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Mar 31, 2020
HealthStream Q1 2020 Earnings Report
HealthStream's first quarter results were announced, showing a mix of growth and challenges.
Key Takeaways
HealthStream reported a decrease in revenue by 6% compared to Q1 2019, but operating income increased by 35% due to a favorable contractual adjustment. The company completed the acquisition of NurseGrid for $25 million and authorized a share repurchase program of up to $30 million.
Revenues decreased by 6% to $61.6 million compared to $65.2 million in Q1 2019.
Operating income increased by 35% to $7.2 million, up from $5.4 million in Q1 2019, positively impacted by a $3.4 million contractual adjustment.
Earnings per share (EPS) from continuing operations was $0.22, compared to $0.15 per share in Q1 2019.
Adjusted EBITDA from continuing operations decreased by 6% to $11.8 million from $12.5 million in Q1 2019.
Forward Guidance
Due to the unpredictable and rapidly evolving environment related to the COVID-19 pandemic, the Company cannot reasonably quantify the impact that the pandemic will have on its operating and financial results in 2020, and is withdrawing its 2020 guidance.
Positive Outlook
- The Company expects to continue providing its full range of workforce and provider solutions to its customers.
- The Company expects to continue supporting all healthcare providers in their efforts to overcome the COVID-19 pandemic.
Challenges Ahead
- The extent of COVID-19’s negative impact on its operating results and financial condition will be driven by many factors.
- Factors include the length and severity of the COVID-19 pandemic and the impact of the pandemic on economic activity, particularly with respect to healthcare organizations.
- Business and economic conditions resulting from the pandemic.
- The impact on the pandemic on healthcare organizations.
- Potential workforce disruptions and the disruption in capital and financial markets.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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