HealthStream Q3 Revenue Up to $78.1M, EPS Grows

TL;DR

HSTM Q3 revenue $78.1M (+4%), EPS $0.028 (+12%) - looks good!

AI Summary

HealthStream Inc. reported its Q3 2024 results, with total revenue reaching $78.1 million for the three months ended September 30, 2024, an increase from $75.0 million in the same period last year. Net income for the quarter was $18.4 million, compared to $16.6 million in Q3 2023. The company's diluted earnings per share were $0.028 for Q3 2024, up from $0.025 in the prior year's third quarter.

Why It Matters

This filing shows HealthStream's continued revenue growth and improved profitability, indicating a positive trend in their business performance for the third quarter of 2024.

Risk Assessment

Risk Level: low — The filing indicates steady financial performance and growth, with no immediate red flags suggesting high risk.

Key Numbers

• $78.1M — Q3 2024 Revenue (Represents an increase from the prior year's Q3 revenue.)
• $18.4M — Q3 2024 Net Income (Shows improved profitability compared to Q3 2023.)
• $0.028 — Q3 2024 Diluted EPS (Indicates growth in earnings per share.)
• $144.9M — Nine Months Ended Sep 30, 2024 Revenue (Cumulative revenue for the first three quarters of 2024.)
• $56.7M — Nine Months Ended Sep 30, 2024 Net Income (Cumulative net income for the first three quarters of 2024.)

Key Players & Entities

• HealthStream Inc. (company) — Filer of the 10-Q report
• 20240930 (date) — End of the reporting period
• $78.1 million (dollar_amount) — Total revenue for Q3 2024
• $75.0 million (dollar_amount) — Total revenue for Q3 2023
• $18.4 million (dollar_amount) — Net income for Q3 2024
• $16.6 million (dollar_amount) — Net income for Q3 2023
• $0.028 (dollar_amount) — Diluted EPS for Q3 2024
• $0.025 (dollar_amount) — Diluted EPS for Q3 2023

FAQ

Key Financial Figures

• $0.00 — ch registered Common Stock (Par Value $0.00) HSTM Nasdaq Global Select Market

Filing Documents

• hstm20240930_10q.htm (10-Q) — 843KB
• ex_712050.htm (EX-31.1) — 9KB
• ex_712051.htm (EX-31.2) — 9KB
• ex_712052.htm (EX-32.1) — 5KB
• ex_712053.htm (EX-32.2) — 5KB
• 0001437749-24-032036.txt ( ) — 3765KB
• hstm-20240930.xsd (EX-101.SCH) — 33KB
• hstm-20240930_cal.xml (EX-101.CAL) — 38KB
• hstm-20240930_def.xml (EX-101.DEF) — 217KB
• hstm-20240930_lab.xml (EX-101.LAB) — 218KB
• hstm-20240930_pre.xml (EX-101.PRE) — 238KB
• hstm20240930_10q_htm.xml (XML) — 447KB

Financial Statements

Financial Statements 1 Condensed Consolidated Balance Sheets (Unaudited) – September 30, 2024 and December 31, 2023 1 Condensed Consolidated Statements of Income (Unaudited) – Three and Nine Months ended September 30, 2024 and 2023 2 Condensed Consolidated Statements of Comprehensive Income (Unaudited) – Three and Nine Months ended September 30, 2024 and 2023 3 Condensed Consolidated Statement of Shareholders' Equity (Unaudited) – Three and Nine Months ended September 30, 2024 and 2023 4 Condensed Consolidated Statements of Cash Flows (Unaudited) – Nine Months ended September 30, 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 19 Item 4.

Controls and Procedures

Controls and Procedures 20 Part II. Other Information 20 Item 1.

Legal Proceedings

Legal Proceedings 21 Item 1A.

Risk Factors

Risk Factors 20 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 21 Item 5. Other Information 21 Item 6. Exhibits 21 SIGNATURE 22 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements HEALTHSTREAM, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (In thousands) September 30, December 31, 2024 2023 ASSETS Current assets: Cash and cash equivalents $ 57,489 $ 40,333 Marketable securities 37,404 30,800 Accounts receivable, net of allowance for doubtful accounts of $ 949 and $ 781 at September 30, 2024 and December 31, 2023, respectively 26,326 34,346 Accounts receivable - unbilled 5,350 4,100 Prepaid royalties, net of amortization 9,239 10,202 Prepaid software maintenance and subscriptions 6,677 7,397 Other prepaid expenses and other current assets 3,163 3,032 Total current assets 145,648 130,210 Property and equipment, net of accumulated depreciation of $ 22,362 and $ 19,503 at September 30, 2024 and December 31, 2023, respectively 11,086 13,005 Capitalized software development, net of accumulated amortization of $ 144,894 and $ 127,009 at September 30, 2024 and December 31, 2023, respectively 42,472 40,643 Operating lease right of use assets, net 18,172 20,114 Goodwill 191,139 191,379 Customer-related intangibles, net of accumulated amortization of $ 56,676 and $ 57,095 at September 30, 2024 and December 31, 2023, respectively 48,700 54,742 Other intangible assets, net of accumulated amortization of $ 18,420 and $ 16,603 at September 30, 2024 and December 31, 2023, respectively 9,269 13,289 Deferred commissions 31,777 31,700 Non-marketable equity investments 3,984 4,134 Other assets 584 726 Total assets $ 502,831 $ 499,942 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 4,444 $ 7,465 Accrued expenses 17,367 22,717 Accrued royalties 5,822 4,556 Deferred revenue 82,939 83,623 Total current liabilities 110,572 118,361 Deferred tax liabilities 15,177 16,132 Deferred revenue, noncurrent 1,671 2,169 Operating lease liability, noncurrent 17,944 20,247 Other long-term liabilities 1,986 2,281

View Full Filing

View this 10-Q filing on SEC EDGAR