our early a level more of lower $XXX our longer

like I'd Thank turn for Ido With closing that you to Ido? call remarks, the to listening. for back some

Ido Schoenberg

execution QX Bob. are Thank we QX you, With and us, beyond. behind focused in on

few As term long term, right our may steps be the moderated quarters, taking secure we're near temporarily the growth success. to we next about well think in the

ahead, to drive Looking our expansions sales, transformation, customer wins. we new will our continue execute to and momentum, work in market build and well

hybrid still evolve industry successful for While migrations. as days client continuing towards with our early It's care delivery. we

day the long-term our potential pursue achieve clients are and We our care every mission model. enable of we their our to evolve approach to to hybrid as driven

to formal we're line today. you, our that, for questions. for you. Thank remarks. open ready With Thank Operator, we're the conclude to ready listening

Operator

Hettenbach Thank our Stanley. from you. Craig Morgan first pick [Operator We'll question Instructions]. with

line now open. is Your

Craig Hettenbach

bringing levers you going million, side about you're comments Bob, first your to roll just R&D Can to do you question down XXX reach breakeven that the breakeven you some addition for on about the to to thank last talk of have Yes, that in that maybe that the mark? will off. there revenue on things

Bob Shepardson

highly profitability behind point. happy we product We early experience successful. path to real data time. - have We've the is to this world Thanks, know visits of that XX% that about better framework approaching Craig, out we So, more, at and the put versus ‘XX Converge on at our assumptions got

efficiency. And you buckets efficiency. and are got absolute sales savings to levels potential a really driven relative and as conviction see around highlighted, lot do The between, delivery but lower R&D, rate them around today's declines from product really around run in those efficiencies also by for levels. SG&A of better of are R&D, We've of sales

Craig Hettenbach

sales there replatforming Got the when just looking back year, a And year new about Any eventually to into be about what bookings. the some out of the in kind proof next in year this bookings of then and follow-up early you you an this the kind of the sale Focus you'll shift of acceleration or market. underpin here. a half think we push it. talked thoughts in terms of in points that expect

Bob Shepardson

Sure.

Craig. hear One, the I of you'll think importance of some lot but a a in the couple I us probably also Q&A remarks, today about things think migrations. there of the talk in prepared

And happen. really so And on lot clients performed. historically headwinds how things is as churn platforms. we those good to are able related to to migrate churn, of a platform, significantly with dissatisfaction legacy because our abate Converge the from all One, the existing the

around, are and And now really side wanting a to get migrated. about And system talked underway. good not we've as Ido the I as health plans we done health think, on and, clients those job clients wait

next to market a us numbers around lower lot that, churn position early probably headwinds We'll again year but to a a really to be also in that upsell. show side, on nice broader the some have addressable allows much

I of important in customers the half, largest can migrating of and health our as continue plan one think customers aggressively And health second system larger, so, do well. we our the things balance is our most the

those is most thing we that are So, do. think, -- probably the important I can

to add along probably can our Ido go-to-market our, transformation. that, thing other The

underway, And there. we've we feel made good the about really well progress that's

second you impact half to bookings. know, to in have some these if cycle positive want shorter don't And that we'll versus in half that? expect we on first the Ido, so, of a add But bringing very the I

Ido Schoenberg

imagining disruptive that the And and very, platform couple growth is just went best past covered years, we on significant. innovation. private it, the enablement you I could In really focused focus Well, very then we organization I care suggest Bob, on imagine. of transformation the would think ahead

we now of next in about all a As look into delivery. It's profitable the years. couple

about expense, focused data us of packaging, we parts be now as have positioning, touching Bob organization. includes very including every allows mentioned, pricing very organization reducing that org, concluding to a on are and And part while the a messaging. really of and other R&D we The large growth transformation touch confident of new the

big in We the did a very effort past few months of upskilling.

facing hires, look to teams, ROI some It's training we the not client move the partners, to more proprietary. top service And Our did point everyone great our much dialogue the and efficient build of we for an starting mix driven engine The has service on to new client from sales. efficiency by the changed from dramatically. broader, an with new solution channel profitability, Converge solution in of did focusing with reproducible, all a send as goal a mostly contribution level to and rigor improve subscription. to improving besides extend we we're velocity

a So, the fully Year the completely end from concluding we transformation, say, see points between all the year. hallmark be validations continuing of standpoint. of migration, accumulation can you And the powerful and expect proof now are very different the New of growth the organization coupled going what the to with starting and ourselves and

Craig Hettenbach

you. Thank it. Got

Operator

Next, to Needham & we'll Ryan Company. with go MacDonald

is line now Your open.

Matt Shea

and to a churn what you the to you to Ryan. churn any and Are of there with maybe the that that bubbled of clients the kind is Wanted of expectations for Hey, been This market churn larger thanks with Matt subscription had Or of lower to small the contained in any little to bit. business commentary the clients unpack still off on half some or start of and guys lower line some the for has is resulted seeing Shea year? of up trying with kind back of this been taking expectations your relative some in that expecting? in changes end question. your is

Ido Schoenberg

our one, are Matt know recent a a strategics So, and data all couple us few with from announcement. as added points. our we you

low-end approach saw looking may was lives, in a the Converge. big migration. commitment many we the to to innings Converge, the go that, our covered some renewed announcement is last customers, fact, know of It's you we also Bob United legacy. cover the I existing Converge. if churn most in are as add. zero mid-level there to a to evening, of of committed by addition we In in to live anything mean, that seen that churn have And the churn, a With important there is is exclusive part our to this to we so and new States of have

Bob Shepardson

meaningful Yeah, would we Matt that a there. really I expected is there levels change around in and guidance, say the the isn't in coming our churn in our

are pushed a revenues anticipated coming in. driven it's those that out as not So, quicker twitch bit. a churn re-guide here, much And as just delays some around we

lot is a anticipated. word that revenue that of prepared is had levels So, that from level through we in remarks. in comes churn and around well, The the probably a our impact

Matt Shea

to in organization. of I changes go-to-market pricing hear Okay, growth part on that's Craig's you changes that's helpful. some Appreciate that. And then interested the the something digging was mentioned picking question, as up guys on of maybe in the

free. clients are existing that understanding platform getting new the So, Converge for

to Curious you Converge relative at driving? to that was, Thanks. understanding newer platform the able value with you're greater that and that pricing power offering, the to the this is your relative that legacy pricing what are and if clients clients higher you're some whether price price that have of and seeing new raise initiative

Ido Schoenberg

Matt. question good a It's

very, to relates and therefore pricing. And deserves so our it in legacy its solutions. different essence, it a and is its from different very Converge look value, It's impact different in as

Converge that to In addition is modular.

needs legacy not today, market were to much evolve made So, people do very when value it architecture the you Converge, many, our they done there as enable with relates over are not future you've in before. allows That And what possible to things But oriented. Converge. time. In focused are grow -- new was pretty many platform buy being new today. can need to their you that can everything the, with to still a do proof and as us allow people

fact which in has The happy feedback, observations new the other stats and have our I'm to or power platform, we grown that things, pricing that to way some of We that believe significantly. on. actually customer relate elaborate

you give interesting. be to few a that could Just observations

platform ratings really are unusual highest reflects They're low, system really much, Very gets record in it provider The the [technical availability we also consumer more of much high at support, the is levels. fair can the platform. are extremely even difficulty]. interaction, super lower to. ratings robustness new importantly, possible and legacy aspire that ever the absolute our a The The and simplicity numbers. than

the a much very And based to factor a size relate of strength In on higher, from competition highest there And organizations lots ever. ways. is. than are shoots, is in higher actually a impact our is points so will know, question it's all much directions. all of There us. where just what a ecosystem lots pricing as you that Converge NPS the opinion, skyrocketing, that it's green for we of end that to platform is client to can that see it's committed I many much, saying coming your are is our Converge, also that already new when to important perception, power. buying that a is adding and existing source too to by the proof our

innovator, means position. the some and that, that them, for in are, choosing largest, of want through you Converge. do to with sophisticated or you them need you to way if provider that strengthening And our The are is course, or That most interact Converge. example, organizations

Operator

to we'll Wallace Securities. Next, go with Jack Guggenheim

open. now is line Your

Jack Wallace

maybe beyond to for questions the and a drill of taking volumes of business the platform, was want ask angle. of year the by adopters. just on the were Migrations end the XX% in more a new the earlier be, taking early Thanks different Converge in from about place in for the environment It bit completed getting my little year. the early year being questions,

experience be related between use lag but capabilities. platform you. you expansions, in time Are with to timeline In the wouldn't modules, any dynamics to incremental pressures, their more necessarily changes that migration cetera? seeing understanding or cases, budget incremental and the that et Thank related market its say to considering of then

Ido Schoenberg

Sure.

right? the so rollout went So, low unequal, everyone, to end, providers, and of the of we are to started And end where in lower the growth providers, covering the We the is that same on story point it's including we Converge forth. experience. was influencing are by and important with note then we payers, the basically now that and so reaching asymmetrical, and

climate I said with. and are my we lot things few very a Having today expansions, very, can between see a ratio efficiency that, that that quite in of popular examples that think the the of We increase they that gave providers change this prepared of address. remarks, things patients in those number

very of nursing So, program, more demand. high be popular way seems virtual is in in much very Behavioral to less automation, and humans longitudinal examples. health

the in So, expansion, all those topped list changes see size. we things the And of to in also sphere opportunity. way begin

easily the larger and that growing fact going over volumes are very quarters scale. all and We quite is it's be experience with more related these migrating workflow. more and few clients next existing the the much in Converge to deeply are think significantly higher increase are integrated to So, the trends nicely with will

Jack Wallace

what you capabilities about we're really, consider kind platform. secondary sure of bit as and really demonstrate, customers considering curious So the price? of push it. there more you're for there's, Is pushback is at value the some factor? extent is on we'll And of on But is any that what price the demonstration are full value, them? that's Or dialogue looking back increases? little then, it's there mean a Ido a And you. there can I it the is, by the a during of really, incremental really And elevated paying Thank is price the and helpful. process, the,

Ido Schoenberg

with of needed, before. a realistically, So, we not really as want very prove are Converge in in ROI, have they get from market then really suddenly are measure general that invest us in very, do that as line to them, in environment, the to they we it believe couldn't that is choose distance price sure allows make are careful component people a every likely. allow clear clients to relates take most things is We that of price ROI confident, that it's they The modularity a fair components so moving our way risk, and to try they the Converge that the and expand And to expenditure. away and conscious very reality.

components Unlike from. lots choose to of others, we have

base. that are charged competitive and while all we every our A ability that experience standalone stop our solution, integration. code are now So, with to and to one buyers end-to-end one shop realistic it unique of as integrated into lot CIOs relates are for we are offer customers are in

to reproducible efficiency that creating is is experience a really them. And and a of our saving a fact customers. with a that's of think and that singular hallmark we lot designed moving bring table of pieces for not to lots The we that the a strength loss have you integrate

very So, offering on large the customers. very strategic for robust, one hand, comprehensive very we have

have their adopt getting focused, very water and there other we from a people into the fashion. fairly On toe we risk that are technology to options for averse. them grow dip in our priced dedicated, want And very and reliable quite hand, to quickly are

Jack Wallace

you. Thank helpful. That's

Operator

Thank you.

we'll Truist Singh Next, Jailendra go with to Securities.

line is now Your open.

Unidentified Analyst

As or from still are some ways, to more Hi, Can renewal, about both how speak contract new some have you Jenny trends healthcare the it approach? status you up on quo the coming evolving? seeing restructure more you and conversations for Are is or systems seeing on the been the those customers contracts side your the this Jailendra. customer, side? willing these of is are health in less specifically

Ido Schoenberg

of one vote that it few that last confidence. in So, The you, other call examples, renewals. this Jenny. And as in so committed many proud few earnings a them. our seen was mentioned previous announced to prominent I relates Converge. we most We've in There we're a of a call, calls. are to thank they [indiscernible], quite giant quite a

within but pay you more want an earlier, are contract, way structure, when Converge the As extra, migrate pricing is we similar. contract moving when you new upgrade, you the to I the people you in when you don't very flexibility mentioned of your renew term, additional to apples-to-apples the do. And we when

a to also call. other that expand much relates big today, components. is is offered more and previous elasticity is and opportunity flexibility very to it However, for choose the there There customers

market we of on for that appetite offer much a more and we that in in depending on similar able the both or upside So positioned the and generally in the options risk. customers, are the wherever before on downside believe level we're place positioned headline, we're to flexibility but

Unidentified Analyst

Thank you.

Operator

Stan Securities. Wells Bernstein Fargo Next, we'll to go with

line open. now Your is

Stan Bernstein

Hi, I like taking questions. thanks recall to correctly. my And for I if guess I'd ask

I think a has were historically, And component been post Converge? with revenue. visit moderating extent still on it is the that the to growth? volumes migration case non-AMG Thanks. subscription revenue subscription to within that a visit Is to that headwind volumes

Ido Schoenberg

interesting bringing up. That's a very it question. thank Stan for you

you general So, subscription into a you where a essentially, you visit pattern, is dramatically. non-AMG Converge pay structure in component included pierce your changed fixed however, when innovation the The more. provider have has maintained. Also obviously, of it

telehealth seen market COVID obviously, You in a post are absolutely that the in has decline right to know general.

we and is pathway telehealth the alternative care. there However, much COVID of of utilization types importantly, many an to even is before the saw broader dose Converge was a more interactions. of telehealth during pattern But and automation of main other even related that is than to healthy

of So, entirely is degrees pattern under negative Converge where the best when you look at of the weekends times with The patterns and holidays. reverse.

and part pathway fact which are of see weekdays, become the the part main our of organization. provider we in of care day times that best for Converge demonstrates Our the weekends job, holidays, plunges has

that it's with be bigger video even full done In visits. through today. There care fact, enablement used many physical many see offer we'd enablement are is can always of modalities, when and communication a automated platform, what you we component care an care a overall of traditional count interaction, although patients, not patch hybrid other asynchronous examples other

I people care. would has enabling becoming main it alternative their summary, is somewhat much experience become pathway, an a with very quickly sideshow of that a It's before suggest interact to was main that our the a if a care. of way in convenient the first more role digital health meaningful,

all prevention all care next care that of covers the full years. asynchronous from physical video to way only care, chronic the and to including not only And anything about but traffic magnitude expect management, to of are the increase enabled few course, visit, catastrophic the our the we and fully urgent spectrum, also increasing, automated in continue it is care, platform it by overall not care illness over

Stan Bernstein

you. Thank it. Got

Operator

Glen we'll Next go to Jefferies. Santangelo with

open. is now line Your

Glen Santangelo

just good about ask evening. I And Hey, wanted thanks. the timeline. Yes, transition to

over convert margin person to it? should you the right be hope the way the have transitioned? that by to that still about rather? payers ’XX Is is I you we health savings the think timeline in of think last legacy transitioned systems and platform mostly that ‘XX. in until the won't customer all past, end said that And the the would able assume to you and last gross realize sunset those Or

Ido Schoenberg

no. Yes, and

part. So the the and part, first last to the no to to part, first yes

pretty to converge accurate. end customers by of provider the the is be part year. of first share mean, The on I we the our fully expect lion's

course, be a right. you're trend, some could Of as there But outliers.

payers And course also with announced we We component we CVS but no the next first there to is the payer payers we it have production, live already will over a a even as have optical a few is tonight, of like in have year. that it, already payers one the that some half, serious in name. live,

have it's lion's we binary, a client So that that, we But we minimize fully But a to try as add. on that Robert, customers, deploy in could the our converge incurring we enormous gains, happy efficiency if not a happen. every and customers, of have of we the with share customer the more on If that anything by some expect to of last convert. and don't and the you our have have day more customer's day would stop very where we as ‘XX. definitely we day planned savings be a converge, end are converge to very us. course, efficiency upside for of will know, using efficient velocity leggers,

Bob Shepardson

a have either decision until to everybody will say of amount see the we mean, right. with we're really, I to to and cost -- I of And would off. do Yes, is, way level we small or it. the go we savings we be migrated, sunset those doing going decision make not make proactive that on in we them you're relative revenue ahead there just can left, see a based cost just coming from benefits platforms that but that revenue a whatever a Glen,

the you Ido timing and -- close. pretty think I said, I So, is articulated, that as

Glen Santangelo

comments. the thanks Okay, for

Operator

Rhyee TD to go Cowen. with we'll Charles Next,

Your line is now open.

Charles Rhyee

sort think of, of of the think correct sort and sort do it of do clients? of will Thanks. your retraining point converge some salesforce of earlier ordinary, this think to opportunity churn, of to idea moving you of out sort to you it solutions, tied of the might not kind to go I prop they're itself, see platform salesforce, recognizing the going the how as you'll this long because of but to about nothing retention of of the ROI want versus is back take existing of on to value start necessarily -- question, the an an retraining that where to and you talked to improve some churn on, that and

Ido Schoenberg

So, comments. A hi, few Charles.

a churn I've to in others platforms. We care would there all the announced few we that going every don't unsure are replatforming, happens And what wait legacy ago well. are similar. they the three be. result to necessarily replatformings that in new my history, do done reasons I'm don't First, are long, in platform These years they clients as and some some like they are sure pretty

churn. may some saw we So

much working and is the and goals that underway, value, much no own to efficiently. points, business with client question transition salesforce, doing and proof a is no more very it their better and quite we converge, have much is that which shorter we getting ROI, There significantly, that cycle, more our a articulating realize there we're much and with as as we question deploy changes

two, So efficiency I that want getting better way very not all diminishing definitely quarter done, or be the this to are are our but say We we be time. will believe a process, will there within on well a are return. we clear, we we re plateau,

fact longer. sales, we experts facing to for even is client learning the not But So and only have and we enormously the clients deployment valuable this experts to last many certainly and the are communicate. deployed but team and production cost our in that not much expecting so solution able communication also happy in that management for are

Charles Rhyee

you this, that really it's is I in behavioral it's That's you particularly great want not positioned One would health. touch around given be opportunity sorry, just help think How of are therapists. on guys would helpful. some that's through -- you Got both in the in system now sense other right sort this approaching of to sort in customers, yet like qualified think of scarcity way platform. question, able demand? of, an them it. And for market health kind don't this obviously, was a you on -- capability regions think as virtual, are a access a as certainly or how touched actually, health to plan the of service But, demand to you the added high the customers to your

Ido Schoenberg

question, a very Charles. That's good

so that other influences in behavioral Behavioral and of quality behavioral note but not care. don't our health, government Ireland a in the large including course, recently example, essentially, solutions you're providers very partnering another very the a So world of health, of while is that as segregated between announced, payers, with see providers are we to to health health the improve the does aspect influence are essentially anymore efficiency payers examples. right chronic payers, the NHS our for and of and like every had UK, it client in popular illness management it only

release are there examples. a a helpful, very is delivery very many you systems, hours a to is is a you health to have for a need bed access and psychiatrist for you very, The in an busy be and don’t improve To very psychiatrist, behavioral relevant, ability when also have example, give to the customers. provider many other

uniting all payers an partner between a they problems, complicated focus the humans so really big solving longitudinal really providers, better they very been that is and is automation. distribution the way much most a expensive importantly, to can manage is focus health, like allowing envelope single and that in of strategically, of a converge codebase the behavioral essentially, So players, on management

Charles Rhyee

Got at talk that it. being and now, of well you've SilverCloud? guess I sort [indiscernible] that in since about market you I the to this how uptake, received And about on point? had touched lately. that's think don't maybe point, Talk you've can the

Ido Schoenberg

behavioral SilverCloud as examples, anymore, absolutely of an we platform component, so that you demand one easier. nice convergence really connected have that relates anything, Wood and much people missed and is that have x of quite more just the now have is behavioral offering phone, streamlined may SilverCloud, Well, immediately component don't SilverCloud which one well, some legacy as legacy the converges is today, for we campus powerful guess about to a point part slew important I your health much ways behaving you it just you're fact a about the makes so talked really to one maybe you to is innovative around talk County, QR the and of converge even few a health codes whenever solutions,

that And specialist with the organizations part are SilverCloud showing tests out convergence are times mean, and compelling. very legacy as reasons between is over. data offering. six this NHS the why the ratio of a we have capability consumers the able with they're now is to governmental came legacy behavioral And change large choosing health There SilverClouds. I that

juvenile need So an those in resources is diabetes easily imagine but at share services, of very whole test. the patient on in the and poll, really look integrated a can we person

Operator

next, with line America, Bank of Okay, to your now is Lutz open. we'll go Alan

Alan Lutz

the to use providing need taking just about or different workflows basic the at converge to questions. and ROI tha codebase product ago. just for to than and mentioned about were longitudinal get we you're single Ido, That's years the longitudinal Thanks three putting change, you you that a care. stakeholders systems, talking that more ago? months health health in care, base XX, people need convince, hybrid talking opposed were Are these fully offerings XX telemedicine so as to there about the being talked lot behavioral more

at across that And is customer taking any Because specifically, as buy longer sense time there way more if I base guess is health in that where this have that, to a full percent Is any your period? your where we base is what what the a sort to get point just current of in think of ROI are? need of system? customer’s about frame time, view versus trying Thanks. you you

Ido Schoenberg

So platform. Alan, different, is this production and question. market ago. a it is This is The ecosystem. service or right, not a you're used important two something serve observation. your and the only stakeholders than day absolutely was your different now this very for three And everyday almost night that are because It's is a customers to years

solution. a a technology much of pretty involved. lot leadership is So It the is

the it organization the because it CIO in of element involved CMIO, savings the that to something things and has it all the touches has it local, and very or always is staff it, has differentiation, technology way this, the organization, it, the is that the to has element to C-suite of it's element it So a but cost retention nature saving has to claims it, of connected it. growth

today, in educated customers a It's touch versus very their net converge ask. we negative, RFP process. the that many processes deploy large highly very and not especially think find a new we good And that does So necessarily a think that we that influence very scale. offers, are are as have differentiated, our we to we find structured in that mentioned the they that other are people, we

the our I and of in that in patterns understand approach our of build cohort all really happening check journey and that, with a customers, growth again. to a to segments the more books a business so lot said we fits for reoccurring discussed much customers. over can is typical organization again that task transition quickly are ourselves modular Having the effort ROI effort our for this of simplify greatly And

So momentum hit technology, shorter make we solution. product. velocity that ground It's only create best in customers much customers create the and our which not that and for accelerate to with glove is experience time the can the to for ambassadorship market really it's other for us best white and the really endorsement running with modalities simpler practices it their for deal new this also ROI, way and

Operator

any and call additional concludes today's to I'll over session. turn answer That remarks. the you for Schoenberg, question or back Dr. closing

Ido Schoenberg

Well, for thank you, everyone, joining.

lot share. to have We a

really appreciate you very AMWL and your future tell, we very our we're As excited we support transformation, Converge through be confidence in can much. Thank look and about this about as to future. we you And the went excited and so ahead. enormous

Operator

This conclude call, may disconnect. conference today's you now

American Well (AMWL) 2 Aug 232023 Q2 Earnings call transcript