American Well Corporation Class A

Hello everyone, welcome to AMWEL's conference call to discuss our second fiscal quarter of 2024.

This is Sue Dooley of Amwell Investor Relations, and joining me today are Amwell's Chairman and CEO, Dr. Ito Schonberg, and Bob Shepardson, our CFO. Earlier today, we distributed a press release detailing our announcement. Our earnings release is posted on our website at investors.amwell.com and is also available through normal news sources. The conference calls being webcast live on the IR page of our website, where a replay will be archived. Before we begin our prepared remarks, I'd like to take this opportunity to remind you that during this call, we will make forward-looking statements regarding projected operating results and anticipated market opportunities. This forward-looking information is subject to the risks and uncertainties described in our filings with the SEC, and actual results or events may differ materially. Except as required by law, we undertake no obligation to update or revise these forward-looking statements. On this call, we'll refer to both GAAP and non-GAAP financial measures. A reconciliation of GAAP to non-GAAP financial measures is provided in our posted earnings release. With that, I would like to turn the call over to Ido.

Thank you, Sue, and good evening, everyone. Q2 was a busy quarter for our company, marked by progress on all fronts. Our focus is strong as we deliver on key strategies that support our guidance, which calls for a step function in our growth in 2025, leading to our plan for adjusted EBITDA breakeven in 2026. We see three ways in which we advance our business during Q2. First, we continue the successful deployment of the Defense Health Agency's Digital First initiative. Second, we had a high degree of focus on cost-cutting initiatives in the first half of the year that drove the improved 2024 EBITDA guidance in tonight's release. And finally, our growth transformation is progressing well. Engagement with prospect is high, and our deal pipeline is expanding. Now let me get into a little more detail. Our self-guided behavioral health solution for the DHA is live in production at all five designated sites. Converge and automated care implementations are progressing well as planned. We're targeting the next capability offering Go Live for Q3, and Enterprise Go Live is still scheduled for Q4. We are honored to have the opportunity to positively impact the health and readiness of our men and women in uniform and their families. We remain fully committed to our partners to improve access to care and support the military health system's digital first transformation. Turning to our cost structure, we continue to make good progress in right-sizing and optimizing our company to benefit from our new platform and go-to-market focus. Bob will provide you with details on Q2 cost-related results that led to our improved guidance for 2024 EBITDA. Across all aspects of our business, we continue to drive for efficiency. We are beginning to deliver the significant savings and efficiencies that are part of our path to profitability. Importantly, our strong balance sheet fuels us well beyond what we need to achieve profitability. Our sales team is embracing a robust enterprise selling motion to accelerate our bookings and deliver sustained long-term revenue growth. Notable Q2 expansions include Elevance, Altman Health System, and Common Spirits. We believe these wins demonstrate the opportunity to grow within our existing client base. We also documented significant renewals, including St. Luke's, Prisma Health, and Lower Health. We continue to deliver for our clients. Our patient thumbs-up rating for Converge is above 90%, and visits on Converge are 70% of total. One notable migration to Converge late in Q2 was Capital Blue Cross, where we saw one of our most efficient and streamlined migrations to date. Now, I would like to recap that we recently announced some important steps to evolve our company beyond this time of transformation. As we shared earlier, our co-CEO, Roy Schoenberg, stepped away from day-to-day operations. As our Executive Vice Chairman, Roy maintains an active role in furthering AMO's mission as a global provider of our world-class platform for digitally-enabled care delivery. This change reflects the end of our replatforming era and is designed to streamline decision-making across the company to propel profitable growth. Second, we are fortunate to add a new member to our board of directors, Ricky Goldwasser. Ricky is a senior industry veteran many of you know. She's a strong financial and health technology leadership track record. We are confident she will bring new perspective and intense focus to her role. Ricky takes the seat of Governor Deval Patrick, who departs our board after nine years of early service. We thank Governor Patrick for his pivotal role in AMLO's history to date. Wrapping up, I would like to speak for a moment about the market for digital healthcare. And this time it is evident that the digital-first approach is resonating. Facing operational challenges, payers and health systems are looking to unify, personalize, and simplify the healthcare consumer experience. They also aspire to mobilize longitudinal, whole-person data sets to improve care and outcomes. All that to help consumers cost-effectively engage in a broad array of digitally-enabled clinical programs across the care continuum. Related to this, in Q2, we signed a new partner agreement with Hello Heart, adding to our list of valuable clinical programs enabled by our ecosystem. AMUL is uniquely positioned to address the challenges our clients are facing, realize their aspirations, and help them deliver on these goals. We offer an end-to-end comprehensive solution. It is dependable, safe, secure, with a proven track record at scale. It powers a large part of the U.S. ecosystem, and can enable the exchange of data and services between entities across our client base to make care even more efficient and accessible. The partnering approach we are pursuing is unique. The value to patients, providers, and payers is significant. We believe our deep integrations and vast deployment form long-term bonds with healthcare organizations that make up a big part of the U.S. ecosystem. With that, I would like to turn to Bob to review our financials, some key metrics, and our positively revised guidance. Bob?