Amwell on Thursday posted $62.6 million in revenue for this year's third quarter, the telehealth company's first earnings release since going public.
That compares to $34.7 million in revenue that Boston-based Amwell reported for the same period last year, representing 80% year-over-year growth.
Amwell, which went public in September with a $100 million investment from Google, counts more than 2,000 hospitals and 55 health plans among its customers.
"Coupled with dramatic change in reimbursement, we believe that COVID provided a strong tailwind to telehealth adoption," said Dr. Ido Schoenberg, Amwell's chairman and co-CEO, on a call with investment analysts Thursday. "We see clear growth in our clients' readiness to invest in infrastructure to prepare for a new normal," he added, citing Amwell's subscription growth.
Amwell's quarterly revenue was mainly split between $25.8 million from subscriptions, up 17.3% from $22 million last year, and $28.5 million from visits, up 295.8% from $7.2 million last year.
Amwell's visits surpassed 1.4 million, up 454.5% year-over-year from 255,000.
Amwell attributed the company's visit growth to new provider customers.
The company's health system and health plan customers' own clinicians now account for conducting the majority of visits at 73%. During last year's third quarter, Amwell Medical Group—a medical group that provides services on Amwell's telehealth platform—comprised 62% of visits.
That's "a trend that we see continuing as healthcare delivery systems move more to hybrid care models, combining physical and virtual care," said Keith Anderson, the company's CFO.
As healthcare customers—rather than Amwell's medical group—continue to account for more visits on the platform, Schoenberg said he sees Amwell moving toward primarily being a technology provider, rather than a services provider.
That's part of what drove the partnership with Google.
As part of the stock purchase agreement with Google, the companies have said they'll work together to develop new Amwell capabilities with Google Cloud's artificial-intelligence tools.
"We are a technology company, and we're going to see more and more of that in the next few years," Schoenberg said.
While telehealth soared in the early days of the COVID-19 pandemic, it's unclear to what extent that momentum will continue. Recent research has indicated telehealth visits are declining as hospitals reopen for non-emergency care; however, telehealth utilization in the summer still sat at a notably higher rate than before the pandemic.
That mirrors what Amwell has seen in its population.
"While visit volumes are lower than the numbers we've seen in March and April, they're still much higher than before COVID," Schoenberg said. In 2020's second quarter, Amwell reported an estimated 2 million visits; that means the third quarter's 1.4 million visits were down 30% quarter-over-quarter.
Teladoc Health—one of Amwell's biggest telehealth rivals, which in October sued Amwell over alleged patent infringement—posted $288.8 million in revenue for this year's third quarter, including $226.6 million from subscriptions and $51 million from visits. The Purchase, N.Y.-based company reported more than 2.8 million visits for the quarter.
Neither company is profitable.
Amwell posted a $64.6 million net loss, compared to a $24.1 million net loss the year-ago quarter. Teladoc's net loss for the third quarter was $35.9 million.
Amwell officials expect the company to report revenue in the range of $235 million to $239 million for full-year 2020.