Earnings call transcript Q1 2023

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Operator

Good morning, and welcome to HealthStream's First Quarter 2023 Earnings Conference Call. At this time, I would like to inform you that this conference is being recorded and that all participants are in a listen-only mode. At the request of the Company, we will open the conference up for question-and-answers after the presentation.

I will now turn the conference over to Mollie Condra, Vice President of Investor Relations and Communications. Please go ahead, Ms. Condra.

Mollie Condra

Robert morning. first for in and quarter call me good to us the Scotty and CEO and with our Jr., Accounting. Senior discuss XXXX is, of Roberts, you, CFO Thank of Vice joining you today conference and and Thank Chairman Frist President HealthStream; Finance A. results. Also

projected risks events those I and differ HealthStream concerning to contain forward-looking may this earnings SEC, conference XX-K, would also XX-Q call cause factors differ of other could forward-looking Company's like are in results that those including that Forms materially performance to from the the regarding the uncertainties remind and statements future the you that forward-looking statements. these to future risks involve release. with this our materially morning the that and contained results the statements Information could cause actual in and filings from

reference financial in to and may attributable to we release and refer measures reconciling HealthStream which net adjusted table EBITDA, issued we that call. on earnings EBITDA in may information included is A Additionally, supplemental to measure. this a adjusted as non-GAAP the income such yesterday is providing

over I'll to start, the Bobby now that turn Frist. With CEO, call

Robert A. Frist Jr.

Mollie. this started. Good Lots to morning. morning, Thank you, cover we'll get

paid paying of yesterday dividend was earnings announced will is release be we'll one policy. June. which our pleased It dividend new and think on our week. second on in first first our dividend we're XX, call things through of that our to cash on is Friday be share this also this different in was I the excited earnings about is I'm and February announced

of new and those and to more and results element about of it's dividends a that throughout return shareholder both quarter course our ever payment strong call. we're following policy, under we're are talk this going a first of financial our Quarterly the dividend quarterly of cash policy, excited that make new strategy to

detail. the course, Let's highlights a then, to and financials do few and more of turn do will Scotty

XXXX, of was quarter a million X% EBITDA expense period $X related line in XXXX. of the quarter which our amount profitability delivered million a go-forward solid basis. that same over million revenue a of the a we $XX.X For We record in up first had top of gained on quarterly accounting severance restructuring in to that some a after for call was February, we've resulting efficiencies $XX.X announced

the positive resulting efficiencies begin year. course, And on the this consideration restructuring from reiterating we're second quarter in a taken have has our to that believe beginning of this performance We impact guidance, will today. of in the financial which our into

place, company. platform restructuring are More importantly, organized we the with as operate in and a now single

organized were hStream used where be solutions They technology platform at workforce the we do, to Our two core segments. provider we and called business everything is of increasingly as solutions.

We approach a are our company internally now platform as we're technology one Company that approach. and around this single refer our organizing hStream We HealthStream our unified to by as platform.

to to of SaaS healthcare, will array our business improve among our both we'll more of to growing expanding grow a power as customers as of help service our applications one solutions, application as the customers value proposition application interoperability invest believe By SaaS of approach, provide platform partners. that our create suites. our we technologies to continue our continue in and a Under we platform technology utilizing suites hStream that our well than and

are call. business. I everyone on Before hope to think about is a minute of helpful the further those And our to you which HealthStream into refresh I'll many we for this call, new take that there I this move are story,

becoming more based technology HealthStream credentialing and platform. and are workforce SaaS the of which scheduling hStream interoperability because developing, solutions. through to First dedicated valuable healthcare are the foremost, our technology company healthcare achieving Each is they a through of

We solutions basis in length, five contracts under are a that years three means predictable. to average which recurring on subscription and sell our our revenues

to debt. have no We are profitable we and little

focused States are the healthcare professionals of working solely specifically million on SaaS end and XX.X healthcare the in the of workforce. healthcare solutions. our more We users United

services portal to build a party third and process in of and the assembled let's at fourth both The party take inflection customers Now from point and third marks our features to more are of functionality Key look things that access helping HealthStream's quarter our growth. applications capabilities present is launch to to that reusable drive partners. XXXX and interoperability our applications are the applications. among an quickly this be add our can future and rapidly which smaller the developer to advancing APIs in proprietary

In Workforce demonstrated our between the where successfully through testing customers our three license application first beta Validate data this with was verified source learning center primary application. was shared quarter, and

be their their state HR to ensure compliance been able to With has and verified are various source with managers that the the will now, boards. against up-to-date staff place, partner teams data in primary integration licensing on licenses will

XXX at this the already integration the during We that new have have organizations activated second quarter. almost customers requested have to

So the two both which which those new integration the occurring information established that that in shares shared which across And feature. an loving the again, those are and for applications, the data those allows between product relatively customers center, and we of think is Workforce HealthStream market. applications, Validate, is are product learning

have to In of fact, XXX integration. said, I requested that them activate as

increased set. Workforce quarter. We example Workforce on contracting an being application Validate added Validate power new of the is that value also So through and technology. XX health platform organizations first added seeing some the hStream customers the number in of for The

that goals platform approach cited financial growth like in that September leading to months our customers is Day great our financial of and creating one give years. believe add to we're XXXX to deliver benefits seen we XXXX I example the confidence release the Examples can outlook us this a discussed HealthStream described be think mid-range hStream during interoperability earnings our Investor market of this us of We applications. which our deliver the presentation. in coming one Evidence forward. possesses track and the in going Both value on and and innovations strong financial and

half the As revenue the earlier to a uncertainty growing remain these Along closes, impact us first forces in from financial this behind be we that global the reaffirm scale, and of year macroeconomic believe will outlook gives and us we the profits. and the challenges that on to slower we confidence add year. bookings strong inflation HealthStream confident recession COVID continue will during provide as lines, which of provided

it detailed look Roberts, for Scotty I'll performance going more the and financial this expectations a at time, Scotty? over so turn forward. to at And the

Scotty Roberts

Thank Alright. you, morning. and Bobby, good

first unless quarter, will otherwise with the noted, year. discuss that be the against last I begin for comparisons financial the Let's of the same will and highlights period

was Revenues results, million a and per income as the for adjusted and share We're and income quarter down $X.X XX%. X%. $XX.X million million follows. were first of finally, was share per quarter financial was Earnings up both solid $X.XX which EBITDA was were X%. Operating Net X%. were $XX.X delivered down XXXX pleased XXXX. that million down of And was $X.X was

elimination severance the and previously our further that by EBITDA income, during under a severance strategy. emphasize of resulted net quarter negatively announced XX impacted were to adjusted were our metrics expense single $X first income million from to operations platform charge. made like of and the consolidate $X positions million I'd XXXX, operating This company streamline

Now back to the results quarter. for the

$XX products million was over Our were contributed Revenues year-over-year were and declined that a and or by one-third million were from revenues and X% two services they while $X.X which $XX.X Eeds CloudCME and we little about revenues were from XX%. X%. from million of revenues up the revenue year the last subscription Also growth. by million increase $X.X acquisitions completed professional

severance by was margin Margins hosting of compared increased charges last portion somewhat impacted as cloud well were Gross I royalties XX.X% and as year. XX.X% a costs. mentioned the to

investments expect two primary cloud continue We for hosting our reasons. in will increasing

from technology the an due is CredentialStream And second, based capabilities. in suite. our application with growth first The platform's hStream is SaaS to increase associated

two were revenues million X% operating or $X.X up of to $XXX,XXX over year. the or approximately we last Our last cost which XX% acquisitions relates first year's excluding expenses quarter, of completed

sales, declined expenses, year. to experienced compared last also development marketing expenses in product and G&A increases while We

and by due combination a increased growth and levels to expenses staffing Sales in travel. XX% marketing of increased

our time was convene, teams first Our year's three trade several industry the and for last year in hosted at travel collaborate, in we site person customer costs sales quarter. fantastic were first years, office. quarters $XXX,XXX been It than as our meeting to for for sales ahead. our Nashville opportunity in company-wide now, plan a and approximately quarter an resuming travel the compared business $XXX,XXX and to less With for in as well increase this shows, visits customer we've

capitalize Our as cost the for prior is applications product in our year. acquisitions as The net by we labor a cost year product increased platform the towards increase of would made over single software associated as investments suite the Capitalized which development. well strategy increased of development costs last labor development costs quarter. of XX% two result with about $XXX,XXX and that

Including administrative and outside lower of General several related infrastructure recruiting reductions result professional fees a services, declined expenses reduced service costs. in other by spending and in X% areas. as

increased expense, But over million our million $XX.X XX.X% finally, for our was down been EBITDA margin year. compared which margin X% to last was last year, EBITDA EBITDA $X and And would adjusted would adjusted adjusted XX.X%. adjusted approximately was severance have have and EBITDA XX.X% our the

metrics, quarter with $XX.X million. investment Now balances balance ended we sheet moving the of the and to cash

for $X.X of not towards the repurchases expenditures and $X.X the During deployed cash have quarter, million acquisition Eeds we during million of share any the quarter. we capital and did

related days customer multimillion to and April. last was they a payment a in early XX and increased DSO primarily single in year remitted the XX to days DSO balance compared dollar increase with to

compared coming flows $XX.X Our than were down the collections. flows free expenditures, million operations $XX.X in payments of cash and capital cash from X% last cash last year. $XX.X were cash higher at lower timing Free for million year, flows were million to versus to and due less

we common quarterly policy Directors of pay at stock in Board per an per $X.XXX on a announced February, intend our As initial share dividend of under our cash a to rate adopted dividend quarter. which

on of and to XX, of of cash XX, per paid this be of dividends dividends pay as dividend of quarterly record XX, of the in be paid company shareholders shareholders would to more which $X.XXX Board June approved share share cash XXXX four June XXXX year, two the as yesterday, Further, another year. our April XX, The on to first record April XXXX. to And XXXX. quarterly cash intends equate $X.XXX dividend, declare per Directors paid to will

expectations XXXX. Now for let's review guidance our

to expected February. were million million and in is We and $XX revenues recap, reaffirming million. are range we million between capital million. and $XX.X million. range previously expenditures are expect to between $XXX.X To the And $XX.X $XX expectations range consolidated announced Adjusted $XXX financial that expected to EBITDA between

XX operating into the expense to Our restructuring guidance the takes announced previously including positions. the eliminated related account reductions

While our of remainder acquisitions the the completed guidance includes of complete may not also that Eeds, include the does that assumptions we for during any year. acquisition recently

concludes that to Thanks Now over morning, call. and turn for back this my I'll Bobby. this call time your for comments the quarter's now

Robert A. Frist Jr.

back Thank it kind some turn you, for Scotty, and highlights. hit narrative a those details. of business going to I'm to

lots grow ecosystem. our our that strength course, we do continue to can with we growing is course have And overall ways of grow to of business revenues. the Of and health to finally that and strategy of

this share short for wallet this year, In and of hStream We of fairly the expect a example, we grow to It's growing on its to subscriptions want hStream scheduling a from subscriptions. we our terms we our little enhancing our in we're half definition. second subscribers. grow product to announce metric immature and for working in quarter, definitions, want fell

call have more we're we'll form having enterprise hStream, memberships products different to memberships, of new hStream. than So And to which subscription to is individual be we'll a hStream. under also connected going

volatile So begin a it's and meaningful probably year. And to of more with. moving next kind metric much be

is short subscription slight subscriptions They less which versus had our of than million dip both already our totality two based Our less a this The point really a their obviously count in on wed X.X non-renewals growing to guidance. model our XXXXX of our fell They're particularly There one And two that ecosystem. of percentage the weren't quarter, dropped of many were our of non-renewals X.XX we'd have used hStream financial users by we which factored disappointment heavy like renewed solutions. to customers business and of quarter to them. was of last little the only in the subscription timing we said, terms That our into was Company. quarter,

grow over customers into our we around experience subscriptions, plug to ecosystem began is, to and those count. continue back then more as of come what time we is and get to our back And wallet that and kind tend subscribers them

we'll think those of we back I relationships base. enter So, can redeveloping the look many one into doors getting customer forward at and that to our

customers five largest remainder of the already is of our trending for up renewed for Four renewal year and positive. have the

resulted is solid that forward of want in our that quarter, while I'm our our X% more forecast which it back which our our we growth have win of expanding in two line which products And top the the solution QX. for a year's revenue hStream how forward factored used back quarter, and the the purchased them year, for fall line rapidly We'll work. of in on wallet also basis. welcome a that we drove marketplace growth. -- our the increasing the marketplace rest that share from renew our and in exactly obviously enough that our subscriptions is we when into nice to value with and that not happens. guidance, subscribers continued growth optimistic It more subscribers we with of go that and look And approach is on job the chose in customers So of eventually we focusing overall growth, revenue this haven't did point indicator the winning in on confidence to to means where

cover to We competitive few credentialing other and learning, and want you examples. application of concepts are and becoming interest suites, saw our scheduling, in we network course a of then few growing of each product hStream give HealthStream’s a our more and member that the for suites, highlights platform to the A marketplace overall apparent. the I'm advantages application itself. more being going wins

quarter, is to support management a chosen have customers. offerings. In workforce clinical that in new Ardent Center that they most press to purchased release in the wide. HealthStream announcement, utilized we the Learning Center HealthStream healthcare Subsequent our content add and learning first The add to Learning system continues Services Health their to several announced enterprise

facilities March hStream they launched and XX member in system. optimize offer HealthStream decisions within health Moreover, objectives. of to network, HealthStream allow to with their as purchasing development a in our and collaboratives hospitals system in the sales conveniently professional their to content The budgets collaborative sales alignment education

example of a And system our hospital so purchasing an our the here ecology, we by entering have network learning center.

in our the wallet and purchasing And through purchasing then services and collaboratives increasing sales their That's health what almost buys products collaboratives, we amount share immediately of into of of value expanding example we budget. that good multiple system expanding our a the case proposition get immediately. across and an this their call educational almost grow

example So continue of we're grow. that excited about an as how to to

will to our with only customers as our that's solution and kind applications becomes best staff integrated hStream and its known class more other our as become more through scheduling platform. the it believe is HealthStream solution technology We best of in ShiftWizard valuable

the quarter, application new first Center customer rating. revenues year XX% over Cedar the new We and customers Medical ShiftWizard to Mercy such [Perm of satisfaction to Catawba the customers quarter continued (ph), report set. prior grew as Health] to examples over the In welcoming positive ShiftWizard Valley in XX% are Rapids customers as we're quarter, the high with ShiftWizard from contracted

believe competitive credentialing successful we in Our class from is year, credentialing solution and Which the solutions start for also to terms enrolling, XX new included quarter, enjoyed customers CredentialStream. legacy Summit and respected like in XX,XXX our highly solutions best new organizations both a to takeouts conversions of for In subscriptions, new CredentialStream TriHealth we healthcare System. These customers a physicians. many also Health, Health first collectively. Valley representing privileging and AMSURG, contracted the

Company. future solutions, platform with In of APIs our an paving customers' terms and for the of for momentum seeing use exciting adoption regard way the early we're our the is to

As in growing hStream shared all a quarter with to access platform portal APIs a which components. a delivers applications powerful to these addition secure of XXXX, reminder, to connect and architecture the collection we developer launched scalable, platform and portal level modern, among fourth services, to our capability. The of the provides of

the At where open health an developers more on first have APIs the account of of account collectively had developer to quarter, the end level the with seven organizations access chosen XX the available XXX portal to come. to currently

the platform customers access portal a these I turn hStream on to to example to at flow and clip between kind coming in We're little data update of gave platform application out them of our strategies. the credentials an That's the kind developer We're I'm really as the provide to infrastructure. just that portal the and sets and bit live our utilization HealthStream. seeing get of earlier excited developer of to represented services. access of an of of two the verified about that integrated point level APIs platform And increasing and services beta excited strategy at platform on development an one of potential our stage our these

half believe confident these across come valuable provide customers more as our the and become to solutions, developments become itself. of to expect value hStream we're from said, online more wins and And interoperable to multiple enterprise as ability connected integrated customer more We platform illustrate they I successful the more applications. see they wide and year, the our second applications

XX a this innovative Eeds education in we healthcare leader announced for acquisition period month Shifting third expanded Eeds, acquisition in specialty gears us organizations. acquisition ecosystem niche system the with our a technology. quarter, we the of healthcare in area with market the continue SaaS completed we represents management the of this first within making that based

and how showcases Technology, ecosystem businesses all new empower positioned Eeds, the and our CME are management growing we well believe application our that to that acquisition of which Importantly, platform is CloudCME add solutions Rievent marketplace.

quarter we're share serving to want position. current his right the of Eddie that I Pearson, in President HealthStream's this now, Since call with is COO, second XXXX and into last quarterly the

role his year, earlier assuming second announced be from this and current at new As a retiring of Eddie will role. the end the quarter

continue role for multi-year time continued he position global about expect in leaders contributions Executive-in-Residence. the and part-time programs. less we he years be global the new that's excited as to Company Company, really At that will develops leadership time, HealthStream, the And a across setting plans that while payment with many it to as for serving come

Since XXXX, COO, we were in transformative left joining last the about the million joined company $XX that HealthStream in played Eddie completing, and had in to were Executive-in-Residence, he with has revenue. Pearson, President the Eddie year when role revenue. million And in reflecting $XXX

what the and under fantastic you, years to for outcome. and Company and So, culture Thank his excited into we're growth is leaders of service he of our dedication that going he's HealthStream today. stay leaders our XX times future help our as develop helped grateful it and Eddie's HealthStream. We're coach shape Eddie. to just also And has and leadership, around

audit our our so and chair. Board. we're service for long Mike He's led the our more annual appreciative decided retirement also also that for meeting. to life, years many HealthStream successfully upcoming his the that phase our Board XXXX, now for to function. committee move chair standing I’d audit his to of of Shmerling, standing is mention been into at like HealthStream, been not the He's of re-election since our members He's

of and our independent with of track as leadership to he's great over Board we're entrepreneur record been chair and veteran strong a of companies committee. just growth contributor again story added growing our a experience He's He's matters audit the HealthStream's financial perspective a appreciative. and

ends. of Michael, joined become chair Board audit who Board has on January XXXX, the committee our the when service new Terry in Rappuhn, the

So want and for of service this as committee. to Michael service her we've Terry audit occur. already capacity for to we our continued this And thank new planned his for in chair

reliable opening sharing to the the today, dividend balance the policy, a of strong our free have sheet this free call, close portion reiterate the the I want call cash our of and pleased which mentioned a shareholders. that's including flows with reached of we As shareholders. to cash we're I to of return we're flows at And now directly a portion

during economy make the sharing the second we continue today's the companies and the with so time And some expect each multiple thing quarter I and is as do, performing, throughout we're think the where gains right on to are throughout dividend in the quarter to payments excited year to one and of policy year.

we application and as services SaaS suite the think HealthStream, totality And recurring with that for emerging. profitable, we’ve future a so, past the I excited got highly new of we're strong revenue the think about quarter,

And continued Board of so our the growth senior excited for leadership and the future. team future are and into Directors

virtually Thursday, shareholder, of scheduled If you you're Shareholder were the and on and April notifications Annual XXth, Shareholder statement meeting on sent PM, to and Letter at XX. a our take is the already know X access that proxy May Meeting to place XX-K out

So those or to Company. of encourage digitally. We the mailbox shares, in you anticipate our in should vote you have your future your

over it to turn to with like analysts. I'd our now back go Q&A to to the And operator,

Operator

sir. The you, at time. Instructions]. session will [Operator question-and-answer Thank this begin

comes Your line Hewitt first Craig Matt Hallum. from question from the of

Matt Hewitt

Good employment had your the customers headcount week trends the from HealthStream revenues are one. just translate or comments I when guess, I a of two, pretty to you customers, is kind questions waiting morning you from to what process? a hires a through does of period hearing hearing lowering amount you some mean that and are roles you? before as regarding far reported you. walk prepared us some actually positive what the I kind all that last but how customer new number or remarks. lower the seeing of detail for the Thank they first know contracted increasing Maybe and employees, the they one, as get And increased taking for quickly on there employees number on you, HCA thank seeing

Robert A. Frist Jr.

rest bellwether for they're good the as organization mean customers we market. our the indicator and grow, certainly particularly an that of hopefully like the I is and so news grow HCA, Yes.

is Although, are. following maybe everybody they're trends exact not that run same the so that well they

allow add for a but hospital, or last build of quarter. And to we difficulty] is just of our [technical learning certainly might adds flexibility and grow so it drop payroll. the contracts this seen direct grow, certain also too, a products we growth our continue quarter. generally based we on that when think customers we've customers sometimes, our [technical on mean or difficulty] our options nursing the they to ours benefit center, are divestitures And see temporary to rely of core I -- It I see hospitals payroll subscription and their but many the contracted of and net in grow less they're and to labor. they try say sell

we partners to of education direct under business labor provide we're label them from well, sometimes with as basic training a get the contracted pools some white services Interestingly, often the model.

contracted of the on That And and regardless for or whether hospitals in are through payroll they're group. the professionals just more also for coming still market, so an to as to there the opportunity us grow. demand generally healthcare grows market represents

Matt Hewitt

employment specifically HealthStream, is Got it. guess but I Obviously, you planned. restructuring maybe how And that some more then your was about had situation?

look you expectations is past as as couple year remainder the finding the Thank employees As your you. over of your need and we as has quarters declined maybe the what far turnover this as your you are that over far employees? out of

Robert A. Frist Jr.

yesterday left say was quarter meaning turnover Meeting last much people attrition where seen in Board a material we higher. quarters our several in the in have in fewer about rate than talking the were and change prior definitely the We

HealthStream that anyway also know, a restructuring. we So, I slowdown been departures. has -- involuntary as were you had think And some in there's at departures material voluntary intentional

areas We're effect in we net eliminated is or So, we able were where we platform like areas we count. to some eliminate there effectively and and and need. we're want of duplications we people in invest finding in stable and our those marketing invest the and because as specifically And duplicative to restructuring, sales hire had add we is employee services duplication this other the areas, around and to the fairly able a then two add. new segments areas people

and the effect for quarter. we stable undertook a plan that the that the been fairly some first has year permanently efficiencies gained So, budget with restructuring our net from in in-line headcount, and

we future from restructuring. that and -- restructuring the impact had benefit So come in but the the quarter, on comment financial to of also the

Matt Hewitt

much. very you Thank Alright. it. Got

Robert A. Frist Jr.

Thank you.

Operator

One moment our for question. you. next Thank

Our of Close next from the Richard comes Canaccord line Genuity. from question

Richard Close

Thanks the questions. quarter. on Congratulations Great. for the

Bobby, Just to that the you renew? decided respect the can talk why to not maybe non-renewals, about bit two with guidance maybe already, into was like I little understand a but factored they just

Robert A. Frist Jr.

something, a big really market bummer I’d a of natural always we of that market our that takes not It's sure. cases share consumer leading natural, some market you things it's when so kind the Yes, just have, occasionally all that of on say lose the there's share someone competition place. that you In to is but is platform especially like learning learning. and the in get and particularly products learning case with high

lot the but learning -- application, they don't a buy they of So, they content. buy don't

the years And just learning We lot bought have a tools. maybe basic of application set. have XX other partnerships ago they

want to learning them an an be or by Oracle see we'll they CIO what integrated I they suite application where or call integrated integrated services system they that like I'd Occasionally, guess suite Workday may instead best-of-breed. switch and CTO driven of out-paid with of get the suite a their

learning. hard primary we're advantages so and to our scheduling three the integration working suite, integrate our material credentialing, of And own ones own there's course, applications to

when to more lower coming other products. likely our integration so, years. they're consumers And But one in services value back months of own over. the have and we'll It's offer occasionally, all the switch we'll see

Ardent of that. kind mentioned we As to contrary as a argument

And go. we them don't see so like to

a back. have of track also long getting We record them

quality learning sometimes more our application they network. pretty good go within two, but suite their of application. record to a the from a track back ERP, rejoin So around But year a and integrated have move and we circle lesser or with they

acquiring delivered by business didn't the that Cross set. where decide that they has clinical application sometimes them very and through application a meet Sometimes product through our it needs and best like Red their same needs

were losses, but them So we're to our best don't products, and of yes, for like some get that they more known our integrated using we more time in but didn't. we doing case

So it's issue. kind of a timing

are hStream As lot our covered. next have four losses in year. And five already the year, metric largest will the guidance. factored look forward a into throughout grow were of that the renewals confidence we three The we to quarters already our subscription of

Richard Close

talk said, part the you Can more with a at product and to integration? or through Okay. little you of increase about application the And that I integrated. XXX You other are about little think example the, bit That's looking does didn't Validate all? catch those talked share the -- respect that bit I that that then wallet helpful. platform your Workforce about customers a and

Robert A. Frist Jr.

Yes, sure.

talk about for it second. just Let's a

we the platform driven So service and at license. can that level, validate have a a check API that's

which locations as the license. So to where service, primary you are endpoints, XXXX a it's connected over validate source

the at then XXXX level and So if we've the current all endpoints and is our these that provide ping ask its current and feedback. the it then different platform license to own and API done work check validate

course, of is, Workforce called level platform the at built into Validate. service that application our So

parts and with customers call subscription. we hStream your Validate included are of so And Workforce

you up they're just can various can And buy do sanctions you OIG you So up. and are verify Validate sanctions you as of the where more the can verify displace SAM competitors. buy they validate then if than license, forms there and and free well Workforce to application do

relies a freemium that Validate that an included Workforce about. we hStream a that buy it application license And is has version that then has talked up. service on So, with

there's learning starting then where in called the happen. a staff. the and we're place HLC, to And get MyTeam, the buy their ups manage to that's managers center, so And

a level report customers the have platform that about the now red, yellow service can turn can current license And list on sees of green, and of the for little or whether employee. is flag them, that when manager employees the they a to

up So value there platform Validate, at service. both the and level HLC. the manifesting the opportunities of the Learning for then dashboard application leveraging incremental data in Workforce application buy level And now there's Center, So HealthStream both provided Workforce that the platform the is MyTeam the both them are are service and Validate in

in two revenue platform there's buy in competitors So as viewed and a freemium to that's it's some share. creates because -- stickier the a case ups service, version displaces service locations free and grow gives then levers platform the

build So the We're deploy things. excited it. kind road. We it twice represents all of so of down it it about those and sell versions it enhanced once,

Richard Close

NurseGrid helpful. And of other in if it's an digital us the assets, update That's give stuff like and believe called finding unit to some Okay. just ways can update network I terms question final there? any you development my monetize is,

Robert A. Frist Jr.

professional put a of Yes, direct manage excited and We taken that And about to how bucket we're under this. them in opportunities. we put of all kind super them direct finally our growth. a call knows professional to what leader

XXXX continuous to organic want And growth organic growth so is week while signing for we're seeing about which of nurses NurseGrid, I products the talk we're one these currently least of two to up XXXX a of service. to at seeing subscription a the is free,

we're So monthly users on million X.X NurseGrid. active approaching

growing about satisfied star audience the at and is XXXX week. to a XXXX rating a So nurses with both X.X

so us that. And monetize yes, is incumbent on to it

We them. weeks And seat have several now. six to little strategies to defined. about of being Scott's need the in bit kind time of he been that going is are prioritize

first will offer year the of the We have that end direct happen learning And in examples. through of example is app. them lots the to probably we'll the

where little offer a users to we'll never education. them X.X section capability we in So purchase learning. had allow that inside we're little app We've It'd consumer purchase of continued the mechanism. million working NurseGrid be have active direct to NurseGrid on where a monthly a

our team it will can the is opportunity. as you busy that consumer and commerce direct to of kind as platform imagine, allow building So

very, be to think forward ideas I I'll four communicate represents are look to this in And case that small it leave being a X.X channel financially. incubated, It'll very contributor directly and the and or next some in of to it but beginning, there's another it million this five are I nurses. opportunity new kind represents being a new year at a stage. alpha But that a

it should and quarter But as good -- story, revenue. will revenue -- next we a be probably impactful we the and generate generate will But have the is third launching professional. into tell even some effort really in monetization the more QX of did examples strategies to direct year fourth first likely as all it's market. these to I get first one, hit education we that of But the sales in you

and get pay essentially in what The second to product with nursing themselves. it's Again, they to to to a not in that students. nurses the They're nursing are do app We the revenue in experience that four rotations they is million hospitals do category are which nursing to graduate. students. to profile myClinicalExchange is themselves direct estimate profile already generates a gain And fee few themselves students they the small offer uses these yet. myClinicalExchange. to about again, called the required one some they And

nursing They're is We again in used so And in four graduates to And direct not grow yet. case, quite it another app this students. to, number. already one by pre-professional. that represents hope this

enter exciting be traction But would then while students a Cross we're already they credential. aspiring to if nurse Red like the seeing And a one a they're a nurse with see some become our marketplace program opportunities or they there to to student as take still get example, there and working the commerce they're of something while would them

excited well about as opportunity that we're So an in the future. as

of generate direct or pay them by professional McQuigg. call we of professional managed facilitate we a marketing. them growing fee those what digital to to a a product now to category they direct in myClinicalExchange rotation. connecting network small Right strategies Scott revenue that's to help we where to do Again, few look hospital that's And forward off that million

Richard Close

it could one Actually, I if slip had I in. question more

Robert A. Frist Jr.

Sure.

Richard Close

guys It all your You you guess? know, incorporated I how I the it be AIs about obviously, started could forward thinking platform. Have seems like of going you that into rage. thinking are --

Robert A. Frist Jr.

expert in think of of learning Yes. development. systems machine if future AI, all generation the and fact, I third learning are you critical to learning, mean,

that under forms first various what processing it, call the language of our And determine does. technologies but IBM systems of -- Watson nurse's marketed algorithms uses so critical to its application we it true from Jane and machine with Jane really is probably expert we've a it's thinking learning And handful helps and it one ability. of patents, do what

as so we're AI Jane building And make sure we've understand recently Jane to what people there. actually rebranded

product a AI, There's methodologies quite a of that incorporate of breakthroughs about language of and technologies the like of subset include lot processing. in natural things which learning that and fundamental training kind

all business application hard AI its impact on is interesting this organizing are that data thing about our data other those going second our sets sets. that around future And focus we think accumulating and year, almost is of we're as really datasets. the the The of of in critical and half to

of some So on future. key them curated sets, them that we -- are And the are them the data to sets our we some data is of AI call maintain I in powering own. data unique think

So power I forms well we've building to way and we're currently need, thinking assets the platform infrastructure been think of the also data various about meaning way we AI. positioned building to the we're need the our we have

organize for Company, our again, we because it. several advancing is quarter. what We're well we there's as data key situated rebrand as datasets it the see the is while next nothing the think powering also to call that mean patents I immediate it most the has so forms on I And is And and AI most now, Jane in an inside technology actually AI. future immediate curated of you'll Jane

Richard Close

you. Thank Okay.

Operator

Thank next question. for you. moment our One

question next from line from comes good Melick Hi, Blair. morning. Jack William the of Our

Jack Melick

Are Hi, quicker quarter par mentioned would progress taking Last or expected? about scheduling kind they in anticipated are XXXX given that contracts? our good seeing credentialing wins of contract you moving for on with your nature. later materialize their and had What morning. on you moving you any for slower than that these enterprise kind application questions. what of some you are of them Thanks

Robert A. Frist Jr.

I on expect were ranges second kind say and is to do them they wins that we have nice in growth confidence would of half, par with gave. we the which the why they're our we roll expected and in

I track implemented. are yes, so them assessment into application we're overall suites and the would wins them on think and getting that our And be the delivering

have suites longer of those application both implementation cycles. general, In

in example on the If less than we you days. application, can get take XX up learning and them running

If you scheduling win a or more from three if anywhere nine credentialing customer those months to say dozen bigger to hospitals. longer even on a win, a or say you're take months can or would hospitals, or take XX those XX a implement

reasons both and good customers guidance. wins of And tracking, in the we have status feel confidence the of that's we their cycle. But So implementation net our are more involved. we the change management about one the and

Jack Melick

And really becoming appreciate I recently big be guess, theme the the point, into that nearly I guess Great. a there. now unified platform brand. of one realignment Okay. a been commentary to And HealthStream to and the sort of has four I leading kind months smoother of new quicker there great. seeing that branding you're or to Could opportunities the it's speak year. agreement? to selling you conversions to fewer color due Any cross would effort? market Whether reception service some to maybe in the new

Robert A. Frist Jr.

kind it's front our the still impact starting cultural is Yes, inside underway Company. to own all The of hold. in us, including of changes of take its but well

we VerityStream. dropped the of example, For separate identity corporate

to brand directed VerityStream all websites the took And are some it now traffic website. HealthStream the the us the through work, so main under of but that are

And And able we're called the build the Stream. on VerityStream. XXX application know, to so brand you as identity the sold in years, more over for several customers last at Prudential we've accounts VerityStream's

name we of the And has done information of are much support services The so that's been VerityStream. it's clear HealthStream application that intervening CredentialStream, kept XXX eliminated. dropped those of for now And the brand It's the becoming accounts, part through more really because HealthStream brand. brand all that we've while HealthStream. VerityStream

I'm for those so really And excited. customers XXX

think understand I more they'll at HealthStream. they're an of part ecology

I that's maturing the interoperability think of hStream Now by still what's process. get though, platform a driven there the And to really key. is

say see even I'd benefit. the we to more So next where XX expect months

the nearly of in other. the applications each customers Our about these leverage message other the and how managers future deep account each are taking process will XX to to talk of

we platform interested which result benefit built that application. center Workforce As I the the To integration will. over same talked about, is Validate learning service that from a mentioned, of services direct allowed we have in as customers the the platform we the HealthStream XXX

more central a And use across and see better applications of so service and in this mobile case a integration both applications the use. benefit of customers a better more they

all out think we're and rolling to managers about VerityStream, welcome up or family service. sure they Validation account, but HealthStream maybe Learning but it's Center like that's we license were with dimensions couple slow kind the a talked of it's I shown integration So technology a in of making of reveal customer, HealthStream into the whether you the from the Workforce kind and going that in part account of really understand times, and

more every month I around be dialogue reveals it. more and integrations and more think quarter every there'll

So we're really excited about it.

customers are I receive and underway. process well to going know, is think it you the

Jack Melick

comment on congrats again the Great. the Appreciate quarter. strong and

Robert A. Frist Jr.

Yes.

ERPs to with So that about as have power the the accounting competitive customers the the account and to hire vendors, in if anymore you the of we're not that may us credentials, this service. integrated say or in case just educate own excess hStream verifying HR. learning will finance you vendors earlier now you infrastructure platform But managers and vendor help have story mentioned our integration of starting that the we like eliminate threat need, opportunities, integrate say and don't integration need

operational application more real more have workflow provide value credential moving application a that both application learning kind over become the applications intrinsic more credentialing of having integrations from will advantage application to learning our credentialing is our and self-evident to And time. healthcare specific a like a our that

given be our customers guys, to this and the dozens like and we'll our So of both analysts to you shareholders. examples

Operator

question. moment next Thank you. One for our

Colicchio Our Vincent next of comes the line Barrington. from question from

Vincent Colicchio

Good learning you products best the terms quarter? in what on Bobby. Can the us traction of color the Yes. had give side some in morning,

Robert A. Frist Jr.

the of clinical lot performing A well. products are really education Yes.

we've shortcomings had in some fact, In scheduling.

than for you legacy old the example, you As with applications wanted the about was talked more we attrition of than ANSOS through But more we've that as know, saw brand. some growth. offset having our legacy

perioperative in partners our onboarding are products, well, like which of really education growth lot from clinical products performing products, clinical are a our With are nursing. AORN, which our

wins with Our some continues to products Cross perform new Red like there. in the the market

products lot the clinical really clinical, well. of education a are So, doing

customer enterprise again, health which also, around learning we'll and in did about think the and circle that that back. two back try with losses them I was exciting. came art in. We win to today, unfortunate. But know, them XX so center as added we We months talk That was for an

So overall, is would just I strength what say. in clinical education

Vincent Colicchio

that. Thanks for

last contract of renewals does terms pricing relative In what quarter, to look like?

Robert A. Frist Jr.

stable. areas, areas it lower volume when where for price they subscribers, Pricing a is increase makes sense. some they other generally In little the prices grow We higher try or longer in to customers add term expect and commitments.

length get So better of we've of the on of the where your pricing. kind standing had program based a commitment, commitment scale you your long and

And but been so that's philosophy. grow and lower might some slightly pay cost customers people in, a for be more to pay unit that generally our last since their renewal will

automatically to out a little a work That's products escalators We're how We practice figure to we provide model bit. on new trying that generally price where for have us. into grow of a so kind they'll working But big I'd of And approach given discount we pricing their fairly a price. discount scale. for term to environment are overall, and pricing. scales, expect a better several little a stable our in for growing say certain our customers

Vincent Colicchio

and do DSOs been I before? come particular has slow that slow And on DSO it next to in reason that paying client did that then quarter? the increase, in expect right hear there back any they're Is you

Scotty Roberts

take will one. that Bobby I

had dollar So that net particular in of multimillion one customer was Vince, kind balance highlighted April. paid we

March. I customer paid same think last their year, in balance the

timing impacted say, DSO seeing for we're just of calculation overall, the not changed in significantly. customers the slight I'd days But delay, are that from trends a So behavior of just kind quarter. few a collection

range that XX always have is major We're no overall to continue of we've should historically, we're below it going which days. would that than in the it, but seen the we that's generally like, handful changes are a And perform slower to trend seeing.

Vincent Colicchio

questions. Thanks for answering my

Robert A. Frist Jr.

Thanks, Vince.

Scotty Roberts

Thanks.

Operator

over like would Frist Robert Thank time, to for to closing I this back conference turn the remarks. you. At

Robert A. Frist Jr.

along for And the roles Michael forward, Look the advice as us paying I our Particularly analysts thank their specific forward we but course to Shmerling and quarter to and of you. to service Thanks. this HealthStream few our guys and story restructuring reporting Company. in long to period. See move and that guidance employees days. for standing to for and Thank delivered in shareholders thanks the you capacities. next Pearson a continued organize different you And earnings forward look the their following who quarter helped dividend this story. tell you our and to and grow Eddie throughout

Operator

you Thank This participating. conference call. concludes for today's

may now disconnect. You

HealthStream (HSTM) 25 Apr 232023 Q1 Earnings call transcript