AMERICAN WELL Reports Second Quarter FY2023 Financial Results
August 7, 2023
☀️Earnings Overview
On June 30 2023, AMERICAN WELL ($NYSE:AMWL) announced its financial results for the second quarter of FY2023, with total revenue of USD 62.5 million, a decrease of 3.2% compared to the same quarter in the prior fiscal year. Net income for the quarter was USD -92.5 million, representing a marked decline from -69.1 million in the prior year.
Price History
The stock opened at $2.3 and closed at $2.2, a decrease of 3.5% from the prior closing price of 2.3. This news has caused concern among investors as the company has not had strong returns over the past few quarters and the latest results are a reflection of these struggles. This suggests that the company is not making sufficient profits to cover its costs. Despite the poor results, AMERICAN WELL‘s management said that they will continue to invest in technology and innovation to increase market share and user experience.
They also announced that they are focusing on expanding their customer base and deepening their partnerships with existing customers. Overall, these financial results are not encouraging for investors, however, the company is taking steps to try and improve its financial performance going forward. It remains to be seen if these efforts will be enough to turn around the company’s fortunes. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for American Well. More…
| Total Revenues | Net Income | Net Margin |
| 274.89 | -621.41 | -148.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for American Well. More…
| Operations | Investing | Financing |
| -155.7 | 55.76 | 3.17 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for American Well. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 772.18 | 128.49 | 2.23 |
Key Ratios Snapshot
Some of the financial key ratios for American Well are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 10.8% | – | -98.3% |
| FCF Margin | ROE | ROA |
| -65.5% | -25.6% | -21.9% |
Analysis
At GoodWhale, we have completed an analysis of AMERICAN WELL‘s wellbeing. Our Risk Rating assigns this company a medium risk investment, which takes into account both financial and business aspects. During our examination, we detected one risk warning in the income sheet, which can be viewed by becoming a registered user with GoodWhale. Our analysis is the result of comprehensive research and review of the company’s financials and industry trends, so that investors can make an informed decision when it comes to their investments. More…
Peers
The company offers a wide range of services, including primary care, urgent care, behavioral health, and more. American Well also provides care coordination and care management services. The company’s competitors include Mednow Inc, Think Research Corp, and InnovAge Holding Corp.
– Mednow Inc ($TSXV:MNOW)
Mednow Inc. is a medical technology company that focuses on delivering innovative and convenient healthcare solutions. The company’s products and services include online medical consultation, telemedicine, and home health monitoring. Mednow Inc. has a market cap of 6.69M as of 2022 and a ROE of -57.05%. The company’s products and services are designed to improve access to care, increase patient engagement, and reduce costs.
– Think Research Corp ($TSXV:THNK)
Think Research Corp is a healthcare technology company that provides software and services to help healthcare organizations deliver evidence-based care. The company has a market cap of 21.55M and a ROE of -47.72%. Think Research Corp is headquartered in Toronto, Canada.
– InnovAge Holding Corp ($NASDAQ:INNV)
InnovAge Holding Corp is a holding company that provides senior living and health care services through its subsidiaries. The company has a market capitalization of 951.7 million as of 2022 and a return on equity of -0.87%. InnovAge Holding Corp’s subsidiaries provide a variety of services including assisted living, skilled nursing, and memory care. The company’s assisted living facilities provide residents with 24-hour supervision and assistance with activities of daily living such as bathing, dressing, and eating. The company’s skilled nursing facilities provide residents with around-the-clock nursing care and rehabilitation services. The company’s memory care facilities provide specialized care for residents with Alzheimer’s disease, dementia, and other forms of memory impairment.
Summary
Investors in AMERICAN WELL were not pleased with the company’s second quarter FY2023 financial results, as total revenue fell by 3.2% year-over-year to USD 62.5 million and net income deteriorated to a loss of USD -92.5 million from a loss of USD -69.1 million in the same quarter of the prior fiscal year. This news caused the stock price to drop, making it a risky investment for those considering buying or holding shares. Nevertheless, the company’s long-term performance may still be a viable option for those looking for growth potential.
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