HealthStream Announces Fourth Quarter & Full-Year 2024 Results
HealthStream (HSTM) reported strong financial results for Q4 and full-year 2024. Fourth quarter revenues increased 5.2% to $74.2 million, with operating income up 10.2% to $4.7 million and EPS of $0.16 per share.
Full-year 2024 performance showed significant growth with revenues up 4.5% to $291.6 million, operating income increasing 32.9% to $21.3 million, and net income rising 31.5% to $20.0 million. The company's EPS reached $0.66 per share, up from $0.50 in 2023.
Notable developments include the acquisition of two clinical rotation management businesses (TCPS and The Clinical Hub), a 10.7% increase in quarterly dividend to $0.031 per share, and top rankings for their Learning Center and CredentialStream applications in G2's 2025 Best Software Awards. The company ended 2024 with $97.2 million in cash and marketable securities.
HealthStream (HSTM) ha riportato risultati finanziari solidi per il quarto trimestre e per l'intero anno 2024. I ricavi del quarto trimestre sono aumentati del 5,2% a 74,2 milioni di dollari, con un reddito operativo in crescita del 10,2% a 4,7 milioni di dollari e un utile per azione (EPS) di 0,16 dollari per azione.
Le performance dell'intero anno 2024 hanno mostrato una crescita significativa con ricavi aumentati del 4,5% a 291,6 milioni di dollari, un reddito operativo in aumento del 32,9% a 21,3 milioni di dollari e un reddito netto cresciuto del 31,5% a 20,0 milioni di dollari. L'EPS dell'azienda ha raggiunto 0,66 dollari per azione, in aumento rispetto a 0,50 dollari nel 2023.
Sviluppi notevoli includono l'acquisizione di due aziende di gestione delle rotazioni cliniche (TCPS e The Clinical Hub), un aumento del 10,7% del dividendo trimestrale a 0,031 dollari per azione, e le prime posizioni per le loro applicazioni Learning Center e CredentialStream nei G2's 2025 Best Software Awards. L'azienda ha chiuso il 2024 con 97,2 milioni di dollari in contante e titoli negoziabili.
HealthStream (HSTM) reportó resultados financieros sólidos para el cuarto trimestre y el año completo 2024. Los ingresos del cuarto trimestre aumentaron un 5.2% a 74.2 millones de dólares, con un ingreso operativo que subió un 10.2% a 4.7 millones de dólares y un EPS de 0.16 dólares por acción.
El desempeño del año completo 2024 mostró un crecimiento significativo con ingresos aumentados un 4.5% a 291.6 millones de dólares, ingresos operativos que crecieron un 32.9% a 21.3 millones de dólares, y un ingreso neto que subió un 31.5% a 20.0 millones de dólares. El EPS de la compañía alcanzó 0.66 dólares por acción, en comparación con 0.50 dólares en 2023.
Desarrollos notables incluyen la adquisición de dos negocios de gestión de rotaciones clínicas (TCPS y The Clinical Hub), un aumento del 10.7% en el dividendo trimestral a 0.031 dólares por acción, y posiciones destacadas para sus aplicaciones Learning Center y CredentialStream en los G2's 2025 Best Software Awards. La compañía cerró 2024 con 97.2 millones de dólares en efectivo y valores negociables.
HealthStream (HSTM)는 2024년 4분기 및 연간 강력한 재무 결과를 보고했습니다. 4분기 매출은 5.2% 증가한 7420만 달러에 달하며, 운영 수익은 10.2% 증가한 470만 달러, 주당 순이익(EPS)은 0.16 달러를 기록했습니다.
2024년 전체 성과는 매출이 4.5% 증가한 2억 9160만 달러, 운영 수익이 32.9% 증가한 2130만 달러, 순이익이 31.5% 증가한 2000만 달러로 상당한 성장을 보여주었습니다. 회사의 EPS는 0.66 달러로, 2023년의 0.50 달러에서 증가했습니다.
주목할 만한 발전으로는 두 개의 임상 회전 관리 비즈니스(TCPS 및 The Clinical Hub)의 인수, 분기 배당금이 10.7% 증가하여 주당 0.031 달러에 도달한 것, 그리고 G2의 2025년 최고의 소프트웨어 상에서 Learning Center와 CredentialStream 애플리케이션이 높은 순위를 차지한 것입니다. 회사는 2024년을 9720만 달러의 현금 및 유가 증권으로 마감했습니다.
HealthStream (HSTM) a annoncé des résultats financiers solides pour le quatrième trimestre et l'année entière 2024. Les revenus du quatrième trimestre ont augmenté de 5,2 % pour atteindre 74,2 millions de dollars, avec un bénéfice d'exploitation en hausse de 10,2 % à 4,7 millions de dollars et un BPA de 0,16 dollar par action.
Les performances de l'année complète 2024 ont montré une croissance significative avec des revenus en hausse de 4,5 % à 291,6 millions de dollars, un bénéfice d'exploitation en augmentation de 32,9 % à 21,3 millions de dollars et un bénéfice net en hausse de 31,5 % à 20,0 millions de dollars. Le BPA de l'entreprise a atteint 0,66 dollar par action, contre 0,50 dollar en 2023.
Parmi les développements notables, on note l'acquisition de deux entreprises de gestion de rotations cliniques (TCPS et The Clinical Hub), une augmentation de 10,7 % du dividende trimestriel à 0,031 dollar par action, et des classements élevés pour leurs applications Learning Center et CredentialStream dans les G2's 2025 Best Software Awards. L'entreprise a terminé l'année 2024 avec 97,2 millions de dollars en liquidités et titres négociables.
HealthStream (HSTM) hat starke finanzielle Ergebnisse für das vierte Quartal und das Gesamtjahr 2024 gemeldet. Die Umsätze im vierten Quartal stiegen um 5,2% auf 74,2 Millionen Dollar, während das Betriebsergebnis um 10,2% auf 4,7 Millionen Dollar und der Gewinn pro Aktie (EPS) auf 0,16 Dollar pro Aktie anstieg.
Die Leistung des Gesamtjahres 2024 zeigte ein signifikantes Wachstum mit einem Umsatzanstieg von 4,5% auf 291,6 Millionen Dollar, einem Anstieg des Betriebsergebnisses um 32,9% auf 21,3 Millionen Dollar und einem Nettogewinn, der um 31,5% auf 20,0 Millionen Dollar stieg. Der EPS des Unternehmens erreichte 0,66 Dollar pro Aktie, ein Anstieg von 0,50 Dollar im Jahr 2023.
Bemerkenswerte Entwicklungen umfassen die Übernahme von zwei Unternehmen für das Management klinischer Rotationen (TCPS und The Clinical Hub), eine Erhöhung der vierteljährlichen Dividende um 10,7% auf 0,031 Dollar pro Aktie sowie die Top-Rankings für ihre Anwendungen Learning Center und CredentialStream bei den G2's 2025 Best Software Awards. Das Unternehmen schloss das Jahr 2024 mit 97,2 Millionen Dollar in bar und handelbaren Wertpapieren ab.
- Q4 2024 revenue increased 5.2% YoY to $74.2 million
- Full-year 2024 revenue grew 4.5% to $291.6 million
- Operating income surged 32.9% to $21.3 million in 2024
- Net income increased 31.5% to $20 million in 2024
- Quarterly dividend increased 10.7% to $0.031 per share
- Strong cash position with $97.2 million in cash and marketable securities
- Increased expenses in labor, cloud hosting, and sales commissions
- Higher bad debt expenses due to customer bankruptcies in Q2 and Q4 2024
Insights
HealthStream's Q4 and FY2024 results reveal a company successfully executing its strategic transformation while maintaining solid financial performance. Subscription revenues, which increased
The financial metrics tell a compelling story:
- Operating income surged
32.9% to$21.3M for FY2024, significantly outpacing revenue growth of4.5% - Adjusted EBITDA increased
9.0% to$66.8M , indicating improved operational efficiency - Strong cash position of
$97.2M provides ample runway for strategic investments
Two critical developments warrant investor attention: First, the increase in bad debt from customer bankruptcies during Q2 and Q4 2024 signals potential sector-wide healthcare financial stress that requires monitoring. Second, the strategic acquisitions of TCPS and The Clinical Hub, while modest in size (
The company's platform strategy, centered around hStream, is gaining momentum, validated by G2's ranking of HealthStream's Learning Center as the #1 software in healthcare. This external validation, combined with the
The executive leadership realignment, particularly around the single platform strategy, suggests a more focused approach to product integration and market expansion. The departure of EVP Michael Sousa after 20 years, while maintaining potential future ecosystem partnership, indicates a thoughtful transition rather than a disruptive change.
Fourth Quarter 2024
-
Revenues of
$74.2 million 5.2% from$70.6 million -
Operating income of
$4.7 million 10.2% from$4.3 million -
Net income of
$4.9 million 6.5% from$4.6 million -
Earnings per share (EPS) of
$0.16 $0.15 -
Adjusted EBITDA1 of
$16.2 million 1.3% from$16.0 million - Completed the acquisitions of two clinical rotation management businesses: Total Clinical Placement System and The Clinical Hub, Inc.
Full Year 2024
-
Revenues of
$291.6 million 4.5% from$279.1 million -
Operating income of
$21.3 million 32.9% from$16.0 million -
Net income of
$20.0 million 31.5% from$15.2 million -
Earnings per share (EPS) of
$0.66 $0.50 -
Adjusted EBITDA of
$66.8 million 9.0% from$61.3 million
2025 Updates
- Executive Leadership promotions made, affirming single platform strategy
-
Board of Directors has declared a quarterly cash dividend of
$0.03 110.7% over the previous quarter’s dividend of$0.02 8 - HealthStream’s Learning Center (LMS) and CredentialStream applications were named the #1 and #5 best software products, respectively, among thousands of software products in healthcare by G2
1 Adjusted EBITDA is a non-GAAP financial measure. A reconciliation of adjusted EBITDA to net income and disclosure regarding why we believe adjusted EBITDA provides useful information to investors is included later in this release. |
Financial Results:
Fourth Quarter 2024 Compared to Fourth Quarter 2023
Revenues for the fourth quarter of 2024 increased by
Operating income was
Net income was
Adjusted EBITDA was
At December 31, 2024, the Company had cash and cash equivalents and marketable securities of
Full-Year 2024 Compared to Full-Year 2023
For 2024, revenues were
Other Business Updates
On February 24, 2025, the Board approved a quarterly cash dividend under the Company's dividend policy of
On November 5, 2024, HealthStream announced the completion of two acquisitions, each enlarging the Company’s footprint among nursing and allied healthcare students as they prepare for careers in healthcare. On October 31, 2024, the Company acquired substantially all of the assets of Total Clinical Placement System (d/b/a “TCPS”), a
On February 19, 2025, G2 ranked HealthStream’s learning management system, the HealthStream Learning Center (HLC) in the #1 spot among the 2025 Best Software Awards, making it the highest rated software—of any software category—in healthcare. G2 also ranked CredentialStream in the #5 spot in the 2025 Best Software in Healthcare list, making it the highest ranked credentialing application in healthcare. G2’s ranking is based on verified user reviews and publicly available market presence data. Across all industries, their database includes over 180,000 software products and services listings and 2.8 million user reviews.
2025 Executive Leadership Promotions
As initially announced two years ago, HealthStream’s operations and executive leadership are increasingly shaped by our single platform strategy, as represented by the hStream technology platform. To advance the Company’s single platform approach throughout our operations, there were three promotions made in the management team in the first quarter of 2025, which takes into account the planned departure of another executive.
Kevin O’Hara has been promoted to Executive Vice President (EVP), Enterprise Workforce Platform from his prior role as Senior Vice President (SVP), Platform Strategy & Product Development Alignment. In his new role, Mr. O’Hara’s responsibilities have expanded to include both HealthStream Credentialing and HealthStream Scheduling, which form the Company’s Enterprise Applications solutions group. He will continue to be responsible for HealthStream Learning and the hStream platform, their growth strategy, and product alignment. Mr. O’Hara’s tenure at HealthStream spans 14 years cumulatively, which includes his leadership from 2001 - 2011 and then from 2021 - present. His broad technology and product development executive leadership makes him particularly qualified to lead these key areas of the Company.
Michael Collier has been promoted to EVP, Corporate Strategy, Development, & Operations from his prior role as EVP, Corporate Strategy & Development. He will continue to be responsible for HealthStream’s enterprise growth strategy, corporate development, and the M&A program—where he has successfully completed 21 acquisitions. Mr. Collier will also continue to provide executive oversight to several departments, including legal, human resources, business enablement, and enterprise partnerships. Going forward in his new role, his responsibilities will extend to include a broader scope of the Company’s operations, including success management, implementations, and onboarding for all of the Company’s products and services.
Trisha Coady has been promoted to EVP, Workforce Development Solutions from her prior role as SVP, Workforce Development Solutions. Since joining HealthStream over 11 years ago, Ms. Coady’s accomplishments and broad expertise have made her the Company’s top clinical officer. Her leadership has been instrumental in the growth and expansion of our workforce development solutions, which have represented the largest component of HealthStream’s revenues over the last decade. In her new role, Ms. Coady will continue to provide executive leadership over the Company’s workforce development solutions, which include competency development, resuscitation, quality and safety, and revenue cycle—as well as HealthStream’s content marketplace.
Michael Sousa, EVP, Enterprise Applications, has announced plans to resign from his current position at the end of the first quarter of 2025. After 20 years at HealthStream, Mr. Sousa is leaving to pursue other opportunities, with the intent of both parties being for Mr. Sousa in his future endeavors to become a partner in HealthStream's ecosystem.
Financial Outlook for 2025
The Company is providing guidance for 2025 for the measures set forth below, including adjusted EBITDA, a non-GAAP financial measure as defined later in this release. For a reconciliation of projected adjusted EBITDA to projected net income (the most comparable GAAP measure) for 2025, see the table included on page ten of this release.
|
Full Year 2025 Guidance |
|||||
|
|
Low |
|
High |
|
|
Revenue |
|
|
- |
|
million |
|
|
|
|
|
|
|
|
Net Income |
|
|
- |
|
million |
|
|
|
|
|
|
|
|
Adjusted EBITDA1 |
|
|
- |
|
million |
|
|
|
|
|
|
|
|
Capital Expenditures |
|
|
- |
|
million |
|
1 Adjusted EBITDA is a non-GAAP financial measure. A reconciliation of projected adjusted EBITDA to projected net income (the most comparable GAAP measure) is included later in this release. |
||||||
The Company’s guidance for 2025, as set forth above, reflects the Company’s assumptions regarding, among other things, expectations for new sales and renewals and assumes that general economic conditions do not deteriorate. This consolidated guidance does not include the impact of any acquisitions or dispositions that we may complete during 2025, gains or losses from changes in the fair value of non-marketable equity investments, or impairment of long-lived assets.
Commenting on fourth quarter & full-year 2024 results, Robert A. Frist, Jr., Chief Executive Officer, HealthStream, said, “Our financial performance for 2024 was solid. Compared to the prior year, in 2024, our revenues were up 4.5 percent, adjusted EBITDA was up 9.0 percent, operating income was up 32.9 percent, and net income was up 31.5 percent.
“HealthStream is firing on all cylinders as we kick off 2025. We launched two significant products: the HealthStream Learning Experience (HLX) application and the American Red Cross Neonatal Advanced Life Support (NALS) program—and customers’ early responses to these innovations has been enthusiastic. Our LMS, the HealthStream Learning Center, was named by G2 as the #1 software in all of healthcare—across all of the varied types of software applications in the industry. Most importantly, we are starting to see powerful benefits of our hStream platform strategy and its exciting potential for the nation’s healthcare workforce.
“Alongside our emerging platform strategy, we’ve realigned our Company to optimize the opportunities ahead for us. To that end, we’ve made updates among our executive team that I believe enable us to make 2025 a banner year for moving HealthStream forward.”
A conference call with Robert A. Frist, Jr., Chief Executive Officer, Scott A. Roberts, Chief Financial Officer and Senior Vice President, and Mollie Condra, Head, Investor Relations and Communications, will be held on Tuesday, February 25, 2025, at 9:00 a.m. (ET). Participants may access the conference call live via webcast using this link: https://edge.media-server.com/mmc/p/t7bbbexa. To participate via telephone, please register in advance using this link: https://register.vevent.com/register/BI709f5dbd0d1b4043b6decb8b34e41fe5. A replay of the conference call and webcast will be archived on the Company’s website in the Investor Relations section under “Events & Presentations.”
Use of Non-GAAP Financial Measures
This press release presents adjusted EBITDA, a non-GAAP financial measure used by management in analyzing the Company’s financial results and ongoing operational performance. In order to better assess the Company’s financial results, management believes that net income before interest, income taxes, stock-based compensation, depreciation and amortization, and changes in fair value of, including gains (losses) on the sale of, non-marketable equity investments (“adjusted EBITDA”) is a useful measure for evaluating the operating performance of the Company because adjusted EBITDA reflects net income adjusted for certain GAAP accounting, non-cash, and/or non-operating items which may not, in any such case, fully reflect the underlying operating performance of our business. In addition, as discussed below, for periods ended on or prior to December 31, 2023, adjusted EBITDA excludes the impact of the deferred revenue write-downs associated with fair value accounting for acquired businesses. We believe that adjusted EBITDA is useful to investors to assess the Company’s ongoing operating performance and to compare the Company’s operating performance between periods. In addition, certain short-term cash incentive bonuses and performance-based equity awards are based on the achievement of adjusted EBITDA (as defined in applicable bonus and equity grant documentation) targets.
As previously disclosed, prior to the Company early adopting ASU 2021-08 effective January 1, 2022, following the completion of any acquisition by the Company, the Company was required to record the acquired deferred revenue at fair value as defined in GAAP, which typically resulted in a write-down of the acquired deferred revenue. In connection therewith, management determined that including an adjustment in the definition of adjusted EBITDA for the impact of the deferred revenue write-downs associated with fair value accounting for businesses acquired prior to the January 1, 2022 effective date of the Company's adoption of ASU 2021-08 (the “Pre-2022 Acquisitions”) provided useful information to investors because the deferred revenue write-down recognized in periods after any such Pre-2022 Acquisitions could, given the nature of this non-cash accounting impact, cause our GAAP financial results during such periods to not fully reflect our underlying operating performance. Following the adoption of ASU 2021-08, contracts acquired in an acquisition completed on or after January 1, 2022 have been measured as if the Company had originated the contract (rather than the contract being measured at fair value) such that, for such acquisitions, the Company no longer records deferred revenue write-downs associated with acquired businesses. With respect to periods ended on or prior to December 31, 2023, the Company has included an adjustment in the calculation of adjusted EBITDA for the impact of deferred revenue write-downs associated with the Pre-2022 Acquisitions consistent with this prior accounting standard, given the ongoing impact of such deferred revenue on our financial results under GAAP over this time period. With respect to periods beginning on and after January 1, 2024, the Company no longer recognizes any deferred revenue write-downs associated with the Pre-2022 Acquisitions under GAAP, and accordingly such deferred revenue write-downs are not an adjustment in connection with the calculation of adjusted EBITDA for periods on and after January 1, 2024.
Adjusted EBITDA is a non-GAAP financial measure and should not be considered as a measure of financial performance under GAAP. Because adjusted EBITDA is not a measurement determined in accordance with GAAP, adjusted EBITDA is susceptible to varying calculations. Accordingly, adjusted EBITDA, as presented, may not be comparable to other similarly titled measures of other companies and has limitations as an analytical tool.
This non-GAAP financial measure should not be considered a substitute for, or superior to, measures of financial performance, which are prepared in accordance with GAAP. Investors are encouraged to review the reconciliations of adjusted EBITDA to net income (the most comparable GAAP measure), which is set forth below in this release.
About HealthStream
HealthStream (Nasdaq: HSTM) is the healthcare industry’s largest ecosystem of platform-delivered workforce solutions that empowers healthcare professionals to do what they do best: deliver excellence in patient care. For more information about HealthStream, visit www.healthstream.com or call 800-521-0574.
HEALTHSTREAM, INC. |
||||||||||||||||
Condensed Consolidated Statements of Income |
||||||||||||||||
(In thousands, except per share data) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
Three Months Ended December 31, |
|
|
Year Ended December 31, |
|
||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Revenues, net |
|
$ |
74,235 |
|
|
$ |
70,580 |
|
|
$ |
291,646 |
|
|
$ |
279,063 |
|
Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues (excluding depreciation and amortization) |
|
|
25,111 |
|
|
|
24,010 |
|
|
|
97,936 |
|
|
|
95,021 |
|
Product development |
|
|
12,682 |
|
|
|
11,929 |
|
|
|
48,890 |
|
|
|
45,540 |
|
Sales and marketing |
|
|
12,482 |
|
|
|
11,418 |
|
|
|
47,158 |
|
|
|
45,743 |
|
General and administrative expenses |
|
|
8,807 |
|
|
|
8,441 |
|
|
|
35,132 |
|
|
|
35,664 |
|
Depreciation and amortization |
|
|
10,464 |
|
|
|
10,526 |
|
|
|
41,243 |
|
|
|
41,076 |
|
Total operating costs and expenses |
|
|
69,546 |
|
|
|
66,324 |
|
|
|
270,359 |
|
|
|
263,044 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
4,689 |
|
|
|
4,256 |
|
|
|
21,287 |
|
|
|
16,019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income, net |
|
|
794 |
|
|
|
1,162 |
|
|
|
3,516 |
|
|
|
2,492 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income tax provision |
|
|
5,483 |
|
|
|
5,418 |
|
|
|
24,803 |
|
|
|
18,511 |
|
Income tax provision |
|
|
594 |
|
|
|
828 |
|
|
|
4,796 |
|
|
|
3,298 |
|
Net income |
|
$ |
4,889 |
|
|
$ |
4,590 |
|
|
$ |
20,007 |
|
|
$ |
15,213 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.16 |
|
|
$ |
0.15 |
|
|
$ |
0.66 |
|
|
$ |
0.50 |
|
Diluted |
|
$ |
0.16 |
|
|
$ |
0.15 |
|
|
$ |
0.66 |
|
|
$ |
0.50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares of common stock outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
30,423 |
|
|
|
30,326 |
|
|
|
30,386 |
|
|
|
30,571 |
|
Diluted |
|
|
30,639 |
|
|
|
30,489 |
|
|
|
30,544 |
|
|
|
30,673 |
|
Dividends declared per share |
|
$ |
0.028 |
|
|
$ |
0.025 |
|
|
$ |
0.112 |
|
|
$ |
0.100 |
|
HEALTHSTREAM, INC. |
||||||||
Condensed Consolidated Balance Sheets |
||||||||
(In thousands) |
||||||||
(Unaudited) |
||||||||
|
|
December 31, |
|
|
December 31, |
|
||
|
|
2024 |
|
|
2023 |
|
||
ASSETS |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
59,469 |
|
|
$ |
40,333 |
|
Marketable securities |
|
|
37,748 |
|
|
|
30,800 |
|
Accounts and unbilled receivables, net |
|
|
35,322 |
|
|
|
38,446 |
|
Prepaid and other current assets |
|
|
20,583 |
|
|
|
20,631 |
|
Total current assets |
|
|
153,122 |
|
|
|
130,210 |
|
|
|
|
|
|
|
|
|
|
Capitalized software development, net |
|
|
43,370 |
|
|
|
40,643 |
|
Property and equipment, net |
|
|
10,741 |
|
|
|
13,005 |
|
Operating lease right of use assets, net |
|
|
17,453 |
|
|
|
20,114 |
|
Goodwill and intangible assets, net |
|
|
246,768 |
|
|
|
259,410 |
|
Deferred commissions |
|
|
34,671 |
|
|
|
31,700 |
|
Other assets |
|
|
4,641 |
|
|
|
4,860 |
|
Total assets |
|
$ |
510,766 |
|
|
$ |
499,942 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable, accrued, and other liabilities |
|
$ |
31,466 |
|
|
$ |
34,738 |
|
Deferred revenue |
|
|
84,227 |
|
|
|
83,623 |
|
Total current liabilities |
|
|
115,693 |
|
|
|
118,361 |
|
Deferred tax liabilities |
|
|
14,596 |
|
|
|
16,132 |
|
Deferred revenue, noncurrent |
|
|
1,655 |
|
|
|
2,169 |
|
Operating lease liability, noncurrent |
|
|
17,366 |
|
|
|
20,247 |
|
Other long-term liabilities |
|
|
2,101 |
|
|
|
2,281 |
|
Total liabilities |
|
|
151,411 |
|
|
|
159,190 |
|
|
|
|
|
|
|
|
|
|
Shareholders’ equity: |
|
|
|
|
|
|
|
|
Common stock |
|
|
252,432 |
|
|
|
249,075 |
|
Accumulated other comprehensive loss |
|
|
(2,049 |
) |
|
|
(691 |
) |
Retained earnings |
|
|
108,972 |
|
|
|
92,368 |
|
Total shareholders’ equity |
|
|
359,355 |
|
|
|
340,752 |
|
Total liabilities and shareholders' equity |
|
$ |
510,766 |
|
|
$ |
499,942 |
|
HEALTHSTREAM, INC. |
||||||||
Condensed Consolidated Statements of Cash Flows |
||||||||
(In thousands) |
||||||||
(Unaudited) |
||||||||
|
|
Year Ended |
|
|||||
|
|
December 31, |
|
|
December 31, |
|
||
|
|
2024 |
|
|
2023 |
|
||
Operating activities: |
|
|
|
|
|
|
|
|
Net income |
|
$ |
20,007 |
|
|
$ |
15,213 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
41,243 |
|
|
|
41,076 |
|
Amortization of deferred commissions |
|
|
12,480 |
|
|
|
11,495 |
|
Stock-based compensation |
|
|
4,470 |
|
|
|
4,153 |
|
Deferred income taxes |
|
|
(1,114 |
) |
|
|
(1,725 |
) |
Provision for credit losses |
|
|
2,595 |
|
|
|
1,021 |
|
Loss on equity method investments |
|
|
230 |
|
|
|
384 |
|
Change in fair value of non-marketable equity investments |
|
|
— |
|
|
|
(425 |
) |
Other |
|
|
(1,639 |
) |
|
|
(891 |
) |
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts and unbilled receivables |
|
|
537 |
|
|
|
3,243 |
|
Deferred commissions |
|
|
(15,451 |
) |
|
|
(14,852 |
) |
Prepaid and other assets |
|
|
(974 |
) |
|
|
(2,046 |
) |
Accounts payable, accrued and other liabilities |
|
|
(4,394 |
) |
|
|
3,938 |
|
Deferred revenue |
|
|
(330 |
) |
|
|
3,386 |
|
Net cash provided by operating activities |
|
|
57,660 |
|
|
|
63,970 |
|
|
|
|
|
|
|
|
|
|
Investing activities: |
|
|
|
|
|
|
|
|
Cash paid for acquisitions, net of cash acquired |
|
|
(1,299 |
) |
|
|
(6,621 |
) |
Purchases of marketable securities, net of proceeds |
|
|
(5,296 |
) |
|
|
(22,018 |
) |
Proceeds from sale of non-marketable equity investments |
|
|
765 |
|
|
|
47 |
|
Purchases of property and equipment |
|
|
(1,401 |
) |
|
|
(2,200 |
) |
Payments associated with capitalized software development |
|
|
(26,741 |
) |
|
|
(25,806 |
) |
Net cash used in investing activities |
|
|
(33,972 |
) |
|
|
(56,598 |
) |
|
|
|
|
|
|
|
|
|
Financing activities: |
|
|
|
|
|
|
|
|
Taxes paid related to net settlement of equity awards |
|
|
(1,113 |
) |
|
|
(934 |
) |
Payment of debt issuance costs |
|
|
— |
|
|
|
(118 |
) |
Repurchases of common stock |
|
|
— |
|
|
|
(8,929 |
) |
Payment of cash dividends |
|
|
(3,403 |
) |
|
|
(3,058 |
) |
Net cash used in financing activities |
|
|
(4,516 |
) |
|
|
(13,039 |
) |
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents |
|
|
(36 |
) |
|
|
(23 |
) |
Net increase (decrease) in cash and cash equivalents |
|
|
19,136 |
|
|
|
(5,690 |
) |
Cash and cash equivalents at beginning of period |
|
|
40,333 |
|
|
|
46,023 |
|
Cash and cash equivalents at end of period |
|
$ |
59,469 |
|
|
$ |
40,333 |
|
Reconciliation of GAAP to Non-GAAP Financial Measures(1) |
||||||||||||||||
Operating Results Summary |
||||||||||||||||
(In thousands) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
Three Months Ended December 31, |
|
|
Year Ended December 31, |
|
||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
GAAP net income |
|
$ |
4,889 |
|
|
$ |
4,590 |
|
|
$ |
20,007 |
|
|
$ |
15,213 |
|
Deferred revenue write-down |
|
|
— |
|
|
|
84 |
|
|
|
— |
|
|
|
212 |
|
Interest income |
|
|
(979 |
) |
|
|
(777 |
) |
|
|
(3,834 |
) |
|
|
(2,356 |
) |
Interest expense |
|
|
26 |
|
|
|
26 |
|
|
|
100 |
|
|
|
124 |
|
Income tax provision |
|
|
594 |
|
|
|
828 |
|
|
|
4,796 |
|
|
|
3,298 |
|
Stock-based compensation expense |
|
|
1,185 |
|
|
|
1,077 |
|
|
|
4,470 |
|
|
|
4,153 |
|
Depreciation and amortization |
|
|
10,464 |
|
|
|
10,526 |
|
|
|
41,243 |
|
|
|
41,076 |
|
Change in fair value of non-marketable equity investments |
|
|
— |
|
|
|
(379 |
) |
|
|
— |
|
|
|
(425 |
) |
Adjusted EBITDA |
|
$ |
16,179 |
|
|
$ |
15,975 |
|
|
$ |
66,782 |
|
|
$ |
61,295 |
|
(1) This press release presents adjusted EBITDA, which is a non-GAAP financial measure used by management in analyzing its financial results and ongoing operational performance. |
||||||||||||||||
Reconciliation of GAAP to Non-GAAP Financial Measures |
||||||||
Financial Outlook for 2025 |
||||||||
(In thousands) |
||||||||
(Unaudited) |
||||||||
|
|
Low |
|
|
High |
|
||
Net income |
|
$ |
19,200 |
|
|
$ |
21,400 |
|
Interest income |
|
|
(3,000 |
) |
|
|
(3,400 |
) |
Interest expense |
|
|
100 |
|
|
|
100 |
|
Income tax provision |
|
|
5,100 |
|
|
|
6,100 |
|
Stock-based compensation expense |
|
|
4,600 |
|
|
|
5,000 |
|
Depreciation and amortization |
|
|
44,000 |
|
|
|
44,800 |
|
Adjusted EBITDA |
|
$ |
70,000 |
|
|
$ |
74,000 |
|
This press release includes certain forward-looking statements (statements other than solely with respect to historical fact), including statements regarding expectations for financial performance for 2025 and our quarterly dividend policy, that involve risks and uncertainties regarding HealthStream. These statements are based upon management’s beliefs, as well as assumptions made by and data currently available to management. This information has been, or in the future may be, included in reliance on the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. The Company cautions that forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause the actual results, performance, or achievements to be materially different from future results, performance, or achievements expressed or implied by the forward-looking statements, including as a result of negative economic conditions, changes in
View source version on businesswire.com: https://www.businesswire.com/news/home/20250224591547/en/
Scott A. Roberts
Chief Financial Officer
(615) 301-3182
ir@healthstream.com
Media:
Mollie Condra, Ph.D.
Head, Investor Relations & Communications
(615) 301-3237
mollie.condra@healthstream.com
Source: HealthStream, Inc.
FAQ
What were HealthStream's (HSTM) Q4 2024 earnings per share?
How much did HealthStream's (HSTM) revenue grow in full-year 2024?
What acquisitions did HSTM complete in Q4 2024?
What is HealthStream's new quarterly dividend for 2025?
How much cash and marketable securities did HSTM have at the end of 2024?
