Shares of American Well (NYSE: AMWL), also known as Amwell, are up 20.7% as of 2 p.m. ET Thursday after the telemedicine company announced better-than-expected fourth-quarter 2023 results.
An "important year" for Amwell
American Well's fourth quarter didn't look great at first glance. Revenue declined 10.8% year over year to $70.7 million, translating to a net loss of $48.6 million, or $0.17 per share. But most analysts were modeling a significantly wider net loss of $0.20 per share on revenue closer to $70.3 million.
Amwell's top line included subscription revenue of $27.3 million and Amwell Medical Group (AMG) visit revenue of $32.1 million. Total active providers were 103,000 at year-end, while total visits arrived at 1.6 million.
Amwell Chairman and CEO Ido Schoenberg, M.D., said the quarter "marked the close of an important year for Amwell [as it] secured and deployed strategic clients who provide us with important validation for our solution."
What's next for Amwell shareholders?
For the full-year 2024, Amwell issued guidance for revenue of $259 million to $269 million -- up from $259 million in 2023 -- assuming visits of between 1.6 million and 1.7 million. Amwell's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) loss for the full year should arrive in the range of $160 million to $155 million.
In addition, Amwell provided preliminary 2025 guidance for revenue to increase to a range of $335 million to $350 million (well above consensus estimates for 2025 revenue of $302 million -- which should enable it to narrow its adjusted EBITDA loss to between $45 million and $35 million.
This was a solid quarter as Amwell builds its base and validates its platform. When investors consider this along with the company's stronger-than-expected 2025 revenue and adjusted EBITDA outlook, it's no surprise to see Amwell''s shares rallying today in response.
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Steve Symington has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
