Amwell Announces Leadership Change, Roy Schoenberg Shifts Roles By | Old North State Wealth News
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Amwell announces leadership change, Roy Schoenberg shifts roles By



BOSTON – Amwell (NYSE: AMWL), a company specializing in digital healthcare, has announced a significant change in its leadership structure. Co-founder Roy Schoenberg, M.D., M.P.H., will transition from his dual role as president and co-CEO to become the Executive Vice Chairman of the company’s Board of Directors. His brother, Ido Schoenberg, M.D., will take over as the sole Chief Executive Officer.

Since its inception in 2006, Roy Schoenberg has played a pivotal role in Amwell’s development and the broader acceptance of digital healthcare in the United States. Under his guidance, Amwell has been at the forefront of using technology to make healthcare more accessible and efficient. His efforts have been particularly notable during the COVID-19 pandemic, which saw an unprecedented reliance on digital care solutions.

Amwell’s platform has grown substantially, now serving over 100,000 active clinicians and millions of patients globally each year. The company’s next-generation platform, Amwell Converge™, is designed to integrate in-person and digital care experiences, reflecting the evolving expectations of patients and providers.

Roy Schoenberg expressed confidence in the current leadership team and the company’s direction as it moves from a period of intense research and development to a phase focused on operational efficiency and profitability.

Ido Schoenberg highlighted the company’s transition to an operational focus, emphasizing the goal of achieving greater efficiencies, optimizing cash flow, and delivering profitable growth while continuing to support client aspirations.

Amwell’s leadership change is presented as a strategic evolution, aligning with the company’s mission to expand the reach and impact of its technology in the healthcare industry. The announcement is based on a press release statement from the company.

In other recent news, American Well Corp. (Amwell) reported its first-quarter earnings for 2024, indicating a 7% decline in total revenue to $59.5 million. Despite the drop, the company outlined 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 projected to drive gross margin expansion, and Amwell forecasts revenue growth and improved adjusted EBITDA for 2025.

Piper Sandler, an investment firm, maintained a neutral stance on Amwell, following a recent demonstration of the company’s behavioral health solution at the Defense Health Agency (DHA).

The firm acknowledged positive developments with Amwell’s customer Converge migrations, which could present an opportunity for the company to secure high incremental gross margin software revenues.

However, Piper Sandler 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, particularly in behavioral health. The company’s executive and product management teams have been actively involved in showcasing their latest offerings to investors, demonstrating their commitment to advancing their product suite.

InvestingPro Insights

Amwell (NYSE: AMWL) has been navigating a challenging market environment as reflected in the company’s financial metrics. Despite a robust technological platform and significant growth in its user base, Amwell’s financial health has raised some concerns among investors. According to real-time data from InvestingPro:

  • The company’s Market Cap stands at a modest $120.48M.
  • Amwell’s Price to Earnings (P/E) Ratio is deeply negative at -0.34, indicating that the company is not currently generating profits relative to its share price.
  • The company experienced a Revenue decrease of 8.08% over the last twelve months as of Q1 2024, showing challenges in maintaining growth.

InvestingPro Tips highlight several critical aspects of Amwell’s current situation:

  • Amwell holds more cash than debt on its balance sheet, suggesting a level of financial stability in terms of liquidity.
  • However, the company is quickly burning through cash, and analysts do not anticipate Amwell will be profitable this year.

These financial insights are crucial for investors considering Amwell’s stock, especially in light of the recent leadership changes. The company’s ability to manage its cash burn and strive towards profitability will be essential in determining its future success. For investors seeking more in-depth analysis, there are additional InvestingPro Tips available that can provide further clarity on Amwell’s financial position and stock performance.

For those interested in exploring these insights further, InvestingPro offers a comprehensive analysis with additional tips. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With these tools, investors can make informed decisions based on the latest data and expert analysis.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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