Skip to main content

HealthStream Finishes 2019 on a Financial Upswing

Analysis  |  By Jack O'Brien  
   February 18, 2020

The Nashville-based healthcare company saw its quarterly and year-end revenues increase by at least 5%.

Nashville-based HealthStream, Inc. reported strong financials to end 2019, according to its latest earnings report released Tuesday afternoon. 

In Q4 2019, HealthStream achieved revenues of $62.7 million, up 5% year-over-year, with an operating income of $3.3 million, up 18% over the same period.

Similarly, the healthcare solutions company recorded an adjusted EBITDA from continuing operations of $11.2 million, an increase of 18% compared to Q4 2018.

For the full year, nearly all of HealthStream's major financial metrics experienced an increase, including revenues, income from continuing operations, and earnings per share (EPS) from continuing operations.

C-SUITE PERSPECTIVE: 

"Our full-year 2019 results reflect an exciting year during which we made significant progress in expanding our ecosystem and marketplace, innovating for the future with new technologies, and launching new products for the healthcare industry," Robert A. Frist, Jr., CEO of HealthStream, said in a statement. "As we begin 2020, our operations are tightly focused as we work to improve gross margins to over 60 percent; continue introducing superior resuscitation solutions to the market—like our new VR-based team leader training; and further develop, enhance, and grow the number of hStream subscriptions beyond 3.15 million."

The capstone for HealthStream's successful 2019 was the completion of its $9 million acquisition of CredentialMyDoc, a Savannah, Georgia–based business owned by Covenant Technology Group, LLC.

HealthStream's quarterly revenues benefited from growth in its workforce solutions segment, which grew by nearly $2 million year-over-year.

The company's acquisition of Providigm LLC, a Denver-based quality assurance company, also added $1.7 million in quarterly revenues.

Related: HealthStream Sells Patient Experience Platform to Press Ganey

Looking ahead, HealthStream projects its consolidated 2020 revenues will be between $247.5 million to $255.5 million, with an operating income between $12 million to $14.5 million.

Additionally, HealthStream's capital expenditures are expected to be between $24 million to $26 million for the full year.

For complete financial information, review HealthStream's filing with the Securities and Exchange Commission.

Jack O'Brien is the Content Team Lead and Finance Editor at HealthLeaders, an HCPro brand.


Get the latest on healthcare leadership in your inbox.