American Well Corporation (Amwell) reported a net loss of $212.6 million for the fiscal year ending December 31, 2024, a significant reduction from the $679.2 million loss recorded in 2023. The company’s total revenue for 2024 was $254.4 million, a slight decline of 2% from $259.0 million in the previous year. This decrease was attributed to a drop in visit revenue and other service-related income, despite a modest increase in subscription revenue driven by growth among strategic clients. The company continues to face challenges in the digital care market, including customer churn and market consolidation, which have impacted its overall financial performance.
In terms of operational metrics, Amwell powered approximately 5.9 million virtual care visits in 2024, down from 6.3 million in 2023. The company serves around 50 health plans and approximately 100 health systems, collectively covering over 80 million lives. The average annual contract value for health plans increased to $963,000, reflecting a growing demand for its services. However, the average number of health system clients decreased to 107, down from 129 in 2023, indicating a trend of consolidation in the healthcare sector.
Strategically, Amwell has focused on enhancing its Amwell Converge platform, which accounted for 67% of visits in the fourth quarter of 2024, up from 52% in the same period of 2023. The company also divested its telepsychiatry services business, Aligned Telehealth, in January 2025, for $20.7 million, to streamline operations and concentrate on its core offerings. This decision aligns with Amwell's goal of achieving profitability and improving operational efficiency.
The company’s workforce has seen reductions, with total employee headcount decreasing to 877 as of December 31, 2024, down from 1,000 in the previous year. This reduction is part of ongoing cost-saving measures aimed at aligning expenses with revenue. Amwell's management anticipates continued investments in technology and strategic partnerships to drive future growth, although it expects to incur operating losses in the near term as it navigates the evolving digital care landscape.
Looking ahead, Amwell remains cautiously optimistic about its growth prospects, emphasizing the importance of digital care adoption and the expansion of its client base. The company plans to continue investing in its platform and exploring acquisition opportunities to enhance its service offerings. However, it acknowledges the risks associated with market volatility, regulatory changes, and competition, which could impact its ability to achieve sustained profitability in the future.
About American Well Corp
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