In its first earnings report since going public, Amwell posted third-quarter revenue of $62.6 million in the third quarter, an 80% jump over the same quarter a year ago.
The Boston-based telehealth company credited the jump to the ongoing explosion in the use of telehealth amid the COVID-19 pandemic, even as the use of the technology for remote visits has ticked downward since the early surges of the virus pushed widescale adoption.
The company's subscription revenue was $25.8 million, up from compared to $22 million in the third quarter of 2019. Its visit revenue was $28.5 million, up from compared to $7.2 million in the same quarter of 2019.
However, Amwell Chairman and co-CEO Ido Schoenberg said during a third-quarter earnings call on Thursday evening the company saw great momentum as it races to meet the demand for new subscriptions and improve the client experience. Amwell announced the release of new telehealth products on Thursday, including a product called Amwell Now which he said was meant to make it easier for providers to quickly onboard patients and use virtual care.
“As the model of care evolved and increasingly relies on additional connectivity, we expect our revenues from subscriptions to our technology to grow faster than our service," Schoenberg said. "Consequently, we focus on that and making our technology more innovative, valuable and comprehensive. As we offer more capabilities, we also expect our user experience to become simpler and easier in every way.”
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The company's cash and short-term securities at the end of the quarter were $1.1 billion.
What's happening with demand
Amwell reported it had about 62,000 providers at the end of the third quarter, up 930% from about 6,000 in the same period last year. It tallied up more than 1.4 million visits in the quarter, up 450% compared to about 255,000 the same period in 2019.
While visit numbers are lower than what Amwell saw in March and April, he said, they continue to be much higher than before COVID. While officials would not make projections on expected fourth-quarter visits based on COVID, that said the company continues to see increased demand.
"So many tried telehealth for the first time and so many loved it. Coupled with dramatic changes in reimbursement, we believe that COVID provided a strong tailwind to telehealth adoption and popularity," he said. "More importantly, we see clear growth in our client's readiness to invest in infrastructure to prepare for a new normal."
What about Google?
Mum was largely the word about the company's partnership with Google.
When Amwell filed to go public, it also revealed Google was investing $100 million as part of a stock purchase agreement. The telehealth company also announced a strategic partnership with Google Cloud in which Amwell selected Google Cloud as its preferred global cloud platform partner, and will migrate its video performance capabilities onto Google's cloud platform for both new and existing customers.
"While we cannot yet share tactical details about our work together, we did start to collaborate," Schoenberg said. "We have much in common with our friends at Google. Our cultures align well, we're both extremely passionate about our mission to improve healthcare. We have powerful capabilities that will greatly enhance our collaborative offering. It also brings enormous global reach that could accelerate our impact in the United States and abroad."