AMWL (American Well) Gross Margin % : 37.18% (As of Sep. 2024)

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What is American Well Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. American Well's Gross Profit for the three months ended in Sep. 2024 was $22.7 Mil. American Well's Revenue for the three months ended in Sep. 2024 was $61.0 Mil. Therefore, American Well's Gross Margin % for the quarter that ended in Sep. 2024 was 37.18%.

Warning Sign:

American Well Corp gross margin has been in long-term decline. The average rate of decline per year is -4.4%.

The historical rank and industry rank for American Well's Gross Margin % or its related term are showing as below:

AMWL' s Gross Margin % Range Over the Past 10 Years
Min: 34.8 Med: 41.7 Max: 48.57
Current: 34.8

During the past 6 years, the highest Gross Margin % of American Well was 48.57%. The lowest was 34.80%. And the median was 41.70%.

AMWL's Gross Margin % is ranked worse than
58.31% of 626 companies
in the Healthcare Providers & Services industry
Industry Median: 40.75 vs AMWL: 34.80

American Well had a gross margin of 37.18% for the quarter that ended in Sep. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for American Well was -4.40% per year.

American Well Gross Margin % Historical Data

The historical data trend for American Well's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

American Well Gross Margin % Chart

American Well Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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46.27

36.07

41.27

42.13

36.58

American Well Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Gross Margin %	Get a 7-Day Free Trial															34.66	33.74	30.86	37.42	37.18

Competitive Comparison of American Well's Gross Margin %

For the Health Information Services subindustry, American Well's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

American Well's Gross Margin % Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, American Well's Gross Margin % distribution charts can be found below:

* The bar in red indicates where American Well's Gross Margin % falls into.

American Well Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

American Well's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	94.8	/	259.047
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(259.047 - 164.287)	/	259.047
	=	36.58 %

American Well's Gross Margin for the quarter that ended in Sep. 2024 is calculated as

Gross Margin % (Q: Sep. 2024 )	=	Gross Profit (Q: Sep. 2024 )	/	Revenue (Q: Sep. 2024 )
	=	22.7	/	61.046
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(61.046 - 38.352)	/	61.046
	=	37.18 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

American Well (NYSE:AMWL) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

American Well had a gross margin of 37.18% for the quarter that ended in Sep. 2024 => Competition eroding margins

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

American Well Gross Margin % Related Terms

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American Well Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Providers & Services » American Well Corp (NYSE:AMWL) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

75 State Street, 26th Floor, Boston, MA, USA, 02109

Website

https://business.amwell.com

American Well Corp is a telehealth company enabling digital delivery of care for its customers. Its platform, Amwell, digital care delivery solution that equips health systems, health plans, government, and innovator clients with the tools to enable new models of care for their patients and members enabling care delivery across the full healthcare continuum - from primary and urgent care in the home to high acuity specialty consults, such as telestroke and telepsychiatry, in the hospital. It provides both on-demand and scheduled consultations. Its Health Plan Programs include Virtual Primary Care, Musculoskeletal Care, Dermatology Care, and Chronic Care among others.

Executives

Kathy Johnson Weiler	officer: See Remarks	C/O AMERICAN WELL CORPORATION, 75 STATE STREET, 26TH FLOOR, BOSTON, MA 02109
Vukasin Paunovich	officer: EVP, Enterprise Platforms	C/O AMERICAN WELL CORPORATION, 75 STATE STREET, 26TH FLOOR, BOSTON MA 02109
Kurt Knight	officer: Chief Operating Officer	AMERICAN WELL CORPORATION, 75 STATE STREET, 26TH FLOOR, BOSTON MA 02109
Phyllis Gotlib	officer: President, International	AMERICAN WELL CORPORATION, 75 STATE STREET, 26TH FLOOR, BOSTON MA 02109
Paul Francis Mcneice	officer: Vice President of Accounting	20 JOHANNA DRIVE, READING MA 01867
Robert Shepardson	officer: Chief Financial Officer	C/O AMERICAN WELL CORPORATION, 75 STATE STREET, 26TH FLOOR, BOSTON MA 02109
Deborah C Jackson	director	C/O JOHN HANCOCK, 601 CONGRESS STREET, BOSTON MA 02210
Peter L. Slavin	director	AMERICAN WELL CORPORATION, 75 STATE STREET, 26TH FLOOR, BOSTON MA 02109
Roy Schoenberg	director, 10 percent owner, officer: President, co-CEO	AMERICAN WELL CORPORATION, 75 STATE STREET, 26TH FLOOR, BOSTON MA 02109
Ido Schoenberg	director, 10 percent owner, officer: Chairman, co-CEO	AMERICAN WELL CORPORATION, 75 STATE STREET, 26TH FLOOR, BOSTON MA 02109
Amber Howe	officer: Chief People Officer	AMERICAN WELL CORPORATION, 75 STATE STREET, 26TH FLOOR, BOSTON MA 02109
Bradford Gay	officer: Senior VP, General Counsel	AMERICAN WELL CORPORATION, 75 STATE STREET, 26TH FLOOR, BOSTON MA 02109
Serkan Kutan	officer: Chief Technology Officer	AMERICAN WELL CORPORATION, 75 STATE STREET, 26TH FLOOR, BOSTON MA 02109
Stephen J. Schlegel	director	AMERICAN WELL CORPORATION, 75 STATE STREET, 26TH FLOOR, BOSTON MA 02109
Robert Thomas Webb	director	C/O AMERICAN WELL CORPORATION, 75 STATE STREET, 26TH FLOOR, BOSTON MA 02109