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Sep 30, 2021
HealthStream Q3 2021 Earnings Report
Announced third quarter 2021 results, showing revenue increase but a decrease in operating and net income.
Key Takeaways
HealthStream reported a 5% increase in revenue to $64.1 million for Q3 2021, driven by growth in Workforce and Provider Solutions, despite a decline in legacy resuscitation revenues. However, operating income and net income decreased due to higher operating expenses and amortization.
Revenues increased by 5% to $64.1 million compared to Q3 2020.
Workforce Solutions segment revenues grew by 4% to $51.2 million.
Provider Solutions segment revenues increased to $12.9 million, primarily due to subscription revenues.
Operating income decreased by 43% to $1.8 million, and net income also decreased by 43% to $1.5 million.
Forward Guidance
HealthStream updated its full year 2021 guidance, anticipating a strong finish to the year with record adjusted EBITDA.
Positive Outlook
- Expected record adjusted EBITDA of between $51 million to $53 million.
- Revenue growth driven by sales and implementations of product suites.
- Progress made in sales and implementations of product suites like the American Red Cross, CredentialStream, and Jane.
- Growth from newly acquired scheduling businesses.
- Company anticipates integration costs and additional investments in sales, marketing, and product development in 2021 for recently acquired companies
Challenges Ahead
- 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
- COVID-19 vaccines continue to be successfully distributed and perform according to current expectations
- New variants of the virus, or other unknown variants, do not further impede recovery from the pandemic.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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