UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10‑Q Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2019 Commission File No.: 000‑27701 HealthStream, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) 500 11th Avenue North, Suite 1000, Nashville, Tennessee 37203 (Address of principal executive offices) (Zip Code) Tennessee 62‑1 ...

HealthStream, Inc. (NASDAQ:HSTM) Q1 2019 Earnings Conference Call April 23, 2019 9:00 AM ET Company Participants Mollie Condra - VP, IR & Communications Robert Frist - Chairman, Co-Founder and Chief Executive Officer Scott Roberts - Interim Chief Financial Officer & Vice President, Accounting and Finance Conference Call Participants Ryan Daniels - William Blair & Company Matt Hewitt - Craig-Hallum Capital Group Richard Close - Canaccord Genuity Frank Sparacino - First Analysis Vincent Colicchio - Barringto ...

Acquisitions and Divestitures - The company acquired Performance Management Services, Inc. in June 2016, Nursing Registry Consultants Corporation in July 2016, MAI in August 2016, and Providigm, LLC in January 2019[38]. - The company divested its Patient Experience business for $65.2 million in cash, impacting its operational segments[295]. - The Company divested its PX business to Press Ganey for $65.2 million in cash, resulting in a net gain of $19.0 million after tax[367]. Financial Performance - Total revenues for the year ended December 31, 2018, were $231.6 million, an increase of 7.5% from $214.9 million in 2017[283]. - Operating income for 2018 was $15.5 million, up 64.5% from $9.4 million in 2017[283]. - Net income for 2018 reached $32.2 million, significantly higher than $10.0 million in 2017, representing a 221.8% increase[283]. - Basic net income per share for 2018 was $1.00, compared to $0.31 in 2017, reflecting a substantial growth[283]. - Total current assets increased to $241.4 million in 2018 from $199.7 million in 2017, marking a growth of 20.9%[281]. - Total assets as of December 31, 2018, were $441.9 million, up from $411.1 million in 2017, indicating a 7.5% increase[281]. - Total shareholders' equity rose to $318.9 million in 2018, compared to $300.2 million in 2017, an increase of 6.2%[281]. - The company reported a gain on the sale of discontinued operations amounting to $29.5 million in 2018[283]. - Net income for the year ended December 31, 2018, was $32.217 million, a significant increase from $10.004 million in 2017[292]. - The company reported a net cash increase of $49.553 million for the year, compared to an increase of $35.134 million in 2017[292]. Revenue Recognition and Accounting Standards - The company adopted a new revenue recognition method in 2018 due to the implementation of Accounting Standards Update No. 2014-09[266]. - The company recognized revenues based on a five-step model, ensuring compliance with ASC 606 effective January 1, 2018[296]. - The adoption of ASC 606 resulted in a net revenue increase of $740,000 for the year ended December 31, 2018, with reported revenues of $231,616,000[349]. - Deferred revenue, current, increased to $70,796,000 as of December 31, 2018, compared to $66,061,000 prior to ASC 606 adoption, indicating a rise of approximately 11.5%[349]. Employee and Workforce Information - As of December 31, 2018, the company had 119 sales personnel in HealthStream Workforce Solutions and 33 in Provider Solutions, all carrying sales quotas[40]. - The marketing team consisted of 38 employees as of December 31, 2018, conducting various promotional programs including trade shows and telemarketing campaigns[41]. - The Workforce Solutions operations team had 319 employees focused on customer support and product development, while the Provider Solutions operations team had 194 employees[42]. - The company employed 757 full-time and 33 part-time employees as of December 31, 2018, highlighting its workforce size[74]. Cash and Investment Position - As of December 31, 2018, the company had cash and investment balances approximating $168.8 million[255]. - Cash and cash equivalents increased to $134.3 million in 2018 from $84.8 million in 2017, a growth of 58.5%[281]. - The company’s cash and cash equivalents at the end of the period were $134.321 million, up from $84.768 million at the beginning[292]. - A hypothetical 10% decrease in interest rates would lead to an annualized decrease in interest income from cash and investments by approximately $365,000[255]. Compliance and Regulatory Environment - The company is recognized as an accredited provider of Continuing Medical Education (CME) by the Accreditation Council for Continuing Medical Education (ACCME)[58]. - The company has a strong commitment to compliance with FDA and FTC regulations, which could impact its advertising and promotional strategies[66]. - The company is subject to evolving privacy and security laws that may increase operational costs and impact business[50]. Market Position and Competition - The company competes with major firms like Cornerstone OnDemand, Oracle, and SAP in the healthcare education delivery market[46]. - The company believes its Workforce Solutions provide a competitive advantage through a wide assortment of courseware and applications on a single platform[47]. Assets and Liabilities - The company maintained effective internal control over financial reporting as of December 31, 2018, based on COSO criteria[272]. - The company is exposed to market risk from changes in interest rates but does not face foreign currency exchange rate risk or commodity price risk[255]. - The company’s investment policy focuses on investing in highly rated securities to minimize principal loss risk[256]. - The carrying amount of liabilities related to discontinued operations was $9.320 million as of December 31, 2017[371]. - Total deferred tax assets decreased from $8,556,000 in 2017 to $4,018,000 in 2018, while net deferred tax liabilities increased from $(45,000) in 2017 to $10,923,000 in 2018[384]. Stock and Compensation - The aggregate intrinsic value for stock options at the end of 2018 was $245,000, with 19 options outstanding[388]. - The company had approximately 1.1 million shares of unissued common stock reserved for future stock incentive grants under the 2016 Plan as of December 31, 2018[386]. - Total stock-based compensation expense for the year ended December 31, 2018 was $1,777,000, slightly up from $1,736,000 in 2017[392]. - The company realized approximately $540,000 of excess tax benefits related to stock-based awards during the year ended December 31, 2018[392]. Future Commitments and Expenses - Future rental payment commitments under non-cancelable operating leases total approximately $43.3 million as of December 31, 2018[404]. - Total rent expense under operating leases was approximately $7.4 million for the year ended December 31, 2018, compared to $6.6 million in 2017[403]. - The expected future annual amortization expense for identifiable intangible assets totals $59.378 million, with the highest expense of $8.792 million expected in 2019[365].

HealthStream, Inc. (NASDAQ:HSTM) Q4 2018 Earnings Conference Call February 20, 2019 9:00 AM ET Company Participants Mollie Condra - VP, IR & Communications Robert Frist - Chairman & CEO Gerard Hayden - SVP, CFO & Principal Accounting Officer Scott Roberts - VP, Accounting and Finance Conference Call Participants Ryan Daniels - William Blair & Company Matthew Hewitt - Craig-Hallum Capital Group Richard Close - Canaccord Genuity Limited Frank Sparacino - First Analysis Vincent Colicchio - Barrington Research ...