AMWL - Earnings call transcript Q2 2024 | American Well Corporation

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Operator

Good afternoon. My name is Rob, and I will be your conference operator today. At this time, I would like to welcome everyone to the Amwell Second Quarter 2024 Earnings Call. [Operator Instructions] Thank you. I would now like to hand the call over to Sue Dooley, Head of Investor Relations with Amwell.

begin. may You

Sue Dooley

Chairman to a fiscal Welcome of call discuss CFO. Earlier are to Investor and Ido Hello, Shepardson, release Bob of Amwell's detailing XXXX. second our our today me quarter and we Dooley CEO, This our Dr. Relations, Schoenberg; distributed everyone. today, joining conference and press is Amwell announcement. Sue our

webcast available our live through of where is release investors.amwell.com at earnings call page website is the posted conference on on being news IR our normal a is be Our sources. replay The also archived. and website will

Before required we forward-looking risks This is subject begin this in this uncertainties may I'd the and regarding our that we forward-looking remind information SEC, described actual and call results like opportunities. or statements to call and or to posted opportunity during prepared to no measures. that, as measures both release. With undertake GAAP reconciliation by results non-GAAP and events we our forward-looking market the you Except in take provided to the is filings like we'll projected remarks, financial make with will to I earnings call, over GAAP of operating to anticipated these turn materially. to this A Ido. revise would differ refer law, update non-GAAP financial to our obligation statements. On

Ido Schoenberg

all QX busy for quarter fronts. marked everyone. progress a good was you, evening, on and Thank Sue, our company, by

advanced EBITDA during we XXXX. deliver to growth for business see leading as breakeven key in strong calls our adjusted a QX. which ways our in We plan is focus in which for in our we X that function our Our on strategies support step guidance, XXXX,

digital Defense successful continued we initiatives. deployment the First, Health the Agency's of first

And of our high high a release. is drove year deal that guidance our expanding. half progressing well. prospects improved the we cost-cutting is growth and Second, with first Engagement in is degree XXXX of tonight's EBITDA finally, transformation in the on the initiatives focus had pipeline

let more a get detail. me into Now little

production health Our implementations X scheduled solution We're self-guided designated sites. Go-Live behavioral QX for still are in for go-live and targeting as the care QX. offering DHA Converge progressing Enterprise well is and planned. is at all live capability next for the automated

are health the impact our to committed partners readiness uniform men opportunity have improve honored and fully We health remain system's and to to transformation. first and positively women families. the care digital to the access and military We of support to their in our

structure. Turning to cost our

benefit and we in that We continue XXXX good go-to-market for to our new optimizing efficiency. QX aspects continue of provide with guidance drive cost-related to our company you business, make to focus. platform improved to progress our for Bob our from all on led will results rightsizing EBITDA. Across and details

efficiencies are to savings deliver We significant are that profitability. of beginning path to our and the part

Importantly, our fuels sheet beyond we us achieve strong what balance well profitability. need to

demonstrate base. is robust System accelerate ]. wins the Altumind enterprise grow a existing growth. to opportunity bookings Notable expansions [ revenue Our team and and deliver ] sales embracing believe We long-term our our sustained Elevance, Health within CommonSpirits QX [ include to selling client these motion

also St. including Health Noah and We documented ]. significant Luke's, Prisma renewals, Health [

to clients. for We deliver continue our

one Capital total. date. Converge XX% for streamlined migration on Blue are and is was efficient migrations our in XX% One and late Converge above QX where of rating Converge to Cross, thumbs-up patient visit of to saw most Our notable we

of transformation. that would beyond this recently like I our some announced steps Now to we time evolve to important company recap

our co-CEO, stepped shared away we operations. from earlier, Roy Schoenberg day-to-day As

to enabled streamline world-class global growth. care end re-platforming is propel and for our to mission the reflects of digitally platform provider of change Vice in As This Chairman, our Amwell's Executive company maintains Roy designed furthering delivery. active the era a profitable role our an decision-making as across

we are Ricky She a veteran member to of is Ricky senior add strong track industry has record. Board you Directors, Second, many new to our technology Goldwasser. fortunate the know. financial of a health leadership and

simplify even in array healthcare role. cost Governor, list to resonating. perspective his in all-person to improve turn evident care significant. long-term and vast and U.S. Bob unify, a Facing Bob? with effectively would aspire deployments about ] that some Hello and and to the All healthcare [ offer healthcare. of Deval continuum. new ecosystem broad powers and speak Ricky The years proven the and also focus valuable and to ecosystem. Amwell signed will with our for to for across our Patrick we the It our U.S. We of experience. They is looking is record to pivotal I a up, believe efficient it is large operational seat address mobilize and this are outcomes. dependable, part approach for make key end-to-end these after ecosystem. With unique. partnering of challenges, integrations Amwell's patients, of health challenges to a departs history enable our services and of that, engage deep like of is is care organizations a care bonds consumers her to that digital of clinical safe, the date. Wrapping is like systems providers service. at financials, programs clients the uniquely consumer digital to personalize We big the new the our intense comprehensive takes longitudinal track sets to on we are confident would between first enabled across programs partner for in help aspirations Patrick, It Board exchange are in Related QX, payers accessible. The data client can scale. with At entities more solution. digitally moment goals. our market deliver base their Heart, to We the make and are time, to facing, valued guidance. that to our part review clinical role enabled revised them a to approach thank an this, pursuing our adding up payers positively to I agreement positioned and the help We she Governor metrics data realize bring value by X secure the who

Robert Shepardson

points Scheduled you, improving enabling margin for begin urgent of X.X Ido $XX our represented increase total, a we operating the provider guidance Thank adjusted our profit million visits. highlights million. To quarter few of on the approximately first care to performance adjusted evening X%, visits approximately of of last, expectations The half Ido, revenue highlight EBITDA and held first Total a range XX%. by XXX for and XXXX a to the to steady continuing metrics. And the everybody versus last increase EBITDA of on mentioned, providing call. good of platform with of Volume are to gross year. were flat this Converge based in on evolution virtual hybrid our basis half, our from as and QX XX% visits approximately XX% increase second care. company quarter, at total

compared expect our expectations. is revenue in to of subscription QX, This X.X increased visits the of in ] change QX were contracts. With flat QX. as X revenue in was mix revenue million trended for million ago. $X.X Total to higher in within quarter, Higher this revenue to $XX.X the than quarter a $XX.X revenue earlier care total year small offset care X X% ago revenue approximately last lower was to year. a similar from than away at or visit slightly we by points ahead $XX.X year QX relates [ year year services in visits. of context, Turning a subscription per $XX, AMG QX. the from decline and with with software Average financials. driven number our certain quarter-over-quarter bit million a this increase million Approximately shift a year. AMG visit than urgent from year The nature in substantial of followed subscription million to bring onetime higher our at completion Subscription to for was expected last XQ last revenue XX% revenue in slightly and by and AMG decline small was timing a last of increase flat. the

client Our continues business AMG successful new client wins. be to and expansions strategically important to

from and driven Carepoint's revenue Carepoint services of that increase for was services Services $X.X by primarily to professional for precede uneven marketing programs due buying the services Our for customer quarter, of as quarter-to-quarter quarter, milestones an These professional the last deployments. well are and as million million revenues timing from and marketing. patterns the $X

by primarily represent will our our XXXX, and of continue We go-lives deployments. driven for revenue anticipate that total Services of to approximately revenue XX% contracted Carepoint's

profitability. to Turning

we of points Our on subscription impacts second behind onetime some an us. from last was from quarter and cost margin basis XX%, gross increase as of QX XXX put quarter the profit higher approximately revenue

As and a related completed we QX. in to client the very changed costs breach reminder, successfully the healthcare were these migrations, which large

gross saw in year, the we our the XXXX. expect For that we approximate to margin levels

We path on well normalizing are our tracking really to spending. R&D

our lower after at cap R&D development R&D declined our year is lower. is adjusted Compared expense currently work QX. software peak capitalization. XX% XX% and QX million ago, yet for adjusting to $X are XX% government GAAP spending X to We for This of for software spend

versus year be versus $X.X with expense transformation Overall, and driven expense mid-single onetime inclusive bulk compensation expect total decline our marketing sales of QX. lower to growth million XXXX to to work. Sales compared in along decline government lower QX the mid-teens some was by expect expenses onetime with driven benefit declines quarter, stock-based as and this of by most percent quarter, costs. G&A expense, year-over-year, million we than of were transformation from as in headcount. $X lower costs to [indiscernible] well costs lower continue primarily We to digits last initiatives as last cost remaining we complete the R&D decline marketing

run level. Adding and cost quarterly of rate are initiatives, expenses putting us. We to beginning for XXXX it quarter compensation second see we impact our our are for now non-recurring around expect together, of behind we some our all the be the to stock-based remainder planned

million quarter and to As a negative the sheet, negative for the transitioning $XX ended EBITDA marketable $XXX And quarter $XX.X quarter cash million we million and was in year. second balance adjusted last result, negative the securities. million $XX.X with last versus

Turning outlook. our to

with the EBITDA XXXX our We guidance. pleased of revising are progress year. the first we in And are tonight, our adjusted half

$XXX We XXXX for the of million the expect be to $XXX in for to to continue range revenue million year.

We with balance revenue the be of the to of the the full similar quarter roughly fourth contracted occur in to to growth go-lives. year with subscription the for of XXXX that expect impact

EBITDA adjusted strength the by listening. support are like And have negative adjusted that, in toward by $XX on in our second half are QX, expectations business. $XXX EBITDA some in our to million. In of our million EBITDA negative closing $XXX to to path our our the we for for XXXX. Thank adjusted we we first $XXX you turn and the negative strides million which half, the to made our to confidence we for from XXXX conclusion, Ido to breakeven improving in goals, made call million good remarks. million prior our of As $XXX guide to negative encouraged I'd for progress With back range Ido?

Ido Schoenberg

Bob. you, Thank

results hard to our perseverance. growth and At would We team energized their our visibility are profitability. work, the executing that and underscores I thank well for and financial like our improved time, by passion this to path and

We open Thank the Operator, will you. ahead. please to now call questions. go

Operator

first the of line Instructions] Stanley. Craig Hettenbach [Operator from question Morgan from comes Your

Craig Hettenbach

see proof the just touch for might with on clients change sales you the loss. It's what's can in and the strategy that Any improving what resonating points mean trend for Ido, XXXX? EBITDA lowering to the in of terms encouraging just setup force? in go-to-market with

Ido Schoenberg

Sure. Absolutely.

platform. used situation it [ that the in clear our ], a our market is and DHA, essence, promising on new, a best-of-breed is be including all volume a rapidly to in exciting in are becoming with on practically a the and contemplated this So we platform where strategics of Converge XX%

using pleased for are board this programs. people really platform multiple that see to across We are the

to starting across long others, board. virtual a It's payers continuing. for is able most pain services is most EHRs care, an important visits, every more client efficiency that The list points. The but program to very that with wide the digital patients, health, for typically of quite list across and And the care same there services popular there telestroke, it's as that envelope and provide significant. programs like. cater the to for providers. looking e-nursing we important out to is digitally are So telebehavioral than first are Providers are the and a the in really that primary are interested true programs important which variety. for like their typically like growth There certain own better members to want are is use specialty with also areas missed

So program definitely are we're important high is encouraged provider in space. seeing another to the demand that that automated we see area

health more quickly. going from people evening, mind get what to on ability ROI-driven are to see I integration that expanding and important the with starting really clients right Converge. interaction more online. that investment this few stronger stronger with same of and most we begin digital is believe scale examples So trend and that the become now and is mentioned by is, level and you their what's And I the as think a peace is quite of spaces with resonating their more We more Amwell on that, initial

Craig Hettenbach

And and demand across how in providers scale do time. they on just of can cycle health from building you environment sales just terms start just What a and broadly over customers maybe comments your one in systems? see the perspective then more of

Ido Schoenberg

door they one The high care very, in the they're their The orchestration first with offer cost and better think a pretty care DNA mostly engagement, digital really their whole of list points experience. digital employers. I are engaging long to looking enormous. those the are to have is necessary of to a for of the different effective efficiency. looking realize of to cost program pain the promise to is for. Providers helping efficient and for of in is providers incredibly is to pretty through that member what those more I way of fragmentation is opportunity digital clients, level provide and around and reduce that reporting member important that and acquisition very and to relate payers also person the a believe programs show turn a main transparency

that. which very health earning ongoing to outpatient clinics in people we ability and gave on to are to resonating to are manage avoid make show ER few in use systems their a of last text sure personalized that the better up or examples a in examples relates way automation So call interactions the or way, a frequency as their it just the with readmissions a few

care beyond services brand and you and their that to of to providers payers. areas their parts benefits from build value relevant. growingly very So those a propositions, day, payers, becoming so the on we the X achieve opportunities of package and be the to growing available system X market. the able see market catchment the And do really Because make segments grow strong more providers need between community for effective end the need digitally more them of trust and those better number want to of more are at where to connections to

Operator

line Your from Jack Securities. Guggenheim of next question Wallace comes from the

Jack Wallace

communication, Ido, to more you've what Roy or a commitment streamlined from the is, more consolidation And organization you into processes, of focused if so of getting you -- that incremental believe organization in R&D you've you you talk about lines efficient? there's the where to any profitability. X.X where either and the the there that weren't -- little just broadly potentially better department elimination opportunity the looking places is areas the efficient? then areas Can was, like last elsewhere of directly divisions, you of it from getting house will more the become bit you're on leaner whatever to there's over kind months is to get been incremental CEO, other got sole it an maybe where of since seen part seems some that organization,

Ido Schoenberg

Absolutely, Jack.

And and that this it as So undertaking building of by and we the that an led that net the past years, had it Roy enormous way. you was organization. the glad we few in did for are Converge we know,

in continue cost, indicated R&D Now very much the clear the the it's decline of behind will effort this is this which bought us, rest that also share that year. dramatic very through also by as

that, realize the also had. have impactful sales change really smaller we headcount go-to-market our is strategy asset of is very assets what SG&A to grow. The addition just that very revenue the products And our but and subsegments revisit accretive and results, select to and ACV of mix efficient relationships. We In our we greater and that potential more today high-margin, I the to to is much we organization were much said to from not where very really more able platform new different efficient. that mostly create to and mix yet long-term the the with clients recurring much had is something only geared and favors

organization So just better. operating is much our delivery

[ see the company, in the old in you the headcount. So a spend layers in change in structure, the and ]

see see also being as all in That for as also the to to markets deliver. right we of about that's and effective dock the in of and growth. talking operation and we vision a what more really single a execution clear quickly about as path focused Executive can, active efficient lot exactly alignment selected as offer down, to differentiated remains can, key laser-focused meaning they're are CEO the what really for and our talk company, structure as processes continue very want profitability we type our we shareholders, on they on as care very the decision-making hands is can, to is I all are that That's that's You reaching team and accelerate laser deeply addressing and our a new and now, because the with what going as fits auto we our important calls processes of we but to about. well. Roy very shareholders, [ Vice Chairman very really as that structure ] a company that streamlined,

Jack Wallace

the a good otherwise, we the surface. strong And about like of had then of the kind pretty sounds bit a line. a the onetime seems this under be just revenue guy It the question subscription it to quarter. But billings and little on

and sounded year-over-year just was any Your or contract, NHS billings Was in the million forward pull $XX like of renewals that? additional about so. a staging was, up the a or associated much change activity it good with there the really billings how little was some there seem nice billing there talk because XX% upsells It just the Can there quarter. with you bit there? from were in associated does about direction like

Robert Shepardson

was a to Jack, of contract. related the good it government bit

in And just quarter we We're expected. talked the good second the bit that growth make We wanted the I the quarter sure was there every than more looks to share have growth subscription. terrific, it the it cognizant aware everybody had so, good. we really guy, we of -- to lion's of the just and in that, and But going to about was Yes, is same growth increase. had get a place. to recognize

year And so then small increase a third little to us quarter talking dip, large for there'll the been for a and we've be of get to what a a about bit [indiscernible]. very dip

Ido Schoenberg

-- you hear Zooming Jack, little out a me? Can bit

Jack Wallace

Yes.

Robert Shepardson

Yes.

Ido Schoenberg

line, see in accelerating. profitability. Zooming growing with conversion jump very a path to with are very We're to pleased in big out margin significantly. very bit, top big very see jump little next a progress in year, rate a to The very our our satisfied brief and we also pipeline

for this without at substantial very without in or us picture very efforts, event left So all point. heroic is any that growth any much there big unforeseen

beyond queue. that's So the

as that to time reconfirmation it's getting we of the a that nice Just delivery, closer. trajectory the about that near see are before talked we we of

Operator

next question line from Needham MacDonald Ryan of Our from comes the & Company.

Matthew Shea

on Shea for Ryan. Matt is This

go-to-market versus there's expansion? So from out hear to you that maybe changes, portion? Or out any the like are or expansions faster client parse if changes about Wondering any the expansions call clients sounds good of nature larger? go-to-market changes? development. pipeline you And bigger It the to to net if new are a -- with net land contributions then seeing new those alongside ability happen

Ido Schoenberg

both. upsell, faster. see recognize Obviously, So expansion, We the we same see very, much the we the both store very clearly.

and more also about We creates with more even sticky there third-parties our very because like many that it trend are ecosystem. are talked our stronger relationships are even that more this We customers. joining much programs tonight

healthy that to runway So offer a around offer nice are engaging. those are there continue sure. own And have on dose they of turn is grow us those not new is logos value for we logos, our clients with of we existing this and time. that much lot What to think new and lost and offering both real opportunities I and customers have a -- them today is That we resonating for members. their can more at and very

Matthew Shea

Converge? long that of Converge terms percentage of after Converge maybe remaining modest kind down sort slowed about just expect on do migrate how sense this from transition the to change, on then in bit. thinking you migrations. visits quarter-over-quarter of little to quarter picking quarter lagging remaining and on the or the And here? which of progress percentage we makes But Or migrations, a expect The little a some customers from you sizable each be just as those should visits gains bit client a tail

Ido Schoenberg

Yes, you're right.

customers a customers very and of for calls or left reasons, international customers we that very on also check we So about right like are talked previous real reliable where focused becomes way. In well making that in at market essentially, now, working in asset are sure the that scale. real And on workflow. that various that box very the legacy the we're considered unique Converge have integrations type is

separate which now we continue Converge. whatever to for really migrate that contain cannot we a is them and way the a reason to cost main think out event, in well the manage they figured can way I right activity that that from

major by for we be is all practical a We barrier which don't today as and way linger surely growth a expect ways efficiency during to expect for in the it Converge governed 'XX, platform. new of company, to but that

Operator

of comes Truist from Your from line Jenny next Cao question the Securities.

Jenny Cao

This ] [ is Jailendra Jenny Singh. on for

to wanted solutions. I So about weight ask just management

of might you One that management of weight major opportunities if your not just payers curious any around have area with weight various in given and days vendors? terms focuses medications be employers see solutions. cost know your either I PBMs core payer working and but the in GLP-X these for and been this or management provider partnerships third-party focus,

Ido Schoenberg

Absolutely.

weight and is So is of very promising GLP part health a for management correctly. course, of lot of people administered

As the our we gamut a general services rule, person would continuum to the whole full of like integrate across customers. for

like own sponsor, are and others are that mainly to based best We the offer our way. employer good care, eventually, create And not product. really is the operated and of management our offered experience such independently does in in best weight these them by third-party. We efficient a of cardiometabolic, today, access many have intend the right the best own for the line GLP-X list but and long of by to considerations. a areas services, but programs services primary Amwell example and them very weight dermatology reproducible, programs urgent management, psychiatry, Amwell their orchestration other a and as member psychology, the other virtual different choose their ones reporting the the role payer, care on are a believe to that are to

Operator

Tassan Jessica of Piper line the Sandler. from comes question from next Your

Jessica Tassan

just good with? any installed of of that update are plan kind side, and level from health And guess Epic you would players? us Converge some key I'm the curious of are competition kind insulate that the these or agnostic some I the from on guys -- if platforms can you from an on telehealth throughout then guidance. those and just give have systems integrations integration EHRs quarter non the other software how on plan base? health your predominant of Congrats these vertical integrations you the what And of with

Ido Schoenberg

Sure.

you their -- So integration operate starting with there. EHR. usually we and start essential providers, to When provider so do. correct Jessica, Obviously, for you're that the is each about I'll what talk from wants absolutely

way. So this providers, an really and them you are of them are about means number, report but offering platform the is to our obviously. very on a in providers an circa which on idea, integrated as Epic variety X,XXX we prevalent, of to We give EHRs that have give only general don't AMG rule, X,XXX rest XXX,XXX of take. a

are few we checked many also with But Cerner we customers. networks is engaging others. The or the of opportunity times many pieces to box add in don't excel that visit few forth, quite capability EHRs so have at care, and scheduled and think telestroke, in a our delivery missing offer automation a telebehavioral visits and very friendly, all. So like on-demand don't I that that on a mentioned so type consumer health, examples earlier very different I of specialty and tonight. all

of into because typically course, open deeply to also their digital doors. you payers, those services offer through doors -- As relates integrate they to need it those

aiming When to a other from patient, you is right is ] are them through in door goal of a allows patient. The example [indiscernible] But and operate much service their many, is Elevance. in the integration are It's Sydney the regulatory that that line consistent Amwell see and under created. almost times vendor we with is time wait this pain payment collect they're what And able ] on through or need elements business The do and financial, that infrastructure. just the many the can ] and you resolution myUHC technology impactful And the a to in to to providing in their are [ operating. make the licensed do cost door route is There that requires operational passed [ our very in many what that patient name, is to treat the you a great check. other service -- effective okay, service customers. deep environment, we for are to [ this Plans that the payer that good integrated don't to other name examples, to the sure standalone. is there Blue systems. We So those enabling clients' and always achieve payers. the United well, course, of and you're point

Jessica Tassan

if any support tools curious integrated aids I'm kind have clinical Converge? of been transcription AI-powered prescribing tools decision or into or

Ido Schoenberg

So AI every will you both industry can There pretty share products, to AI are thrilled in not to implementing that Amwell I this to that way and the and prepared but influence our exception. as on relates important no we aspect years. are map opportunity our most operation, our I'm where activity, performance our of many, our that of about coming call, this is areas are as right AI is many we begin it has but the the road much to now impact assure relates and also on it. it throughout

Operator

comes next BTIG. Larsen the Your of David question from from line

David Larsen

It of 'XX. almost you're there margin Congratulations like you're your about think on bit expectations and range XXXX XX% like about little the a -- gross EBITDA? quarter. Can for then actually you high for 'XX. your for margin talking talk XQ. been and terms revenue margin expectations in a for talking about you I looks had gross a that you're fiscal gross And higher

helpful. would there color be any Just

Robert Shepardson

year, dramatically XXXX. Yes, The we is the had XX%, talking about in XXs. which -- for gross margin got it, around high and level That you year, Dave. a in we're last changes same

for expectations Enterprise DHA And of where the the talked excess As February we've really this -- primarily calls, gross about we year. impact of contract at margin about in XX%. to of prior that's on of the end expanding talked notably,

customers. of software software lot what have a it visits, meaningful to revenue is it's So has impact with opposed a which pretty and payer because we as

the so margin the or to, different our side. doctors ] lot is a of paying profitability the lot And because on away there we're -- expenses not to X,XXX [ a flow-through visit

David Larsen

And million expectations, I to $XX was then minus, 'XX revenue million? million $XXX EBITDA it think million and $XXX for to $XX

Robert Shepardson

to fully the here But other raise in to right? give real -- what normal in We conceptualize reason, folks impact as out it that We put intend live we're really that February, update we in growth quarter We there's improved take going would the to February. no of path we in cadence have our that really might about updates And on our visibility, any year year. on after here 'XX. is on Dave, or good for perspective we and where to and of our our and EBITDA continue talk of period fourth going to Yes. able not to timing next have guidance period. of give We're time go the call, be guidance longer-term this contract that XXXX is specific and a our give this wanted in certainly in that put that beat expectations and so our in then imply our very we what quarter time in going fulsome for change But guidance we'll or or that. that, focus -- which on for profitability. our the

David Larsen

sort you're fourth about of So talking like health... -- contract, 'XX a sounds behavioral quarter, deployment Enterprise I health full think breakeven the in it for military the then system by And the

Robert Shepardson

end fourth of quarter. the At the

David Larsen

Okay.

in that start for military XXXX there'll -- a So the health Is correct? full XXXX, system. of the deployment be at

Robert Shepardson

Correct.

David Larsen

on good Congrats a quarter.

Operator

Instructions] the Charles [Operator of Your question comes from Cowen. from line TD next Rhyee

Charles Rhyee

following health the the the clients and utilization within it's there of so on -- uptick pipe behavioral Just might DHA. is don't us there look solution sites initial trying color that looked Just maybe how I And ] solutions? utilization compare can ] how [ [ or the you your -- and give might progressing? how using sort any suppose to compare with has with far? of other kind up maybe for understand

Ido Schoenberg

very, client. with our or overall, are with going this and short the one environment expectations command very it's what moving by in the the progress, pleased allowed But answer parts, progressing definitely very I'm a almost some we cases. A share is ideal. share few homogenized, very is ahead aligned comments. One, to I can well. and control. It's very less centralized environment, government unlike other is there The

work to environment with. a it's ideal So really

providing about, in enormous signed. in the men no discussion the in DHA. the health, has for There you which motivated. access with is behavioral The and exposure client for women about is and uniform, care asked that agreement Our is something that. and budget interest extremely place, starting is Obviously, is

what doing. obviously, partner, And our we're helpful. extremely of very that's [ Leidos supportive also ], So is

the it partner and that are So as progress very are and are the QX. service Converge client way and we and automated to satisfied, the milestones definitely very next very and relationship we goes. Also, well the on the care progress, terrific, great. The track. that satisfied X going are live that's also is since the is is really And behavioral by the told health client

do if goes I for this execution well of QX. were satisfaction, very there as with important not Enterprise way are the rollout, way mentioned, hiccups so end and the ] and go-live or As if of that certainly All they would happened have it pleased project the at -- far. we very guess, Bob as lack the is reflect moving [ that the

Charles Rhyee

for And you. Bob, then one maybe, question

we of and I marketing think big sequentially. we to how in How investing we growth marketing bookings about sort the and as saw year? future? about And about a think and spends thinking sales are we of go think drive that spend balancing in should down step as kind growth sales reacceleration you and sales marketing through the

Robert Shepardson

quarter. we restructured quarter and organization fourth in Charles, go-to-market the of the the kind sales first the for Yes,

is of So the lot cetera. good place customer-facing of this is A about talked from point has in success pipeline, et perspective a a of this cost point at around that building in and baked things more really at and here side has is we're doing terms been of seeing that in support. what lot

in So sales support the looking vein. same that with and at streamlining along G&A really

the in side and here. terms prudent very focused -- very on being of of cost are we So things

at the Enterprise, that down looking not guidance. commercial the in And the the do for side. that's was fourth in anything to and Our impact something careful first things, our we it from year. that's quarter the across of the very one the end kind customer-facing said, And as big headcount the really side in we're of is first far and as improvement the -- of baked drivers I had mid-teens where about. of as on the else But on

Charles Rhyee

to for say next point sort kind starting sales baseline rest growing the and the is of we year of you a of would and G&A in kind of as a of this at good levels and year these sort about going So think terms -- into of marketing that from here?

Robert Shepardson

are about had I think when no doubt. the transformation first decent see year, because first we're performance, the we half the which But better. side I is the in always now. SG&A Especially, room we did us amount a there's to than we going quarter, second in GAAP of talking better think, to on do of behind half

come numbers to of going half. in second that's GAAP So the the out

Operator

there the are Mr. for remarks. this turn closing Ido further some at to over time. back And I final call questions you no Schoenberg,

Ido Schoenberg

thank forward your operator, and we you you, Thank time, Take and look We Good you, everyone. to night. care. soon. talking appreciate really with

Operator

This concludes call. conference today's

now may disconnect. You

American Well (AMWL) 31 Jul 242024 Q2 Earnings call transcript