Amwell and Converge's Transformation for Long-Term Success
2023-08-04
Amwell and Converge recently held an earnings call meeting to discuss their future prospects and transformation. During the meeting, the company expressed excitement and gratitude for the support received from investors. The focus of the discussion revolved around the company's plans for execution in the third quarter and beyond, with an emphasis on securing long-term success.
One of the key points highlighted during the meeting was the company's commitment to building market momentum and executing well in sales transformation. They also discussed their efforts to drive expansions and secure new customer wins, as well as the importance of successful client migrations. Additionally, the company acknowledged the need to evolve towards hybrid care delivery in their industry.
A significant aspect of the meeting was the company's growth organization transformation. The Chairman and Co-Chief Executive Officer, Ido Schoenberg, emphasized the shift in focus from imagining innovative solutions to prioritizing profitable delivery. This transformation involved various elements such as new positioning, packaging, pricing, and messaging. The company also invested in upskilling their client-facing teams and changing their communication approach with channel partners and clients to be more strategic. The objective of this transformation is to enhance service efficiency, deal velocity, and deal size while maintaining profitability.
The company's outlook for the quarter and year ahead is centered around execution and securing long-term success. They plan to continue building market momentum, executing well in their sales transformation, and driving expansions and new customer wins. The successful migration of clients to their hybrid care delivery approach is also a key goal. The company remains confident in their mission and long-term model, particularly as they navigate the evolving trend of hybrid care delivery.
Financially, the company aims to bring the breakeven revenue down to $400 million. They expect lower levels of spending on research and development, as well as potential declines in SG. The company is also focused on replatforming and migrating clients onto the Converge platform, reducing churn, increasing customer satisfaction, and upselling to a broader market. Their go-to-market transformation is set to continue as they pursue their mission and unlock the potential of their long-term model.
The meeting included various participants, such as Sue Dooley - Head of Investor Relations, Ido Schoenberg - Chairman and Co-Chief Executive Officer, Bob Shepardson - Chief Financial Officer, and several analysts from different firms. Their presence indicates their involvement and interest in the company's future plans and financial performance.
In conclusion, the earnings call meeting provided insights into Amwell and Converge's future prospects and transformation. The company's focus on execution, market momentum, sales transformation, and successful client migrations, along with their growth organization transformation, highlights their commitment to securing long-term success. With a strong outlook and confidence in their mission, the company is poised for continued progress in the evolving landscape of hybrid care delivery.