American Well Corp (NYSE: AMWL) stock fell over 15.4% on 25th March, 2021 (as of 09:32:26 UTC-4 · USD; Source: Google finance) after the company in the fourth quarter of FY 20 has reported loss of $50.6 million, which is wider than the loss of $22.7 million a year ago.
The company had reported the adjusted revenue rose by 34% to $60.4 million in the fourth quarter of FY 20, beating the analysts’ estimates for revenue of $54.6 million. Subscription revenue increased to $26.3 million, compared to $22.9 million and Visit revenue increased to $26.2 million, compared to $15.0 million. Gross margin has contracted to 37.4% in the fourth quarter of 2020, compared to 44.7%, as a result of revenue mix shift towards visits. Adjusted EBITDA has fallen to $(35.4) million in the fourth quarter of 2020, compared to $(16.9) million. Cash and Short-term securities at the quarter-end stood at approximately $1.0 billion.
For the fourth quarter of 2020, the total active providers increased to ~72,000, compared to ~7,000 last year and ~62,000 last quarter, the total visits grew to ~1,600,000, compared to 355,000 and Amwell Medical Group (“AMG”) visits grew to ~360,000 or 23% of total visits, compared to ~235,000 or 66% of total visits.
The telehealth company expects full-year 2021 revenue to be in the range of $260 million to $270 million, versus the Street’s projection of $269.7 million. For fiscal 2021, the company expects AMG visits to be between 1.5 and 1.7 million and Adjusted EBITDA to be in the range of ($157) million and ($147) million
Meanwhile, the company has recently announced the continued expansion of its platform with the release of the Hospital TV 100. It is designed to further expand integrated telehealth connectivity through the Amwell platform, the new Carepoint device enables hospitals to turn existing televisions into telehealth endpoints, allowing them to scale and simplify access to their telehealth infrastructure by using devices that already exist in patient rooms. The Hospital TV 100 brings offers directly into a hospital room. As health systems grapple with strained resources and the COVID-19 pandemic, the new Carepoint device helps providers to safely monitor patients, while hospitals can use their existing in-room TV investments to scale telemedicine across their entire system.
On the other hand, the company had priced its initial pricing of a public offering of 11,280,647 shares of its Class A common stock by certain stockholders at a public offering price of $27.50 per share.