HealthStream (HSTM) 10-Q 31 Jul 14 2014 Q2 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
	Jun. 30, 2014	Jul. 28, 2014
Document And Entity Information [Abstract]	'	'
Document Type	'10-Q	'
Amendment Flag	'false	'
Document Period End Date	30-Jun-14	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q2	'
Entity Registrant Name	'HEALTHSTREAM INC	'
Entity Central Index Key	'0001095565	'
Current Fiscal Year End Date	'--12-31	'
Entity Filer Category	'Accelerated Filer	'
Entity Common Stock, Shares Outstanding	'	27,570,462

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Jun. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Current assets:	'	'
Cash and cash equivalents	$60,862	$59,537
Marketable securities	50,901	48,659
Accounts receivable, net of allowance for doubtful accounts of $262 and $211 at June 30, 2014 and December 31, 2013, respectively	29,785	25,314
Accounts receivable -unbilled	2,097	1,392
Prepaid royalties, net of amortization	12,698	8,857
Other prepaid expenses and other current assets	4,038	3,365
Total current assets	160,381	147,124
Property and equipment:	'	'
Equipment	23,393	21,631
Leasehold improvements	5,810	5,521
Furniture and fixtures	4,223	3,854
Property and equipment, gross	33,426	31,006
Less accumulated depreciation and amortization	-23,958	-21,968
Total, property and equipment	9,468	9,038
Capitalized software development, net of accumulated amortization of $15,838 and $13,910 at June 30, 2014 and December 31, 2013, respectively	12,014	11,077
Goodwill	43,233	35,746
Intangible assets, net of accumulated amortization of $12,517 and $11,389 at June 30, 2014 and December 31, 2013, respectively	15,342	8,870
Other assets	961	739
Total assets	241,399	212,594
Current liabilities:	'	'
Accounts payable	1,319	2,311
Accrued royalties	11,157	8,435
Accrued liabilities	9,338	5,503
Accrued compensation and related expenses	1,456	1,614
Deferred tax liabilities, current	181	181
Deferred revenue	51,595	38,168
Total current liabilities	75,046	56,212
Deferred tax liabilities, noncurrent	6,173	6,173
Deferred revenue, noncurrent	2,408	0
Other long term liabilities	615	776
Commitments and contingencies	'	'
Shareholders' equity:	'	'
Common stock, no par value, 75,000 shares authorized; 27,570 and 27,327 shares issued and outstanding at June 30, 2014 and December 31, 2013, respectively	170,279	166,888
Accumulated deficit	-13,113	-17,424
Accumulated other comprehensive loss	-9	-31
Total shareholders' equity	157,157	149,433
Total liabilities and shareholders' equity	$241,399	$212,594

CONDENSED_CONSOLIDATED_BALANCE1

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Jun. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Statement Of Financial Position [Abstract]	'	'
Allowance for doubtful accounts, net	$262	$211
Accumulated amortization on capitalized software development	15,838	13,910
Accumulated amortization on intangible assets	$12,517	$11,389
Common stock, no par value	'	'
Common stock, shares authorized	75,000	75,000
Common stock, shares issued	27,570	27,327
Common stock, shares outstanding	27,570	27,327

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (USD $)	3 Months Ended		6 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Income Statement [Abstract]	'	'	'	'
Revenues, net	$42,476	$31,919	$80,825	$61,565
Operating costs and expenses:	'	'	'	'
Cost of revenues (excluding depreciation and amortization)	18,738	12,871	35,663	25,391
Product development	4,294	2,778	7,840	5,384
Sales and marketing	7,251	5,450	14,199	10,650
Other general and administrative expenses	5,361	4,817	10,592	9,089
Depreciation and amortization	2,722	1,897	5,123	3,773
Total operating costs and expenses	38,366	27,813	73,417	54,287
Income from operations	4,110	4,106	7,408	7,278
Other income (expense), net	23	28	68	75
Income before income tax provision	4,133	4,134	7,476	7,353
Income tax provision	1,769	1,712	3,165	2,991
Net income	$2,364	$2,422	$4,311	$4,362
Earnings per share:	'	'	'	'
Basic	$0.09	$0.09	$0.16	$0.16
Diluted	$0.08	$0.09	$0.15	$0.16
Weighted average shares of common stock outstanding:	'	'	'	'
Basic	27,567	26,722	27,510	26,531
Diluted	28,043	27,649	27,975	27,529

CONDENSED_CONSOLIDATED_STATEME1

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Statement Of Income And Comprehensive Income [Abstract]	'	'	'	'
Net income	$2,364	$2,422	$4,311	$4,362
Other comprehensive income, net of taxes:	'	'	'	'
Unrealized gain (loss) on marketable securities	14	-43	22	-53
Total other comprehensive income (loss)	14	-43	22	-53
Comprehensive income	$2,378	$2,379	$4,333	$4,309

CONDENSED_CONSOLIDATED_STATEME2

CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (UNAUDITED) (USD $)	Total	Common Stock [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive Loss [Member]
In Thousands
Beginning balance at Dec. 31, 2013	$149,433	$166,888	($17,424)	($31)
Beginning balance, shares at Dec. 31, 2013	27,327	27,327	'	'
Net income	4,311	'	4,311	'
Comprehensive income	22	'	'	22
Issuance of common stock in acquisition	2,247	2,247	'	'
Issuance of common stock in acquisition, shares	'	82	'	'
Stock based compensation	834	834	'	'
Common stock issued under stock plans, net of shares withheld for employee taxes	310	310	'	'
Common stock issued under stock plans, net of shares withheld for employee taxes, shares	'	161	'	'
Ending balance at Jun. 30, 2014	$157,157	$170,279	($13,113)	($9)
Ending balance, shares at Jun. 30, 2014	27,570	27,570	'	'

CONDENSED_CONSOLIDATED_STATEME3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $)	6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013
OPERATING ACTIVITIES:	'	'
Net income	$4,311	$4,362
Adjustments to reconcile net income to net cash provided by operating activities:	'	'
Depreciation and amortization	5,123	3,773
Stock based compensation expense	834	710
Deferred income taxes	3,165	2,991
Provision for doubtful accounts	70	95
Loss on non-marketable equity investments	24	20
Other	728	714
Changes in operating assets and liabilities:	'	'
Accounts and unbilled receivables	-3,558	-6,144
Prepaid royalties	-3,841	1,501
Other prepaid expenses and other current assets	-705	-820
Other assets	53	53
Accounts payable	-992	548
Accrued royalties	2,721	-1,421
Accrued liabilities and accrued compensation and related expenses and other long-term liabilities	-520	-410
Deferred revenue	14,689	5,387
Net cash provided by operating activities	22,102	11,359
INVESTING ACTIVITIES:	'	'
Acquisitions, net of cash acquired	-12,501	-181
Proceeds from maturities of investments in marketable securities	29,098	55,947
Purchases of investments in marketable securities	-32,046	-51,539
Investments in non-marketable equity investments	-265	-250
Payments associated with capitalized software development	-2,689	-2,013
Purchases of property and equipment	-2,423	-1,243
Net cash (used in) provided by investing activities	-20,826	721
FINANCING ACTIVITIES:	'	'
Proceeds from exercise of stock options	462	1,682
Taxes paid related to net settlement of equity awards	-152	-158
Payment of earn-outs related to acquisitions	-261	-318
Net cash provided by financing activities	49	1,206
Net increase in cash and cash equivalents	1,325	13,286
Cash and cash equivalents at beginning of period	59,537	41,365
Cash and cash equivalents at end of period	60,862	54,651
NON-CASH INVESTING AND FINANCING ACTIVITIES:	'	'
Issuance of common stock in connection with acquisition	$2,247	$0

BASIS_OF_PRESENTATION

BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2014
Accounting Policies [Abstract]	'
BASIS OF PRESENTATION	'
	1. BASIS OF PRESENTATION
	The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (US GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, condensed consolidated financial statements do not include all of the information and footnotes required by US GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. All significant intercompany transactions have been eliminated in consolidation. Operating results for the three and six months ended June 30, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014.
	The balance sheet at December 31, 2013 is consistent with the audited financial statements at that date but does not include all of the information and footnotes required by US GAAP for a complete set of financial statements. For further information, refer to the consolidated financial statements and footnotes thereto for the year ended December 31, 2013 (included in the Company’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission on March 4, 2014).

RECENT_ACCOUNTING_PRONOUNCEMEN

RECENT ACCOUNTING PRONOUNCEMENTS	6 Months Ended
	Jun. 30, 2014
Accounting Changes And Error Corrections [Abstract]	'
RECENT ACCOUNTING PRONOUNCEMENTS	'
	2. RECENT ACCOUNTING PRONOUNCEMENTS
	In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific revenue recognition guidance throughout the Industry Topics of the Accounting Standards Codification. The updated guidance states that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance also provides for additional disclosures with respect to revenues and cash flows arising from contracts with customers. The standard will be effective for the first interim period within annual reporting periods beginning after December 15, 2016, and early adoption is not permitted. The Company is currently reviewing this standard to assess the impact on its future consolidated financial statements.

INCOME_TAXES

INCOME TAXES	6 Months Ended
	Jun. 30, 2014
Income Tax Disclosure [Abstract]	'
INCOME TAXES	'
	3. INCOME TAXES
	Income taxes are accounted for using the asset and liability method, whereby deferred tax assets and liabilities are determined based on the temporary differences between the financial statement and tax bases of assets and liabilities measured at tax rates that will be in effect for the year in which the differences are expected to affect taxable income.
	During the six months ended June 30, 2014 and 2013, the Company recorded a provision for income taxes of approximately $3.2 million and $3.0 million respectively. The Company’s effective tax rate for the six months ended June 30, 2014 and 2013 was 42.3% and 40.7%, respectively. The Company’s effective tax rate primarily reflects the statutory corporate income tax rate, the net effect of state taxes, and the effect of various permanent tax differences.

STOCK_BASED_COMPENSATION

STOCK BASED COMPENSATION	6 Months Ended
	Jun. 30, 2014
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]	'
STOCK BASED COMPENSATION	'
	4. STOCK BASED COMPENSATION
	The Company maintains two stock incentive plans. The Company accounts for its stock based compensation plans using the fair-value based method for costs related to share-based payments, including stock options and restricted share units (RSUs). During the six months ended June 30, 2014, the Company issued 70,080 RSUs with a weighted average grant date fair value of $28.71 per share, measured based on the closing fair market value of the Company’s stock on the date of grant. During the six months ended June 30, 2013, the Company issued 77,750 RSUs with a weighted average grant date fair value of $21.70 per share, measured based on the closing fair market value of the Company’s stock on the date of grant.
	Total stock based compensation expense recorded for the three and six months ended June 30, 2014 and 2013, which is recorded in the condensed consolidated statements of income, is as follows (in thousands):
		Three Months Ended				Six Months Ended
		June 30,				June 30,
		2014		2013		2014		2013
	Cost of revenues (excluding depreciation and amortization)	$	23	$	22	$	40	$	39
	Product development		53		46		97		79
	Sales and marketing		56		43		103		79
	Other general and administrative		318		289		594		513
	Total stock based compensation expense	$	450	$	400	$	834	$	710

EARNINGS_PER_SHARE

EARNINGS PER SHARE	6 Months Ended
	Jun. 30, 2014
Earnings Per Share [Abstract]	'
EARNINGS PER SHARE	'
	5. EARNINGS PER SHARE
	Basic earnings per share is computed by dividing the net income available to common shareholders for the period by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing the net income available to common shareholders for the period by the weighted average number of potentially dilutive common and common equivalent shares outstanding during the period. Common equivalent shares are composed of incremental common shares issuable upon the exercise of stock options and restricted share units subject to vesting. The dilutive effect of common equivalent shares is included in diluted earnings per share by application of the treasury stock method. The total number of common equivalent shares excluded from the calculations of diluted earnings per share, due to their anti-dilutive effect, was approximately 70,000 and 135,000 for the three months ended June 30, 2014 and 2013, respectively, and approximately 119,000 and 135,000 for the six months ended June 30, 2014 and 2013, respectively.
	The following table sets forth the computation of basic and diluted earnings per share for the three and six months ended June 30, 2014 and 2013 (in thousands, except per share data):
		Three Months Ended				Six Months Ended
		June 30,				June 30,
		2014		2013		2014		2013
	Numerator:
	Net income	$	2,364	$	2,422	$	4,311	$	4,362
	Denominator:
	Weighted-average shares outstanding		27,567		26,722		27,510		26,531
	Effect of dilutive shares		476		927		465		998
	Weighted-average diluted shares		28,043		27,649		27,975		27,529
	Basic earnings per share	$	0.09	$	0.09	$	0.16	$	0.16
	Diluted earnings per share	$	0.08	$	0.09	$	0.15	$	0.16

MARKETABLE_SECURITIES

MARKETABLE SECURITIES	6 Months Ended
	Jun. 30, 2014
Investments Debt And Equity Securities [Abstract]	'
MARKETABLE SECURITIES	'
	6. MARKETABLE SECURITIES
	At June 30, 2014 and December 31, 2013, the fair value of marketable securities, which were all classified as available for sale, included the following (in thousands):
		June 30, 2014
		Adjusted Cost		Unrealized		Unrealized			Fair Value
				Gains		Losses
	Level 2:
	Certificates of deposit	$	6,265	$	—	$	—		$	6,265
	Corporate debt securities		44,645		7		(16	)		44,636
	Subtotal		50,910		7		(16	)		50,901
	Total	$	50,910	$	7	$	(16	)	$	50,901
		December 31, 2013
		Adjusted Cost		Unrealized		Unrealized			Fair Value
				Gains		Losses
	Level 2:
	Certificates of deposit	$	2,260	$	—	$	—		$	2,260
	Corporate debt securities		46,430		—		(31	)		46,399
	Subtotal		48,690		—		(31	)		48,659
	Total	$	48,690	$	—	$	(31	)	$	48,659
	The carrying amounts reported in the condensed consolidated balance sheet approximate the fair value based on quoted market prices or alternative pricing sources and models utilizing market observable inputs. As of June 30, 2014, the Company does not consider any of its marketable securities to be other than temporarily impaired. During the six months ended June 30, 2014 and 2013, the Company did not reclassify any items out of accumulated other comprehensive income to net income. All investments in marketable securities are classified as a current asset on the balance sheet because the underlying securities mature within one year from the balance sheet date.

BUSINESS_COMBINATION

BUSINESS COMBINATION	6 Months Ended
	Jun. 30, 2014
Business Combinations [Abstract]	'
BUSINESS COMBINATION	'
	7. BUSINESS COMBINATION
	On March 3, 2014, the Company acquired all of the stock of Health Care Compliance Strategies, Inc. (HCCS), a Jericho, New York based company that specializes in healthcare compliance solutions and services. The Company acquired HCCS to further advance its suite of workforce development solutions, including its offering of compliance solutions. The consideration paid for HCCS consisted of approximately $13.0 million in cash and 81,614 shares of our common stock. The Company may make additional payments of up to $750,000, contingent upon the achievement of certain performance milestones within one year post-closing. The Company incurred approximately $500,000 in transaction costs associated with the acquisition, of which $350,000 were incurred during the six months ended June 30, 2014 and $150,000 were incurred during the year ended December 31, 2013. The transaction costs were recorded in other general and administrative expenses in the condensed consolidated statement of income. In allocating the purchase price, the Company has preliminarily recorded approximately $7.5 million of goodwill, $7.6 million of identifiable intangible assets, $2.4 million of tangible assets, and $1.5 million of liabilities. The goodwill balance is primarily attributed to assembled workforce, additional market opportunities of HCCS’s compliance solutions, and expected synergies from integrating HCCS’s products into our platform. The goodwill balance is deductible for U.S. income tax purposes. The allocation of purchase price is preliminary and may be subject to change within the measurement period of one year from the acquisition date. The primary areas of the preliminary purchase price allocation that are not finalized include the composition and valuation of intangible assets, goodwill, deferred revenue, contingent consideration, and final working capital adjustments. The results of operations for HCCS have been included in the Company’s condensed consolidated financial statements from the date of acquisition, and are also included in the HealthStream Workforce Development Solutions segment.
	During the second quarter of 2014, the Company determined the presentation of contingent consideration payments, or earn-outs, in connection with business combinations should be classified as a financing activity within the statement of cash flows. The Company previously classified such payments as an operating activity within the statement of cash flows. The Company has adjusted the statement of cash flows for the six-month period ended June 30, 2013 and will adjust the statement of cash flows for the nine-month period ended September 30, 2013 and the year ended December 31, 2013 when those financial statements are presented comparatively for the corresponding periods in 2014. The Company considers the adjustments to all aforementioned periods to be immaterial corrections of errors.
	The effect of the immaterial adjustments on the consolidated statement of cash flows for the respective periods listed below is as follows (in thousands):
		Previously		Adjustments			Adjusted
		Reported
	Net cash provided by operating activities, three months ended March 31, 2013	$	3,855	$	45		$	3,900
	Net cash provided by financing activities, three months ended March 31, 2013		742		(45	)		697
	Net cash provided by operating activities, six months ended June 30, 2013		11,041		318			11,359
	Net cash provided by financing activities, six months ended June 30, 2013		1,524		(318	)		1,206
	Net cash provided by operating activities, nine months ended September 30, 2013		22,854		357			23,211
	Net cash provided by financing activities, nine months ended September 30, 2013		2,827		(357	)		2,470
	Net cash provided by operating activities, year ended December 31, 2013		26,283		771			27,054
	Net cash provided by financing activities, year ended December 31, 2013		6,876		(771	)		6,105
	Net cash provided by operating activities, three months ended March 31, 2014		9,189		5			9,194
	Net cash provided by financing activities, three months ended March 31, 2014		297		(5	)		292

BUSINESS_SEGMENTS

BUSINESS SEGMENTS	6 Months Ended
	Jun. 30, 2014
Segment Reporting [Abstract]	'
BUSINESS SEGMENTS	'
	8. BUSINESS SEGMENTS
	The Company primarily provides services to healthcare organizations and other members within the healthcare industry. The Company’s services are primarily focused on the delivery of workforce development products and services (HealthStream Workforce Development Solutions), as well as survey and research services (HealthStream Research/Patient Experience Solutions). The accounting policies of the segments are the same as those described in the summary of significant accounting policies in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013.
	The Company measures segment performance based on operating income before income taxes and prior to the allocation of certain corporate overhead expenses, interest income, interest expense, and depreciation. The Unallocated component below includes corporate functions, such as accounting, human resources, legal, investor relations, administrative, and executive personnel, depreciation, a portion of amortization, and certain other expenses, which are not currently allocated in measuring segment performance. The following is the Company’s business segment information as of and for the three and six months ended June 30, 2014 and 2013 (in thousands).
			Three Months Ended						Six Months Ended
			June 30,						June 30,
			2014			2013			2014			2013
	Revenues
	Workforce Development		$	34,386		$	25,126		$	65,343		$	48,267
	Research/Patient Experience			8,090			6,793			15,482			13,298
	Total net revenue		$	42,476		$	31,919		$	80,825		$	61,565
			Three Months Ended						Six Months Ended
			June 30,						June 30,
			2014			2013			2014			2013
	Income from operations
	Workforce Development		$	8,864		$	7,514		$	16,744		$	14,330
	Research/Patient Experience			147			909			325			1,209
	Unallocated			(4,901	)		(4,317	)		(9,661	)		(8,261	)
	Total income from operations		$	4,110		$	4,106		$	7,408		$	7,278
			June 30, 2014			December 31, 2013
	Segment assets *
	Workforce Development		$	86,257		$	60,013
	Research/Patient Experience			33,318			34,727
	Unallocated			121,824			117,854
	Total assets		$	241,399		$	212,594
	*	Segment assets include accounts and unbilled receivables, prepaid and other current assets, other assets, capitalized software development, certain property and equipment, and intangible assets. Cash and cash equivalents and marketable securities are not allocated to individual segments, and are included within Unallocated. A significant portion of property and equipment assets are included within Unallocated.

COLLABORATIVE_ARRANGEMENT

COLLABORATIVE ARRANGEMENT	6 Months Ended
	Jun. 30, 2014
Organization Consolidation And Presentation Of Financial Statements [Abstract]	'
COLLABORATIVE ARRANGEMENT	'
	9. COLLABORATIVE ARRANGEMENT
	The Company participates in a collaborative arrangement, SimVenturesTM, with Laerdal Medical A/S (Laerdal Medical). The Company receives 50 percent of the profits or losses generated from this collaborative arrangement. For the six months ended June 30, 2014, the Company has recorded approximately $0.8 million of revenues and $0.9 million of expenses related to the collaborative arrangement. For the six months ended June 30, 2013, the Company recorded approximately $1.2 million of revenues and $1.0 million of expenses related to the collaborative arrangement. The Company has also recorded approximately $0.4 million of capitalized software development for SimVentures during 2014.

RECENT_ACCOUNTING_PRONOUNCEMEN1

RECENT ACCOUNTING PRONOUNCEMENTS (Policies)	6 Months Ended
	Jun. 30, 2014
Accounting Changes And Error Corrections [Abstract]	'
RECENT ACCOUNTING PRONOUNCEMENTS	'
	RECENT ACCOUNTING PRONOUNCEMENTS
	In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific revenue recognition guidance throughout the Industry Topics of the Accounting Standards Codification. The updated guidance states that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance also provides for additional disclosures with respect to revenues and cash flows arising from contracts with customers. The standard will be effective for the first interim period within annual reporting periods beginning after December 15, 2016, and early adoption is not permitted. The Company is currently reviewing this standard to assess the impact on its future consolidated financial statements.

STOCK_BASED_COMPENSATION_Table

STOCK BASED COMPENSATION (Tables)	6 Months Ended
	Jun. 30, 2014
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]	'
Stock Based Compensation Expense Recorded in Condensed Consolidated Statements of Income	'
	Total stock based compensation expense recorded for the three and six months ended June 30, 2014 and 2013, which is recorded in the condensed consolidated statements of income, is as follows (in thousands):
		Three Months Ended				Six Months Ended
		June 30,				June 30,
		2014		2013		2014		2013
	Cost of revenues (excluding depreciation and amortization)	$	23	$	22	$	40	$	39
	Product development		53		46		97		79
	Sales and marketing		56		43		103		79
	Other general and administrative		318		289		594		513
	Total stock based compensation expense	$	450	$	400	$	834	$	710

EARNINGS_PER_SHARE_Tables

EARNINGS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2014
Earnings Per Share [Abstract]	'
Computation of Basic and Diluted Earnings Per Share	'
	The following table sets forth the computation of basic and diluted earnings per share for the three and six months ended June 30, 2014 and 2013 (in thousands, except per share data):
		Three Months Ended				Six Months Ended
		June 30,				June 30,
		2014		2013		2014		2013
	Numerator:
	Net income	$	2,364	$	2,422	$	4,311	$	4,362
	Denominator:
	Weighted-average shares outstanding		27,567		26,722		27,510		26,531
	Effect of dilutive shares		476		927		465		998
	Weighted-average diluted shares		28,043		27,649		27,975		27,529
	Basic earnings per share	$	0.09	$	0.09	$	0.16	$	0.16
	Diluted earnings per share	$	0.08	$	0.09	$	0.15	$	0.16

MARKETABLE_SECURITIES_Tables

MARKETABLE SECURITIES (Tables)	6 Months Ended
	Jun. 30, 2014
Investments Debt And Equity Securities [Abstract]	'
Fair Value of Available for Sale Marketable Securities	'
	At June 30, 2014 and December 31, 2013, the fair value of marketable securities, which were all classified as available for sale, included the following (in thousands):
		June 30, 2014
		Adjusted Cost		Unrealized		Unrealized			Fair Value
				Gains		Losses
	Level 2:
	Certificates of deposit	$	6,265	$	—	$	—		$	6,265
	Corporate debt securities		44,645		7		(16	)		44,636
	Subtotal		50,910		7		(16	)		50,901
	Total	$	50,910	$	7	$	(16	)	$	50,901
		December 31, 2013
		Adjusted Cost		Unrealized		Unrealized			Fair Value
				Gains		Losses
	Level 2:
	Certificates of deposit	$	2,260	$	—	$	—		$	2,260
	Corporate debt securities		46,430		—		(31	)		46,399
	Subtotal		48,690		—		(31	)		48,659
	Total	$	48,690	$	—	$	(31	)	$	48,659

BUSINESS_COMBINATION_Tables

BUSINESS COMBINATION (Tables)	6 Months Ended
	Jun. 30, 2014
Business Combinations [Abstract]	'
The Effect of the Immaterial Adjustments on the Consolidated Statement of Cash Flows for the Respective Periods	'
	The effect of the immaterial adjustments on the consolidated statement of cash flows for the respective periods listed below is as follows (in thousands):
		Previously		Adjustments			Adjusted
		Reported
	Net cash provided by operating activities, three months ended March 31, 2013	$	3,855	$	45		$	3,900
	Net cash provided by financing activities, three months ended March 31, 2013		742		(45	)		697
	Net cash provided by operating activities, six months ended June 30, 2013		11,041		318			11,359
	Net cash provided by financing activities, six months ended June 30, 2013		1,524		(318	)		1,206
	Net cash provided by operating activities, nine months ended September 30, 2013		22,854		357			23,211
	Net cash provided by financing activities, nine months ended September 30, 2013		2,827		(357	)		2,470
	Net cash provided by operating activities, year ended December 31, 2013		26,283		771			27,054
	Net cash provided by financing activities, year ended December 31, 2013		6,876		(771	)		6,105
	Net cash provided by operating activities, three months ended March 31, 2014		9,189		5			9,194
	Net cash provided by financing activities, three months ended March 31, 2014		297		(5	)		292

BUSINESS_SEGMENTS_Tables

BUSINESS SEGMENTS (Tables)	6 Months Ended
	Jun. 30, 2014
Segment Reporting [Abstract]	'
Business Segment Information Based on Net Revenues and Net Income from Operations	'
	The following is the Company’s business segment information as of and for the three and six months ended June 30, 2014 and 2013 (in thousands).
			Three Months Ended						Six Months Ended
			June 30,						June 30,
			2014			2013			2014			2013
	Revenues
	Workforce Development		$	34,386		$	25,126		$	65,343		$	48,267
	Research/Patient Experience			8,090			6,793			15,482			13,298
	Total net revenue		$	42,476		$	31,919		$	80,825		$	61,565
			Three Months Ended						Six Months Ended
			June 30,						June 30,
			2014			2013			2014			2013
	Income from operations
	Workforce Development		$	8,864		$	7,514		$	16,744		$	14,330
	Research/Patient Experience			147			909			325			1,209
	Unallocated			(4,901	)		(4,317	)		(9,661	)		(8,261	)
	Total income from operations		$	4,110		$	4,106		$	7,408		$	7,278
Business Segment Information Based on Assets	'
			June 30, 2014			December 31, 2013
	Segment assets *
	Workforce Development		$	86,257		$	60,013
	Research/Patient Experience			33,318			34,727
	Unallocated			121,824			117,854
	Total assets		$	241,399		$	212,594
	*	Segment assets include accounts and unbilled receivables, prepaid and other current assets, other assets, capitalized software development, certain property and equipment, and intangible assets. Cash and cash equivalents and marketable securities are not allocated to individual segments, and are included within Unallocated. A significant portion of property and equipment assets are included within Unallocated.

Income_Taxes_Additional_Inform

Income Taxes - Additional Information (Detail) (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Income Tax Disclosure [Abstract]	'	'	'	'
Income tax provision	$1,769	$1,712	$3,165	$2,991
Effective tax rate	'	'	42.30%	40.70%

Stock_Based_Compensation_Addit

Stock Based Compensation - Additional Information (Detail) (USD $)	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Number of incentive plans	2	'
RSUs [Member]	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Restricted share units issued	70,080	77,750
Weighted average grant date fair value, restricted share unit	$28.71	$21.70

Stock_Based_Compensation_Stock

Stock Based Compensation - Stock Based Compensation Expense Recorded in Condensed Consolidated Statements of Income (Detail) (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'	'	'
Total stock based compensation expense	$450	$400	$834	$710
Cost of Revenues (Excluding Depreciation and Amortization) [Member]	'	'	'	'
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'	'	'
Total stock based compensation expense	23	22	40	39
Product Development [Member]	'	'	'	'
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'	'	'
Total stock based compensation expense	53	46	97	79
Sales and Marketing [Member]	'	'	'	'
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'	'	'
Total stock based compensation expense	56	43	103	79
Other General and Administrative [Member]	'	'	'	'
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'	'	'
Total stock based compensation expense	$318	$289	$594	$513

Earnings_Per_Share_Additional_

Earnings Per Share - Additional Information (Detail)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Earnings Per Share [Abstract]	'	'	'	'
Total number of common equivalent shares excluded from the calculations of diluted earnings per share	70,000	135,000	119,000	135,000

Earnings_Per_Share_Computation

Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Detail) (USD $)	3 Months Ended		6 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Numerator:	'	'	'	'
Net income	$2,364	$2,422	$4,311	$4,362
Denominator:	'	'	'	'
Weighted-average shares outstanding	27,567	26,722	27,510	26,531
Effect of dilutive shares	476	927	465	998
Weighted-average diluted shares	28,043	27,649	27,975	27,529
Basic earnings per share	$0.09	$0.09	$0.16	$0.16
Diluted earnings per share	$0.08	$0.09	$0.15	$0.16

Marketable_Securities_Fair_Val

Marketable Securities - Fair Value of Available for Sale Marketable Securities (Detail) (USD $)	Jun. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Schedule of Available-for-sale Securities [Line Items]	'	'
Available for sale securities, Fair Value	$50,901	$48,659
Level 2 [Member]	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Available for sale securities, Adjusted Cost	50,910	48,690
Available for sale securities, Unrealized Gains	7	0
Available for sale securities, Unrealized Losses	-16	-31
Available for sale securities, Fair Value	50,901	48,659
Level 2 [Member] | Certificates of Deposit [Member]	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Available for sale securities, Adjusted Cost	6,265	2,260
Available for sale securities, Unrealized Gains	0	0
Available for sale securities, Unrealized Losses	0	0
Available for sale securities, Fair Value	6,265	2,260
Level 2 [Member] | Corporate Debt Securities [Member]	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Available for sale securities, Adjusted Cost	44,645	46,430
Available for sale securities, Unrealized Gains	7	0
Available for sale securities, Unrealized Losses	-16	-31
Available for sale securities, Fair Value	$44,636	$46,399

Business_Combination_Additiona

Business Combination - Additional Information (Detail) (USD $)	6 Months Ended	12 Months Ended
	Jun. 30, 2014	Dec. 31, 2013
Business Acquisition [Line Items]	'	'
Purchase price allocation for goodwill	$43,233,000	$35,746,000
Health Care Compliance Strategies, Inc. [Member]	'	'
Business Acquisition [Line Items]	'	'
Acquisition date of assets	3-Mar-14	'
Consideration paid for acquisition in cash	13,000,000	'
Consideration paid for acquisition in shares	81,614	'
Additional consideration paid for acquisition in cash	750,000	'
Contingent upon achievement of certain financial targets and business outcome, term	'1 year	'
Transaction costs associated with the HCCS acquisition	500,000	'
Transaction costs associated with the HCCS acquisition	350,000	150,000
Purchase price allocation for goodwill	7,500,000	'
Purchase price allocation for identifiable intangible assets	7,600,000	'
Purchase price allocation for net tangible assets	2,400,000	'
Purchase price allocation for liabilities	$1,500,000	'
Preliminary purchase price allocation measurement period	'1 year	'

Business_Combination_The_Effec

Business Combination - The Effect of the Immaterial Adjustments on the Consolidated Statement of Cash Flows for the Respective Periods (Detail) (USD $)

6 Months Ended

3 Months Ended

6 Months Ended

9 Months Ended

12 Months Ended

3 Months Ended

6 Months Ended

9 Months Ended

12 Months Ended

3 Months Ended

6 Months Ended

9 Months Ended

12 Months Ended

In Thousands, unless otherwise specified

Jun. 30, 2014

Jun. 30, 2013

Mar. 31, 2014

Mar. 31, 2013

Jun. 30, 2013

Sep. 30, 2013

Dec. 31, 2013

Mar. 31, 2014

Mar. 31, 2013

Jun. 30, 2013

Sep. 30, 2013

Dec. 31, 2013

Mar. 31, 2014

Mar. 31, 2013

Jun. 30, 2013

Sep. 30, 2013

Dec. 31, 2013

Previously Reported [Member]

Previously Reported [Member]

Previously Reported [Member]

Previously Reported [Member]

Previously Reported [Member]

Adjustments [Member]

Adjustments [Member]

Adjustments [Member]

Adjustments [Member]

Adjustments [Member]

Adjusted [Member]

Adjusted [Member]

Adjusted [Member]

Adjusted [Member]

Adjusted [Member]

Schedule Of Condensed Consolidating Statement Of Cash Flows [Line Items]

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Net cash provided by operating activities

$22,102

$11,359

$9,189

$3,855

$11,041

$22,854

$26,283

$5

$45

$318

$357

$771

$9,194

$3,900

$11,359

$23,211

$27,054

Net cash provided by financing activities

$49

$1,206

$297

$742

$1,524

$2,827

$6,876

($5)

($45)

($318)

($357)

($771)

$292

$697

$1,206

$2,470

$6,105

Business_Segments_Business_Seg

Business Segments - Business Segment Information Based on Net Revenues and Net Income from Operations (Detail) (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Revenues	'	'	'	'
Total net revenue	$42,476	$31,919	$80,825	$61,565
Income from operations	'	'	'	'
Total income from operations	4,110	4,106	7,408	7,278
Operating Segments [Member] | Workforce Development [Member]	'	'	'	'
Revenues	'	'	'	'
Total net revenue	34,386	25,126	65,343	48,267
Income from operations	'	'	'	'
Total income from operations	8,864	7,514	16,744	14,330
Operating Segments [Member] | Research/Patient Experience [Member]	'	'	'	'
Revenues	'	'	'	'
Total net revenue	8,090	6,793	15,482	13,298
Income from operations	'	'	'	'
Total income from operations	147	909	325	1,209
Unallocated [Member]	'	'	'	'
Income from operations	'	'	'	'
Total income from operations	($4,901)	($4,317)	($9,661)	($8,261)

Business_Segments_Business_Seg1

Business Segments - Business Segment Information Based on Assets (Detail) (USD $)	Jun. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Segment Reporting Information [Line Items]	'	'
Total assets	$241,399	$212,594
Operating Segments [Member] | Workforce Development [Member]	'	'
Segment Reporting Information [Line Items]	'	'
Total assets	86,257	60,013
Operating Segments [Member] | Research/Patient Experience [Member]	'	'
Segment Reporting Information [Line Items]	'	'
Total assets	33,318	34,727
Unallocated [Member]	'	'
Segment Reporting Information [Line Items]	'	'
Total assets	$121,824	$117,854

Collaborative_Arrangement_Addi

Collaborative Arrangement - Additional Information (Detail) (USD $)	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]	'	'
Profits or losses received from collaborative arrangement	50.00%	'
Revenues related to collaborative arrangement	$800,000	$1,200,000
Expenses related to collaborative arrangement	900,000	1,000,000
Payments associated with capitalized software development	2,689,000	2,013,000
SimVentures [Member]	'	'
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]	'	'
Payments associated with capitalized software development	$400,000	'