On February 20, 2024, HealthStream Inc (HSTM, Financial), a leading provider of workforce and provider solutions for healthcare organizations, announced its financial results for the fourth quarter and full-year ended December 31, 2023. The company released its 8-K filing, revealing a year of solid growth and financial achievements.
Financial Performance Highlights
HealthStream's fourth quarter saw a revenue increase to $70.6 million, up from $68.5 million in the same quarter of the previous year. This growth was driven by a $2.6 million increase in subscription revenues, which offset a decline in professional services revenues. The company's operating income for the quarter was $4.3 million, marking a significant 38% increase from the fourth quarter of 2022. This improvement was primarily due to revenue growth, reduced labor costs, and increased labor capitalized for software development activities.
For the full year, HealthStream reported revenues of $279.1 million, a 5% increase from the previous year's $266.8 million. Operating income for the year rose by 29% to $16.0 million, with net income reaching $15.2 million, up 26% from 2022. Earnings per share (EPS) for the year were $0.50, compared to $0.39 in the prior year.
Strategic Developments and Shareholder Returns
The company's Board of Directors declared a quarterly cash dividend of $0.028 per share, reflecting a 12% increase over the previous quarter's dividend. HealthStream also continued its share repurchase program, buying back $8.9 million worth of shares, with $6.8 million repurchased in the fourth quarter alone.
HealthStream's hStream platform, which serves as the backbone of its single platform strategy, had approximately 5.79 million contracted subscriptions by the end of 2023. The platform's interoperability is designed to connect healthcare organizations and their workforces to a growing ecosystem of applications, tools, and content.
Looking Ahead: 2024 Financial Outlook
HealthStream provided guidance for 2024, projecting revenues between $292.0 million and $296.0 million and adjusted EBITDA between $64.5 million and $67.5 million. The company's capital expenditures are expected to be between $28.0 million and $30.0 million.
CEO Robert A. Frist, Jr. commented on the results, stating, "Our financial performance for full-year 2023 was strong... Based on our projections and guidance, I believe we will set new records again in 2024." He also highlighted the expansion of HealthStream's addressable market to include nursing schools and the launch of new e-commerce capabilities.
HealthStream's financial achievements underscore its commitment to delivering value to healthcare organizations and professionals. With a focus on innovation and market expansion, the company is well-positioned for continued growth in the healthcare technology sector.
For more detailed information on HealthStream's financial results, including the full earnings release and financial statements, please refer to the company's 8-K filing.
Explore the complete 8-K earnings release (here) from HealthStream Inc for further details.