American Well Corp
For the period ended Jun 30, 2024. Filed Jul 31, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Jul 31, 2024
AMWL$11.91-1.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-01.
0000950170-24-051315
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-07-31.
0000950170-24-088613
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 143 previous paragraphs and 152 current paragraphs.
103 unchanged; 36 reworded; 12 added; 4 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 4 previous and 4 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (12)
Current report
NYSE Notice
Current report
On April 2, 2024, the Company received written notice from The New York Stock Exchange (“NYSE”) notifying it that, for the last 30 consecutive business days, the bid price for the Company's common stock had closed below the $1.00 per share minimum bid price requirement for continued inclusion on the NYSE pursuant to Section 802.01C of the NYSE’s Listed Company Manual.
Current report
On June 18, 2024, the Company’s stockholders approved a reverse stock split of its Class A common stock, Class B common stock and Class C common stock (collectively, the "common stock") at a ratio ranging from 1-for-10 to 1-for-20, with the exact ratio determined by the Company’s Board of Directors. On June 28, 2024, the Company's Board of Directors approved a 1-for-20 reverse stock split (Reverse Split) of its common stock that became effective on July 10, 2024. All shares of the Company’s common stock, stock-based instruments and per-share data included in this Quarterly Report on Form 10-Q, including the condensed consolidated financial statements, have been retroactively adjusted as though the Reverse Stock Split has been effected prior to all periods presented.
Current report
As we have completed the reverse stock split, we expect that we will cure the previously disclosed deficiency with respect to the continued listing minimum price criteria set forth in Section 802.01C of the NYSE Listed Company Manual as of August 1, 2024
Current report
The Amwell Converge TM Platform
Current report
For the three months ended June 30, 2024, visit revenue increased $0.7 million due to an increase in special program visits. Other revenue increased by $0.3 million primarily related to an increase in marketing revenue with one of our strategic customers of $2.3 million partially offset by a decline in professional service revenue of $1.8 million due to timing of services for a large customer in the prior year. The increase was partially offset by a decrease in subscription revenue of $0.5 million due to customer churn during re-platforming, partially offset by growth in our existing strategic clients.
Current report
For the three months ended June 30, 2024, the increase in cost of revenue was primarily driven by an increase in marketing services provided for customers of $3.1 million, partially offset by a decrease in consulting costs of $0.7 million and a decrease of $0.5 million related to hardware costs. The decrease in gross margin is a result of the shift in revenue mix to lower margin visit revenue from higher margin subscription revenue.
Current report
For the six months ended June 30, 2024, there was a decrease in employee-related costs of $3.6 million (due to headcount reduction and reduced stock compensation expense). There was also a decrease of $0.9 million in consulting spend as the peak development of the Amwell Converge platform is complete.
Current report
For the three months ended June 30, 2024, there was a decrease in employee-related costs of $2.3 million, a decrease in marketing spend of $0.5 million, and a decrease in meals and travel of $0.4 million, due to headcount reduction and cost savings put into place.
Current report
For the six months ended June 30, 2024, there was $3.6 million in non-recurring consulting costs related to organizational strategy initiatives. This increase was partially offset by a decrease in employee-related costs of $1.5 million, a decrease in other consulting spend of $0.9 million, a decrease of $0.7 million in research spend and a decrease in meals and travel of $0.6 million, due to headcount reduction and cost savings put into place.
Current report
For the six months ended June 30, 2024, the decrease in general and administrative expense was driven by a decrease related to employee-related costs of $13.8 million. The employee related costs were driven primarily by the decrease in stock compensation expense as higher value historic awards had become fully expensed, as well as headcount reduction. In addition, insurance costs decreased by $1.3 million. There were also decreases of $0.4 million in meals and travel and $0.4 million in conferences due to cost savings put into place. These decreases were partially offset by $5.0 million in non-recurring consulting costs related to organizational strategy initiatives.
Current report
Six months ended June 30, 2024, vs. six months ended June 30, 2023
Removed paragraphs (4)
Previous report
the ability of our Class A common stock to remain listed on the New York Stock Exchange.
Previous report
The Converge TM Platform
Previous report
For the three months ended March 31, 2024, the increase in sales and marketing expense primarily consisted of $2.9 million in non-recurring consulting costs related to the acceleration of planned costs related to organizational strategy initiatives.
Previous report
Three months ended March 31, 2024, vs. three months ended March 31, 2023
Reworded paragraphs (36)
Previous wording
the risk that the insurance we maintain may not fully cover all potential exposures;
Current wording
the risk that the insurance we maintain may not fully cover all potential exposures; and
Previous wording
the election by the Defense Health Agency to deploy our solution across their entire enterprise; the continuation of the DHA relationship beyond July of 2025 with comparable financial terms; and
Current wording
the election by the Defense Health Agency to deploy our solution across their entire enterprise; the continuation of the DHA relationship beyond July of 2025 with comparable financial terms.
Previous wording
As of December 31, 2023, we powered the digital care programs of more than 50 health plans, which collectively represent more than 100 million covered lives, as well as approximately 115 of the nation’s largest health systems. Since inception, we have powered approximately 28.9 million virtual care visits for our clients, including approximately 1.7 million in the three months ended March 31, 2024.
Current wording
As of December 31, 2023, we powered the digital care programs of more than 50 health plans, which collectively represent more than 100 million covered lives, as well as approximately 115 of the nation’s largest health systems. Since inception, we have powered approximately 30.4 million virtual care visits for our clients, including approximately 3.2 million in the six months ended June 30, 2024.
Previous wording
The Converge platform is the latest version of our enterprise platform software and is our go-forward strategy to digitally enable a unified, scalable healthcare experience across all care settings. It has been designed from the ground up with the holistic understanding that the future of care of any one person inevitably will blend a mix of in-person, virtual and automated experiences. Designed to be future-ready, reliable, flexible, scalable, secure and fully integrated with other healthcare software systems, the Converge platform offers state-of-the-art data architecture and video capabilities, flexibility and scalability, as well as a user experience focused on the needs of patients, members and providers.
Current wording
The Amwell Converge platform is the latest version of our enterprise platform software and is our go-forward strategy to digitally enable a unified, scalable healthcare experience across all care settings. It has been designed from the ground up with the holistic understanding that the future of care of any one person inevitably will blend a mix of in-person, virtual and automated experiences. Designed to be future-ready, reliable, flexible, scalable, secure and fully integrated with other healthcare software systems, the Amwell Converge platform offers state-of-the-art data architecture and video capabilities, flexibility and scalability, as well as a user experience focused on the needs of patients, members and providers.
Previous wording
The telehealth of yesterday has grown to encompass hybrid care delivery models and the flow of data that drives healthcare. By providing a single platform for the digital distribution of care, the Converge platform will accelerate innovation and interoperability for health system and health plan clients as well as other healthcare innovators who aim to offer a seamless experience for providers, patients and members.
Current wording
The telehealth of yesterday has grown to encompass hybrid care delivery models and the flow of data that drives healthcare. By providing a single platform for the digital distribution of care, the Amwell Converge platform will accelerate innovation and interoperability for health system and health plan clients as well as other healthcare innovators who aim to offer a seamless experience for providers, patients and members.
Previous wording
The development of the Converge platform represented a re-platforming by the Company to provide our customer base with an improved and more robust solution. This re-platforming has been an ongoing effort that resulted in increased research and development costs during the peak development period in 2022 and the first half of 2023, and we expect to see a return to normal levels of research and development spend in the coming quarters. The first quarter of 2024 includes expenses that represent an investment in our government sector customers and to development of the government product that we believe will drive revenue growth in the coming years. We expect to continue these investments during the majority of 2024 before experiencing another reduction in our ongoing research and development expense run rate.
Current wording
The development of the Amwell Converge platform represented a re-platforming by the Company to provide our customer base with an improved and more robust solution. This re-platforming has been an ongoing effort that resulted in increased research and development costs during the peak development period in 2022 and the first half of 2023, and we expect to see a return to normal levels of research and development spend in the coming quarters. The first quarter of 2024 includes expenses that represent an investment in our government sector customers and to development of the government product that we believe will drive revenue growth in the coming years. We expect to continue these investments during the majority of 2024 before experiencing another reduction in our ongoing research and development expense run rate.
Previous wording
Re-platforming can impact timing of revenue as we manage on-boarding and customer churn. During the three months ended March 31, 2024, 68% of our visits were provided on the Converge platform, which was an increase from 52% in the fourth quarter of 2023. As of March 31, 2024, we have a thumbs-up rating by patients and providers of over 90%. A major strategic focus for us in 2024 is the delivery to our government business as well as our existing commercial clients. In addition, we are focused on the transformational steps necessary to reaccelerate growth during this period of transition. We also continue to focus on the migration of our remaining health plan and health system clients onto the Converge platform.
Current wording
Re-platforming can impact timing of revenue as we manage on-boarding and customer churn. During the three months ended June 30, 2024, 69% of our visits were provided on the Amwell Converge platform. As of June 30, 2024, we have a thumbs-up rating by patients and providers of over 90%. A major strategic focus for us in 2024 is the delivery of solutions to our government clients as well as our existing commercial clients. In addition, we are focused on the transformational steps necessary to re-accelerate growth during this period of transition. We also continue to focus on the migration of our remaining health plan and health system clients onto the Amwell Converge platform.
Previous wording
We sell our enterprise platform and software as a service solutions on a subscription basis, which with our modular platform architecture allows our clients to introduce innovative digital care use cases over time, expanding our subscription revenue opportunity. To support the enterprise platform and software as a service, we offer professional services on a fee-for-service basis, a range of patient and provider Carepoint TM devices and software that support hospital and home use cases and access to Amwell Medical Group® ("AMG"), our affiliated medical group that provides clinical services on a fee-for-service basis. The combination of the enterprise platform, professional services and Carepoint devices allows our clients to deploy digital care solutions across their full enterprise, deepening their relationships with existing and new patients and members through improved care access and coordination, cost and quality. Our contracts are typically three years in length but may be longer for our largest strategic client partners.
Current wording
We sell our enterprise platform and software as a service solutions on a subscription basis, which with our modular platform architecture allows our clients to introduce innovative digital care use cases over time, expanding our subscription revenue opportunity. To support our solutions, we offer professional services on a fee-for-service basis, a range of patient and provider Carepoint TM devices and software that support hospital and home use cases and access to Amwell Medical Group® ("AMG"), our affiliated medical group that provides clinical services on a fee-for-service basis. The combination of the enterprise platform, professional services and Carepoint devices allows our clients to deploy digital care solutions across their full enterprise, deepening their relationships with existing and new patients and members through improved care access and coordination, cost and quality. Our contracts are typically three years in length but may be longer for our largest strategic client partners.
Previous wording
Total subscription fees received were $24.9 million and $28.7 million for the three months ended March 31, 2024 and 2023, respectively.
Current wording
Total subscription fees received were $27.5 million and $28.0 million for the three months ended June 30, 2024 and 2023, respectively, and $52.4 million and $56.7 million for the six months ended June 30, 2024 and 2023.
Previous wording
The Converge platform enables government healthcare providers to extend care beyond traditional settings, reaching personnel wherever they are stationed. With both on-demand and scheduled care options, we support a wide range of healthcare needs, including urgent care, primary care, behavioral health, chronic disease management, and specialty consultations.
Current wording
The Amwell Converge platform enables government healthcare providers to extend care beyond traditional settings, reaching personnel wherever they are stationed. With both on-demand and scheduled care options, we support a wide range of healthcare needs, including urgent care, primary care, behavioral health, chronic disease management, and specialty consultations.
Previous wording
Amwell’s clinical affiliate AMG has built a network of providers who are registered and credentialed to deliver care on our enterprise software. This clinical network is designed and operated in a way that allows us to meet the aggregate visit demand requirements of our health plan and health system clients, spanning a broad mix of specialties, including Family Medicine, Lactation, Nutrition, Psychiatry, Therapy and Women's Health.
Current wording
Amwell’s clinical affiliate AMG has built a network of providers who are licensed and credentialed to deliver care on our enterprise software across the entire United States. This clinical network is designed and operated in a way that allows us to meet the aggregate visit demand requirements of our health plan and health system clients, spanning a broad mix of specialties, including Family Medicine, Lactation, Nutrition, Psychiatry, Therapy and Women's Health.
Previous wording
Fees received from AMG-related visits were $31.1 million and $32.5 million for the three months ended March 31, 2024 and 2023, respectively.
Current wording
Fees received from AMG-related visits were $28.7 million and $28.1 million for the three months ended June 30, 2024 and 2023, respectively, and $59.8 million and $60.6 million for the six months ended June 30, 2024 and 2023.
Previous wording
Fees received from the provision of services and Carepoint devices were $3.6 million and $2.8 million for the three months ended March 31, 2024 and 2023, respectively.
Current wording
Fees received from the provision of services and Carepoint devices were $6.6 million and $6.3 million for the three months ended June 30, 2024 and 2023, respectively, and $10.1 million and $9.1 million for the six months ended June 30, 2024 and 2023.
Previous wording
We continue to experience strong adoption and usage of our enterprise software and products. In the three months ended March 31, 2024, our clients completed a total of 1.7 million visits using our enterprise software, while in the three months ended March 31, 2023 1.7 million visits were completed. AMG providers accounted for 24% and 25% of total visits performed using our enterprise software during the three months ended March 31, 2024 and 2023, respectively.
Current wording
We continue to experience strong adoption and usage of our enterprise software and products. In the six months ended June 30, 2024, our clients completed a total of 3.2 million visits using our enterprise software, while in the six months ended June 30, 2023, 3.2 million visits were completed. AMG providers accounted for 24% and 24% of total visits performed using our enterprise software during the six months ended June 30, 2024 and 2023, respectively.
Previous wording
The following table presents a reconciliation of adjusted EBITDA from the most comparable GAAP measure, net loss, for the three months ended March 31, 2024 and 2023:
Current wording
The following table presents a reconciliation of adjusted EBITDA from the most comparable GAAP measure, net loss, for the three and six months ended June 30, 2024 and 2023:
Previous wording
Severance and strategic transformation costs include expenses associated with the termination of employees and expenses that focus on transforming the strategy of the Company’s sales and growth organization as well as our overall cost structure during the three months ended March 31, 2024 and 2023.
Current wording
Severance and strategic transformation costs include expenses associated with the termination of employees and expenses that focus on transforming the strategy of the Company’s sales and growth organization as well as our overall cost structure during the three and six months ended June 30, 2024 and 2023.
Previous wording
We have made strategic investments in the development of our sales and marketing department focused on internal process improvement and external go to market strategy during the quarter ended March 31, 2024. The expense associated with this investment was accelerated into this quarter which we believe better positions the Company to deliver on our strategic plan. We expect our sales and marketing expense to decrease as a percentage of our total revenue in future periods. Our sales and marketing expenses will fluctuate as a percentage of our total revenue from period to period due to the seasonality of our total revenue and the timing and extent of our advertising and marketing expenses.
Current wording
We have made strategic investments in the development of our sales and marketing department focused on internal process improvement and external go to market strategy during the first quarter of 2024. The expense associated with this investment was accelerated into the first quarter of 2024 which we believe better positions the Company to deliver on our strategic plan. We expect our sales and marketing expense to decrease as a percentage of our total revenue in future periods. Our sales and marketing expenses will fluctuate as a percentage of our total revenue from period to period due to the seasonality of our total revenue and the timing and extent of our advertising and marketing expenses.
Previous wording
The following table sets forth our summarized condensed consolidated statement of operations data for the three months ended March 31, 2024 and 2023 and the dollar and percentage change between the respective periods:
Current wording
The following table sets forth our summarized condensed consolidated statement of operations data for the three and six months ended June 30, 2024 and 2023 and the dollar and percentage change between the respective periods:
Previous wording
For the three months ended March 31, 2024, subscription revenue declined $3.8 million due to customer churn during re-platforming, partially offset by growth in our existing strategic clients. Visit revenue decreased $1.3 million due to a decline in visit volume and lower utilization in specialty care. Other revenue increased by $0.8 million primarily related to an increase in professional service revenue with one of our strategic customers.
Current wording
For the six months ended June 30, 2024, subscription revenue declined $4.3 million due to customer churn during re-platforming, partially offset by growth in our existing strategic clients. Visit revenue decreased $0.8 million due to a decline in visit volume partially offset by an increase in utilization of special programs. Other revenue increased by $1.0 million primarily related to an increase in marketing revenue with one of our strategic customers of $2.5 million partially offset by a decrease in professional services of $1.2 million due to timing of services for a large customer in the prior year.
Previous wording
For the three months ended March 31, 2024, the increase in cost of revenue was primarily driven by an increase in employee-related costs of $1.3 million due to an increase in headcount and an increase of $1.2 million related to third party costs, partially due to incentives being fully utilized in the prior year. The decrease in gross margin is a result of a decline in subscription revenue combined with higher costs of revenue.
Current wording
For the six months ended June 30, 2024, the increase in cost of revenue was primarily driven by an increase in marketing services provided for customers of $2.9 million and an increase of $1.4 million related to third party costs, partially due to incentives being fully utilized in the prior year. The increases were partially offset by a decrease in hardware costs of $0.6 million. The decrease in gross margin is a result of the shift in revenue mix to lower margin visit revenue from higher margin subscription revenue.
Previous wording
For the three months ended March 31, 2024, even though there was a decrease of $2.3 million in consulting spend (as the peak development of the Converge platform is complete) and a decrease in employee-related costs of $1.0 million (due to headcount reduction and reduced stock compensation expense) the capitalization of internal resources used in development of platform offerings also decreased by $3.9 million causing an overall increase in research and development expense of $0.8 million.
Current wording
For the three months ended June 30, 2024, there was a decrease in employee-related costs of $2.6 million (due to headcount reduction and reduced stock compensation expense). There was also a decrease of $2.4 million in consulting spend as the peak development of the Amwell Converge platform is complete.
Previous wording
For the three months ended March 31, 2024, the decrease in general and administrative expense was driven by a decrease related to employee-related costs of $3.8 million. The employee related costs were driven primarily by the decrease in stock compensation expense as higher value historic awards had become fully expensed.
Current wording
For the three months ended June 30, 2024, the decrease in general and administrative expense was driven by a decrease related to employee-related costs of $10.0 million. The employee related costs were driven primarily by the decrease in stock compensation expense as higher value historic awards had become fully expensed, as well as headcount reduction. In addition insurance costs decreased by $0.7 million. These decreases were partially offset by $3.0 million in non-recurring consulting costs related to organizational strategy initiatives
Previous wording
Depreciation expense remained consistent for the three months ended March 31, 2024. Amortization expense increased by $1.2 million for the three months ended March 31, 2024. The increase in amortization was related to the amortization of the internally developed software intangible assets.
Current wording
Depreciation expense remained consistent for the three months ended June 30, 2024. Amortization expense increased by $0.8 million for the three months ended June 30, 2024. The increase in amortization was related to the amortization of the internally developed software intangible assets.
Previous wording
For the three months ended March 31, 2024 and 2023, interest income and other (expense) income, net consist entirely of interest income and gains from our cash equivalents and short-term investments.
Current wording
For the three and six months ended June 30, 2024 and 2023, interest income and other (expense) income, net consist entirely of interest income and gains from our cash equivalents and short-term investments.
Previous wording
Income tax expense was $1.3 million for the three months ended March 31, 2024, compared to income tax expense of $1.5 million for the three months ended March 31, 2023.
Current wording
Income tax expense was $0.1 million and $1.4 million for the three and six months ended June 30, 2024, compared to income tax expense of $0.7 million and $2.2 million for the three and six months ended June 30, 2023.
Previous wording
During the three months ended March 31, 2024 and 2023, the Company recognized a loss of $0.9 million and $0.7 million, respectively, as its proportionate share of the joint venture results of operations.
Current wording
During the three months ended June 30, 2024 and 2023, the Company recognized a loss of $0.8 million and $0.6 million, respectively, as its proportionate share of the joint venture results of operations. During the six months ended June 30, 2024 and 2023, the Company recognized a loss of $1.7 million and $1.3 million, respectively, as its proportionate share of the joint venture results of operations.
Previous wording
Our principal sources of liquidity were cash and cash equivalents totaling $308.6 million and $372.0 million as of March 31, 2024 and December 31, 2023, respectively, which were held for a variety of growth initiatives and investments as well as working capital purposes. Our cash and cash equivalents are comprised of money market funds.
Current wording
Our principal sources of liquidity were cash and cash equivalents totaling $276.9 million and $372.0 million as of June 30, 2024 and December 31, 2023, respectively, which were held for a variety of growth initiatives and investments as well as working capital purposes. Our cash and cash equivalents are comprised of money market funds.
Previous wording
As shown in the accompanying condensed consolidated financial statements, the Company incurred a loss from operations of $75.0 million and a net loss of $73.4 million for the three months ended March 31, 2024 and had an accumulated deficit of $1,829.9 million as of March 31, 2024.
Current wording
As shown in the accompanying condensed consolidated financial statements, the Company incurred a loss from operations of $127.4 million and a net loss of $124.0 million for the six months ended June 30, 2024 and had an accumulated deficit of $1,879.8 million as of June 30, 2024.
Previous wording
The Company has no debt as of March 31, 2024 or December 31, 2023 and expects to generate operating losses in future years.
Current wording
The Company has no debt as of June 30, 2024 or December 31, 2023 and expects to generate operating losses in future periods.
Previous wording
We believe that our existing cash and cash equivalents will be sufficient to meet our working capital and capital expenditure needs for at least the next 12 months from the issuance date of the financial statements. Our future capital requirements will depend on many factors including our growth rate, contract renewal activity, number of consultations on our enterprise software, the timing and extent of spending to support product development efforts, our expansion of sales and marketing activities, the introduction of new and enhanced services offerings, and the continuing market acceptance of digital care services. We may in the future enter into arrangements to acquire or invest in complementary businesses, services and technologies and intellectual property rights. We may be required to seek additional equity or debt financing. In the event that additional financing is required from outside sources, we may not be able to raise it on terms acceptable to us or at all.
Current wording
We believe that our existing cash and cash equivalents will be sufficient to meet our working capital and capital expenditure needs for at least the next 12 months from the issuance date of the financial statements. Our future capital requirements will depend on many factors including our growth rate, the scope of our relationship with the Defense Health Agency, contract renewal activity, number of consultations on our enterprise software, the timing and extent of spending to support product development efforts, our expansion of sales and marketing activities, the introduction of new and enhanced services offerings, and the continuing market acceptance of digital care services. We may in the future enter into arrangements to acquire or invest in complementary businesses, services and technologies and intellectual property rights. We may be required to seek additional equity or debt financing. In the event that additional financing is required from outside sources, we may not be able to raise it on terms acceptable to us or at all.
Previous wording
Cash used in operating activities was $59.8 million for the three months ended March 31, 2024. The primary driver of this use of cash was our net loss of $73.4 million. The net loss was partially offset by non-cash expenses of $26.9 million (primarily stock-based compensation of $16.2 million and depreciation and amortization of $8.2 million). The net loss was reflective of the investments made back into the Company (from a technology and infrastructure perspective), partially offset by the overall growth of our business including expansion of business with existing clients.
Current wording
Cash used in operating activities was $81.5 million for the six months ended June 30, 2024. The primary driver of this use of cash was our net loss of $124.0 million. The net loss was partially offset by non-cash expenses of $46.2 million (primarily stock-based compensation of $26.1 million and depreciation and amortization of $16.5 million). The net loss was reflective of the investments made back into the Company (from a technology and infrastructure perspective), partially offset by the overall growth of our business including expansion of business with existing clients.
Previous wording
Cash used in operating activities was $29.1 million for the three months ended March 31, 2023. The primary driver of this use of cash was our net loss of $398.5 million. The net loss was reflective of the investments made back into the Company (from a technology perspective), partially offset by the overall growth of our business including expansion of business with existing clients. The net loss was partially offset by non-cash expenses of $360.0 million (primarily goodwill impairment of $330.3 million, stock-based compensation of $21.0 million and depreciation and amortization of $7.2 million).
Current wording
Cash used in operating activities was $68.8 million for the six months ended June 30, 2023. The primary driver of this use of cash was our net loss of $492.0 million. The net loss was reflective of the investments made back into the Company (from a technology and infrastructure perspective), partially offset by the overall growth of our business including expansion of business with existing clients. The net loss was partially offset by non-cash expenses of $417.8 million (primarily goodwill impairment of $357.6 million, stock-based compensation of $42.7 million and depreciation and amortization of $15.0 million). .
Previous wording
Cash used in investing activities was $4.6 million for the three months ended March 31, 2024. Cash used in investing activities consisted of $2.8 million in capitalized software development costs and $1.7 million investment in the less than majority owned joint venture.
Current wording
Cash used in investing activities was $9.8 million for the six months ended June 30, 2024. Cash used in investing activities consisted of $8.0 million in capitalized software development costs and $1.7 million investment in the less than majority owned joint venture.
Previous wording
Cash used in investing activities was $397.7 million for the three months ended March 31, 2023. Cash used in investing activities consisted of purchases of short-term investments of $390.0 million, $6.8 million in capitalized software development costs and $1.0 million investment in the less than majority owned joint venture.
Current wording
Cash used in investing activities was $308.9 million for the six months ended June 30, 2023. Cash used in investing activities consisted of $13.8 million in capitalized software development costs, $3.9 million investment in the less than majority owned joint venture and purchases of short-term investments of $390.0 million, partially offset by sales and maturities of investments of $98.9 million.
Previous wording
Cash provided by financing activities for the three months ended March 31, 2024, was $1.0 million. Cash provided by financing activities consisted of $1.0 million of proceeds from the employee stock purchase plan.
Current wording
Cash provided by financing activities for the six months ended June 30, 2024, was $1.0 million. Cash provided by financing activities consisted of $1.0 million of proceeds from the employee stock purchase plan.
Previous wording
Cash provided by financing activities for the three months ended March 31, 2023, was $1.6 million. Cash provided by financing activities consisted of $1.6 million of proceeds from the exercise of employee stock options and the employee stock purchase plan.
Current wording
Cash provided by financing activities for the six months ended June 30, 2023, was $1.3 million. Cash provided by financing activities consisted of $1.8 million of proceeds from the exercise of employee stock options and employee stock purchase plan, offset by $0.6 in the repurchase of stock to cover tax withholding obligations upon vesting of restricted stock units.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Depreciation expense declined by $0.3 million due to assets becoming fully depreciated for the six months ended June 30, 2024. Amortization expense increased by $1.5 million for the six months ended June 30, 2024. The increase in amortization was related to the amortization of the internally developed software intangible assets.