Good afternoon and welcome to Amwell’s Third Quarter 2020 Conference Call. At this time all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. Please be advised that today’s conference is being recorded. Leading today’s call are Ido Schoenberg, Chairman and Chief Executive Officer; and Keith Anderson, Chief Financial Officer. Ido and Keith will offer their prepared remarks and then they will take your questions. The Amwell press release and webcast link all available on Investor Relations section of Amwell’s website. Please note that we will be discussing certain non-GAAP financial measures that we believe are important in evaluating Amwell’s performance. Details on the relationship between these non-GAAP measures to the most comparable GAAP measures and reconciliations thereof can be found in the press release that is posted on our website. Also, please note that certain statements made during this call will be forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks, uncertainties and other factors that could cause the results for Amwell to differ materially from those expressed or implied in this call. And now, I’ll turn the call over to Ido Schoenberg, Chairman and CEO of Amwell. Ido?

Good evening and thank you for joining our first earnings call as a public company. I want to use this opportunity to thank our new investor partners for your trust and confidence in Amwell. We are thrilled to see so many world-class groups participate in our IPO. I also want to thank our long-time investor partners for your many years of consistent support and faith in us. Since we last reported to our IPO, we continue to see good momentum as reflected in our third quarter results. Our third quarter revenue of $63 million increased 80% compared to last year’s third quarter. The number of active providers on our platform of 62,000 increased 930% compared to last year’s count at the end of the third quarter. We had 1.4 million visits during Q3 an increase of 450% as compared with Q3 of 2019. Recognizing that many of you are new to our story, I would like to spend some time talking about our company more generally before we will focus on our recent performance. When Roy and I started Amwell, almost a decade and a half ago, it was apparent to us that digital care delivery would transform healthcare. We continue to believe in the fundamental way that cares delivered is materially changing. This is a profound transformation. It will continue to evolve significantly over the next few years. Care is moving home. Digital technologies are assuring a new hybrid model of care, one that combines physical and digital care. With far better information about health status and gaps in care, providers will be able to craft more personalized continues and engaging care plans. New technologies will streamline consumer engagement in health care and simplified their interaction with healthcare services, insurers, providers, and other participants. Finally, effective last mile interventions…

Thanks, Ido, and thank you to everyone for joining us this afternoon. I want to reiterate Ido’s comments about how pleased we are with the outcome of the IPO, our third quarter results and the momentum we’re seeing across our business. Given that this is our first public earnings release, I’d like to spend the first couple of minutes to describe our business models, so that you can better understand the key trends and drivers of Amwell. In terms of revenue, about 90% of revenue is recurring in nature and is primarily split between subscriptions and visits and supported by services and care points. Our primary customers are health plans and health systems. Additionally, we have a third smaller group of customers whom we call innovators, who use our platform in individualized ways to support their respective businesses. These include the likes of Philips, who offers programs such as sleep therapy and separately large metropolitan 911 services, who during the peak of the crisis use our platform to assist those 911 calls that could be addressed with virtual care. Our health plan and health system contracts are typically three years in length and are structured for subscription expansion. For example, even sales of our care points hardware devices to our health system customers ultimately add a subscription revenue. As health systems buy more software modules to direct more care through the care point by the health systems own doctors overall subscription revenue increases. This is because our current health system contracts contained volume components and software modules are required to deliver specific care through that specific care point. This type of flywheel also exists on the health plan side. As health plans expand their virtual care services to a higher percentage of their total membership and as they add services…

Thank you, Keith. Before turning the call over to your questions, I would like to take this time to thank our investors, new and old, for your trust and faith in us and in our mission. I would also like to use this opportunity to thank the amazing One Amwell team for putting our customers and community first, especially during the past few months and delivering awesome. You should be very proud as Roy and I are in the incredible work you’re all doing. Digital care delivery is already transforming healthcare. We believe this is only the beginning. There is still much work to do and a huge opportunity to dramatically improve clinical and financial outcomes. I’m confident that Amwell is well-positioned to contribute significantly to our community and leverage the strong tailwinds to create much value also to our shareholders. I look forward to meeting you all when it is possible again and to keeping you up to date with our progress. We will now open the call to questions. Operator?

[Operator Instructions] Your first question is from Ricky Goldwasser of Morgan Stanley.

Yes. Hi, good evening, and congratulations for the first quarter out of the gate. And a couple of questions here. First of all, when we think about the implied guidance for the fourth quarter, there’s some acceleration in sequential revenue decline. So if we exclude a pull forward of demand in the special programs, what would sequential decline be in the fourth quarter versus the third? And what are you assuming in terms of COVID impact to fourth quarter utilization?

Thanks, Ricky. It’s Keith. I mean simply put, we haven’t factored COVID into Q4 visits, and with visits being at the peak of the crisis, almost 50% of our revenue, there’s a potential that that revenue could increase. There was some pull forward of Carepoint’s revenue, as I said during my part of the call. But overall, we haven’t factored what we’re seeing right now in some hotspot areas in terms of visit increases. I mean overall, we feel really good about the business. All the other areas are performing as planned as we laid out and discussed during the IPO. So it’s just a matter of where we see or where we originally forecasted the visits when we went public two months ago.

Thanks. And then you talked about the accelerating new solutions to meet clients’ demand. Can you talk a little bit about what type of demand and what type of modules you’re seeing from new prospective clients? And what models are you selling to existing clients that are looking to add in what they already have?

I’m sorry, Ricky, can you hear me now?

We can hear you now.

Great. So good to hear your voice and thank you for your questions and your support. In essence, we had a really interesting year. I’m sure all of us did. During COVID, our clients were laser-focused on literally surviving, physically, operationally and financially. Our average deployment time of four months was reduced to sometimes to two weeks. And we just pushed systems so we can really fight and survive the crisis. As the crisis somehow subsides, although we’re not really sure for how long and for how much, our clients actually realized the huge value of telehealth in a way it was surprisingly vibrant. Just to give you some numbers, you may have seen our recent survey, which showed that if last year, 8% of consumers have been using telehealth, this year it’s 22%. And if providers have been using telehealth, a 22 of them have been – 22% have been using telehealth last year. This year, 80% of providers have been using telehealth. And over 90% of them said that they are going to continue and use it after COVID. When you look at the mix between AMG and non-AMG, that also changed very dramatically, where 73% of our visits are currently non-AMG, and that means many, many things. Obviously, many of these people are specialists. They’re usually trusted providers with full access to the record that can see patients in person and really cover the full continuum of care. So I would suggest that what we’ve seen is nothing short of historical change in the readiness to accept digital connectivity as the legitimate main pathway of care. That’s a big difference between the use of telehealth as the call center for acute care or urgent care but to something that is used really all over the place for…

So just one quick follow-up on that. When we think about the new products that you introduced, Amwell Now and Touchpoint tablet, the Carepoint tablet, I think about it as market expansion also into like the primary care market. So are we thinking about this correctly? And then can you maybe kind of help us think of how you’re quantifying that incremental market opportunity in addition to that market opportunity you identified on the IPO?

Sure. So in essence, we are trying to really match and listen very carefully to our clients and try to creating data, very helpful for them in this very new normal and new time. The Amwell Now product that you just mentioned is answering a need that is very, very simple. Many of the delivery networks are struggling also financially. They don’t have the capital or operational resources to integrate a very large system very quickly. And they need something that is still HIPAA-compliant, very secure, ready to go and fully future-ready to integrate into more sophisticated, elaborated requirements that they may have. While the initial part of the crisis, they’ve been using commercial tools that we all know and use as consumers, these tools proved to be very problematic in a number of ways that I just mentioned. And therefore, there was a need for this very, very simple product that doesn’t cost very much. It can deploy very, very quickly to simply connect providers to patients. Others, that does not replace the need for robust platforms. They do many, many other things that are not part of the scope of the Amwell Now feature that it truly a starting point that allows you to wire and bring many more providers into the mix in a fraction of the time. The tablet software is another example. In many cases, you have lots of tablets in your organization, and you may not have the time or the resources to buy or acquire dedicated devices, but you still need fleet management and you still need a lot of capabilities that we can offer through this new software. So you can realize connectivity very quickly and very effectively for your organization. So when we look at it, we don’t see that as a new market but rather a diversification of our offering to allow our different customers to use the right tool at the right time, knowing that when they need to use different capabilities and different tools, they have that option through a single infrastructure. Of course, the fact that we are ramping up so many providers, pretty staggering if you think about it, we went from 4,000 active providers to 58,000 within a year, and that doesn’t seem to stop anytime soon. So that capabilities, all those services are not only relevant to our health system’s client, it’s very relevant to the greater ecosystem, namely employers, payers, even government that could benefit from it. So when we think about new tools that fit the needs of providers, we don’t only say narrowly on providers but rather, we think about the entire community who is leveraging the single platform.

Thank you.

The next question is from Robert Jones of Goldman Sachs.

Great. Thanks for the questions, and congrats on the first earnings call here. I guess maybe just to go back, Keith, to some of the comments you made around behavioral. Obviously, that’s a rapidly growing and important area in the tele space. Could you talk a little bit just the clinical capabilities and professionals you feel like you have there today? Do you feel like you have the infrastructure to meet not only the demand today but as we look out over the next several quarters, just given how coveted this physician group is?

So I mean, there’s – if you recall, we bought a company called Aligned Telehealth back in 2019, and that was focused on the highest acuity of the behavioral sector, telepsychiatry within the four walls of the hospital, as well as once people are discharged. We also have psychiatrists and therapists that sit within our specialty care visits, and they make up by far the majority of the visits there. Q2 was a peak across the board for all the visits. Q3, I would say after the first month, really started to taper off as you saw of the overall visits. But surprisingly, and I guess it’s just a state of the mental health of the general population, we saw and are seeing it continue spikes in both the specialty care, mainly the behavioral, as well as the telepsychiatry visits coming back. Now, specifically on the telepsychiatry, a lot of the emergency rooms were shut to anything but very high emergency COVID-related patients or acute, like car accidents or heart attacks or whatnot. They’ve since opened for emergency psychiatric situations. We’re starting to see those come back as well. But coming off the peak of Q2, we are seeing just an overall decline in the visits from the peak.

No, that makes sense. And I think, Keith, if I want to go back just for a point of clarification. On what the non-AMG visits did sequentially, I was just curious if you could maybe weigh back in on that. I thought on our math, we would have thought they would have been up sequentially. I believe you said they were down sequentially. But then I guess, more importantly, beyond the numbers, any insight you can share on the type of visits you’re seeing relative to what you’ve seen year-to-date? I’m thinking just in the context of new use cases versus more visits versus potentially more visits per provider. Just any context there would be helpful.

I mean, Ido touched on this thematically in his opening remarks. We are not a call center. So, when you look at what’s happening within the platform visits, the non-AMG visits, we’re seeing a nice steady increase in the scheduled visits, which means that specific doctors are increasing the level of care that they’re delivering to their specific patients virtually. And that’s the name of the game for our company. That’s the vision that Ido and Roy had when they took the company public. And we’re seeing – yes, it took a pandemic to convince some of the physicians and some of the patients but we’re seeing those trends continue, and that’s really what we’re all about. So, while you see, obviously during the peak of the pandemic, a lot more interactions with people worried about having COVID, not able to get care in other places, we are seeing the overall volumes decline but we are seeing, if you unpack those numbers, increases in the areas that are confirming and showing continued embracement of receiving care virtually.

And Robert, I would like to maybe complement that COVID is an anomaly. When people are locked in their home, they have to talk to a doctor whether it’s ideal or not. COVID, in our opinion, was really an accelerator of showing many providers that they can effectively communicate with their patients. And indeed, the lion’s share of our visits today are between existing providers and their patients, and these are non-AMG visits that are compensated through our subscription revenue from those healthcare system. When people think about telehealth, they typically think about three use cases. It’s really urgent care, behavior health and some kind of provider-to-provider connectivity capability. Of course, there are a few more but that’s the lion’s share of the market. In our case, we literally are talking about hundreds of use cases. There are really too many to mention. There are so many ways that our platform is supporting different utilities. And at our client forum and many other forums that we convey, you can read and see much more of those use cases. Essentially, we’re seeing this mainstream healthcare is now using digital connectivity, and mainstream healthcare covers truly everything. We are not selling the clinical service. I mean, essentially, we are selling connectivity into the clinical service and enveloping it with everything that is required in order to support it clinically, financially and operationally. And that’s a fundamental change between us and many of the traditional telehealth companies.

No, I appreciate that. Thanks, Ido and Keith.

The next question is from Sean Wieland of Piper Sandler.

Hi, thanks. And let me add congrats on your IPO and your first call here. So, you started at the top saying number of providers is the KPI that we want to watch. Can you just go into a little more detail on your ability to drive that? How do you drive the number of providers and the level of visibility you have on that into Q4 and 2021?

Hi, Sean. Again, good to hear your voice and thank you for asking a very important question. It’s not easy. It’s not easy to onboard providers and retain providers. There are many obvious things and many, many less obvious things that one needs to do in order to support providers. The first thing, and I’m not sure about exactly if it’s the right order of things but they’re all very, very important things, is integration into workflow. You really need to make sure that digital connectivity is as simple and as integrated as possible. The work that we do with the like of Cerner, Epic and many others, but especially Cerner because they’ve been, I think, doing enormous amounts of investment together with us is demonstrative of the type of effort. The second element is to offer enough transparency and integration of the digital visits so it’s covered, so it’s reimbursed. There are many things we don’t control like CMS reimbursement in some cases or even commercial payers’ reimbursement for different CPT codes. What we do control is the ease of use of collecting co-pays, submitting claims and things of that nature and that’s very, very helpful. So, far, I think these things are pretty obvious to people. There are many other things that are less obvious because if you stop here, that would be kind of generic. We believe that as providers shift into risk and, in general, also are very motivated to really improve the care they give to their patients and doing it in the most efficient way, there are so many other things we can do to help. If they can get compensated to keeping their patients in their home, whether it’s post surgery or in the community with my own patient, our ability to integrate…

So Sean, when you get the Q or when you read through the Q, you’re going to be able to see, it breaks apart the overall increase in active providers. I mean, the lion’s share is coming from the – our customers’ own providers, the plans and the hospital systems. And then if you follow, we don’t go into this detail in the Q, but it’s more leaning toward the specialist, the higher acuity doctors wanting to have this functionality to be able to further deliver care. So if you look at the increase in the AMG doctors, we slightly increased it. It’s mainly, I think, as Bob asked earlier, we’re adding more and more specialists. We’re seeing huge spikes in that part of our business rather than a simple urgent care doctors. It’s the non-AMG that we’re really monitoring and seeing the expansions in the areas that get us really excited. The Amwell Now product, as Ido said, is really going to bring into the fold those doctors who are on the peripheral into delivering care virtually with a much simpler product that is still on the platform, but it’s a Zoom-like product.

That’s all very helpful. A lot to unpack. I will leave it there. Thanks for your time.

Thank you, Sean.

Your next question is from Kevin Caliendo of UBS.

Hi. Thanks for taking my call, guys. Hopefully, this one will be a little bit simpler. We were hoping to get a breakdown of subscription revenues between the health system and the health plan. Sort of, I guess, thinking about going forward, how that mix might change for you guys in terms of subscriptions as we look toward 2021. And you said earlier, providers, up to 80% of them are now using telehealth. Is that a fully penetrated market? Is there still opportunities where people just aren’t up to speed on their telehealth offerings?

So while we’re not prepared maybe to break down the numbers on your first part of the call, I’ll be thrilled to maybe start answering the second part. When you – the role of telehealth and digital connectivity is enormous. It’s not a binary thing. It’s not a transaction. It’s the beginning of connectivity with patients that has really a giant canvas of opportunity. The fact that 80% of providers in the United States this year were exposed for the first time to telehealth is very exciting. I have to assume though that that transaction was relatively simple per design. They were locked in their home or patients were locked in their home, and they just connected to a very simple modality of video or even phone maybe in some instances. But it did open the floodgate in having many, many providers realize that that’s an opportunity. The connectivity, which is not only counted in visit, and that’s a really important thing to realize. We are not a visit company. We’re also not trying to sell visits or sell clinical services. But we are, rather, creating connectivity among the players in order to interact in a new way, which we think has enormous promise. Therefore, we see that first step is only that. We believe that the value that could be generated by connectivity is not only great clinically. We’re also saying that it will generate a lot of value to different participants, and as a result, also will allow us to monetize the value that we generate with the different participants. To help maybe quantify it somehow, when you onboard a provider, you are creating a virtual network. The ability of interacting with this provider is not only important to the provider or the patient, it’s also very important to the employer. It’s also very important to payer, in some cases, to the government, to the risk and many others that participate in this process. So, we will be – however, if you disconnect this provider, a lot of this goodness is not possible. Long story short, this is the starting point and certainly not an endpoint to what’s possible with onboarding new providers to Amwell.

And Kevin, I can’t let the first part of your question totally go. We are – things are playing out as expected from the IPO, except a couple of the aspects of visits that we discussed earlier on. The newer products that we are rolling out really are bringing – and we discussed this also during the IPO, the health plan subscription parts of the revenue versus the even mix between visits and subscriptions on the plans, is really, as we discussed the flywheel. It’s really starting to increase and bring more of the subscription part of the business over to the plan side.

Okay. That’s really helpful, guys. Thanks so much.

Thanks, Kevin.

Thank you, Kevin.

Your next question is from Jailendra Singh of Credit Suisse.

Yes. Thanks and congrats on the first quarter as a public company. Apologies if I missed it but did you give outlook for AMG business or total visits for the fourth quarter?

No, we didn’t. I mean, as you know, we’re going to provide that on annual guidance. But given what we’re seeing across the country, and unfortunately, some extreme hotspots in certain areas of the US, it’s the most volatile aspect of our business. And that’s why we did not guide for that for the rest of the year.

Okay, that’s fair. But then you also made a statement that the current consensus seems to be reflecting your view about a less flu visits or some headwinds on visits next year. Is it fair to say that your views about the visits in 2021 has not necessarily changed over the past two to three months?

Jailendra, we’re going to give guidance in February for next year. I mean, we’re still monitoring it. We want to see how the flu season plays out. We want to see – we are seeing some big spikes in certain areas of the country. It’s just premature to say what we’re going to see next year. I mean, we weren’t expecting – we’re hoping these spikes didn’t happen for the greater population but we are seeing them. So, I’m just going to reserve that until we give full-year guidance.

Fair point, fair point. And then on the gross margin of 32.7% in the quarter, you had impact from low-margin AMG visits during COVID. How should we think about the gross margin sequential trend in fourth quarter? And when we think about your long-term gross margin target of 50%, can you talk about the drivers to get there? What could be the potential sort of upside to your target there?

Yeah. So, as we discussed on the IPO, our specialty visits, I mean, there’s massive economies of scale. I mean, for the specialists, they are more expensive. And to be able to make sure, I mean, we have to hit our SLAs and return the calls under five minutes. So, for all the states that we offer specialist care, you have to have a certain number of specialists on there to make sure that you meet those SLAs. So there’s massive economies of scale. They’re more expensive providers. Once we further expand that business, it made us excited seeing the ability to support those specialist visits as behavioral visits in the quarter, the spiking that we’re seeing. That will accelerate the margins in that area. The other aspect of gross margins for this quarter is we said that there was an acceleration for Carepoint, given the COVID recovery funds. Those are lower-margin business, as well as there were two programs, two very targeted marketing programs by two large hospital health plans, that is lower-margin business as well. In terms of Q4, we are expecting the gross margins in that quarter – or in this quarter that we thought at the time of the IPO. There are some aspects when there are hosting expenses that come in Q4, as well as some other aspects of our business that happened in this last quarter of the year. So, you will always have, all things being equal, a lower-margin quarter versus the other remaining three quarters.

Maybe more generally on this, if you think about our business, there is, what I call, the business of the past somehow and the business of the future. When you look into the past, traditional telehealth is we’re going to hire a bunch of doctors, and we’re going to try to sell them for a margin to sell visits. When you look into the future, doctors and other participants are going to use our platform in order to interact with each other in a new way. And the proportion of the call center-like businesses diminishes versus the proportion of technology enablement. Obviously, like any type of technology, the margins are very, very different. And you can see this shift but it’s not going to happen overnight. It’s still very important to offer those services today. But over time, as more and more providers than the community assume their role in connecting with their own patients and other patients that trust their brand, you’re going to see improvement in margin. So, that’s one element. The second element is care itself is going to rely less on people and more on automation. So, if patient care today really includes almost holistically an interaction with a person that is very, very expensive and not necessarily accessible, a lot of the interaction will leverage all the goodness of AI and analytics and many other tools that are going to make the human time much less than the automated time much more. But that does not discount the value of the automation. There could be enormous amount of intellectual property from clinical innovator that is still very valuable but very, very high margin as you deploy it. And as a result, you can democratize healthcare. You can offer great care to many more people. But as you do that, you do that very efficiently. So, in the next few years, you should definitely expect our margins to evolve over time. Nothing in healthcare is overnight but that’s the trajectory that we are going as a technology company. And that’s very maybe confusing to some that are used to look at telehealth as a service company. We are a technology company and we’re going to see more and more of that in the next few years.

Jailendra, I’m looking back at my notes from the IPO. This is an area that I know you were focused on. If you think about the flywheel on the health plan side and with the new products that are coming out and the evolution of virtual primary care, you’re eventually going to see those visits revenues, lower margin revenues transferring to subscription revenues like we’re seeing on the health system side. So it’s like we talked about at the IPO. More of the new products coming out on the plan side, transferring that visit revenue, lower margin visit revenue, fee-for-service into subscription revenue. And then on the health system side, just the continuation of what they’re doing there and the increase and what gets our company so excited, monitoring the non-AMG providers or customers, providers.

Perfect. Thanks.

And your next question is from Charles Rhyee of Cowen.

Thanks for taking the questions; and congratulations as well on the – on your first quarter out here. I wanted to follow up on a couple of points that has come up here. One, you guys mentioned that a lot of the affiliated visits reported here were actually scheduled. And Keith, I don’t know if you guys gave the percentage, but is there a percent that you can kind of tell us of how many of those visits were actually scheduled versus sort of on demand? And then secondly, if we think about that going forward, and obviously, we have a lot of physicians on the platform today, but if we think about sort of the higher-performing physicians, preplan specialists, is there a way for you guys to know what percent of their total sort of daily volume is virtual versus physical? Is there any way to kind of get a sense of how much of the practice is shifting to virtual for those who are taking the most advantage of it?

Charles, again, good to hear your voice. Good to have you with us. We are new to the public market and really try to focus on certain KPIs that are clearly helpful for everybody to really understand our progress year over year. And we’re making a conscious effort not to break down too many things that may be providing some pieces of information that over time are not showing the full picture. So, with your permission, we’ll confine ourselves to give you a more directional answers. I would say that what’s very, very clear is that once people emerge through the main cracks of the COVID sometime in September into now and the last few months, they are now having many discussions with us about the new normal, about how to implement the infrastructure for connectivity that is per design hybrid. The popularity of virtual primary care that we worked on for the past few years and other elements that as we created is really conducive or indicative to this trend. How fast will it go? I’m not entirely sure. I think it will be faster than we hoped before. That’s for sure because of the readiness of all the players, including the payers to cover and participate in those hybrid modalities. So, scheduled visits require many things that we are developing. It requires, for example, very good consumer engagement and ways to interact with those available schedules, deep integration into EMR and many other things. I would say directionally that you’re going to see a continued trend of the non-AMG providers using our platform more often, with greater and greater proportion of people that are doing it on a scheduled basis as more and more specialty care is becoming available on our platform. The likelihood of finding my oncologist, ophthalmologist on demand is literally nonexistent. Of course, you need to do scheduling. But the story is not only in those transactions. The story is how to virtualize the full care team in how to automate as much of their goals as possible, so the time spent with them is as effective as possible.

Charles, I mean, it’s something that we monitor internally and really it conveys to us the success of our products in terms of the pandemic, delivering care virtually. Was it forced upon people? Yes. Is it continuing? Is it now a concrete part of the healthcare delivery medium? Absolutely. And that’s one of the things. Scheduled visits means patients are embracing it. Physicians are telling their patients, we can do this virtually. It’s just an internal benchmark or litmus test as we come out of the pandemic. So, it’s not insignificant but it’s just something we don’t want to report publicly.

Yes. No, I appreciate that and I understand that. And just a follow-up, going back to the fourth-quarter guide here. Is it right to think that the sequential decline is really tied to the visit revenue because I’d imagine subscription revenue, generally speaking, shouldn’t move around like that. Is that fair?

Yes, of course.

Okay. Because you mentioned that there was some spend from a managed care client for some programs. If that sits separately or that would be in subscription revenue but that does not necessarily repeat? Just...

No, no. They were marketing programs. So, you’ll see that in the Carepoints and services. There are some of the older health system contracts that have immediate recognition of their increased volume. So, if those fees are like a toll on the platform, we take a toll. The new contracts are like the cellphone plan that we discussed during the IPO. So, there was some component of that in Q3. But we don’t project that. We don’t forecast those toll expenses because they’re the old contracts. But I guess directionally, it’s showing what’s happening for our health system customers. There was a lot more unexpected volume that they were delivering care virtually and that’s some of the increase in subscription.

Okay. If I could just ask one more. You mentioned, right, the ability to schedule visits requires sort of deep integration into the health systems, EMR, et cetera. Earlier in the pandemic, clearly, you noted that physicians, in an intent to connect with their patients, were just using anything available. Are you hearing from them, from your health system clients that as they look to drive great integration for telehealth into their daily workflow, getting their physicians off of those other platforms back onto Amwell or whatever they’re using?

Yes. Absolutely. Obviously, I cannot speak for all our clients, there are many of them. But I would say that the initial fluctuation that you saw with very, very simple video conferencing tools and so on made sense when there was a war, when there was no other choice but very quickly, showed some very serious deficiencies in a number of critical areas. I mentioned the security and regulations and – but many other things as well. Some of our clients actually prohibit the use of those tools anymore and are moving all their doctors to different elements of our platform. The Amwell Now product is extremely helpful because it gives you the feel of those very, very simple connectivity tools, but getting you all the benefits of ability to interact with a platform that is infinitely a healthcare platform which is much more reliable. I believe that – I still believe that the simple connectivity tools who are helpful are not going to be enough for the new normal for a long list of reasons. There are many, many things that are missing. And we’d like to see many of our clients feel that way, too. I would, for example, share that about 40 of our clients already adopted the beta version of Amwell Now, which was pretty surprising. We didn’t expect that much of a warm welcome also because it’s really a much better replacement to non-healthcare tools that are used by many providers.

Great. Thank you.

And we have time for one last question. We have a question from Ravi Misra of Berenberg Capital Markets.

Thanks for taking the question. I look forward to being part of many more of these in the future. So, just on the AMG paid visit kind of mix shift, you’re talking about higher utilization in specialty care. Trying to figure out just how sticky should we assume that that ASP is in the following quarter. And let’s – I’m trying to understand also, you’re saying you’re not kind of factoring in much of a bolus from the kind of COVID mix shift here. But say there were to be one. How should we think about what lines of your revenue model would be impacted here? I mean, would this be kind of a mix – a negative mix driver on your revenue per visit for AMG? Or should we kind of assume that non-AMG would take care of most of that and lead to more subscription revenue? And then maybe I could put my second question right up front. Just on the Google partnership, just any more details beyond kind of you’re talking about a little bit more about enhanced offerings or accelerated footprint in the U.S. and OUS. Any other kind of information you could provide there would be great.

Sure. So, you’re absolutely right to assume that, look, our focus is driven by all the other indicators that are performing just as well or even better than during the time of our IPO. As a new company in the public sector, we really didn’t want to include any forecast that relates to COVID surge only because there is really no way to know how much this is going to happen. And our opinion is as good as others. You are absolutely right to assume that if you’re going to see COVID surge, which is possible or even probable according to some, you’re going to see a surge in visits if only to judge based on what we experienced only a few months from now. Very simply put, when people are locked in their home or when people are very anxious or obviously concerned or could be even sick, the access to telehealth is often used and we’ve seen it many times. And then they’re likely to use every tool in their arsenal but the most popular tool would be going to the service, the benefit they receive from their employers and their payers and hitting those services, which means that they’re going to hit on our AMG revenues. And you’re going to see a very big spike in those revenues around respiratory urgent care, things of this nature, that are related to COVID-like situation. That’s the immediate spike that you’re going to see. There are secondary longer-term impacts of such potential surge. As a result, more people will be forced to encounter telehealth, some of them for the first time. Even more doctors are going to do more telehealth, whether they like it or not, ready or not, and they are going to discover the benefits of that. And…

Ladies and gentlemen, this concludes today’s conference call. Thank you for participating. You may now disconnect.