NASDAQ$HSTM

HealthStream Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

HealthStream's financial performance decreased due to revenue decline and increased operating expenses.

HealthStream reported a decrease in revenues and operating income for the fourth quarter of 2020, impacted by acquisitions and the COVID-19 pandemic. Revenues decreased by 1% to $61.8 million, while operating income decreased by 66% to $1.1 million. The company completed several acquisitions during the quarter, including ShiftWizard, Change Healthcare's staff scheduling business, and myClinicalExchange LLC.

  • Revenues decreased by 1% to $61.8 million compared to Q4 2019.
  • Operating income decreased by 66% to $1.1 million compared to Q4 2019.
  • EPS from continuing operations was $0.03 per share (diluted), compared to $0.11 per share (diluted) in Q4 2019.
  • Completed acquisitions of ShiftWizard, Change Healthcare’s staff scheduling business, and myClinicalExchange LLC.

Headline financials

Total Revenue

$61.8M

Previous: $62.7M-1.4%
EPS (adj)

$0.03

Previous: $0.11-72.7%
Adjusted EBITDA

$10.7M

No prior period
Capital Expenditures

$254K

Previous: $546K-53.5%
Free Cash Flow

$4.87M

Previous: $12.6M-61.3%
Net Income

$923K

Previous: $3.68M-74.9%
Operating Income

$1.14M

Previous: $3.34M-65.9%
Gross Profit

$39.1M

Previous: $37.8M+3.3%
Cash & Equivalents

$36.6M

Previous: $132M-72.2%
Total Assets

$500M

Previous: $490M+2.2%
Stock-Based Comp

$552K

Previous: $601K-8.2%

Revenue & EPS history

HealthStream · Revenue · Quarterly

$61.8M

Q4 2020-1.4%vs Q4 2019
Beat estimate in 16 of 16 quarters(100%)
ActualEstimate

Revenue by segment

HealthStream · $3.1M total across 2 segments · Q3 2023

  • Subscription Revenues
    $3.4M
  • Professional Services
    -$300K

Forward guidance

HealthStream provided financial guidance for 2021, including revenue targets for Workforce Solutions and Provider Solutions, as well as adjusted EBITDA and capital expenditure estimates. The guidance reflects assumptions regarding the COVID-19 pandemic, integration costs, and deferred revenue write-downs.

Tailwinds

  • Workforce Solutions revenue is projected to be between $195.0 million and $203.0 million.
  • Provider Solutions revenue is projected to be between $47.5 million and $49.5 million.
  • Consolidated revenue is projected to be between $242.5 million and $252.5 million.
  • Adjusted EBITDA is projected to be between $34.0 million and $38.3 million.
  • Capital expenditures are estimated to be between $25.0 million and $27.0 million.

Headwinds

  • Financial guidance assumes improvement in public health and economic conditions related to the COVID-19 pandemic.
  • Guidance reflects anticipated integration costs and additional investments in recently acquired companies.
  • Estimated deferred revenue write-downs of $4.3 to $5.3 million during 2021 will reduce net revenues and operating income.
  • The company's financial performance is subject to risks and uncertainties related to the COVID-19 pandemic.
  • The company's future results are subject to factors beyond its control or prediction.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2020

Historical avgQ4 2020

+0.4%

Avg return

Earnings day

-1.3%

Avg return

5 days after

-0.3%

Avg return

30 days after

49%

32 / 65 earnings

Positive

+22.1%

Q3 2014

Best reaction

-19.3%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-5.0%-5.2%+3.6%
Q4 2025+5.7%-0.0%+0.0%
Q3 2025+2.8%-2.6%-2.4%
Q1 2025-19.3%-16.2%-14.9%
Q4 2024+0.1%+4.4%-0.8%
Q3 2024+4.3%-1.8%+8.5%
Q2 2024-3.0%-3.4%-7.3%
Q1 2024+6.3%+3.1%+9.8%
Q4 2023-1.6%-2.8%-2.8%
Q3 2023+13.6%+11.0%+16.0%
Q2 2023-1.4%-3.7%-8.1%
Q1 2023-6.9%-9.5%-12.3%
Q4 2022+4.9%+3.1%+7.0%
Q3 2022+4.6%+11.3%+14.3%
Q2 2022+4.5%+2.1%-2.0%
Q1 2022+2.2%-1.6%+4.4%
Q4 2021-17.0%-16.7%-14.7%
Q3 2021-8.8%-6.0%-10.9%
Q2 2021+0.6%-0.8%+0.2%
Q1 2021+9.2%+8.0%+18.4%
Q4 2020+0.7%+0.5%-2.6%
Q3 2020-9.4%-14.2%-9.3%
Q2 2020+0.3%+1.1%-5.6%
Q1 2020-3.4%-9.7%-4.1%
Q4 2019+0.2%+1.4%-16.1%
Q3 2019+6.3%+7.0%+4.4%
Q2 2019-0.8%+3.4%+3.5%
Q1 2019-4.8%-3.0%-5.0%
Q4 2018+3.9%+1.5%+5.8%
Q3 2018+1.8%-5.3%-15.2%
Q2 2018-6.5%-4.2%+6.2%
Q1 2018+4.8%+9.7%+17.3%
Q4 2017+6.0%+2.0%+1.9%
Q3 2017-0.3%-2.7%+2.6%
Q2 2017-12.0%-12.6%-13.5%
Q1 2017+17.3%+17.3%+18.2%
Q4 2016+0.1%+5.0%-2.8%
Q3 2016-9.5%-15.6%-2.3%
Q2 2016-3.9%-6.2%+0.1%
Q1 2016-0.8%
Q4 2015+12.9%
Q3 2015+10.8%
Q2 2015-0.6%
Q1 2015+12.1%
Q4 2014-7.9%
Q3 2014+22.1%
Q2 2014+13.9%
Q1 2014-5.7%
Q4 2013-7.2%
Q3 2013-4.5%
Q2 2013+11.2%
Q1 2013+16.9%
Q4 2012-0.2%
Q3 2012+1.9%
Q2 2012-2.9%
Q1 2011-2.1%
Q1 2012+2.0%
Q4 2009-5.1%
Q4 2011-5.1%
Q3 2010-5.8%
Q3 2011-5.8%
Q2 2011-4.4%
Q2 2010-4.4%
Q4 2010-4.4%
Q1 2010+5.6%

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