Telehealth giant Amwell has reported a significantly larger net loss of nearly $400M in the first quarter due to an impairment charge related to a sustained decline in its share price.
The company took a noncash goodwill impairment charge as a result of its stock market performance and "associated market capitalization compared to the book value of our equity as of quarter end," according to Amwell Chief Financial Officer Bob Shepardson. As a result of the $330.3M impairment charge, the company posted a net loss for the quarter of $398 million, compared with $70.3 in Q1 of 2022 and a $61.6M loss in Q4 2022. Amwell’s total revenue for Q1 was $64M, stable compared to the first quarter of last year.
Amwell’s Converge telehealth platform connects all of its products in one place. The platform has absorbed a significant amount of research and development funding. Converge, which is central to the company’s growth strategy, has experienced a 28% growth in total visits in the first quarter of this year compared to Q4 2022.
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