Company: AMWL
Filing Date: 2025-02-12
Form Type: 10-K
Source: 0000950170-25-019024
Chunk: 236

Company: American Well Corp
Filing Date: 2025-02-12
Form: 10-K
Item: Item 7
Chunk 236
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 GAAP financial measure and the reconciliation of this non-GAAP financial measure to their most directly comparable GAAP financial measures, and not to rely on any single financial measure to evaluate our business. 

Adjusted EBITDA 

Adjusted EBITDA is a key performance measure that our management uses to assess our operating performance. Because adjusted EBITDA facilitates internal comparisons of our historical operating performance on a more consistent basis, we use this measure for business planning purposes and in evaluating acquisition opportunities.

We calculate adjusted EBITDA as net loss adjusted to exclude (i) interest income and other income, net, (ii) tax benefit and expense, (iii) depreciation and amortization, (iv) goodwill impairment, (v) stock-based compensation expense, (vi) severance and strategic transformation costs, (vii) capitalized software costs, (viii) litigation expenses related to the defense of our patents in the patent infringement claim filed by Teladoc and (ix) other items affecting our results that we do not view as representative of our ongoing operations. We had no such other items during the years ended December 31, 2024, 2023 and 2022. 

The following table presents a reconciliation of adjusted EBITDA from the most comparable GAAP measure, net loss, for each of the years ended December 31, 2024, 2023 and 2022: 

    Years Ended December 31,

    (in thousands)
     
    2024

    2023

    2022

    Net loss
     
    $
    (212,638
    )
     
    $
    (679,171
    )
     
    $
    (272,072
    )

    Add:

    Depreciation and amortization

    32,975

    31,492

    26,153

    Interest and other income, net

    (10,757
    )

    (19,422
    )

    (6,123
    )

    Expense from income taxes

    2,751

    3,860

    64

    Goodwill impairment

    —

    436,479

    —

    Stock-based compensation

    47,505

    72,040

    69,144

    Severance and strategic transformation costs(1)

    20,892

    4,414

    —

    Noncash expenses and contingent consideration adjustments(2)

    —

    —