1) COVID-19 Has Driven Revenue Up 77%
The headline revenue data (summarised below) provides very positive news for AmWell and its new investor, Google. Notably:
– Even prior to COVID-19, the company was growing well with revenues increasing by 31% in 2019 compared to 2018.
– This rate of growth has accelerated in 1H20, with overall revenue up 77% in the same period in 2019.
– The 2019 growth was partly driven by a small increase in the number of health plan subscription customers and an increase in the volume of solution modules taken by each. However, more influential was the increase in the number of health systems customers and the increase in “AMG Paid Visit” revenue (i.e. non-subscription customers using the service). Factors that have also contributed to the rapid increase in 1H20.
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– We explore this in more detail later, but the growth in health systems revenue highlights a particular success for the company by expanding its customer base beyond its initial payer/employer target customers into the provider space. This has been a key strategy for AmWell in recent years and was a driver in its acquisition of Avizia in 2018. The data suggests the strategy has been largely successful in terms of revenue growth.
Source: Hit Consultant