HSTM - Earnings call transcript Q2 2024

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Operator

Good morning, and welcome to HealthStream Second Quarter 2024 Earnings Conference Call. At this time, I would like to inform you that this conference is being recorded [Operator Instructions]. I will now turn the conference over to Mollie Condra, Vice President of Investor Relations and Communications. Please go ahead, Ms. Condra.

Mollie Condra

you. Thank thank XXXX us results. and our to for quarter second you morning, today joining discuss Good Also is Robert the A. in conference call with me CFO and and of Frist of and and Roberts, Finance CEO President Senior Jr., Accounting. Vice Chairman Scotty HealthStream; actual concerning that from risks like these forward-looking cause may could and Forms statements. Information future and uncertainties you regarding those of performance filings the and conference the other differ projected from release. could forward-looking call in SEC, that I statements XX-K, company's would future risks remind factors that our results HealthStream earnings in this the materially including materially also the and with events to the to contain the to results XX-Q differ are statements those that forward-looking cause contained involve

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

at time, So call turn over this the Bobby CEO, to I'll Frist.

Robert Frist

Mollie. Good quarter earnings in and in in of second the highlight our We'll performance year-over-year welcome morning, to financial showed XXXX highlights. right of the our increases we and each to just second jump the earnings some that during report everyone, call. hit major key you, pleased Thank release. I'm quarter, categories our

of our in the more in and we'll area complete sales pipelines to talk So these call, we're is strong In our CredentialStream ranges. we offering we suite pipeline, its emerging enterprise in enterprise XXXX learning, competency particular, which solid the sales most and suite in industry. about we finished and that our believe later of with kind reiterate new competency credentialing were our the and some able and quarter strong ShiftWizard sales seeing scheduling area, on guidance

to bit ongoing utilize the applications, their progress. we're update, And resulted least ERPs towards on with our a last a give through other seeing and progress in the and that our onetime of and first We're positive the between our And the which excited promise year. have also that going developmental key how of some about the talk through HealthStream course kind is Amid will X ends the those to interoperability to customers second platform. milestones all of to the quarter see partners confident systems over platform of interoperability of beginning platform. platform contend like promised of enhance of I we're we're as with events temporary in about I'm EHRs. headwinds going to the examples customer-related technical great push development developments the at time, components we're

So growth the those was here. One, timing customers. of quarter. larger let's of one address kind based in upfront headwind our anomaly impacting the revenue at on

obviously time, to of but assigning simple or it's for a requirements dates avoid understandable. Essentially, happened the like was we and believe is I of the most They the XXX to what who off. finish certain something it anything days, will What required year anomaly XX if XXX to the next says, it complete setting certain and you it administrative put do year, not completion days negatively like do? responsibility learners, changed for of people completion someone such full both was thousands self-correct and would remainder finish of Importantly, learners this over you're to courses because "Well, you and expected days or revenue. big have impact in and me that to simple cohort something in have cohort were previously understandable. by happened customer, it assignment. And are in courses to given XX days, big course, what complete a a was

customer what happened of thousands steps Once they want because system, they don't exactly what to employees to here. that's our last of the both had address realized don't on administrative happened So it we're -- taking kind the day function tens do also this. in in of rushing this

it So the kind overwhelms take system. They the to need throughout of year. it

took a remainder we forecasted despite recognize for year tied consumption the get year this they're this as process. And come to self-correcting so based realized the originally that subset the revenue back slowdown. we unexpected and it accelerate And economics think content in will in it's completion this and what the had customer on rates, customer, And that the we sell that of happened once the steps is quarter. we why happened, will full when of occurred and reason bill for

a content customer, consumption. actual is for again, subset So sell to of this on we based it

plan At of do expect in why rest the type scale of rate, and to is any normalize consumption-based in to not we instance expected year consumption while at only that for customer. of we this revenue. And year. slower lower the quarter the full-year the to half revenue billing the So of the billing This certain the up resulted have model content the revenue consumption is is accelerated expand in of we in catch that second going forward.

not concerned about particularly we're So it.

front negative missed EBITDA, earnings in quarter due bankruptcy is currently publicized income in The during the The bankruptcy Historically, net the Health of great is to the quarter. and declared impact Care filing impact had operating some in quarter. income, an adjusted second Steward System. ran our look in impact that quarter onetime had per share customer to customer and periods of also forward, financial of on one a as the and also widely difficulties of the prior and accounts, event in payments from strategic bankruptcy we us second the second

move our forward. present, it's these move bankruptcy well. us Because the the that bankruptcy range, impacts some our second this they and customer how are impact divested some lower impacts of that negative in guidance. At land half the those and into guidance business the on other negative estimated said, we're we are their the the may revenue year toward of to them. year year. also and at the counting that they've that us be them, mitigating we it's see the would in it we some able of generate believe are which make announced potential last in facilities end as as not and We've will the factors, expect second to the to payments and from also places of that places in to the the factored we'll we half use services revenue of We and and metrics financial allow facilities and case of our provide possible impacts of divesting reiterated services, possible half of as to Those continue

We expect reiterated financials customer this ongoing again, negative our have factored an bankruptcy into impact to our to And guidance. this it's year.

we did lower impact may guidance believe I end the note of the Although towards us move that revenue range. our

our the for Before benefit call, we get HealthStream who's any the to anyone further of I business want to story. new in summarize

of scheduling and which solutions, sell solutions health valuable and predictable. X of more HealthStream interoperability length, average company basis our each under which the they're our because developing, First care contracts are to dedicated on a achieving that care a technology through health workforce subscription becoming to credentialing is revenues to Historically, foremost, our years platform. we recurring hStream in makes X technology and SaaS-based

In of revenues our fact, XX% are subscription-based.

care to professionals health to mentioned, also open channels As our and health started I across students directly sales we've of training. just the continuum care nursing

We are profitable.

debt interest-bearing nursing specifically health students professionals $XX core care the the strong market comprise in and no a solely focused workforce, million health XX.X our balance of on the the United and million. solutions. for addressable We're have We SaaS and cash health care more States care

to to each fantastic achieved Before Roberts, scheduling, CFO, of application turning credentialing, really the these over some during like it some quarter that highlight Scotty made we've learning, progress. our in areas, successes core accomplishments I'd

capabilities with market. area suite. our the is of got flagship year suite. continues start We've announcements our related second to in the powerful The the very Center this be product half and application learning of of application the Learning application some learning to the HealthStream strong exciting business, Let's enhancing the in

renewal HealthStream quarter. We've that an talked share. in renewal, purchase presents solutions frequently it an on new opportunity when expanding second customers HealthStream that in example Center the share multiple to Learning calls. for wallet Learning to results about expanding is the And give up happened on Center wallet along Importantly, want previous with it. This I of

of the plus One of of X,XXX using, base an were our as opportunity they new HealthStream added users XX,XXX. used including Due also of they reporting add to to customers the tool. our West products already of Learning insights their growth those to the Center to analytics additional adoption renewal approximately the organization, Coast their

new. sight really working includes to So wallet us this contracts. increased meaningful X-year $XXX,XXX new of XXX% of example hard growth. renewal revenue We're our is customer there. The into year-over-year in renewal And going that's share did from $XXX,XXX, X.X% The existing give this X.X% escalators case, now really in work some annual And line a nice into growth making escalator pricing good escalator. to pricing to recurring annual expanding we approximately that's from base. agreement pricing and this

it customers SaaS application scheduling is suite. health solution that ShiftWizard Let's scheduling and our that more our in best customers to will satisfaction only to valuable platform. become as move hStream application quarter the the care to as this We grew believe known the customer revenues In XX% second as it with continue prior through application. other quarter, technology with begins report to high over integrate ShiftWizard our applications year from

the that in applications XXXX, second visibility. and legacy As ShiftWizard and scheduling of generator of quarter our enterprise services. ANSOS largest revenue portfolio products And of become like has includes the

second of other than applications portfolio, become the nice mass So call our revenue we the products. scheduling quarter all of in go-forward it's the the products bigger the family application milestone a family during in for to legacy

number nice legacy CredentialStream. this terms and So enjoyed the to that's examples solutions, ShiftWizard in new of of the kind Rehabilitation, the contracted competitive achieved in our portion a Hospital really takeouts the both up during our an such ShiftWizard. I'll credentialing Reid great Mary Stillwater of Free Center, successful also an from Bed Park wrap of with are to solutions and We conversions expansion update exciting quarter. a of Medical milestone was second Roswell as on quarter customers of call

for like privileging, enrolling legacy So where new XX% migrations of quarter, XX second applications, added were these as best-in-class website, GX our from approximately which the is the really we In were organizations, CredentialStream to new customer on and credentialing, reported credentialing customers South CredentialStream from physicians. the solution highly Science Florida, Oregon these CredentialStream are of up suite. Representative CredentialStream move they in Pine respected legacy when Christian Baptist that many organizations the health and customers care Rest Medicine application quarter to & Mental the Penn Health see Health. like Medicine, applications second XX%

interesting the really broad So customers, XX% that's of XX growth of a the spectrum quarter. in because well. profile of matches kind that that application nice as new of And

Scotty and financials, we'll the exciting talk hit our of it market a promised, to of a review XX, Scotty me XX it results turn and And about they'll platform. new that's give those And We'll products, few a one to So fantastic. team. Turn for Roberts on for we'll both minutes. and me. over with as I'll of the CredentialStream. for over emerging hStream platform back it's Good update to come

Scott Roberts

All Thanks, everyone. morning, Bobby, good right. and

impact bankruptcy comments to matter by the for customer had the like on it about I'd our quarter. begin negative So quarter's my and results the results the quantifying

year. fees customer, Bobby recording of customers receivables had second our we $X a be us operating in the quarter, filed on owed was bankruptcy the approximately about their quarter. filings. Due at the loss led impact ago, revenue million earnings quarter's million for customer income profits bankruptcy operating lost the the an million their during by they prior potential the in plan second moments over which million. of loss quarter As $X.XX of $X.X share adjusted facilities, to of for have of ongoing of protection about the divest million into half revenues announced million, the To bankruptcy to by this negatively by per customer's $X second $X recap, million, factored share many the and impacted time, the uncollected related the uncertainty $X no few future net to per the second the of $X we To clear, one expectations to lost by EBITDA by there our described and financial and $X.X as and given income

Revenues year. million, per up against up So of will now be X.X%. X.X%. was from up Operating Net were that now I'll results income the up go income was the otherwise last per the adjusted comparisons $X.XX per quarter. $XX.X Earnings noted, the with $X.X and million, $XX.X X.X%. share, for said, EBITDA million, for over period same share share million were $X.XX the was Unless was $X.X up and quarter XX.X%.

Our by total compared year's Revenues $X.X last to and million for revenues million $XX.X subscription in million, at X.X% color million provide million services of XX% were professional revenues by a X.X%. There million products few and increased coming that and by $X.X and calls or from revenues in $X.X or million are on. to X.X%, accounted $XX our want second were I $XX.X revenues $X.X more some puts or increasing on declined quarter.

the declined their consumption quarter, the variance against that to this variance one First, accounts of it the timing compared so from run we expected. a was consumption impact specifically approximately the our first much larger was million, $X.X by rate of

mentioned Bobby over normalize decrease the half over course in that of grew will application quarter. the ShiftWizard prior our the this believe correct consumption of revenue last earlier, XX% and from scheduling an year anomaly As was we the generally year. Overall

and by services from grew year. last XXX% implementation revenue revenue grew Our XX% its the over ShiftWizard subscription onetime

declined While revenue comes quarter. ANSOS generally growth a meaning are revenue value ongoing $XXX,XXX once products, to the or customers ShiftWizard subscription were which on implemented, implementation over revenue. The it services the an they last And with we ShiftWizard to counter the strong XX% premium year. new when these in fees, indicator ShiftWizard positive subscription-based we a by is versus customers place scheduling implementing from contributing begin that's time, attrition busy as strong from is

solid to revenue approximately is our of achieved from delivered which that channels quarter, up And For over application in the the example, million ANSOS XX% through growth within suite, directly our professionals almost sell offset scheduling ShiftWizard. quarter. we our initiative attrition lastly, fully by $X.X e-commerce the to first

revenue backlog million increased the and the approximately while last which this which bad the to XX% was in increased expect $XX.X increase XX.X% by compared $XXX by were year. previously EBITDA less and for obligations than due most of X.X% to as the of $XXX product costs of compares which growth by of charges came up X%. debt I performance was X.X%, while the impacted year. XX last primarily end cost million is year. of Operating we XX.X% were period next remaining Adjusted And Our this to to from mentioned. expenses, compared were revenues, in to second and of primarily quarter adjusted costs be was same that development, year-over-year EBITDA million, converted the XX.X% X.X%, margin improvement months. Gross the at was G&A over excluding is revenues our last X.X% XX.X%, up margin up And

and $XX.X quarter. balance with Now slightly ended last $XX cash sheet let's quarter balances look take a from the of down million, at metrics. million the investment We

paid for $X.X deployed we through shareholders million program. quarter, $X.X capital to the During our million dividend expenditures and

tax of quarter the payments $X.X income year's comparison last payments made tax for purposes our also in second million and in quarter, $X.X were income We million.

to we XX outstanding in In others. dividends evaluate free to by pipeline cash yesterday, program, operations sales strong acquisitions, million. to perspective, an and million $XX.X an positioned days pursuing million year, that industry, sheet an result dividend a place. quarterly in charges in variety which prior XX% among shareholder be X% mentioned include program bad XX that debt, $X.XX are just M&A in at criteria, $X.X balance our and of days were or of our declared improve maintain have to capital from to were a or share no compared don't per our last the coming we August, the we to continue and and million, cash Our a paying financial which dividend from deploy a ways of $XX $XX.X the repurchase paid year, Directors our flows active our and cash repurchases. From and share containing making customer share value, over to available improved well cash respect active including earlier. Year-to-date, is With positive fit product opportunities we up of bankruptcy improved Board currently flows debt despite days

to on moving guidance. Now

factored revenue in opening customer lost expected assumptions. mentioned I As and my remarks, associated the in with the we into our profits bankruptcy

impact continue range. I just our tend million lower We end will we that of to though bankruptcy given million, expect $XXX guidance expect move the revenues consolidated towards revenue $XXX us what range between to and may said, the

to and $XX.X guidance We This year. that expenditures range for and expect million. million between $XX and during million, EBITDA include may to we income not million million acquisitions are range capital between range $XX assumptions any adjusted expected between $XX.X net the million complete and to $XX.X does $XX.X

Now strong contributions guidance solid suites, the growth not second in into combination at application within quarter, the through and of sales particularly and quarterly pipeline sequential sold our scheduling are that from but backlog revenue looking working to year, revenue our the implemented, credentialing factored the the that of in the we've of shortfall our QX of consumption second end half we the contracts the range. a revenue, we expect and catch-up bookings experienced from

time over to additional this my that So it concludes Bobby quarter's earnings and turn your comments this updates. I'll some Thanks for now for call. morning, for back

Robert Frist

We'll time, mentioned, our to and up hStream beginning key At some as about with new with Scotty. pursue this let's here talk the platform we're I you, that wrap initiatives. a Thank platform market update, application. CredentialStream

vendors, the there's set believe a of call is providing these for the you of healthcare's is is and learning, scheduling. through development application their suites. care building our applications the this suites analytics as of place the platform. X our we health the products, suite, of to alongside in focus organizations today that primary overall, application monetize way to well overlay and center workforce, specific our that application some cement credentialing and and hStream, provides needs we as systems their and for integrated each those platform We functionality our strategy the suites management ERP enrich the people. At one EHR of The that foundation a platform think and people If an as subscription position for

and then, for years, core hStream hStream other for customers applications, XXXX. We subscription. with of product, and selling to with the in have been benefits we and services, we subscription content access several Since for for have come scheduling provides sold late hStream products scheduling for introduced learning Each that hStream ShiftWizard. and scheduling credentialing exclusive platform our hStream these that

our to to the functioning of X itself platform the continue packages. A identifier our is strategy ecosystem. We platform We and a these stream all call individuals for of each in add ID. hStream their both benefits those of new this key component having single

individuals We the by hStream adding more applications. our own to of in of number increase continue IDs hStream to part ID with functionality significant

in ID their and near-term there the For initial XX developing that process XX the we using XXXX, create X internal using hStream requiring have we since in ID, our a enabling or integration IDs hStream through applications, integration candidates user are have time. Of remaining add to login roadmaps. hStream students ID myClinicalExchange or XXX,XXX our hStream of an to X -- link the integration hStream and our actively hStream hStream of as some myClinicalExchange example, ID, in native for on April app application with integration new began now added have over

Each have API, platform these transcript service and license our API. acts services services professional into a and service of platform the Currently, of validation and certain centralizing of or is API data and the certification service component and functional learning and a live, APIs functioning house particularly source key strategy for within. as verification both platform professional and and clearing of itself of X Another services APIs. these we domains, people, around the

volunteer portal. developers portal. customers and end launch or verified web so endpoints. Rather with all and service These our applications have developer licensed be ERP APIs now developers been on ways against like can comprising to For services individual service endpoints, it. connected tire these and and like live professional mission-critical from development. and access permitted XX may key to applications We're this of numbers relicenses large API application history, education another that hStream scattered to XXX that to most example, official at is functionality also of that licenses licenses, certifications each out our portal, and in And access have to events to services. integrate is by and organizations with interact learning licenses service over thousands applications now and activities These of organizations integrations and these others. the key in the partners integrations other the built and are hundreds to XXX build expose than continuing and validated we our essential write nearly developer services adding applications books in work through are We The its XX There domains nearly the integrations shared enabling managed make systems of XXXX, the XX APIs to people of key source our service. primary professional applications. Since workflows. other have customer to available history, representing EHR

engage continue customers developers portal to in APIs and with and add the portal. more We the to

-- gears. Another shifting

market. I to update plan share that exciting the to is want Another address is expanding health business today our credentialing

Shield to in call Arkansas It's I network Blue HealthStream, health to be tailored the of win Shield, the here and last, care years, Plan, early in today systems we relationship the attached some because Blue health enhance plans solution in In Network asked like say, some we of that health signed by and to way payers Health but that Plan will market? health be called the pursuing also both. X and system stages, believe it you mentioned, And quarters we Health our will the but position a Arkansas, have a the XX plans systems future, including the yes. in say, Banner Cross Cross we guess announced I and the Blue unique Providence previous only abilities this we Blue for industry's at credentialing is would management the verification NRM. offers of connect HealthStream market I'm

marketing an network, market in the see for planning later by are And We update later the to approach product HealthStream market, extent begin in to plan expansion year. expanded year. the greater the this we'll you we health

excited these revenue For new And to as now, also be that we've the product. accounts is that just be we've XX I'll help secured obviously, the the plan second note to we're addressing factor will to this in I of yet made the sales already new as customers buyers. or enter set another process of of Again, we the half the year. progress and we're with large network confidence of recognized still them. the from sales implementing note our majority some are

we best look for by some SaaS, U.S. its dividend, and to company June, in maybe in gains of a kind want to shareholders I'd close of by care to think interested ninth stock company, the As a companies the if determined profile investors U.S. at. I of that work among highly for in you go health the about expect directly share to company say revenue, are a the before deliver technology to services you recurring to is HealthStream growth steady and sharing is company I was who PaaS ranked summarizing, health form to questions, of good as our and profitable, the HealthStream

recognition employees Report. into World their The & comments selected us the this and of our panel from who News heavily weighed experts prestigious analysis. sentiments for

thank our company care work by HealthStream, back all improve who we the a developing and the So people I to on help quality board together care. Turn for employees our operator to as want Scotty over one health of is Q&A, deliver to it questions. making culture answer for positive very of to

Operator

from Matt with going the Hewitt come [Operator first Instructions]. of Craig-Hallum. is question to And line our

Matthew Hewitt

Maybe HealthStream first, been of lot here it's hospitals for get Was you lot quickly? impact what situation, And about of are back being the up front running are a and from on just for they of able because hearing mind there's impacted. any people Obviously, CrowdStrike a to there commentary customers? And directly?

Robert Frist

we Great question. was us. customers And few or the guess did find I a perspective, fairly isolated through From to our it was products, therefore, impactful, X by relates able it our were think or I cases impact as but that to work on X where minimal extrapolation our quickly. we

And full our it on the almost but was our use I nonexistent haven't our were network. reports the base to so briefing for across that impact quick minimal first relates and the our as gotten the team, of products broader

Matthew Hewitt

were count, opportunity? there we great. opportunity? could of should obviously or I the the I more using last commentary from This think following potential employees That's your HealthStream. market that end up HealthStream, that that expands be Network market, applications of be does $X last And kind then on about by size we how thinking about how million up like to much one that mean, your increase but

Robert Frist

on We've as we that opportunity launch. the on there. about it want But how coming good our TAM the progress health team. We several I and we yet quantifying. our We it. quarters. official guess mostly our working We're in mentioned it We'll XX the health our see way it to of plans attached about we'll got We've marketing to we work initial report Arkansas pipeline, target in think intentionally tailored on success, a it's systems didn't product currently, in we Blue scoped but to really rebranded feel an the and haven't as little more. add yet. TAM. recalibrate the Shield locations, it of impacts Blue We Cross

Matthew Hewitt

those price you mentioned one customers at maybe the you is we that back -- and a with with your be an that customer what Got about escalator maybe kind on with hop the the I'll that a growth West line? base price Is that, at all queue. the it? the top for cross-selling and called last it. annualized think revenues? customers is how X% of of out a to And new broadly double-digit one and And it X.X% is growth of maybe then basis, look component the But opportunities new across you type obviously, on I should rate get fair and to back is renewal, looking your in thinking increase Coast the and can

Robert Frist

escalators contracting. could Well, We've to of across component all used growth. a course, our of our be really at of, it never any adding at all scale

models are on a based a for Our for get volume term. term, discount pricing They commitments. discount

sales your the your escalators. very escalator say digits, escalators documents, them And how imagine, So primary to term which, and price downward planning new sub single have of teach tech very, change have or as you us -- as include volume single educating contracts took been negotiate single contracts. This over to can that the digits firm low in even roll teams, legal of a low add people pressure to slight year a grow a a all. their out model. volume -- It I'd it generally that renewals digit has includes terms to a agree our our drivers, what is is and add at

renewals time. X- come sign X-year we can over they and so take agreements only escalators as infused be and Now place to up,

[ nice And put sales automation given we've training into from to it so but take and to of ] training contracts and resistance able and years we and it's dozens and a really meaningful our impact, either dozens beginning I tools without And to to we're several think much now. contracting our customers. easily the fairly it's operate been that way work have going

them ways, some I facing in bigger years than their price think increase. helps going budgets a X plan expect it and better then they

contract will X those single our low, time. What escalators have us now off low XX single so over move in. yet our growth. and it's number low digits, prices a base catalyst slow other -- contracts -- would to Not as play because things quite And modellable long-term of such not each our forward. of a digit help built think of I just of

a forward looking it So standard to make -- but practice. we're

received budgets I years. customers helps some plan coming been in better again, well. by it's far, And mentioned, And ways, so it the their them as

Operator

line our with comes question Stephanie Davis And the Barclays. next from of

Anna Kruszenski

Kruszenski for is Anna on This Stephanie.

move wondering of thinking The sales of the evolution was cross sales of I how sort And that investments force. what your you're sales are incentivizing if will you to could just first talk as force you this how you and about motion? about one, more your take

Robert Frist

feel have we that the about We question. the size need. Great sales organization we Sure.

of nature shift positions of the over time. some may Now the

categories. introduce to accounts. in that product in growing spread strong of and They And to tend specific focus across about buyer. turn, they, XXX more which buyers XX parts the of growing and are mix on say, what broad For that accounts, we multiple portfolio applicable a account the the buyer specialists are are believe, is, focus mix XXX the they products, product example, people focused let's per that accounts, current our and them about the I around, our they on on account, platform identifying managers call in know are selling just revenue the

people managers salespeople the pitch of ratio have higher help or built sales are And specialist. To a don't so question, help a automate business little a that XXX bring maybe the really the There having by we big renewals, renewals. trends new part e-commerce of instead relieve to those again, the think I renewals, focused if envision on that the our of commerce, the accounts be burden we on make we focusing to the our have But -- shift job and doing so the sales many new are to where several managers Maybe future think capabilities say, going salespeople more comes me into as focus people. need of more. that your -- new people changes on over account platform time. can so even e-commerce more method acquiring account I changes, the

in people, there's a I we're believe, the so from right our investment investment. marketing fairly XX think stable rate -- sales right about at organization, And of I level around and

just quarter to commerce first growth excited quarter our commerce teams XX% building platform in the and our provided going $X.X which hold direct in by bit little sequential hear commerce as take capabilities nearly HealthStream a just between second the investment in and $XXX,XXX increasing you sales, from million commerce. about we're did are We super

count team growing right. example, is added, for is I'd and we our team, XXX so head talent So say now. But about in our merchandiser personnel commerce a commerce overall, the around

may and time, the that's right think have types markets we trade-offs You roles over size the I between see the have core products of but for we about the X today.

Anna Kruszenski

on Got how and approaching and single tech I you clients. follow-up. it. of wondering That's if rolling where to super are you in could helpful. the talk guys to that terms a investments more move you're as you're out sign And how a just then just about was

Robert Frist

Sure.

Think -- platform the of integrated that's a mentioned, building, kind many, one a the users across software those us many suites of our of important. the mobility about As deployed. there instead things when applications distinguish suite data most suites I of central stand-alone it, applications it's as exciting feature SaaS are though, It'll of of core like across suites. fully we're probably and

excited. super So we are

there, the this And service. a let out So out on called are is the me others. core again, apps go hStream But I a central halfway look but but platform number And midway as are be to so are XX services There this at ID way of about, building our like service. other the during implementing think kind one of the built. called fair I implemented I ID, central that themes might XX and believe, lot management why I is the through to credential we're a tools function. call, of of mentioned there's ID about we're the

investment. concept your of it's So

investment. as as the of teams over platform. our Platform making We steady hired We've Service platform of We've platform a have senior the state product. a development out. kind built a leadership

both together development and teams so the we the And have Vice platform, CTO over place. Senior President, the in are

exciting happens and words, commerce of able in of lot more one allows one more to We of that our So the to order. But be or lets the talked has we add I that's platform of again, part in building to CapEx have course. in don't It's a other platform of of app about of a and our important add of don't more do further develop right data we like maybe It the to or ID platform. about things many, us just us can answers we're then your ultimately then federal that more that high adding user that state do. pretty but a a network of about, many maybe build grab always with to of people them at type Hope one question, enhancements we're I'm the components and capability think has a an network, identify releases them. of love to platform. the that We'd know lot the sequencing faster, traffic more for a it that we're to the to expect platform that there's but the message more identity, pieces excited demographics use a to requirement and about from more need because platform. features target more. the to is another, use the the and sell steady of developers channel, The the I where think them to piece from we commerce platform

I'd important. and commerce to to hStream benefits seeing management ID some the we a XX% ID. want the to ID like journey reflected be, as of still visibility is where and be by are So characterize fully multiyear growth, it's capabilities platform exciting customers get but going of we benefits very our in

Operator

question from Our line with next Haase Blair. Jared William the of comes

Jared Haase

then to guess anything start, any the was quarter. incremental selling improvement be early, up And in that in could that's of get trends what to Maybe on thoughts I curious, additional color Bobby, growth I of kind the the strong driving imply it's a landscape just perspective base client some to I for just seeing sort from on close any you of XXXX. competitive changing hoping the but are the know out that's I'd terms set or strength there.

Robert Frist

do layer work look thing example a account more layer, account of on. kind it's managers layer where an model we always when to we and a gave renewal. of in were at build subscriptions, an XX great able the to and that we Yes, you the That's

of been had we outcomes so a short our sales little QX pipeline. And in desired in

and really to a exciting I and push So that say. the make of a the well really biter lot it watch second up of kind guess, is quarter perform deals, for earlier month was last I'd of nail what

a work set job We're nice suite, managing which this competency of the that's more set to and resonating. tools, the bundling of a complete as orders your pipeline other our And has of so for describing tool the products to group for propositions a a manage thing, of really showing they of value and nature I mentioned we've -- they're exciting workforce. the way I And complete -- got think dollar up shifted. how really a and workforce. It's better bigger doing position is way of competency products. together a profiles

what And seeing the of bigger say end pipeline of is towards quarter, also bigger deals. so I'd the a we're

factored and already all we've impact, the half in, the about by second timing we anomaly as far as Now talked been bankruptcy. that and it's offset

because on the a bundling X the pipeline also And temporary excitement go-forward because possibly just well. the month of problem. said, last we're we was way way of X headwinds. That these great these when the applications or assess getting to prop quarter basis, to is it of deals of more some of so what call muted or perform together larger our And at we work a the better describing solve now value see the

Our what's competency suite that. is with happening really exciting

turnover there's the workforce. attract to do those tools mix systems to largest trend of We the probably because in work to reduce probably a invest we've workforce talent. that area their had I need on pipeline products realize way of greatest macro more to care and think of together have the health in ever they manage

resource limited of And I so process and the sets relevant people, think they pool tool recruiting in a our as for more strategies. retention compete are

Jared Haase

have wondering, but color. health appreciate still to I'm would network days this in great. making a between a here, for early then of I terms there in seems in it's of, sort way. I'll ask opportunity to of strategic? That's type Obviously, I about nice compounding offering. plan growth. attractive a the that of just add I synergies new that of follow-up, as payers a sitting be market maybe offerings just sort or guess, opportunity terms drive And providers more your know It providers impact with does and slightly different in And like

tailwinds wondering I'm additional seeing to you're So sort the if growth core base. of customer with

Robert Frist

is for the Well, same about I excited product. portable with plans the health network what really some and CredentialStream architecture another we're and the similar using easily data features it, could if they're added the system systems the mean of the version think between of it or

think do plans systems. applications for credential there the and where marketplaces identical health management long-term in have could adopted nearly medium architecture the I some be So as

not overlap -- And with play as so time that do the the because -- of we're market. it's but what the out hospitals impact others. plan take some to well But resource pool obviously, to to health plans manage systems doctors going new plans and the and and is the

data future between on that can And been envision a easier so organizations those we've you they're if architecture building. sharing where this common be to

to make market we it. yet sure need and to between before share health and in the the see promise health benefits but We we think not for we model plan interoperability start I it, gain touting systems. yes, can So plans enough

spend using for we been help gets it. doctors hStream a be as maintain the system plan us as rosters deployed and it lot that will talking health will key our time network. the think about health ID ID, That this about into we've plans, it a of talking I So hStream more

health the systems, progress some in make it's plan And so so health us and super to interplay excited between market. exciting plants this see about and

Operator

to Richard Close question Canaccord of with the from come next Genuity. is going line Our

Richard Close

on just of of or the year the of couple the renewal? clarifying I a sure given Bobby, X.X% there I Is to each contract that the for Congratulations make term comes just headwinds the escalators, quarter. the up that. understand contract want Yes. in when like

Robert Frist

want do you that? Scott, to comment on

Scott Roberts

it's escalator. annual sure. Yes, Richard, an

So would X.X%. that by each price year, increase the

Robert Frist

that some about we're super to because I add to want do it. Richard, excited color

take than renewal of the and as should get that. all acceptance But I going caveat built run, again, think several too. mentioned, long to cycles, I less years to and that in. have have I our we be, analysts X% in that to customer through And want it's had to contracts

did in enhance to Workforce it's related exciting system, early strategies deploy contracts, the modify really teach negotiating that's it almost what's business year a businesses, it. we've lines. our Development salespeople, the So our and been take And contract including train days. every is to months, But last accounting product the several to learning

exciting to see, X% than escalators it's just contracts today. have so And but to our I want less of caveat

Richard Close

XX%, that replacement guess, of in I I versus, is bit then much And how of net legacy? customers about Can new on Excellent. the like little bookings a new ShiftWizard. you the guess, talk

Robert Frist

Yes, sure.

were So from competitive using about customers. they been essentially legacy or new but paper, I have to the a the pen HealthStream, the market, application have we to XX might think were the They new new like been -- moving them that And transitioning new, they we of and a from were acquired guess, were takeout remaining, XX added new. of application. I and XX customers XX

believe on. the that we are gave. numbers I Hold So those just

-- I about talk just was didn't about talking or scheduling? I sure make credentialing me Let

Scott Roberts

Yes, described. about that's just was asking Richard credentialing you ShiftWizard.

Robert Frist

I credentialing. I sorry. am just That to was wrong. did all everything related

we that. So split ShiftWizard, is that migrating. It out like I'm it from not sure

Scott Roberts

It is new. mostly net net mostly new, Richard. It's

Richard Close

seeing on you said with really larger Are I Bobby, mid think ShiftWizard. health then upmarket the just in small you strong you're at on success Okay. ShiftWizard. And any a moving follow-up last scheduling and all the systems? to quarter,

Robert Frist

monthly appropriate. doing month, what every ShiftWizard we releases it enterprise call more think making it on I enhancing yes, Well, we're

yet. But this our future out and systems, the you're XX gotten all relative levels. CredentialStream, listening background ones the think probably But and at small more both medium is have. But customers the that well And so release mentioned for revenue Health new you're rate all right can I to it's to competitive I've customer progress capabilities numbers. all that migrating. XX some we're one, and ShiftWizard, we on getting address XX It's hard. it And enterprises progress numbers more new, and just I right do growth probably super Memorial and just I X positioning and cited of not landscape, point if Shands. clarity, for fighting engagement the strengths development, high. new again, on in and customers, included Health wrong info large Baptist different me UF and and XX% and expect was needs And The for ShiftWizard large the are Prime

ShiftWizard. new that hope clarify helps on X I customers on So the

Richard Close

it well or days. been on up ended that consumption I If mentioned headwind, being a XX-day you this XXX one in, should have Bobby, could requirement Scotty, slip

the it's be to done So into XXXX of doesn't was that something end slip clear, just and make to it by sure that XXXX. done

Robert Frist

and settings, more can't they've Well, and customer change -- we up them. have -- for had so change But them, them. we operational don't -- sure they than to to have make the of a inefficiency meeting them. realize we It's we an the kind with it's

So they're it. working to hard correct

don't So it's we direct control but expectation, our have it. of

can't something to the did have other want they make than of And customer that So way we it say that I either. aware don't it.

stack planning a large really If standpoint, going the over from about it, workforce financial and a both such want to spread time standpoint work operational you standpoint. a think to out or you

And So won't growing we it is have the fact organization no well. back. as reason come to believe the

needing often they're ending anyway. to so subscriptions short and And more have up

your to return it. don't question, a actually at But that expect we we so to normalcy And account. control

affirmatively see with how make the did again, And I that -- really We spread system rely change. to that so words, I I the on work they compliant. principle. out can't those can't the to to on just would other make customer something everybody operating and corrections. But they say the we operate that In get need

I be good. to So we're think going

Richard Close

that is to be to contract have, if change there opportunity them the the change you only them any like contract? this Would consumption normal

Robert Frist

not run. in short the Probably

allowed promoting. courses think We expand don't that that and it. of don't to I they're flexibility. customers, if this us they're last to their it them did purchasing, move the planning the budget we're they so model and I anomaly, budget know collaborative bought and that we're it such consumption with planning to for model it them would multiyear, it's will their this mainly some collaborative explain of it a But I consumption And customer, this onetime just -- a in XX-year-plus own on we and an we I reasons strong we'll to the But change make plan be have not again, how as -- an the quarter. that working is anomaly. probably process. But course, customer see them anomaly. up -- their given the awkwardly to is, think indicate I history gave in true

Operator

our the Constantine going line Citizens from Davides And come is question with to of JMP. next

Constantine Davides

program. with just the Bobby, was that the pick DEA a nature kind I activity you of of the way quarter, guys given just was revenue. first in framed up there could little if as what drill wondering more commerce more the was the in that quarter nice kind in into second onetime that bit you

just you can give then and side. sight So us of if of there little commerce wondering tell XXXX you the into of a the line color kind have us what rest more on

Robert Frist

interesting. It's Yes.

forms have X We commerce. of

content commerce annual of We are libraries it's our automated have than process purchase more in which and the past. large meaning was some getting big of that's top the it cycles accounts collaboratives, a more to now enabled,

level But we think the the officers month, level little budgets their of budget the bit discretionary have to about buy believe for manager want miss sell on which and historically -- in of kind a commerce discretionary the at lot of manager is might they that a competing or be from we level. the to employees. I'd in behalf something that a enterprise to reimbursement manager of employees type for of that. we miss BXB all we that we a We we're budgets at when CNO up vendors. And excited top be there order they education. a call are commerce launching And then new directly we're where entire the might So next what more now at

new, had. is manager what, call we'll so we we month next be I commerce, haven't guess, which this piloting it And really have ever level purchasing I'll

requirement predictable, better which then we're third time exciting it's be will basically it's the training cool. marketing DEA. so to problematic same you're of because for their this getting you to is point And direct a interesting. And and federal it, and DEA, it that license with is as But less driver opioid right And that is is the their to right in to primary our prescribing at little success at the professional category project. way out, renew harder ecosystem, note around doctors now the

And the right we've right forecast profit doing best at we're would because them place, and finding time our doctors what at like to so the that gotten at those the look good and right buying. they're offer

we in And really launched so channels. suitable few now commerce, packages just and we other X nurse have for are products -- a our that new

are as X individual purchased new Nursegrid as our what the growing well. about is we're talking cmecourses.com, packages, Learn Learn at state-specific just in nurse channels launched in education So channels an physician our and that's NurseGrid individual. again, but by We revenue

of right the And essentially their has still to get opioids that through And it one, this harder think but federal and of at cycle will which a now year requirement. variable. It still quarter being driver year renewal we're over for but so made the take the weak predict. but to commerce, all DEA strong a is it, licenses these it's the We strong think physicians have on biggest a we in a has getting better might a case course.

in X commerce, forms of Constantine, or BXB to little in or nurse getting project project. just the be business a I just So strong to call direct. and digital adding will the is commerce at DEA harder growing and better made BXP, we're X on just professional strengthen our there's more strength a to to it quarters And as And it our channels, commerce mentioned, teams abilities. But our we BXC are DEA content. overall, note, marketing few meanwhile, we X

network. we're sign where into ecology sell it's we So a application an that definitely our channels content can becoming inside we have own

go-forward grows, margin own, little the good as it We sleep, call But So it's money take that it's think a the predictable. it, we we'll a a while we'll while good problem it it bigger way. sleep. little which so own basis we has a case less We becomes we we take and idea. money when it. and sell highlighted in you've That really exciting course on content that margin. is good it we said, DEA It

Constantine Davides

just color, good then the charge, Just G&A there, the That's The I you and And Steward, line? Scotty. color guess, if give one quick Bobby. item. a with million P&L wondering impact housekeeping associated did can little $X that

Scott Roberts

statement bad charges our flow that on debt where that's income through category. Yes, into our

Constantine Davides

then one been that's I Great. renewed. don't The think and And in last share repurchase program March expired here.

more Just of give us wondering into preference there? for update can reading too an a I are the you if dividend? that? signaling Or much And you am

Robert Frist

buyback programs able are worth -- the one probably about was, last shares. and as buy You're for company. XX overthinking a little in million we've This public back opportunistically over believe, it we years view bit, few and but a in I to money $XX a our we put

at think $XX. $XX, I $XX the we the $XXs, worth in million $X million average price about an low of bought like

looks that And it far all again, shareholders. years as in that with buybacks, effective. that history, the of money our XX spread -- So a makes out X for over

position that should So program we in the buying. requirements around we purchase reflect and on be generally put it our Board's place put a where

approve didn't and Board at the this not Board the has so time. in discipline But -- a but repurchase not another share it new program into the the And the prior our them execute has these another creating program and of excited of program discussions did program But place quarter, put up -- elected Board and itself. see because to consistent whole we're share a allocation quarter every put place dividend takes repurchase with and capital to the currently. expired,

Operator

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

Vincent Colicchio

that was are worsening if a wasn't on you that quarters? or Scotty, for And ANSOS, I'm stabilizing? if does clear revenue? wondering compare things Yes, cited recent in how to subscribers I XX% so decline to

Scott Roberts

revenue. that guess decline was XX% last year's I on So

at So rate I X attrition to probably about the least been the it at of year. of a And was versus $XXX,XXX the last period for past decline rate same that think kind has X quarters.

Vincent Colicchio

Bobby, or in are Okay. we Bobby that other any And me. be are one financial Scotty, then more concerned distress, about? -- should there for clients

Robert Frist

I seen any bellwether change on or think XX It's have the any we an for not the seeing DSO and whole, in problem, not just months. hope collectability macro we're this say, We patterns not the yet. isolated is reflected industry. as our in in payments prior, than are different trends that any a

contracts. isolated stays landscape, more say I of a changing in an it lot hope our maybe story. so submarkets, necessarily but nursing not And mergers would we bankruptcies, acquisitions, market, change that changing there's some and skilled

past acute seen And in so any is little maybe that largest of guess of nursing bit the submarket a our good Steward. obviously, skilled But But that, distress a there's market years. hospitals, remains DSO in markets, mean, couple our and call with market. I skilled pattern more what in than we itself, base in I'd of the other or change I changes consistent this yet. facility patterns haven't nursing

Operator

further questions, over for CEO, remarks. to closing back further I'm Robert Frist, like to conference And I'd no or the hand and showing

Robert Frist

friends to our had listens and and shout working putting build Trisha officers with everyone, lot senior Coady's of hear our family fan our here employees that There's quarter the our earnings ups fun is downs. a trying and big time employees. and hardworking X,XXX at tell a Business can so to the into great never on participants out you, hard. Thank calls, journey We're stories of takes we about that some. this in, It's to our analysts family one it. Appreciate father and the energy puts that them and company write our easy. and support follow

culture exciting just and of that. build energy through We the long next we trying them history like and that to have to a on fighting our in doing and we're and feel company thing and moving shareholders,

incremental nonetheless, So small and positive. incremental but this quarter, steps

try -- and do think hard next couple our make the get commitments I us into achieving So our on take solid And our them to quarters we're guidance. of we'll to positioned working in keep that.

So posted, call. next forward to look to everyone Thank we'll involved. the keep you earnings guys you

Operator

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

now may disconnect. You

HealthStream (HSTM) 23 Jul 242024 Q2 Earnings call transcript