HealthStream (HSTM) 10-Q 27 Oct 22 2022 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2022	Oct. 24, 2022
Document Information [Line Items]
Entity Central Index Key	0001095565
Entity Registrant Name	HEALTHSTREAM INC
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2022
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2022
Document Transition Report	false
Entity File Number	000-27701
Entity Incorporation, State or Country Code	TN
Entity Tax Identification Number	62-1443555
Entity Address, Address Line One	500 11th Avenue North, Suite 1000
Entity Address, City or Town	Nashville
Entity Address, State or Province	TN
Entity Address, Postal Zip Code	37203
City Area Code	615
Local Phone Number	301-3100
Title of 12(b) Security	Common Stock (Par Value $0.00)
Trading Symbol	HSTM
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		30,573,066

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands		Sep. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents		$ 48,257	$ 46,905
Marketable securities		3,587	5,041
Accounts receivable, net of allowance for doubtful accounts of $661 and $853 at September 30, 2022 and December 31, 2021, respectively		26,427	30,308
Accounts receivable - unbilled		6,243	4,612
Prepaid royalties, net of amortization		9,261	9,155
Other prepaid expenses and other current assets		10,576	10,824
Total current assets		104,351	106,845
Property and equipment, net of accumulated depreciation of $21,262 and $17,999 at September 30, 2022 and December 31, 2021, respectively		15,658	17,950
Capitalized software development, net of accumulated amortization of $100,024 and $86,097 at September 30, 2022 and December 31, 2021, respectively		35,537	32,412
Operating lease right of use assets, net		23,343	25,168
Goodwill		188,367	182,501
Deferred tax assets		601	601
Deferred commissions		26,377	24,012
Non-marketable equity investments		4,644	7,043
Other assets		798	1,016
Total assets	[1]	481,197	486,753
Current liabilities:
Accounts payable and accrued expenses		22,196	21,497
Accrued royalties		5,609	5,037
Deferred revenue		77,585	73,816
Total current liabilities		105,390	100,350
Deferred tax liabilities		18,761	18,146
Deferred revenue, noncurrent		1,264	1,583
Operating lease liability, noncurrent		24,041	26,178
Other long term liabilities		1,459	1,477
Commitments and contingencies
Shareholders’ equity:
Common stock, no par value, 75,000 shares authorized; 30,573 and 31,327 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively		253,934	270,791
Retained earnings		77,764	68,122
Accumulated other comprehensive (loss) income		(1,416)	106
Total shareholders’ equity		330,282	339,019
Total liabilities and shareholders’ equity		481,197	486,753
Customer-Related Intangible Assets [Member]
Current assets:
Customer-related intangibles, net of accumulated amortization of $52,204 and $45,615 at September 30, 2022 and December 31, 2021, respectively		62,571	68,803
Other Intangible Assets [Member]
Current assets:
Customer-related intangibles, net of accumulated amortization of $52,204 and $45,615 at September 30, 2022 and December 31, 2021, respectively		$ 18,950	$ 20,402
[1]Segment assets include accounts and unbilled receivables, prepaid royalties, prepaid and other current assets, other assets, capitalized software development, deferred commissions, certain property and equipment, goodwill, and intangible assets. Cash and cash equivalents, marketable securities, non-marketable equity investments, and certain ROU assets are not allocated to individual segments and are included within Unallocated. A significant portion of property and equipment assets are included within Unallocated.

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - USD ($) $ / shares in Thousands, $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Accounts Receivable, Allowance for Credit Loss, Current	$ 661	$ 853
Accumulated amortization on property and equipment	21,262	17,999
Accumulated amortization on capitalized software development	$ 100,024	$ 86,097
Common stock, shares authorized (in shares)	75,000	75,000
Common stock, shares issued (in shares)	30,573	31,327
Common stock, shares outstanding (in shares)	30,573	31,327
Common stock, par value (in dollars per share)	$ 0	$ 0
Customer-Related Intangible Assets [Member]
Accumulated amortization on intangible assets	$ 52,204	$ 45,615
Other Intangible Assets [Member]
Accumulated amortization on intangible assets	$ 21,054	$ 16,752

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Revenues, net	$ 67,285	$ 64,091	$ 198,290	$ 192,374
Operating costs and expenses:
Cost of revenues (excluding depreciation and amortization)	23,374	22,585	67,606	68,053
Product development	11,476	10,344	32,470	30,205
Sales and marketing	11,365	10,232	32,652	28,713
Other general and administrative expenses	9,096	10,004	27,856	29,445
Depreciation and amortization	9,592	9,141	28,334	27,443
Total operating costs and expenses	64,903	62,306	188,918	183,859
Operating income	2,382	1,785	9,372	8,515
Other income (loss), net	2,543	(99)	2,945	(250)
Income before income tax provision	4,925	1,686	12,317	8,265
Income tax provision	1,259	186	2,675	2,033
Net income	$ 3,666	$ 1,500	$ 9,642	$ 6,232
Net income per share:
Basic (in dollars per share)	$ 0.12	$ 0.05	$ 0.31	$ 0.20
Diluted (in dollars per share)	$ 0.12	$ 0.05	$ 0.31	$ 0.20
Weighted average shares of common stock outstanding:
Basic (in shares)	30,570	31,558	30,672	31,538
Diluted (in shares)	30,662	31,684	30,717	31,609

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Net income	$ 3,666	$ 1,500	$ 9,642	$ 6,232
Other comprehensive income, net of taxes:
Foreign currency translation adjustments	(1,017)	(470)	(1,521)	107
Unrealized gain (loss) on marketable securities	3	(1)	(1)	7
Total other comprehensive (loss) income	(1,014)	(471)	(1,522)	114
Comprehensive income	$ 2,652	$ 1,029	$ 8,120	$ 6,346

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Common Stock Including Additional Paid in Capital [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Total
Balance (in shares) at Dec. 31, 2020	31,493
Balance at Dec. 31, 2020	$ 271,784	$ 62,277	$ 1	$ 334,062
Net income	0	2,291	0	2,291
Comprehensive income (loss)	0	0	234	234
Stock-based compensation	$ 616	0	0	616
Common stock issued under stock plans, net of shares withheld for employee taxes (in shares)	60
Common stock issued under stock plans, net of shares withheld for employee taxes	$ (399)	0	0	(399)
Balance (in shares) at Mar. 31, 2021	31,553
Balance at Mar. 31, 2021	$ 272,001	64,569	235	336,805
Balance (in shares) at Dec. 31, 2020	31,493
Balance at Dec. 31, 2020	$ 271,784	62,277	1	334,062
Net income				6,232
Comprehensive income (loss)				114
Balance (in shares) at Sep. 30, 2021	31,562
Balance at Sep. 30, 2021	$ 273,573	68,510	115	342,198
Balance (in shares) at Mar. 31, 2021	31,553
Balance at Mar. 31, 2021	$ 272,001	64,569	235	336,805
Net income	0	2,441	0	2,441
Comprehensive income (loss)	0	0	351	351
Stock-based compensation	$ 782	0	0	782
Common stock issued under stock plans, net of shares withheld for employee taxes (in shares)	1
Common stock issued under stock plans, net of shares withheld for employee taxes	$ 0	0	0	0
Balance (in shares) at Jun. 30, 2021	31,554
Balance at Jun. 30, 2021	$ 272,783	67,010	586	340,379
Net income	0	1,500	0	1,500
Comprehensive income (loss)	0	0	(471)	(471)
Stock-based compensation	$ 862	0	0	862
Common stock issued under stock plans, net of shares withheld for employee taxes (in shares)	8
Common stock issued under stock plans, net of shares withheld for employee taxes	$ (72)	0	0	(72)
Balance (in shares) at Sep. 30, 2021	31,562
Balance at Sep. 30, 2021	$ 273,573	68,510	115	342,198
Balance (in shares) at Dec. 31, 2021	31,327
Balance at Dec. 31, 2021	$ 270,791	68,122	106	339,019
Net income	0	2,893	0	2,893
Comprehensive income (loss)	0	0	272	272
Stock-based compensation	$ 774	0	0	774
Common stock issued under stock plans, net of shares withheld for employee taxes (in shares)	83
Common stock issued under stock plans, net of shares withheld for employee taxes	$ (497)	0	0	(497)
Repurchase of common stock (in shares)	(892)
Repurchase of common stock	$ (19,889)	0	0	(19,889)
Balance (in shares) at Mar. 31, 2022	30,518
Balance at Mar. 31, 2022	$ 251,179	71,015	378	322,572
Balance (in shares) at Dec. 31, 2021	31,327
Balance at Dec. 31, 2021	$ 270,791	68,122	106	339,019
Net income				9,642
Comprehensive income (loss)				(1,522)
Balance (in shares) at Sep. 30, 2022	30,573
Balance at Sep. 30, 2022	$ 253,934	77,764	(1,416)	330,282
Balance (in shares) at Mar. 31, 2022	30,518
Balance at Mar. 31, 2022	$ 251,179	71,015	378	322,572
Net income	0	3,083	0	3,083
Comprehensive income (loss)	0	0	(780)	(780)
Stock-based compensation	$ 917	0	0	917
Common stock issued under stock plans, net of shares withheld for employee taxes (in shares)	2
Common stock issued under stock plans, net of shares withheld for employee taxes	$ (1)	0	0	(1)
Repurchase of common stock (in shares)	(159)
Repurchase of common stock	$ (3,143)	0	0	(3,143)
Issuance of common stock in acquisition (in shares)	209
Issuance of common stock in acquisition	$ 4,084			4,084
Balance (in shares) at Jun. 30, 2022	30,570
Balance at Jun. 30, 2022	$ 253,036	74,098	(402)	326,732
Net income	0	3,666	0	3,666
Comprehensive income (loss)	0	0	(1,014)	(1,014)
Stock-based compensation	$ 918	0	0	918
Common stock issued under stock plans, net of shares withheld for employee taxes (in shares)	3
Common stock issued under stock plans, net of shares withheld for employee taxes	$ (20)	0	0	(20)
Balance (in shares) at Sep. 30, 2022	30,573
Balance at Sep. 30, 2022	$ 253,934	$ 77,764	$ (1,416)	$ 330,282

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
OPERATING ACTIVITIES:
Net income	$ 9,642	$ 6,232
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	28,334	27,443
Stock-based compensation	2,609	2,260
Amortization of deferred commissions	7,826	6,900
Provision for credit losses	400	99
Deferred income taxes	1,225	2,066
Gain on sale of fixed assets	(25)	0
Loss on non-marketable equity investments	621	258
Non-cash paid time off expense	0	(1,011)
Change in fair value of non-marketable equity investments	(3,596)	0
Other	30	132
Changes in operating assets and liabilities:
Accounts and unbilled receivables	(2,273)	(13,907)
Prepaid royalties	(106)	(162)
Other prepaid expenses and other current assets	709	1,335
Deferred commissions	(10,192)	(9,854)
Other assets	219	(278)
Accounts payable and accrued expenses	942	(3,062)
Accrued royalties	572	(3,606)
Deferred revenue	1,597	(6,223)
Net cash provided by operating activities	43,080	36,436
INVESTING ACTIVITIES:
Business combinations, net of cash acquired	(4,009)	(731)
Proceeds from maturities of marketable securities	7,025	9,931
Purchases of marketable securities	(5,601)	(5,223)
Payments to acquire equity method investments	0	(1,750)
Payments associated with capitalized software development	(17,392)	(16,577)
Proceeds from sale of fixed assets	26	0
Proceeds from sale of non-marketable equity investments	3,494	0
Purchases of property and equipment	(1,570)	(2,602)
Net cash used in investing activities	(18,027)	(16,952)
FINANCING ACTIVITIES:
Taxes paid related to net settlement of equity awards	(518)	(471)
Repurchases of common stock	(23,137)	0
Payment of cash dividends	0	(19)
Net cash used in financing activities	(23,655)	(490)
Effect of exchange rate changes on cash and cash equivalents	(46)	(101)
Net increase in cash and cash equivalents	1,352	18,893
Cash and cash equivalents at beginning of period	46,905	36,566
Cash and cash equivalents at end of period	$ 48,257	$ 55,459

Note 1 - Basis of Presentation

Note 1 - Basis of Presentation	9 Months Ended
	Sep. 30, 2022
Notes to Financial Statements
Business Description and Basis of Presentation [Text Block]	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 10 not three nine September 30, 2022 not may December 31, 2022. The Condensed Consolidated Balance Sheet at December 31, 2021 not December 31, 2021 10 February 28, 2022).

Note 2 - Recent Accounting Pron

Note 2 - Recent Accounting Pronouncements	9 Months Ended
	Sep. 30, 2022
Notes to Financial Statements
New Accounting Pronouncements [Text Block]	2. Accounting Standards Recently Adopted In October 2021, 2021 08 , Business Combinations (Topic 805 606 , Revenue from Contracts with Customers first December 15, 2022 January 1, 2022, not not

Note 3 - Revenue Recognition an

Note 3 - Revenue Recognition and Sales Commissions	9 Months Ended
	Sep. 30, 2022
Notes to Financial Statements
Revenue from Contract with Customer [Text Block]	3. Revenue Recognition Revenues are recognized when control of the promised goods or services is transferred to the customer in an amount that reflects the consideration the Company expects to be entitled in exchange for transferring those goods or services. Revenue is recognized based on the following five • Identification of the contract with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, the Company satisfies a performance obligation The following table represents revenues disaggregated by revenue source (in thousands). Sales taxes are excluded from revenues. Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 Business Segments Workforce Solutions Provider Solutions Consolidated Workforce Solutions Provider Solutions Consolidated Subscription services $ 52,347 $ 11,720 $ 64,067 $ 153,871 $ 34,742 $ 188,613 Professional services 1,716 1,502 3,218 4,705 4,972 9,677 Total revenues, net $ 54,063 $ 13,222 $ 67,285 $ 158,576 $ 39,714 $ 198,290 Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 Business Segments Workforce Solutions Provider Solutions Consolidated Workforce Solutions Provider Solutions Consolidated Subscription services $ 49,729 $ 10,973 $ 60,702 $ 150,239 $ 32,475 $ 182,714 Professional services 1,426 1,963 3,389 4,320 5,340 9,660 Total revenues, net $ 51,155 $ 12,936 $ 64,091 $ 154,559 $ 37,815 $ 192,374 For the three September 30, 2022 2021, nine September 30, 2022 2021 Deferred revenue represents contract liabilities that are recorded when cash payments are received or are due in advance of our satisfaction of performance obligations. During the three September 30, 2022 2021 nine September 30, 2022 2021 September 30, 2022 44% Sales Commissions Sales commissions earned by our sales force are considered incremental and recoverable costs of obtaining a contract with a customer. Under ASC 606, not three three September 30, 2022 2021 nine September 30, 2022 2021

Note 4 - Income Taxes

Note 4 - Income Taxes	9 Months Ended
	Sep. 30, 2022
Notes to Financial Statements
Income Tax Disclosure [Text Block]	4. 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. The Company computes its interim period provision for income taxes by applying the estimated annual effective tax rate to year-to-date pretax income or loss and adjusts the provision for discrete tax items recorded in the period. During the three September 30, 2022 2021 nine September 30, 2022 2021 22% 25% nine September 30, 2022 2021 nine September 30, 2022 nine September 30, 2021

Note 5 - Shareholders' Equity

Note 5 - Shareholders' Equity	9 Months Ended
	Sep. 30, 2022
Notes to Financial Statements
Stockholders' Equity Note Disclosure [Text Block]	5. SHAREHOLDERS EQUITY Stock-Based Compensation The Company has stock awards outstanding under its 2016 2022 2022 May 26, 2022. nine September 30, 2022 nine September 30, 2021 During 2018 , five 2022 nine September 30, 2022 During the nine September 30, 2022 five 2022, 2023, 2024, 2025, 2026, first 2022 nine September 30, 2022 2022 2022 not 2023, 2024, 2025, 2026, 77,388 Total stock-based compensation expense recognized in the Condensed Consolidated Statements of Income is as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Cost of revenues (excluding depreciation and amortization) $ 44 $ 31 $ 126 $ 82 Product development 151 111 428 329 Sales and marketing 98 76 283 217 Other general and administrative 625 644 1,772 1,632 Total stock-based compensation expense $ 918 $ 862 $ 2,609 $ 2,260 Share Repurchase Plan On November 30, 2021 , March 8, 2022 , nine September 30, 2022 , On March 14, 2022, March 13, 2023, nine September 30, 2022 three September 30, 2022.

Note 6 - Earnings Per Share

Note 6 - Earnings Per Share	9 Months Ended
	Sep. 30, 2022
Notes to Financial Statements
Earnings Per Share [Text Block]	6. 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 RSUs 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 or contingent performance conditions, was approximately 205,000 and 26,000 for the three September 30, 2022 2021 nine September 30, 2022 2021 The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share data): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Numerator: Net income $ 3,666 $ 1,500 $ 9,642 $ 6,232 Denominator: Weighted-average shares outstanding 30,570 31,558 30,672 31,538 Effect of dilutive shares 92 126 45 71 Weighted-average diluted shares 30,662 31,684 30,717 31,609 Net income per share: Basic $ 0.12 $ 0.05 $ 0.31 $ 0.20 Diluted $ 0.12 $ 0.05 $ 0.31 $ 0.20

Note 7 - Marketable Securities

Note 7 - Marketable Securities	9 Months Ended
	Sep. 30, 2022
Notes to Financial Statements
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]	7. The fair value of marketable securities, which were all classified as available for sale and which the Company does not September 30, 2022 Adjusted Cost Unrealized Gains Unrealized Losses Fair Value Level 2: Corporate debt securities $ 998 $ — $ — $ 998 U.S. government debt securities 2,591 — (2 ) 2,589 Total $ 3,589 $ — $ (2 ) $ 3,587 December 31, 2021 Adjusted Cost Unrealized Gains Unrealized Losses Fair Value Level 2: Corporate debt securities $ 5,043 $ — $ (2 ) $ 5,041 Total $ 5,043 $ — $ (2 ) $ 5,041 The carrying amounts reported in the Condensed Consolidated Balance Sheets approximate the fair value based on quoted market prices or alternative pricing sources and models utilizing market observable inputs. As of September 30, 2022 not one

Note 8 - Business Combination

Note 8 - Business Combination	9 Months Ended
	Sep. 30, 2022
Notes to Financial Statements
Business Combination Disclosure [Text Block]	8. On May 18, 2022 , 82% 18%. not

Note 9 - Business Segments

Note 9 - Business Segments	9 Months Ended
	Sep. 30, 2022
Notes to Financial Statements
Segment Reporting Disclosure [Text Block]	9. The Company provides services to healthcare organizations and other members within the healthcare industry. The Company’s services are focused on the delivery of workforce training, certification, assessment, development, and scheduling products and services (Workforce Solutions) and provider credentialing, privileging, call center, and enrollment products and services (Provider Solutions). 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, gains and losses from equity investments, and depreciation. The Unallocated component below includes corporate functions, such as accounting, human resources, legal, investor relations, information systems, administrative and executive personnel, depreciation, a portion of amortization, and certain other expenses, which are not Three Months Ended September 30, Nine Months Ended September 30, Revenues, net: 2022 2021 2022 2021 Workforce Solutions $ 54,063 $ 51,155 $ 158,576 $ 154,559 Provider Solutions 13,222 12,936 39,714 37,815 Total revenues, net $ 67,285 $ 64,091 $ 198,290 $ 192,374 Operating income: Workforce Solutions $ 8,609 $ 7,732 $ 26,761 $ 25,981 Provider Solutions 1,147 1,974 5,159 6,195 Unallocated (7,374 ) (7,921 ) (22,548 ) (23,661 ) Total operating income $ 2,382 $ 1,785 $ 9,372 $ 8,515 Segment assets * September 30, 2022 December 31, 2021 Workforce Solutions $ 260,779 $ 258,864 Provider Solutions 131,720 137,008 Unallocated 88,698 90,881 Total assets $ 481,197 $ 486,753 * Segment assets include accounts and unbilled receivables, prepaid royalties, prepaid and other current assets, other assets, capitalized software development, deferred commissions, certain property and equipment, goodwill, and intangible assets. Cash and cash equivalents, marketable securities, non-marketable equity investments, and certain ROU assets are not

Note 10 - Debt

Note 10 - Debt	9 Months Ended
	Sep. 30, 2022
Notes to Financial Statements
Debt Disclosure [Text Block]	10. Revolving Credit Facility On October 28, 2020, November 24, 2014 October 28, 2023. may At the Company’s election, the borrowings under the Revolving Credit Facility bear interest at either ( 1 one 2 six October 28, 2023, no The purpose of the Revolving Credit Facility is for general working capital needs, permitted acquisitions (as defined in the Revolving Credit Facility), and for stock repurchase and/or redemption transactions that the Company may The Revolving Credit Facility contains certain covenants that, among other things, restrict additional indebtedness, liens and encumbrances, changes to the character of the Company’s business, acquisitions, asset dispositions, mergers and consolidations, sale or discount of receivables, creation or acquisitions of additional subsidiaries, and other matters customarily restricted in such agreements. In addition, the Revolving Credit Facility requires the Company to meet certain financial tests, including, without limitation: • a funded debt leverage ratio (consolidated debt/consolidated EBITDA) of not 1.0; • an interest coverage ratio (consolidated EBITDA/consolidated interest expense) of not 1.0. As of September 30, 2022 three nine September 30, 2022

Significant Accounting Policies

Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Recently Adopted Accounting Standards Policy [Policy Text Block]	Accounting Standards Recently Adopted In October 2021, 2021 08 , Business Combinations (Topic 805 606 , Revenue from Contracts with Customers first December 15, 2022 January 1, 2022, not not

Note 3 - Revenue Recognition _2

Note 3 - Revenue Recognition and Sales Commissions (Tables)	9 Months Ended
	Sep. 30, 2022
Notes Tables
Disaggregation of Revenue [Table Text Block]	Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 Business Segments Workforce Solutions Provider Solutions Consolidated Workforce Solutions Provider Solutions Consolidated Subscription services $ 52,347 $ 11,720 $ 64,067 $ 153,871 $ 34,742 $ 188,613 Professional services 1,716 1,502 3,218 4,705 4,972 9,677 Total revenues, net $ 54,063 $ 13,222 $ 67,285 $ 158,576 $ 39,714 $ 198,290 Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 Business Segments Workforce Solutions Provider Solutions Consolidated Workforce Solutions Provider Solutions Consolidated Subscription services $ 49,729 $ 10,973 $ 60,702 $ 150,239 $ 32,475 $ 182,714 Professional services 1,426 1,963 3,389 4,320 5,340 9,660 Total revenues, net $ 51,155 $ 12,936 $ 64,091 $ 154,559 $ 37,815 $ 192,374

Note 5 - Shareholders' Equity (

Note 5 - Shareholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2022
Notes Tables
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block]	Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Cost of revenues (excluding depreciation and amortization) $ 44 $ 31 $ 126 $ 82 Product development 151 111 428 329 Sales and marketing 98 76 283 217 Other general and administrative 625 644 1,772 1,632 Total stock-based compensation expense $ 918 $ 862 $ 2,609 $ 2,260

Note 6 - Earnings Per Share (Ta

Note 6 - Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2022
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Numerator: Net income $ 3,666 $ 1,500 $ 9,642 $ 6,232 Denominator: Weighted-average shares outstanding 30,570 31,558 30,672 31,538 Effect of dilutive shares 92 126 45 71 Weighted-average diluted shares 30,662 31,684 30,717 31,609 Net income per share: Basic $ 0.12 $ 0.05 $ 0.31 $ 0.20 Diluted $ 0.12 $ 0.05 $ 0.31 $ 0.20

Note 7 - Marketable Securities

Note 7 - Marketable Securities (Tables)	9 Months Ended
	Sep. 30, 2022
Notes Tables
Debt Securities, Available-for-Sale [Table Text Block]	September 30, 2022 Adjusted Cost Unrealized Gains Unrealized Losses Fair Value Level 2: Corporate debt securities $ 998 $ — $ — $ 998 U.S. government debt securities 2,591 — (2 ) 2,589 Total $ 3,589 $ — $ (2 ) $ 3,587 December 31, 2021 Adjusted Cost Unrealized Gains Unrealized Losses Fair Value Level 2: Corporate debt securities $ 5,043 $ — $ (2 ) $ 5,041 Total $ 5,043 $ — $ (2 ) $ 5,041

Note 9 - Business Segments (Tab

Note 9 - Business Segments (Tables)	9 Months Ended
	Sep. 30, 2022
Notes Tables
Reconciliation of Revenue and Operating Profit Loss from Segments to Consolidated [Table Text Block]	Three Months Ended September 30, Nine Months Ended September 30, Revenues, net: 2022 2021 2022 2021 Workforce Solutions $ 54,063 $ 51,155 $ 158,576 $ 154,559 Provider Solutions 13,222 12,936 39,714 37,815 Total revenues, net $ 67,285 $ 64,091 $ 198,290 $ 192,374 Operating income: Workforce Solutions $ 8,609 $ 7,732 $ 26,761 $ 25,981 Provider Solutions 1,147 1,974 5,159 6,195 Unallocated (7,374 ) (7,921 ) (22,548 ) (23,661 ) Total operating income $ 2,382 $ 1,785 $ 9,372 $ 8,515
Reconciliation of Assets from Segment to Consolidated [Table Text Block]	Segment assets * September 30, 2022 December 31, 2021 Workforce Solutions $ 260,779 $ 258,864 Provider Solutions 131,720 137,008 Unallocated 88,698 90,881 Total assets $ 481,197 $ 486,753

Note 3 - Revenue Recognition _3

Note 3 - Revenue Recognition and Sales Commissions 1 (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Accounts Receivable, Credit Loss Expense (Reversal)			$ 400,000	$ 99,000
Contract with Customer, Liability, Revenue Recognized	$ 39,900,000	$ 39,400,000	67,900,000	59,300,000
Revenue, Remaining Performance Obligation, Amount	$ 473,000,000		$ 473,000,000
Revenue, Remaining Performance Obligation, Percentage	44%		44%
Sales Commissions, Amortization Term (Year)			3 years
Amortization of Deferred Sales Commissions	$ 2,800,000	2,400,000	$ 7,826,000	6,900,000
Customer Contracts [Member]
Accounts Receivable, Credit Loss Expense (Reversal)	$ 44,000	$ 96,000	$ 400,000	$ 100,000

Note 3 - Revenue Recognition _4

Note 3 - Revenue Recognition and Sales Commissions 2 (Details Textual)	Sep. 30, 2022
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period (Month)	12 months

Note 3 - Revenue Recognition _5

Note 3 - Revenue Recognition and Sales Commissions - Revenues Disaggregated By Revenue Source (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Revenues	$ 67,285	$ 64,091	$ 198,290	$ 192,374
Subscription Services [Member]
Revenues	64,067	60,702	188,613	182,714
Professional Services [Member]
Revenues	3,218	3,389	9,677	9,660
Healthstream Workforce Solutions [Member]
Revenues	54,063	51,155	158,576	154,559
Healthstream Workforce Solutions [Member] | Subscription Services [Member]
Revenues	52,347	49,729	153,871	150,239
Healthstream Workforce Solutions [Member] | Professional Services [Member]
Revenues	1,716	1,426	4,705	4,320
Healthstream Provider Solutions [Member]
Revenues	13,222	12,936	39,714	37,815
Healthstream Provider Solutions [Member] | Subscription Services [Member]
Revenues	11,720	10,973	34,742	32,475
Healthstream Provider Solutions [Member] | Professional Services [Member]
Revenues	$ 1,502	$ 1,963	$ 4,972	$ 5,340

Note 4 - Income Taxes (Details

Note 4 - Income Taxes (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Income Tax Expense (Benefit), Total	$ 1,259,000	$ 186,000	$ 2,675,000	$ 2,033,000
Effective Income Tax Rate Reconciliation, Percent, Total			22%	25%
Income Tax Expense (Benefit), Discrete Adjustments			$ (16,000)
Effective Income Tax Rate Reconciliation, Tax Exempt Income, Amount			300,000
Effective Income Tax Rate Reconciliation, Change in Fair Value of Noncontrolling Interest, Amount			900,000
Effective Income Tax Rate Reconciliation, Change in Estimated Tax Credits, Amount			100,000
Effective Income Tax Rate Reconciliation, Uncertain Tax Positions, Amount			300,000
Effective Income Tax Rate Reconciliation, Tax Expense (Benefit), Share-Based Payment Arrangement, Amount			$ 100,000
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount				$ 200,000

Note 5 - Shareholders' Equity_2

Note 5 - Shareholders' Equity (Details Textual) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended				9 Months Ended
	Nov. 30, 2021	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2018	Sep. 30, 2022	Sep. 30, 2021	Mar. 14, 2022
Stock Repurchased During Period, Value			$ 3,143	$ 19,889
November 2021 Share Repurchase Program [Member]
Stock Repurchase Program, Authorized Amount	$ 20,000
Stock Repurchased During Period, Shares (in shares)	853,023					649,739
Stock Repurchased During Period, Value	$ 20,000					$ 14,900
Stock Repurchased Average Price per Share (in dollars per share)	$ 23.45					$ 22.92
March 2022 Share Repurchase Program [Member]
Stock Repurchase Program, Authorized Amount								$ 10,000
Stock Repurchased During Period, Shares (in shares)		0				402,050
Stock Repurchased During Period, Value						$ 8,100
Stock Repurchased Average Price per Share (in dollars per share)						$ 20.19
Restricted Stock Units (RSUs) [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares)						140,473	129,906
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share)						$ 20.31	$ 23.44
Performance Based Restricted Stock Units (RSUs) [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares)					70,000	91,042
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year)					5 years	5 years
Share Based Compensation Arrangement By Share Based Payment Award Incremental Performance Percentage Year One						15%
Share Based Compensation Arrangement By Share Based Payment Award Incremental Performance Percentage Year Two						20%
Share Based Compensation Arrangement By Share Based Payment Award Incremental Performance Percentage Year Three						20%
Share Based Compensation Arrangement By Share Based Payment Award Incremental Performance Percentage Year Four						20%
Share Based Compensation Arrangement By Share Based Payment Award Incremental Performance Percentage Year Five						25%
Performance Based Restricted Stock Units (RSUs) [Member] | The 2018 June Issue [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share)						$ 20.32
Performance Based Restricted Stock Units (RSUs) [Member] | Two Thousand Twenty Two Performance [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares)					21,000	13,654
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share)						$ 20.29
Performance Based Restricted Stock Units (RSUs) [Member] | Not Based on 2022 Performance [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares)						77,388

Note 5 - Shareholders' Equity -

Note 5 - Shareholders' Equity - Summary of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Stock-based compensation expense	$ 918	$ 862	$ 2,609	$ 2,260
Cost of Sales [Member]
Stock-based compensation expense	44	31	126	82
Product Development [Member]
Stock-based compensation expense	151	111	428	329
Selling and Marketing Expense [Member]
Stock-based compensation expense	98	76	283	217
General and Administrative Expense [Member]
Stock-based compensation expense	$ 625	$ 644	$ 1,772	$ 1,632

Note 6 - Earnings Per Share (De

Note 6 - Earnings Per Share (Details Textual) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares)	205,000	26,000	217,000	95,000

Note 6 - Earnings Per Share - C

Note 6 - Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2022	Sep. 30, 2021
Net income	$ 3,666	$ 3,083	$ 2,893	$ 1,500	$ 2,441	$ 2,291	$ 9,642	$ 6,232
Weighted-average shares outstanding (in shares)	30,570			31,558			30,672	31,538
Effect of dilutive shares (in shares)	92			126			45	71
Weighted-average diluted shares (in shares)	30,662			31,684			30,717	31,609
Net income per share:
Basic (in dollars per share)	$ 0.12			$ 0.05			$ 0.31	$ 0.20
Diluted (in dollars per share)	$ 0.12			$ 0.05			$ 0.31	$ 0.20

Note 7 - Marketable Securitie_2

Note 7 - Marketable Securities (Details Textual) $ in Thousands	9 Months Ended
	Sep. 30, 2022 USD ($)
Other-than-temporary Impairment Loss, Debt Securities, Available-for-sale, Total	$ 0

Note 7 - Marketable Securitie_3

Note 7 - Marketable Securities - Fair Value of Available for Sale Marketable Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Adjusted Cost	$ 3,589	$ 5,043
Unrealized Gains	0	0
Unrealized Losses	(2)	(2)
Fair Value	3,587	5,041
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Adjusted Cost	998	5,043
Unrealized Gains	0	0
Unrealized Losses	0	(2)
Fair Value	998	$ 5,041
US Government Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Adjusted Cost	2,591
Unrealized Gains	0
Unrealized Losses	(2)
Fair Value	$ 2,589

Note 8 - Business Combination (

Note 8 - Business Combination (Details Textual) - USD ($) $ in Thousands	May 18, 2022	Sep. 30, 2022	Dec. 31, 2021
Goodwill, Ending Balance		$ 188,367	$ 182,501
CloudCME, LLC [Member]
Business Acquisition, Percentage of Voting Interests Acquired	82%
Payments to Acquire Businesses, Gross	$ 4,000
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable	$ 4,100
Business Combination, Step Acquisition, Equity Interest in Acquiree, Percentage	18%
Escrow Deposit	$ 300
Business Combination, Acquisition Related Costs	100
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net, Total	9,600
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill, Total	3,800
Goodwill, Ending Balance	$ 6,800

Note 9 - Business Segments - Bu

Note 9 - Business Segments - Business Segment Information Based on Net Revenues and Operating Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Revenues, net	$ 67,285	$ 64,091	$ 198,290	$ 192,374
Workforce Solutions	2,382	1,785	9,372	8,515
Segment Reconciling Items [Member]
Workforce Solutions	(7,374)	(7,921)	(22,548)	(23,661)
Healthstream Workforce Solutions [Member]
Revenues, net	54,063	51,155	158,576	154,559
Healthstream Workforce Solutions [Member] | Operating Segments [Member]
Revenues, net	54,063	51,155	158,576	154,559
Workforce Solutions	8,609	7,732	26,761	25,981
Healthstream Provider Solutions [Member]
Revenues, net	13,222	12,936	39,714	37,815
Healthstream Provider Solutions [Member] | Operating Segments [Member]
Revenues, net	13,222	12,936	39,714	37,815
Workforce Solutions	$ 1,147	$ 1,974	$ 5,159	$ 6,195

Note 9 - Business Segments - _2

Note 9 - Business Segments - Business Segment Information Based on Assets (Details) - USD ($) $ in Thousands		Sep. 30, 2022	Dec. 31, 2021
Assets	[1]	$ 481,197	$ 486,753
Segment Reconciling Items [Member]
Assets	[1]	88,698	90,881
Healthstream Workforce Solutions [Member] | Operating Segments [Member]
Assets	[1]	260,779	258,864
Healthstream Provider Solutions [Member] | Operating Segments [Member]
Assets	[1]	$ 131,720	$ 137,008
[1]Segment assets include accounts and unbilled receivables, prepaid royalties, prepaid and other current assets, other assets, capitalized software development, deferred commissions, certain property and equipment, goodwill, and intangible assets. Cash and cash equivalents, marketable securities, non-marketable equity investments, and certain ROU assets are not allocated to individual segments and are included within Unallocated. A significant portion of property and equipment assets are included within Unallocated.

Note 10 - Debt (Details Textual

Note 10 - Debt (Details Textual) - Revolving Credit Facility [Member] - Truist Bank [Member] - USD ($) $ in Thousands	Oct. 28, 2020	Sep. 30, 2022
Debt Instrument, Covenant, Maximum Funded Debt Leverage Ratio	3
Debt Instrument, Covenant, Interest Coverage Ratio	3
Long-Term Line of Credit, Total		$ 0
Minimum [Member]
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage	0.20%
Maximum [Member]
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage	0.30%
Third Amendment [Member]
Line of Credit Facility, Maximum Borrowing Capacity	$ 65,000
Line of Credit Facility, Increased Facility Size Due to Accordion Feature	$ 25,000
Third Amendment [Member] | Fed Funds Effective Rate Overnight Index Swap Rate [Member]
Debt Instrument, Basis Spread on Variable Rate	0.50%
Third Amendment [Member] | Base Rate [Member]
Debt Instrument, Basis Spread on Variable Rate	1%
Third Amendment [Member] | Base Rate [Member] | Minimum [Member]
Line of Credit Facility, Percentage of Applicable Margin for Borrowings	0.50%
Third Amendment [Member] | Base Rate [Member] | Maximum [Member]
Line of Credit Facility, Percentage of Applicable Margin for Borrowings	0.75%
Third Amendment [Member] | Eurodollar [Member] | Minimum [Member]
Line of Credit Facility, Percentage of Applicable Margin for Borrowings	1.50%
Third Amendment [Member] | Eurodollar [Member] | Maximum [Member]
Line of Credit Facility, Percentage of Applicable Margin for Borrowings	1.75%
Third Amendment [Member] | Swing Line Subfacility [Member]
Line of Credit Facility, Maximum Borrowing Capacity	$ 5,000
Third Amendment [Member] | Letter of Credit Subfacility [Member]
Line of Credit Facility, Maximum Borrowing Capacity	$ 5,000