BOSTON - Amwell (NYSE: AMWL), a company specializing in hybrid care enablement, has announced the addition of Ricky Goldwasser to its Board of Directors, effective last Monday. Goldwasser's extensive financial expertise is expected to be a significant asset to Amwell as the company focuses on achieving profitability.
With a career spanning over 15 years at Morgan Stanley as a managing director, head of U.S. Healthcare Services (NASDAQ:HCSG) & Technology Research, and more recently in the Investment Banking groups, Goldwasser brings a wealth of experience in advising institutional investors and companies within the healthcare sector. She has been recognized by Institutional Investor magazine as a top-ranked research analyst for 18 consecutive years.
Goldwasser's appointment comes at a strategic time for Amwell, as the healthcare industry faces pressure to adapt through digital means. Her role will be to contribute insights and experience to support Amwell's mission of connecting providers, insurers, and innovators to deliver accessible, affordable, and high-quality care.
She replaces Deval Patrick, who has been a member of the Amwell board since 2015 and played a critical role in the company's global telehealth initiatives and its IPO in 2020. Amwell's CEO, Ido Schoenberg, expressed gratitude to Governor Patrick for his leadership and contributions during his tenure.
Amwell is recognized for its comprehensive digital health platform that supports urgent to acute and post-acute care, chronic care management, and healthy living. The platform is instrumental for over 50 health plans, representing more than 100 million covered lives, and numerous large health systems across the nation.
The information for this article is based on a press release statement.
In other recent news, Amwell reported a 7% decline in total revenue for the first quarter of 2024, totaling $59.5 million. Despite this, the company emphasized a strong start to the year, focusing on expanding its digital care enablement and the success of its Converge platform. The company's shift towards subscription software is expected to drive gross margin expansion, and Amwell forecasts revenue growth and improved adjusted EBITDA for 2025.
In leadership news, co-founder Roy Schoenberg will transition from his dual role as president and co-CEO to become the Executive Vice Chairman of Amwell's Board of Directors. His brother, Ido Schoenberg, will take over as the sole Chief Executive Officer. This change aligns with the company's mission to expand the reach and impact of its technology in the healthcare industry.
Investment firm Piper Sandler maintained a neutral stance on Amwell, acknowledging positive developments with the company's customer Converge migrations, but emphasized the need for stabilization in subscription revenue and clearer signs of the company's projected return to double-digit growth in 2025 before changing its recommendation. These are recent developments in the company's ongoing efforts to expand its presence within the healthcare solutions sector.
InvestingPro Insights
As Amwell (NYSE: AMWL) welcomes Ricky Goldwasser to its Board of Directors, the company's financial health and market performance remain areas of investor focus. According to InvestingPro data, Amwell holds a market capitalization of $116.04 million, reflecting the scale of the business in the context of the healthcare technology market.
Despite the challenges faced by the company, including a negative revenue growth of -8.08% over the last twelve months as of Q1 2024, Amwell's balance sheet reflects a strategic advantage, with liquid assets that exceed its short-term obligations.
InvestingPro Tips highlight the company's current financial trajectory, noting that Amwell is quickly burning through cash and analysts do not anticipate the company will be profitable this year. Moreover, the stock has fared poorly over the last month, with a one-month price total return of -19.94%, and the trend extends to a one-year price total return of -83.27%. These metrics may serve as critical points of analysis for Goldwasser as she brings her financial expertise to the board, especially considering Amwell's drive towards profitability.
For investors and analysts looking to gain a deeper understanding of Amwell's financials and market performance, InvestingPro offers additional insights. There are currently 10 more InvestingPro Tips available, which can be accessed at https://www.investing.com/pro/AMWL. To take advantage of these insights, readers can use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, further enriching their investment strategy with real-time data and expert analysis.
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