Amwell IPO Confidentially Filed With SEC
An Amwell IPO is rumored to be filed with the SEC. As telehealth services grow in demand, investors look for opportunities. And Amwell stock could be one of them.
But is Amwell a good investment? Here’s what we know…
Amwell IPO: The Business
In 2006, brothers Ido and Roy Schoenberg founded American Well, more commonly known as Amwell. It’s a telemedicine company based in Boston, Massachusetts. Patients are connected with doctors via secure video. The company currently operates in 44 states throughout the U.S. and has mobile apps for both iOS and Android.
The company’s mission states:
“We connect and enable providers, insurers, patients and innovators to deliver greater access to more affordable, higher quality care.”
Amwell also lists some impressive numbers on its site:
- 150 million individuals with access to Amwell telehealth through their health plan
- 55-plus health plan partners
- 240-plus health system partners.
Amwell is one of the most well-known names in the telehealth industry, and the company recently saw a large increase in growth. That’s why it filed for an Amwell IPO.
Amwell Stock: Coronavirus Creates Opportunity
The coronavirus crashed the market and shut down the U.S. economy. Governments placed stay-at-home orders. Social distancing became the new normal. And with all of this, the telehealth industry thrived.
Chairman and CEO Ido Schoenberg said:
The past two months have accelerated telehealth by more than two years. We intend to build upon this momentum to transform healthcare with digital care delivery. Our strategic investors are providers, insurers, consumer gateways and healthcare innovators. Each of these partners play a key role in creating a more interconnected digital healthcare ecosystem, where our mission is to deliver greater access to more affordable, high quality care.
Analysts can look at Amwell competitor Teladoc to see this. Teladoc went public in 2015. Therefore, its financial information is available, and we can analyze movements in Teladoc stock. In the company’s Q1 earnings, it reported revenue of $180.8 million. That’s a 41% year-over-year growth. And Teladoc stock is up 88% this year.
And Teladoc isn’t the only company to see an increase in share price. One Medical, which offers telehealth visits alongside physical clinics, launched its IPO in January. One Medical stock is up 120% from its IPO price.
These numbers show that Amwell stock could likely succeed. And the company needs the funds from an Amwell IPO to meet the increased demand brought on by the coronavirus. Amwell saw a 1,000% increase in visits during the month of May. And in some areas of service, that number was as high as 4,000%.
But Amwell’s platform wasn’t prepared for this surge in visitors. In its most recent funding round, Amwell raised $196 million to help expand and manage the technical side of its platform. Analysts speculate that a large portion of the funds raised by the Amwell IPO will also go toward this goal. But some could also go toward the company’s newest offering.
Amwell Announces New Telehealth Offering
In a company press release, Amwell announced the launch of Amwell Private Practice. The platform is designed for physician practices with less than 100 providers. It allows them to provide telehealth in a secure and cost-effective way. Physicians can schedule virtual appointments with existing patients and give new patients an easy and safe way to access healthcare at home.
President and CEO Roy Schoenberg said:
Amwell Private Practice aims squarely to allow community-based care delivery to go on at times where physician offices are closed, or their on-site services are deeply limited. After years of serving the nations’ largest hospitals and health systems and learning and adapting to physicians’ preferences and workflows, we’re introducing an affordable, mature telehealth product for smaller physician offices. Recent events have highlighted the role of this technology in the new balance between physical and digital care delivery. Private Practice stands to make it easier for clinicians to make it part of their daily experience.
Many small businesses suffered from the coronavirus outbreak. By creating a platform to help smaller physician offices, Amwell gave many practices an opportunity to stay in business and not lose patients. But those interested in investing in Amwell stock may wonder…
When Will Amwell IPO?
Amwell filed confidentially with the SEC. That means the filing isn’t publicly available yet. Once that information is available in the SEC database, investors can find out how many shares Amwell will offer, as well as detailed financial information.
However, inside sources say the Amwell IPO could come in September 2020.
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Analysts estimate that the telehealth market may be worth up to $250 billion in 2020. Before the coronavirus pandemic, that number was $3 billion. So when Amwell stock hits the market, it could be a good investment opportunity.
About Amber Deter
Amber Deter has researched and written about initial public offerings (IPOs) over the last few years. After starting her college career studying accounting and business, Amber decided to focus on her love of writing. Now she’s able to bring that experience to Investment U readers by providing in-depth research on IPO and investing opportunities.