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Mar 31, 2021
HealthStream Q1 2021 Earnings Report
HealthStream's financial performance decreased compared to the same quarter last year, but adjusted EBITDA increased due to legacy resuscitation products decline and recent acquisitions.
Key Takeaways
HealthStream reported a revenue increase of 3% to $63.5 million, while operating income decreased by 54% to $3.3 million and net income decreased by 68% to $2.3 million. EPS was $0.07 per share, down from $0.22 in the first quarter of 2020. Adjusted EBITDA increased by 14% to $13.6 million. The company completed the acquisition of ComplyALIGN and saw key management team changes.
Revenues increased by 3% to $63.5 million compared to the first quarter of 2020.
Operating income decreased by 54% to $3.3 million, impacted by a contractual adjustment in the first quarter of 2020.
Net income decreased by 68% to $2.3 million, also impacted by the contractual adjustment.
Adjusted EBITDA increased by 14% to $13.6 million.
Forward Guidance
HealthStream updated its full year 2021 guidance, anticipating revenue between $245.0 million and $255.0 million, and adjusted EBITDA between $40.0 million and $44.0 million.
Positive Outlook
- Workforce Solutions revenue between $197.0 - $205.0 million
- Provider Solutions revenue between $48.0 - $50.0 million
- Adjusted EBITDA between $40.0 - $44.0 million
- Capital Expenditures $25.0 - $27.0 million
- The Company’s financial guidance assumes that public health conditions associated with the pandemic and general economic conditions (including conditions impacting healthcare organizations) continue to improve over the course of the year
Challenges Ahead
- Anticipated integration costs
- Additional investments in sales, marketing, and product development in 2021 for recently acquired companies
- Estimated deferred revenue write-downs of $4.0 to $4.3 million during 2021 as the result of recent acquisitions, which would result in corresponding reductions to net revenues and operating income during 2021.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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