American Well Corporation Class A

Ladies and gentlemen, good afternoon. My name is Abby and I will be your conference operator today. At this time, I would like to welcome everyone to the AMWEL third quarter 2024 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. And if you would like to ask a question during that time, simply press the star key followed by the number one on your telephone keypad. If you would like to withdraw your question, press star 1 a second time. We ask that you do please limit yourself to one question. Thank you. And I would now like to hand the call over to Sue Dooley, Head of Investor Relations with Amwell. You may begin.

Hello, everyone. Welcome to Amwell's conference call to discuss our third fiscal quarter of 2024. This is Sue Dooley of Amwell Investor Relations, and joining me today are Amwell's chairman and CEO, Dr. Ido Schonberg, and Mark Hirshhorn, 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 call is 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 the 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. 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 the 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. To begin tonight's call, I would like to take a moment to welcome Mark Hirshhorn to Armwell as our Chief Financial Officer. Many of you may already know Mark. We have known and respected Mark for many years and believe he is the right leader for Armwell at our current stage of transformation. We thank Bob Shepardson for his contributions as AMWEL CFO into working to ensure a seamless transition. Q3 was a busy quarter for our company. We continue to execute on the key strategies that support our path to cash flow positive. Here are the headlines. First, for the Defense Health Agency, we announced that GoLive will convert scheduled visits in late August. With our latest partners, we are proceeding according to plan towards full enterprise GoLive anticipated in Q4. Second, we have continued to align our cost structure to fit our strategy with great focus on efficiency and effectiveness. And finally, we have positioned our growth organization to deliver high-quality growth in 2025 with an eye on higher margin revenue. In Q3, we delivered value for our clients as we maintained and grew existing deployments while implementing new logos. Our solution is resonating in the market and sums up patient and provider ratings across converged deployments remained well over 90%. Now, let me go into a little more detail on this progress. We reached an important milestone in the initiative of modernizing the Military Health System for Defense Health Agency, working closely with our latest partners. In Q1, we previously shared that we went live with our behavioral health programs, the first major milestone in this initiative. Today, we can add that we have completed the second milestone. Convert scheduled and group visits are now also live and being used by members of the armed forces and their dependents. Based on this progress, we are planning for enterprise-wide deployment for the DHA by the end of 2024. Serving our women and men in uniform is a true honor and privilege. As we strive to offer them the best possible care, we believe that, together with our latest partners, we are also unlocking exciting growth opportunities for Armwell in the government sector. Next, implementing our cost-based transformation is reflected in our improved 2024 EBITDA guidance that was reported in tonight's release. We are focused on this metric that adds visibility to our financial strength, especially when you consider our strong balance sheet with ample cash and no debt. Mark will provide you with more details shortly. Finally, we are driving growth changes resulting in good visibility into accelerating high margin growth in 2025. Our pipeline quality is improving and RFP traction is increasing. For example, notable Q3 expansions included Sanford Health and WellSTAR for virtual nursing. We also had a sizable win with Capital Blue Cross for integrating SORD Health musculoskeletal program. In parallel, we documented significant renewals, including Baystate Health, AdventHealth, and Children's Medical Center of Dallas. Wrapping up my remarks, I would like to speak for a moment about the market for digitally enabled healthcare. At this time, it is evident that more and more people are going online first for their interactions with their healthcare providers. Based on our recent discussions with our clients and partners, it is clear that they expect this secular trend to accelerate over the next few years. They also believe participating in the opportunities it creates is critical to their business. Yet realizing digitally enabled care is difficult. Payers struggle with offering a true digitally enabled whole person solution that spans across the care continuum and includes effective care orchestration. They are also hard-pressed to report and prove ROI for clinical interventions. Providers are also looking for ways to participate in this new digitally-enabled care transformation, but want to ensure that patients are engaged while their workflows and reimbursements are maintained. Consumer acquisition is expensive, and digitally-enabled programs are fragmented and constantly evolving. Also, the current state of both patient and provider experiences are isolated, cumbersome, and not always personalized. We believe that our converged platform addresses many of these pain points for our customers and helps them realize their digitally enabled care aspirations. We empower them to form a single clinical consumer engagement pathway to many, if not all clinical programs. We aim to enable the provision of exceptional patient experience while providing efficient engagement within the broader care journey. Then, through a layer of navigation and orchestration capabilities, we facilitated access to a growing number of AMWEL and third-party clinical programs. In this way, we offer value to payers, their employer accounts, patients, and the clinical program innovators who seek to extend their clinical footprints. Finally, through offering clinical programs for health systems, we aim to complement EHRs in the areas that relate to patient engagement and health system efficiency. Embedded in providers EHR, we create a pathway for payers and employers to seamlessly offer hybrid care programs featuring trusted provider brands. In summary, we are pursuing a well-defined and singular differentiated approach to the market. It empowers participants in the healthcare ecosystem to realize the efficiency gains and improve outcome that this new digital-enabled healthcare landscape promises. With that, I would like to turn to Mark to review our financials, some key metrics, and our guidance. Mark?