Boston-based telehealth company Amwell Health announced it received notice from the New York Stock Exchange (NYSE) that it has fallen out of compliance with NYSE’s minimum stock price requirement.
The listing criteria requires a company’s stock price to be over $1 for 30 consecutive days. Amwell was trading at $0.74 per share at the time this article was published. The company’s stock last closed above a dollar on March 8 at $1.01 per share.
In a statement, the company said it plans to gain compliance with a reverse stock split pending board and stockholder approval at its annual meeting. Amwell’s next annual meeting date has not been set, an Amwell spokesperson told MobiHealthNews in an email.
THE LARGER TREND
Amwell Health, formerly American Well, went public in September 2020 with a $742 million IPO with shares between $14 and $16 per share. The same year, the company reported 65% revenue growth with $60.4 million in Q4.
Amwell’s stock first took a hit in Q1 2021, when the company missed revenue expectations despite the release of its Converge platform. Converge is billed as a platform helping providers transition from episodic telehealth to longitudinal hybrid care, ultimately uniting virtual and in-person care.
Last year, Amwell partnered with digital chronic condition management platform DarioHealth to offer Amwell patients Dario programs focused on diabetes, weight management and high blood pressure.
The telehealth giant posted a nearly $400 million loss in Q1 2023 that included a $330.3 million non-cash goodwill impairment charge related to a lasting decline in the company’s share price.
Amwell posted 2023 financial results in February, with a drop in revenue from $277 million in 2022 to $259 million in 2023. Losses grew from $272.1 million in 2022 to a whopping $679 million in 2023, due to a $436.5 million non-cash goodwill impairment charge. Adjusted EBITDA in 2023 was a loss of $165.4 million compared to a loss of $175.3 million in 2022.
The company noted in its earnings report that it projects adjusted EBITDA loss in 2024 to be between $160 million to $155 million with total revenue of $259 million.
Amwell Health noted it projects an upward outlook for 2025 with a 30% increase in revenue and a 70% improvement in EBITDA between $45 million to $35 million loss and to attain adjusted EBITDA to breakeven in 2026.