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      HealthStream Announces Third Quarter 2022 Results

      Oct 24, 2022
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      NASHVILLE, Tenn.--(BUSINESS WIRE)--Oct. 24, 2022-- HealthStream, Inc. (Nasdaq: HSTM), a leading provider of workforce and provider solutions for the healthcare industry, announced today results for the third quarter ended September 30, 2022.

      • Revenues of $67.3 million in the third quarter of 2022, up 5% from $64.1 million in the third quarter of 2021
      • Operating income of $2.4 million in the third quarter of 2022, up 33% from $1.8 million in the third quarter of 2021
      • Net income of $3.7 million in the third quarter of 2022, up 144% from $1.5 million in the third quarter of 2021
      • Earnings per share (EPS) of $0.12 per share (diluted) in the third quarter of 2022 compared to $0.05 per share (diluted) in the third quarter of 2021
      • Adjusted EBITDA1 of $12.7 million in the third quarter of 2022, up 2% from $12.5 million in the third quarter of 2021

      1 Adjusted EBITDA is a non-GAAP financial measure. A reconciliation of adjusted EBITDA to net income and disclosure regarding why we believe adjusted EBITDA provides useful information to investors is included later in this release.

      Financial Results:

      Third Quarter 2022 Compared to Third Quarter 2021

      Revenues for the third quarter of 2022 increased by $3.2 million, or five percent, to $67.3 million, compared to $64.1 million for the third quarter of 2021.

      Revenues from our Workforce Solutions segment were $54.1 million for the third quarter of 2022, an increase of six percent compared to $51.2 million for the third quarter of 2021. The workforce segment experienced growth in several product categories, including contributions from recent acquisitions, which was partially offset by declines from the legacy resuscitation business.

      Revenues from our Provider Solutions segment were $13.2 million for the third quarter of 2022, an increase of two percent compared to $12.9 million for the third quarter of 2021. This revenue growth of $0.3 million was primarily attributable to an increase in subscription revenues which was partially offset by a $0.5 million decrease in professional services revenue.

      Prior to the Company adopting ASU 2021-08 on January 1, 2022, generally accepted accounting principles (GAAP) required companies to adjust beginning balances of acquired deferred revenue as part of “fair value” accounting. Following the adoption of ASU 2021-08, contracts acquired in any acquisition completed on or after January 1, 2022 will be measured as if the Company had originated the contract such that the Company will no longer record deferred revenue write-downs associated with acquired businesses (for acquisitions completed prior to January 1, 2022, the Company will continue to record deferred revenue write-downs associated with fair value accounting for periods on and after January 1, 2022 consistent with past practice). During the third quarter of 2022, HealthStream reported a reduction of $46,000 to revenue and operating income and a reduction of $36,000 to net income as a result of deferred revenue write-downs from acquisitions completed prior to the adoption of this new accounting standard. During the third quarter of 2021, HealthStream reported a reduction of $0.8 million to revenue and operating income and a reduction of $0.6 million to net income as a result of deferred revenue write-downs from prior acquisitions.

      Operating income was $2.4 million for the third quarter of 2022, up 33 percent from $1.8 million in the third quarter of 2021. The improvement in operating income was primarily attributable to higher revenues, as discussed above, reductions in office lease costs, and an increase in capitalized labor associated with software development activities. Partially offsetting these improvements were increases in personnel for product development, sales and marketing, higher travel expenses, and incremental expenses associated with recent acquisitions.

      Other income includes a $2.7 million gain in the third quarter of 2022 associated with the sale of a company in which we owned a minority equity interest.

      Net income was $3.7 million in the third quarter of 2022, up 144 percent from $1.5 million in the third quarter of 2021, and EPS was $0.12 per share (diluted) in the third quarter of 2022, compared to $0.05 per share (diluted) for the third quarter of 2021. Net income and EPS were positively impacted in the amount of $2.1 million and $0.07 per share (diluted), respectively, from the gain associated with the sale of our minority equity interest as set forth above.

      Adjusted EBITDA was $12.7 million for the third quarter of 2022, up two percent from $12.5 million in the third quarter of 2021. The gain associated with the sale of the minority investment mentioned above is not included in the calculation of adjusted EBITDA.

      On September 30, 2022, the Company had cash and cash equivalents and marketable securities of $51.8 million. Capital expenditures incurred during the third quarter of 2022 were $6.1 million.

      Year-to-Date 2022 Compared to Year-to-Date 2021

      For the first nine months of 2022, revenues were $198.3 million, an increase of three percent over revenues of $192.4 million for the first nine months of 2021. Operating income for the first nine months of 2022 increased by ten percent to $9.4 million, compared to $8.5 million for the first nine months of 2021. The increase in operating income was primarily attributable to higher revenues coupled with lower royalties expense related to the decline in legacy resuscitation revenues and lower facilities costs associated with closing certain leased satellite offices. We also experienced higher costs associated with personnel, commissions, travel, software, amortization, and a $1.0 million non-recurring, non-cash benefit during the first quarter of 2021 related to the reduction of paid time off (PTO) expense resulting from modifications to the Company’s PTO policy. Net income for the first nine months of 2022 increased to $9.6 million, compared to $6.2 million for the first nine months of 2021. Earnings per share were $0.31 per share (diluted) for the first nine months of 2022, compared to $0.20 per share (diluted) for the first nine months of 2021. Adjusted EBITDA decreased by two percent to $39.8 million for the first nine months of 2022, compared to $40.6 million for the first nine months of 2021.

      Other Business Updates

      On September 30, 2022, we had approximately 5.35 million contracted subscriptions to hStream, our emerging technology platform. hStream technology enables healthcare organizations and their respective workforces to easily connect to and gain value from the growing HealthStream ecosystem of applications, tools, and content.

      Financial Outlook for 2022

      The Company is updating its guidance for 2022 for certain of the measures set forth below. Specifically, in relation to the consolidated revenue guidance range below, we are forecasting revenues for the fourth quarter of 2022 to increase approximately 6.0 (six) percent over the fourth quarter of 2021, and revenues for the full year 2022 to increase approximately 3.8 (three and eight tenths) percent over 2021. For a reconciliation of projected adjusted EBITDA, a non-GAAP financial measure defined later in this release, to projected net income (the most comparable GAAP measure) for 2022, see the table included on page ten of this release.

       

       

      Full Year 2022 Guidance

      Revenue

       

       

       

       

       

       

       

       

       

       

      Workforce Solutions

       

      $

      212.5

       

      -

       

      $

      214.0

       

      million

      Provider Solutions

       

       

      53.0

       

      -

       

       

      53.5

       

      million

      Consolidated

       

      $

      265.5

       

      -

       

      $

      267.5

       

      million

       

       

       

       

       

       

       

       

       

       

       

      Adjusted EBITDA2

       

      $

      52.0

       

      -

       

      $

      53.5

       

      million

       

       

       

       

       

       

       

       

       

       

       

      Capital Expenditures

       

      $

      25.5

       

      -

       

      $

      26.5

       

      million

       

      2 Adjusted EBITDA is a non-GAAP financial measure. A reconciliation of projected adjusted EBITDA to projected net income (the most comparable GAAP measure) is included later in this release.

      The Company’s guidance for 2022 as set forth above reflects the Company’s assumptions regarding, among other things, the COVID-19 pandemic and current economic conditions as noted below and increased Company expenses in 2022 compared to 2021 associated with growth in staffing levels, lower employee turnover, and the resumption of employee travel. This consolidated guidance does not include the impact of any future acquisitions that we may complete during 2022.

      The Company’s financial guidance assumes that public health conditions associated with the pandemic and general economic conditions (including conditions impacting healthcare organizations) do not deteriorate during the remainder of 2022.

      Commenting on third quarter 2022 results, Robert A. Frist, Jr., Chief Executive Officer, HealthStream, said, “Our financial performance in the third quarter of 2022 showed year-over-year increases in each of the major categories we highlight in our earnings release, which include record quarterly revenues and increasing revenue growth rates compared to the first half of the year. This is an exciting time for HealthStream as we are seeing new competitive benefits emerge from our innovative platform strategy, which we believe is paving the way for increased, long-term value for our customers and shareholders.”

      A conference call with Robert A. Frist, Jr., Chief Executive Officer, Scott A. Roberts, Chief Financial Officer and Senior Vice President, and Mollie Condra, Vice President of Investor Relations and Corporate Communications, will be held on Tuesday, October 25, 2022, at 9:00 a.m. (ET). Participants may access the conference call live via webcast using this link: https://edge.media-server.com/mmc/p/nhw4jxrt. To participate via telephone, please register in advance using this link:
      https://register.vevent.com/register/BIcc5e74ae1c47469f9080fceb6eedb482. A replay of the conference call and webcast will be archived on the Company’s website in the Investor Relations section under “Events & Presentations.”

      Use of Non-GAAP Financial Measures

      This press release presents adjusted EBITDA, a non-GAAP financial measure used by management in analyzing the Company’s financial results and ongoing operational performance. In order to better assess the Company’s financial results, management believes that net income excluding the impact of the deferred revenue write-downs associated with fair value accounting for acquired businesses (as discussed in greater detail below) and before interest, income taxes, stock based compensation, depreciation and amortization, changes in fair value of, including gains (losses) on the sale of, non-marketable equity investments, and the de-recognition of non-cash expense resulting from the PTO expense reduction in the first quarter of 2021 (“adjusted EBITDA”) is a useful measure for evaluating the operating performance of the Company because adjusted EBITDA reflects net income adjusted for certain GAAP accounting, non-cash and/or non-operating items which may not, in any such case, fully reflect the underlying operating performance of our business. We also believe that adjusted EBITDA is useful to investors to assess the Company’s ongoing operating performance and to compare the Company’s operating performance between periods. In addition, short-term cash incentive bonuses and certain performance-based equity awards grants are based on the achievement of adjusted EBITDA (as defined in applicable bonus and equity grant documentation) targets.

      As noted above, the definition of adjusted EBITDA includes an adjustment for the impact of the deferred revenue write-downs associated with fair value accounting for acquired businesses. Prior to the Company early adopting ASU 2021-08 effective January 1, 2022, following the completion of any acquisition by the Company, the Company was required to record the acquired deferred revenue at fair value as defined in GAAP, which typically resulted in a write-down of the acquired deferred revenue. When the Company was required to record a write-down of deferred revenue, it resulted in lower recognized revenue, operating income, and net income in subsequent periods. Revenue for any such acquired business was deferred and was typically recognized over a one-to-two-year period following the completion of any particular acquisition, so our GAAP revenues for this one-to-two-year period would not reflect the full amount of revenues that would have been reported if the acquired deferred revenue was not written down to fair value. Management believes that including an adjustment in the definition of adjusted EBITDA for the impact of the deferred write-downs associated with fair value accounting for businesses acquired prior to the January 1, 2022 effective date of the Company's adoption of ASU 2021-08 provides useful information to investors because the deferred revenue write-down recognized in periods after an acquisition may, given the nature of this non-cash accounting impact, cause our GAAP financial results during such periods to not fully reflect our underlying operating performance and thus adjusting for this amount may assist in comparing the Company’s results of operations between periods. Following the adoption of ASU 2021-08, contracts acquired in an acquisition completed on or after January 1, 2022 will be measured as if the Company had originated the contract (rather than the contract being measured at fair value) such that, for such acquisitions, the Company will no longer record deferred revenue write-downs associated with acquired businesses (for acquisitions completed prior to January 1, 2022, the Company will continue to record deferred revenue write-downs associated with fair value accounting for periods on and after January 1, 2022 consistent with past practice). At the current time, the Company intends to continue to include an adjustment in the definition of adjusted EBITDA for the impact of deferred revenue write-downs from business acquired prior to January 1, 2022 given the ongoing impact of such deferred revenue on our financial results.

      Adjusted EBITDA is a non-GAAP financial measure and should not be considered as a measure of financial performance under GAAP. Because adjusted EBITDA is not a measurement determined in accordance with GAAP, adjusted EBITDA is susceptible to varying calculations. Accordingly, adjusted EBITDA, as presented, may not be comparable to other similarly titled measures of other companies and has limitations as an analytical tool.

      This non-GAAP financial measure should not be considered a substitute for, or superior to, measures of financial performance, which are prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of adjusted EBITDA to net income (the most comparable GAAP measure), which is set forth below in this release.

      About HealthStream

      HealthStream (Nasdaq: HSTM) is dedicated to improving patient outcomes through the development of healthcare organizations’ greatest asset: their people. Our unified suite of solutions is contracted by healthcare organizations across the U.S. for workforce development, training & learning management, nurse & staff scheduling, clinical education, credentialing, privileging, provider enrollment, performance assessment, and managing simulation-based education programs. HealthStream’s corporate office is in Nashville, Tennessee. For more information, visit http://www.healthstream.com or call 800-521-0574.

      HEALTHSTREAM, INC.

      Condensed Consolidated Statements of Income

      (In thousands, except per share data)

      (Unaudited)

       

       

       

      Three Months Ended

       

       

      Nine Months Ended

       

       

       

      September 30,
      2022

       

       

      September 30,
      2021

       

       

      September 30,
      2022

       

       

      September 30,
      2021

       

      Revenues, net

       

      $

      67,285

       

       

      $

      64,091

       

       

      $

      198,290

       

       

      $

      192,374

       

      Operating costs and expenses:

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

      Cost of revenues (excluding depreciation and amortization)

       

       

      23,374

       

       

       

      22,585

       

       

       

      67,606

       

       

       

      68,053

       

      Product development

       

       

      11,476

       

       

       

      10,344

       

       

       

      32,470

       

       

       

      30,205

       

      Sales and marketing

       

       

      11,365

       

       

       

      10,232

       

       

       

      32,652

       

       

       

      28,713

       

      Other general and administrative expenses

       

       

      9,096

       

       

       

      10,004

       

       

       

      27,856

       

       

       

      29,445

       

      Depreciation and amortization

       

       

      9,592

       

       

       

      9,141

       

       

       

      28,334

       

       

       

      27,443

       

      Total operating costs and expenses

       

       

      64,903

       

       

       

      62,306

       

       

       

      188,918

       

       

       

      183,859

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

      Operating income

       

       

      2,382

       

       

       

      1,785

       

       

       

      9,372

       

       

       

      8,515

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

      Other income (loss), net

       

       

      2,543

       

       

       

      (99

      )

       

       

      2,945

       

       

       

      (250

      )

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

      Income before income tax provision

       

       

      4,925

       

       

       

      1,686

       

       

       

      12,317

       

       

       

      8,265

       

      Income tax provision

       

       

      1,259

       

       

       

      186

       

       

       

      2,675

       

       

       

      2,033

       

      Net income

       

      $

      3,666

       

       

      $

      1,500

       

       

      $

      9,642

       

       

      $

      6,232

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

      Net income per share:

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

      Basic

       

      $

      0.12

       

       

      $

      0.05

       

       

      $

      0.31

       

       

      $

      0.20

       

      Diluted

       

      $

      0.12

       

       

      $

      0.05

       

       

      $

      0.31

       

       

      $

      0.20

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

      Weighted average shares of common stock outstanding:

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

      Basic

       

       

      30,570

       

       

       

      31,558

       

       

       

      30,672

       

       

       

      31,538

       

      Diluted

       

       

      30,662

       

       

       

      31,684

       

       

       

      30,717

       

       

       

      31,609

       

      HEALTHSTREAM, INC.

      Condensed Consolidated Balance Sheets

      (In thousands)

      (Unaudited)

       

       

       

      September 30,

       

       

      December 31,

       

       

       

      2022

       

       

      2021

       

      ASSETS

       

       

       

       

       

       

       

       

      Current assets:

       

       

       

       

       

       

       

       

      Cash and cash equivalents

       

      $

      48,257

       

       

      $

      46,905

       

      Marketable securities

       

       

      3,587

       

       

       

      5,041

       

      Accounts and unbilled receivables, net

       

       

      32,670

       

       

       

      34,920

       

      Prepaid and other current assets

       

       

      19,837

       

       

       

      19,979

       

      Total current assets

       

       

      104,351

       

       

       

      106,845

       

       

       

       

       

       

       

       

       

       

      Capitalized software development, net

       

       

      35,537

       

       

       

      32,412

       

      Property and equipment, net

       

       

      15,658

       

       

       

      17,950

       

      Operating lease right of use assets, net

       

       

      23,343

       

       

       

      25,168

       

      Goodwill and intangible assets, net

       

       

      269,888

       

       

       

      271,706

       

      Deferred tax assets

       

       

      601

       

       

       

      601

       

      Deferred commissions

       

       

      26,377

       

       

       

      24,012

       

      Other assets

       

       

      5,442

       

       

       

      8,059

       

      Total assets

       

      $

      481,197

       

       

      $

      486,753

       

       

       

       

       

       

       

       

       

       

      LIABILITIES AND SHAREHOLDERS’ EQUITY

       

       

       

       

       

       

       

       

      Current liabilities:

       

       

       

       

       

       

       

       

      Accounts payable, accrued and other liabilities

       

      $

      27,805

       

       

      $

      26,534

       

      Deferred revenue

       

       

      77,585

       

       

       

      73,816

       

      Total current liabilities

       

       

      105,390

       

       

       

      100,350

       

      Deferred tax liabilities

       

       

      18,761

       

       

       

      18,146

       

      Deferred revenue, non-current

       

       

      1,264

       

       

       

      1,583

       

      Operating lease liability, noncurrent

       

       

      24,041

       

       

       

      26,178

       

      Other long-term liabilities

       

       

      1,459

       

       

       

      1,477

       

      Total liabilities

       

       

      150,915

       

       

       

      147,734

       

       

       

       

       

       

       

       

       

       

      Shareholders’ equity:

       

       

       

       

       

       

       

       

      Common stock

       

       

      253,934

       

       

       

      270,791

       

      Accumulated other comprehensive (loss) income

       

       

      (1,416

      )

       

       

      106

       

      Retained earnings

       

       

      77,764

       

       

       

      68,122

       

      Total shareholders’ equity

       

       

      330,282

       

       

       

      339,019

       

      Total liabilities and shareholders' equity

       

      $

      481,197

       

       

      $

      486,753

       

      HEALTHSTREAM, INC.

      Condensed Consolidated Statements of Cash Flows

      (In thousands)

      (Unaudited)

       

       

       

      Nine Months Ended

       

       

       

      September 30,

       

       

      September 30,

       

       

       

      2022

       

       

      2021

       

      Operating activities:

       

       

       

       

       

       

       

       

      Net income

       

      $

      9,642

       

       

      $

      6,232

       

      Adjustments to reconcile net income to net cash provided by operating activities:

       

       

       

       

       

       

       

       

      Depreciation and amortization

       

       

      28,334

       

       

       

      27,443

       

      Stock-based compensation

       

       

      2,609

       

       

       

      2,260

       

      Amortization of deferred commissions

       

       

      7,826

       

       

       

      6,900

       

      Deferred income taxes

       

       

      1,225

       

       

       

      2,066

       

      Provision for credit losses

       

       

      400

       

       

       

      99

       

      Gain on sale of fixed assets

       

       

      (25

      )

       

       

      —

       

      Loss on equity method investments

       

       

      621

       

       

       

      258

       

      Non-cash paid time off expense

       

       

      —

       

       

       

      (1,011

      )

      Change in fair value of non-marketable equity investments

       

       

      (3,596

      )

       

       

      —

       

      Other

       

       

      30

       

       

       

      132

       

      Changes in assets and liabilities:

       

       

       

       

       

       

       

       

      Accounts and unbilled receivables

       

       

      2,273

       

       

       

      13,907

       

      Prepaid and other assets

       

       

      (9,370

      )

       

       

      (8,959

      )

      Accounts payable, accrued and other liabilities

       

       

      1,514

       

       

       

      (6,668

      )

      Deferred revenue

       

       

      1,597

       

       

       

      (6,223

      )

      Net cash provided by operating activities

       

       

      43,080

       

       

       

      36,436

       

       

       

       

       

       

       

       

       

       

      Investing activities:

       

       

       

       

       

       

       

       

      Business combinations, net of cash acquired

       

       

      (4,009

      )

       

       

      (731

      )

      Changes in marketable securities

       

       

      1,424

       

       

       

      4,708

       

      Payments to acquire equity method investments

       

       

      —

       

       

       

      (1,750

      )

      Proceeds from sale of fixed assets

       

       

      26

       

       

       

      —

       

      Proceeds from sale of non-marketable equity investments

       

       

      3,494

       

       

       

      —

       

      Purchases of property and equipment

       

       

      (1,570

      )

       

       

      (2,602

      )

      Payments associated with capitalized software development

       

       

      (17,392

      )

       

       

      (16,577

      )

      Net cash used in investing activities

       

       

      (18,027

      )

       

       

      (16,952

      )

       

       

       

       

       

       

       

       

       

      Financing activities:

       

       

       

       

       

       

       

       

      Taxes paid related to net settlement of equity awards

       

       

      (518

      )

       

       

      (471

      )

      Repurchases of common stock

       

       

      (23,137

      )

       

       

      —

       

      Payment of cash dividends

       

       

      —

       

       

       

      (19

      )

      Net cash used in financing activities

       

       

      (23,655

      )

       

       

      (490

      )

       

       

       

       

       

       

       

       

       

      Effect of exchange rate changes on cash and cash equivalents

       

       

      (46

      )

       

       

      (101

      )

      Net increase in cash and cash equivalents

       

       

      1,352

       

       

       

      18,893

       

      Cash and cash equivalents at beginning of period

       

       

      46,905

       

       

       

      36,566

       

      Cash and cash equivalents at end of period

       

      $

      48,257

       

       

      $

      55,459

       

      Reconciliation of GAAP to Non-GAAP Financial Measures(1)

      (In thousands)

      (Unaudited)

       

       

       

      Three Months Ended
      September 30,

       

       

      Nine Months Ended
      September 30,

       

       

       

      2022

       

       

      2021

       

       

      2022

       

       

      2021

       

      GAAP net income

       

      $

      3,666

       

       

      $

      1,500

       

       

      $

      9,642

       

       

      $

      6,232

       

      Deferred revenue write-down

       

       

      46

       

       

       

      805

       

       

       

      223

       

       

       

      3,657

       

      Interest income

       

       

      (124

      )

       

       

      (24

      )

       

       

      (155

      )

       

       

      (64

      )

      Interest expense

       

       

      33

       

       

       

      33

       

       

       

      99

       

       

       

      99

       

      Income tax provision

       

       

      1,259

       

       

       

      186

       

       

       

      2,675

       

       

       

      2,033

       

      Stock-based compensation expense

       

       

      918

       

       

       

      861

       

       

       

      2,609

       

       

       

      2,260

       

      Depreciation and amortization

       

       

      9,592

       

       

       

      9,141

       

       

       

      28,334

       

       

       

      27,443

       

      Change in fair value of non-marketable equity investments

       

       

      (2,653

      )

       

       

      —

       

       

       

      (3,596

      )

       

       

      —

       

      Non-cash paid time off expense

       

       

      —

       

       

       

      —

       

       

       

      —

       

       

       

      (1,011

      )

      Adjusted EBITDA

       

      $

      12,737

       

       

      $

      12,502

       

       

      $

      39,831

       

       

      $

      40,649

       

       

      (1) Adjusted EBITDA is a non-GAAP financial measure. A reconciliation of projected adjusted EBITDA to projected net income (the most comparable GAAP measure) is included later in this release.

      Reconciliation of GAAP to Non-GAAP Financial Measures

      Financial Outlook for 2022

      (In thousands)

      (Unaudited)

       

       

       

      Low

       

       

      High

       

      Net income

       

      $

      10,800

       

       

      $

      11,700

       

      Deferred revenue write-down

       

       

      300

       

       

       

      300

       

      Interest income

       

       

      (200

      )

       

       

      (200

      )

      Interest expense

       

       

      100

       

       

       

      100

       

      Income tax provision

       

       

      3,100

       

       

       

      3,400

       

      Change in fair value of non-marketable equity investments

       

       

      (3,600

      )

       

       

      (3,600

      )

      Stock-based compensation expense

       

       

      3,600

       

       

       

      3,700

       

      Depreciation and amortization

       

       

      37,900

       

       

       

      38,100

       

      Adjusted EBITDA

       

      $

      52,000

       

       

      $

      53,500

       

      This press release includes certain forward-looking statements (statements other than solely with respect to historical fact), including statements regarding expectations for financial performance for 2022 as well as the anticipated impact of the COVID-19 pandemic on our financial results, that involve risks and uncertainties regarding HealthStream. These statements are based upon management’s beliefs, as well as assumptions made by and data currently available to management. This information has been, or in the future may be, included in reliance on the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. The Company cautions that forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause the actual results, performance, or achievements to be materially different from future results, performance, or achievements expressed or implied by the forward-looking statements, including, without limitation, as the result of developments related to the COVID-19 pandemic, including, without limitation, related to the length and severity of the pandemic; current economic challenges impacting the U.S. economy, including with respect to recessionary concerns, inflationary pressures, competitive labor market conditions and supply chain shortages and disruptions, and the impact of the pandemic and current economic conditions on healthcare organizations; as well as risks referenced in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, filed on February 28, 2022, and in the Company’s other filings with the Securities and Exchange Commission from time to time. Consequently, such forward-looking information should not be regarded as a representation or warranty or statement by the Company that such projections will be realized. Many of the factors that will determine the Company’s future results are beyond the ability of the Company to control or predict. Readers should not place undue reliance on forward-looking statements, which reflect management’s views only as of the date hereof. The Company undertakes no obligation to update or revise any such forward-looking statements.

      View source version on businesswire.com: https://www.businesswire.com/news/home/20221024005743/en/

      Scott A. Roberts
      Chief Financial Officer
      (615) 301-3182
      ir@healthstream.com

      Media:
      Mollie Condra, Ph.D.
      Vice President,
      Investor Relations &
      Communications
      (615) 301-3237
      mollie.condra@healthstream.com

      Source: HealthStream, Inc.

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