American Well Corporation Stock May Well Be Bottoming

Q1 Fiscal 2022 Earnings Release

In May of 2022 Amwell published its fiscal first quarter 2022 financial results for the quarter which ended in March 2022. The Company disclosed an adjusted earnings-per-share (EPS) lower than (-$0.26) without non-recurring items , compared to the consensus estimates of analysts for the loss of ($0.20) and was below forecasts of (-$0.06). Revenues increased 11.5 percent year-over year (YOY) up to $64.2 million, which was below of analyst expectations of $64.94 million. Gross margins increased to 42.8 percentage from 38 percent. Total active providers increased to 102,000, up from 91,000 in the previous quarter. The number of visits totalled 1.8 million, compared to 1.5 million in the previous quarter. The revenue from subscriptions was $28.7 million, while visit revenue was $30.7 million. The Company closed the period at $674.9 million. American Well co-CEO Dr. Ido Schoenberg said “Q1 was a great start to an important year for Amwell. We made meaningful progress on the launch of Converge, our platform designed to enable trusted healthcare players to deliver the next generation of healthcare.”

In-Line Guidance

American Well expects fiscal full-year 2022 revenues of $275 million and $285 millions against $279.47 million. The adjusted EBITDA is expected to be between (-$200 million) to (-$190 million).

Conference Call Takeaways

Co-CEO Schoenberg began by saying that the development and migration of customers onto Converge’s platform is on the right track. The company has gotten past the speedy installations of Amwell Now clients and are starting the most complicated migrations. Amwell is a pure-play digital healthcare enablement service vital in the current era of healthcare that is hybrid. Visits to the Converge platform increased by 40% in the fourth quarter of 2021 and comprised 10% of the total visits during Q1 2022. SilverCloud, the behavioral health platform SilverCloud is on the right track thanks to its automated features that are paired with virtual care to help support people’s health equity during the post-pandemic era. Converge is developed to connect teams that provide care to coordinate visits to improve outcomes and reduce the issue of burnout in the care team. In a succinct manner, the CEO Schoenberg describes Converge’s platform “Converge offers options for managers to load balance and offload cases during peak times and can improve the standard of care, by simplifying integrations with new automation programs that enhance continuity between visits. Designed to do the heavy lifting, Converge incorporates rules and regulations, plus the documentation and payment systems that make digital care delivery so complex. Our solution can unify the care team’s resources and drive new efficient workflows to achieve sought after efficiencies so that the teams can focus on the delivery of care.”

AMWL Opportunistic Pullback Levels

Utilizing these charts for the daily and weekly time frames can provide a clear perspective of the terrain for AMWL stocks. Shares peaked close to $34.24, which is the $44.24 Fibonacci (fib) level after the IPO rise before plummeting to a minimum of $2.52. This weekly chart of the rifle is trying to reverse the trend downwards since the weekly 5-period moving average (MA) increases to $3.24 in order to try crossing over the fifteen-period MA of $3.60. The stochastic for the week bounced upwards through the 20-band in its attempt to make its way toward the upper weekly Bollinger Bands (BBs) of $5.10. Weekly Market Structure Low (MSL) buy occurred upon that $3.30 breakout. The daily chart of rifles formed an apex breakout, with a rise in the 5-period MA resistance at $3.38 and then an increase in the 15-period MA of $3.08. Its daily 50-period MA is $3.53 with the daily upper BBs at $3.88. The mini-pup that is daily stochastic surged throughout the range of 80 to. The 200-period daily MA is $6.18. The prudent investor should not be chasing but instead wait for opportunities to pullbacks to levels that are $3.30 each day MSL trigger point, $2.94 fib $2.74 fib $2.52 fib $2.28, $1.72 fib as well as $1.72 fib, and the $1.32 the fib mark. The upward trajectory ranges starting at $4.59 fib level to the $7.56 fib mark.