Amwell made its public debut on Thursday in an upsized IPO. The company, which began trading on the New York Stock Exchange under “AMWL,” offered 41.2 million shares of stock priced at $18, above its planned range of $14 to $16.
By the end of the day, its stock price had risen past $23.
Google was a backer of the company, buying $100 million of its class C common stock in a private placement. The two companies plan a broader collaboration, which includes Amwell moving its video traffic to Google Cloud. They also plan to develop tools together, such as automated patient intake forms or translation services for telehealth visits
Like many other telehealth businesses, Amwell has seen an increase in visits since the start of the pandemic. Its monthly visit volumes were up 300% during the previous quarter, according to its prospectus. Amwell has said more providers are also using its platform.
In the first half of 2020, Amwell brought in $122.28 million in revenue, up 77% from last year. But its net loss also grew: for the first half of 2020, it was $113.44 million, more than double its $40.7 million net loss during the same period in 2019.
In its prospectus, the company said it plans to further invest in its technology, sales and marketing.
“Accordingly, in the short term we expect these activities to increase our net losses, but in the long term we anticipate that these investments will positively impact our results of operations,” it wrote.
Amwell also said it would use the funds to reduce support costs using automation, and for mergers and acquisitions, notable since Teladoc announced its planned acquisition of Livongo.
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