Company: AMWL
Filing Date: 2025-02-12
Form Type: 10-K
Source: 0000950170-25-019024
Chunk: 86

Company: American Well Corp
Filing Date: 2025-02-12
Form: 10-K
Item: Item 1A
Chunk 86
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There are several risks related to our business and our ability to leverage our strengths that are described in further detail below. Among these important risks are the following: 

•our history of losses and the risk we may not achieve profitability; 

•our limited number of significant clients (including our largest client by revenue, Elevance Health, which accounted for 23%, 24% and 27% of our revenue for the years ended December 31, 2022, 2023 and 2024, respectively) and the risk that we may lose their business; 

•weak growth and increased volatility in the digital care market; 

•inability to adapt to rapid technological changes; 

•increased competition from existing and potential new participants in the healthcare industry; 

•our clients’ acceptance of the Amwell Converge™ platform and our ability and the costs to further develop this platform;

•changes in healthcare laws, regulations or trends as well as our ability to operate in the heavily regulated healthcare industry; 

•slower than expected growth in patient adoption of digital care and in platform usage by either clients or patients; 

•the impact of seasonal viruses on our business or on our ability to forecast our business’s financial outlook; 

•inability to grow our base of affiliated and non-affiliated providers utilizing the Amwell Platform to a number sufficient to serve patient demand; 

•our ability to comply with federal, state and foreign privacy regulations and the significant liability that could result from a cybersecurity breach or our failure to comply with such regulations; and

•holders of our Class A common stock have limited or no ability to influence corporate matters due to the multiple class structure of our common stock and the ownership of Class B common stock by Ido Schoenberg and Roy Schoenberg (the “Founders”), which will have the effect of concentrating voting control with our founders for the foreseeable future.

The risks and uncertainties described below are not the only ones we face. Additional risks and uncertainties that we are unaware of or that we do not currently deem material may also become important factors that adversely affect our business. If any of the events contemplated by the following discussion of risks should occur, our business, financial condition, results of operations and cash flows could suffer significantly. The following is a summary of all the material risks known to us.

Risks Related to Our Financial Position

We have a history of losses, which we expect to continue, and we may never achieve or sustain profitability. 

We have incurred significant losses in each period since our inception. We