HealthStream Inc. Reports Q1 2024 Financial Results

TL;DR

<b>HealthStream Inc. reported a 5% increase in Q1 2024 revenue to $20.5 million, but net income decreased to $15.8 million.</b>

AI Summary

HEALTHSTREAM INC (HSTM) filed a Quarterly Report (10-Q) with the SEC on April 25, 2024. Revenue increased to $20.5 million in Q1 2024 from $19.5 million in Q1 2023. Net income was $15.8 million in Q1 2024, down from $16.6 million in Q1 2023. Earnings per share (EPS) were $0.20 in Q1 2024, compared to $0.21 in Q1 2023. The company declared a quarterly dividend of $0.028 per share on April 22, 2024. Total assets were $133.0 million as of March 31, 2024, compared to $127.0 million as of December 31, 2023.

Why It Matters

For investors and stakeholders tracking HEALTHSTREAM INC, this filing contains several important signals. Revenue growth indicates continued demand for HealthStream's subscription and professional services. The decrease in net income, despite revenue growth, warrants further investigation into cost drivers or margin pressures.

Risk Assessment

Risk Level: medium — HEALTHSTREAM INC shows moderate risk based on this filing. The mixed financial results, with revenue growth but declining net income, suggest potential operational inefficiencies or increased costs impacting profitability.

Analyst Insight

Monitor the company's expense management and margin trends in upcoming quarters to understand the drivers behind the net income decrease.

Revenue Breakdown

Key Numbers

• 20,459,000 — Revenue Q1 2024 (Consolidated Statements of Operations)
• 19,503,000 — Revenue Q1 2023 (Consolidated Statements of Operations)
• 15,750,000 — Net Income Q1 2024 (Consolidated Statements of Operations)
• 16,603,000 — Net Income Q1 2023 (Consolidated Statements of Operations)
• 0.20 — EPS Q1 2024 (Consolidated Statements of Operations)
• 0.028 — Dividend per share (Declared April 22, 2024)
• 132,960,000 — Total Assets March 31, 2024 (Consolidated Balance Sheets)
• 127,009,000 — Total Assets December 31, 2023 (Consolidated Balance Sheets)

Key Players & Entities

• HEALTHSTREAM INC (company) — FILER
• TN (location) — STATE OF INCORPORATION
• 500 11TH AVENUE NORTH (address) — BUSINESS ADDRESS STREET 1
• NASHVILLE (location) — BUSINESS ADDRESS CITY
• 6153013100 (phone) — BUSINESS PHONE
• 2024-03-31 (date) — CONFORMED PERIOD OF REPORT
• 2024-04-25 (date) — FILED AS OF DATE
• 2024-04-22 (date) — Subsequent Event Date

FAQ

Risk Factors

• Revenue Concentration [medium — financial]: The company's revenue may be significantly impacted if a substantial portion of its revenue comes from a small number of customers.

Key Financial Figures

• $0.00 — ch registered Common Stock (Par Value $0.00) HSTM Nasdaq Global Select Market
• $0.028 — ) Dividends declared on common stock ($0.028 per share) — — ( 849 ) — ( 849 ) Sto
• $0.025 — ) Dividends declared on common stock ($0.025 per share) — — ( 767 ) — ( 767 ) Sto

Filing Documents

• hstm20240331_10q.htm (10-Q) — 582KB
• ex_637738.htm (EX-31.1) — 9KB
• ex_637739.htm (EX-31.2) — 9KB
• ex_637740.htm (EX-32.1) — 5KB
• ex_637741.htm (EX-32.2) — 5KB
• ex_654044.htm (EX-99) — 34KB
• 0001437749-24-013221.txt (&nbsp;) — 3286KB
• hstm-20240331.xsd (EX-101.SCH) — 32KB
• hstm-20240331_cal.xml (EX-101.CAL) — 35KB
• hstm-20240331_def.xml (EX-101.DEF) — 216KB
• hstm-20240331_lab.xml (EX-101.LAB) — 215KB
• hstm-20240331_pre.xml (EX-101.PRE) — 236KB
• hstm20240331_10q_htm.xml (XML) — 305KB

Financial Statements

Financial Statements 1 Condensed Consolidated Balance Sheets (Unaudited) – March 31, 2024 and December 31, 2023 1 Condensed Consolidated Statements of Income (Unaudited) – Three Months ended March 31, 2024 and 2023 2 Condensed Consolidated Statements of Comprehensive Income (Unaudited) – Three Months ended March 31, 2024 and 2023 3 Condensed Consolidated Statement of Shareholders' Equity (Unaudited) – Three Months ended March 31, 2024 and 2023 4 Condensed Consolidated Statements of Cash Flows (Unaudited) – Three Months ended March 31, 2024 and 2023 5 Notes to Condensed Consolidated Financial Statements (Unaudited) 6 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 12 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 18 Item 4.

Controls and Procedures

Controls and Procedures 19 Part II. Other Information 19 Item 1A.

Risk Factors

Risk Factors 19 Item 6. Exhibits 20 SIGNATURE 21 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements HEALTHSTREAM, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (In thousands) March 31, December 31, 2024 2023 ASSETS Current assets: Cash and cash equivalents $ 52,407 $ 40,333 Marketable securities 31,265 30,800 Accounts receivable, net of allowance for doubtful accounts of $ 901 and $ 781 at March 31, 2024 and December 31, 2023, respectively 39,635 34,346 Accounts receivable - unbilled 4,419 4,100 Prepaid royalties, net of amortization 10,960 10,202 Prepaid software maintenance and subscriptions 6,609 7,397 Other prepaid expenses and other current assets 2,094 3,032 Total current assets 147,389 130,210 Property and equipment, net of accumulated depreciation of $ 20,459 and $ 19,503 at March 31, 2024 and December 31, 2023, respectively 12,537 13,005 Capitalized software development, net of accumulated amortization of $ 132,960 and $ 127,009 at March 31, 2024 and December 31, 2023, respectively 41,118 40,643 Operating lease right of use assets, net 19,483 20,114 Goodwill 191,072 191,379 Customer-related intangibles, net of accumulated amortization of $ 59,128 and $ 57,095 at March 31, 2024 and December 31, 2023, respectively 52,511 54,742 Other intangible assets, net of accumulated amortization of $ 15,750 and $ 16,603 at March 31, 2024 and December 31, 2023, respectively 11,939 13,289 Deferred commissions 30,671 31,700 Non-marketable equity investments 4,103 4,134 Other assets 782 726 Total assets $ 511,605 $ 499,942 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 5,313 $ 7,465 Accrued expenses 16,776 22,717 Accrued royalties 5,713 4,556 Deferred revenue 98,268 83,623 Total current liabilities 126,070 118,361 Deferred tax liabilities 16,868 16,132 Deferred revenue, noncurrent 2,076 2,169 Operating lease liability, noncurrent 19,484 20,247 Other long-term liabilities 2,253 2,281 Shareholders' equity:

View Full Filing

View this 10-Q filing on SEC EDGAR