American Well Corporation Class A

Good afternoon, and welcome to AMWEL's fourth quarter and full year 2021 conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. Please be advised that today's conference is being recorded. Leading today's call are Dr. Ido Schoenberg, Chairman and Co-Chief Executive Officer, and Robert Shepardson, Chief Financial Officer. Ido and Robert will offer their prepared remarks, and then they will take your questions. The Amwell press release and webcast link are available on the Investor Relations section of Amwell's website. Please note that we will be discussing certain non-GAAP financial measures that we believe are important in evaluating Amwell's performance. Details on the relationship between these non-GAAP measures to the most comparable GAAP measures and reconciliation thereof can be found in the press release that is posted on our website. Please note that certain statements made during this call will be forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks, uncertainties, and other factors that could cause the results for AMWEL to differ materially from those expressed or implied in this call. And now, I'll turn the call over to Ido Schoenberg, CEO of AMWEL.

Ido? Thanks, operator, and welcome, everyone.

On today's call, I'll start by reviewing some highlights of the quarter and the full year. Then I'll take a moment to discuss the market for our solution and anticipate the drivers of our growth. I'll conclude my remarks with a review of our strategic priorities for 2022. Bob will then review some key metrics, our financial results, and our guidance. Then we'll open the discussion for your questions. At Amwell, our mission is clear, to define the fundamental infrastructure that connects providers, payers, patients and innovators and enable them to deliver on the promise of greater access to affordable, high-quality care. We are transforming care delivery from in-office to integrated in-person, virtual and automated care modalities. Much like Amazon assembled the distribution framework for sellers and buyers to find one another, AMLO's Converge solution equips providers, patients, and the industry that supports them with the tools to realize a better healthcare experience. Q4 was a great quarter that advanced our progress in many ways as we turned the page to Converge. Our teams are executing well and the market for our solution is strong. I'd like to take a moment to recap a few highlights of the quarter. First, we are making good progress on our development and deployment of Converge. With substantial part of our platform delivered and in live deployments, our R&D efforts are now focused on bringing Converge over the finish line with several remaining modules that are in high demand from our customers and prospects. Second, underscoring this progress, during Q4, Converge received major new industry recognition. Gartner ranked Converge at the top of their recent review. Converge also won the recognition of Chilmark Research, the MIT Leadership Council, and was also named Best New Application in Telehealth by UCSF Health Awards. We are honored by this amount of favorable responses to Converge and for Armwell as a leader and innovator in our space. And with Converge, we registered large multi-year bookings in Q4 that are indicative of new clients' receptivity to our new platform. We expect this strong momentum should continue to build as Converge functionality is completed, and as we work to continue to bring in large new healthcare payers and systems on Converge and add modules for existing customers. Turning to some of our newer initiatives, we are well underway with the integration of newly acquired Conversa and SilverCloud, which advance our approach to long-term longitudinal care in high margin revenue mix over time. With Conversa, we ended 2021 with subscriptions to 179 automated virtual care programs, designed to remotely manage patients on behalf of leading healthcare organizations across the country, with some notable Q4 wins, including expansions at existing Amwell Legacy and Converge Health System customers. These programs are enhancing patient access and experience while improving outcomes. Automated programs help providers to identify patients who need more support and reduce the burnout among frontline workers by offloading some of their workloads. And we are also building momentum with SilverCloud, our digital mental health delivery module. During Q4, we won several large health systems bookings for SilverCloud. SilverCloud is also a success in international markets, where we recently won a strategic contract in the UK, providing nationwide behavioral health services to over 3 million Welsh citizens. Now I would like to shift to some highlights from our services team. Our services team is currently busy converting existing health system customers from our legacy platforms to Converge. As we look to describe our progress, we believe visits on Converge are the most meaningful metric of progress converting our business to the new platform. We ended Q4 with about 10% of our visits on Converge, and it is our goal to significantly increase that metric during 2022. In addition to these successful migrations, we are seeing growing engagement across all our products. Our EHR integrated solutions are a big driver of our number of active providers, which grew 26% over a year ago. And the number of visits per patient grew a healthy 14% over a year ago, something we view as indicative of sustained adoption among patients. To wrap up Q4 highlights, I want to add that I'm proud of how our teams are executing, putting in place the crucial elements of our solution, landing new names, driving engagement, and executing towards our mission to define the fundamental infrastructure enabling the future of healthcare delivery. Next, I'd like to spend some time briefly reviewing what we are seeing in the market for our solution. It is now well accepted that the pandemic dramatically accelerated telehealth adoption. It is also clear that with this acceleration, urgent care visits have been commoditized. Providers, payers and innovators are now seeking to realize the much broader potential of hybrid care and are facing significant challenges. These include complicated and confusing rules and regulations, difficulty to simply and practically implement and integrate sophisticated workflows, disparity of point solutions and portals, and fragmented, non-integrated documentation and payment systems. Our conversations with our customers are indicating that the market is primed for a more complete, unified solution for digital health delivery, one that requires a true partner to define and implement the digital health strategy. At Amwell, we are defining a distribution enablement platform for healthcare that addresses many challenges and solve for the industry requires. It's not just about the virtual visit. It is extending care beyond telehealth to a digital care continuum. More than connecting providers and patients for a video visit, we are creating and managing the logistics to support the emerging hybrid care delivery model. We are delivering on that vision with Converge. For example, a provider network using Converge at the heart of their IT infrastructure will be able to significantly increase the reach and impact of their providers by optimizing the use of physical, virtual, and automated interventions. Payers will be able to share insights on gaps in care and empower providers to address these important gaps. Patients will be continuously connected to their healthcare system and enjoy the convenience and efficiency of a digital-first healthcare experience. All of this means a powerful impact on clinical and financial outcomes benefiting all segments. In addition, ongoing rapid innovation requires a modular infrastructure that unifies a fragmented landscape and future-proofs providers and payers supporting their ability to adopt new functionality. Innovation is on the rise and Converge will be the infrastructure to help health systems prioritize and embed all those solutions into harmonized ecosystems. An ecosystem which streamlines the exchange of data, services, and capabilities underpinning a truly hybrid multimodal solution, including natural language processing, as well as AI and analytics that are moving from the sidelines to center stage. With Converge, we are expanding well beyond traditional telehealth. It's a transformational vision defining a new digital care delivery system that empowers providers and offers meaningful new ways for patients to receive healthcare. We are addressing a growing TAM with a more complete solution set and the market is taking notice. Now I'd like to take a moment to highlight a couple of our key priorities for the coming year, which are aligned behind our overall mission and our goal of achieving sustainable high-margin revenue growth. We will complete the build-out of Converge. We will make the final investments that will complete this distribution system and enable a digital transformation that extends beyond the traditional care model. This final effort adds essential Converge features in high demand by our large providers and payers, including on-demand and white label enablement capabilities. With Converge nearly complete, the major focus for us in 2022 will be to migrate existing customers to the platform and drive sales with new customers. We will also strive to demonstrate the modularity and flexibility of our solution by helping our customers expand the use of our solution and adopt new innovative elements of hybrid digital care. With some of our largest new converged customers, we are building out infrastructure elements that will apply broadly to the market and set the standard for best practice in digital healthcare delivery, accelerating our ability to deploy our solution in the future. Finally, our customer footprint and mindshare give us a unique point of view at the forefront of the digital health landscape. SilverCloud and Conversa are a great example of carefully chosen investments that allow us to leverage Converge to deliver crucial elements of longitudinal care to our customers and their patients. While future M&A is not needed for us to achieve our goals, Our strong balance sheet and promising financial model enable us to invest internally and externally for growth and to further differentiate our solution. With these top priorities in focus, we believe that we are well positioned to add new customers, expand within our install base, grow the mix of our high-margin revenue, and over time demonstrate the potential of our long-term operating model. Now, I would like to turn the call over to Bob, who will cover our Q4 financials and some key metrics from the quarter, plus our guidance for 2022 and path to profitability. Bob?