American Well Corp (NYSE:AMWL), a business services provider in the healthcare sector, announced the results of its annual shareholder meeting held on June 18, 2024. Shareholders voted on several key proposals, including the election of directors, ratification of the company's independent auditor, executive compensation, and a reverse stock split.
In the election of directors, all three Class I director nominees were elected to serve until the 2027 annual meeting or until their successors are duly elected and qualified. Mr. Derek Ross received 369,030,951 votes for and 23,302,087 votes withheld. Ms. Deborah Jackson had 341,545,474 votes for and 50,787,564 votes withheld. Mr. Rob Webb was elected with 389,303,500 votes for and 3,029,538 votes withheld. Broker non-votes for each director were reported as 35,038,495.
The appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2024, was ratified with an overwhelming 426,603,764 votes for and only 767,769 votes withheld.
Additionally, shareholders approved, in a non-binding advisory vote, the compensation paid to the company's named executive officers. The approval saw 384,527,467 votes for, 7,805,571 votes withheld, and 35,038,495 broker non-votes.
The proposal to amend the Company's Certificate of Incorporation to effect a reverse stock split was also approved. The for votes tallied 424,199,779, against votes were 2,940,641, abstain votes numbered 231,113, and there were no broker non-votes.
These results, filed with the Securities and Exchange Commission, reflect shareholder support for the company's board of directors and its strategic decisions. The approval of the reverse stock split could suggest an effort by the company to adjust its capital structure, although the specific reasons for this move were not disclosed in the press release statement.
The company, headquartered in Boston, Massachusetts, is incorporated in Delaware and is listed on the New York Stock Exchange under the ticker AMWL. The results of the meeting are based on a press release statement and are indicative of shareholder confidence in the management and future direction of American Well Corp.
In other recent news, Amwell reported a 7% decline in total revenue to $59.5 million for the first quarter of 2024, despite this, the company anticipates a shift towards subscription software which is expected to drive gross margin expansion. Amwell forecasts revenue growth and improved adjusted EBITDA for 2025. In line with these developments, the firm Piper Sandler maintained a neutral stance on Amwell, emphasizing the need for stabilization in subscription revenue and clearer signs of the company's projected return to double-digit growth in 2025.
Amwell also announced a significant change in its leadership structure. Co-founder Roy Schoenberg 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, will take over as the sole Chief Executive Officer. This leadership change aligns with Amwell’s mission to expand the reach and impact of its technology in the healthcare industry.
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 showcasing their latest offerings to investors.
InvestingPro Insights
The latest data from InvestingPro reveals a mixed financial picture for American Well Corp (NYSE:AMWL). The company holds a market capitalization of $121.91 million USD, indicating a relatively small size within the healthcare services sector. Despite a challenging period, with a negative revenue growth of 8.08% over the last twelve months as of Q1 2024, AMWL's balance sheet shows some resilience. One of the InvestingPro Tips highlights that the company holds more cash than debt, which could provide some financial flexibility in its operations.
However, investors should note the company's significant price decline over the past year, with a 1 Year Price Total Return of -82.55%, reflecting investor concerns and market adjustments. Additionally, the company's P/E Ratio stands at -0.34, which, when adjusted for the last twelve months as of Q1 2024, worsens to -0.47, underscoring the company's current lack of profitability. Another InvestingPro Tip notes that analysts do not anticipate the company will be profitable this year, which could be a point of consideration for potential investors.
For those looking for more in-depth analysis, there are additional InvestingPro Tips available that could provide further insights into AMWL's financial health and stock performance. Interested readers can find these tips at https://www.investing.com/pro/AMWL. Additionally, using the coupon code PRONEWS24 offers an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing access to valuable investment tools and data.
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