BOSTON - Amwell (NYSE: AMWL), a digital healthcare provider, has appointed Mark Hirschhorn as its new Chief Financial Officer, effective October 21. Hirschhorn takes over from Robert Shepardson, who served as CFO since 2021. In his new role, Hirschhorn will be responsible for the company's financial operations, optimization efforts, and capital management, aimed at bolstering long-term growth and shareholder value.
With over 30 years of experience in the healthcare technology sector, Hirschhorn has held various senior executive roles, including CEO of TapestryHealth and CFO and COO at Teladoc (NYSE:TDOC) Health. His tenure at these companies was marked by significant revenue growth and profitability. Additionally, as president and COO of Talkspace, he contributed to the company's strategic growth.
Ido Schoenberg, M.D., chairman and CEO of Amwell, praised Hirschhorn's financial expertise and leadership skills, emphasizing the company's transition from a period of intense research and development to a focus on operational efficiency and profitable growth. Schoenberg also thanked outgoing CFO Bob Shepardson for his leadership through the company's IPO and re-platforming phase.
Hirschhorn expressed enthusiasm about joining Amwell, highlighting the company's mission to empower healthcare organizations through digital enablement. He aligns with the company's philosophies and strategies, focusing on building the business and enhancing shareholder value.
Amwell, recognized for its hybrid care delivery platform, connects providers, payers, patients, and innovators, facilitating access to quality healthcare. The company supports a range of digital health needs, from urgent to chronic care management, and powers the digital care of numerous health plans and health systems.
The information is based on a press release statement from Amwell.
In other recent news, American Well Corp reported a second-quarter 2024 revenue of $63 million, exceeding consensus estimates. The company's adjusted EBITDA loss of $35 million was more favorable than the projected $40 million loss. This positive financial outcome led TD Cowen and Needham to maintain a hold rating on American Well's shares, with TD Cowen raising the price target to $12.00, up from the previous $2.00.
American Well has also partnered with Hello Heart, integrating the latter's digital program into Amwell's Converge platform. This collaboration aims to help members manage heart disease risk factors more effectively. The partnership will be demonstrated at the forthcoming HLTH conference.
Moreover, American Well's services for the Defense Health Agency are being rolled out at five initial sites, with full enterprise deployment expected in December 2024. This marks a significant shift toward enabling hybrid care models.
In terms of company news, the employment agreement with Kathy Weiler, the Chief Commercial & Growth Officer, has been amended. The agreement provides her with various benefits should she leave her position without a "Good Reason" on or after June 1, 2025. Leadership changes have also occurred with Co-founder Roy Schoenberg transitioning to Executive Vice Chairman and Ido Schoenberg becoming the sole Chief Executive Officer. These are among the recent developments within the company.
InvestingPro Insights
As Amwell (NYSE: AMWL) welcomes Mark Hirschhorn as its new CFO, investors may find additional context from recent financial data and expert insights. According to InvestingPro, Amwell's market capitalization stands at $152.16 million, reflecting its current position in the digital healthcare space.
The company's financial health presents a mixed picture. An InvestingPro Tip highlights that Amwell holds more cash than debt on its balance sheet, which could provide flexibility as it transitions to a focus on operational efficiency and profitable growth under new financial leadership. This aligns with the company's stated goals and may be crucial for its long-term strategy.
However, another InvestingPro Tip indicates that Amwell is quickly burning through cash. This underscores the importance of Hirschhorn's appointment and the company's shift towards operational efficiency. The new CFO's experience in driving revenue growth and profitability at other healthcare technology companies could be particularly valuable in addressing this challenge.
Amwell's revenue for the last twelve months as of Q2 2023 was $254.91 million, with a revenue growth of -7.27% over the same period. This decline in revenue growth emphasizes the need for the strategic focus on profitable growth mentioned in the article.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and metrics. There are 8 more InvestingPro Tips available for Amwell, providing a deeper understanding of the company's financial position and market performance.
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