Core Viewpoint - HealthStream (HSTM) is currently viewed as a better value opportunity compared to Zscaler (ZS) based on various financial metrics and rankings [1]. Group 1: Zacks Rank and Earnings Outlook - HealthStream has a Zacks Rank of 2 (Buy), indicating a stronger earnings outlook compared to Zscaler, which has a Zacks Rank of 3 (Hold) [3]. - The improvement in earnings outlook for HSTM is noted to be stronger than that of ZS [3]. Group 2: Valuation Metrics - HSTM has a forward P/E ratio of 49.54, while ZS has a higher forward P/E of 55.91 [5]. - The PEG ratio for HSTM is 4.13, compared to ZS's PEG ratio of 7.30, indicating HSTM's expected earnings growth is more favorable [5]. - HSTM's P/B ratio stands at 2.43, significantly lower than ZS's P/B ratio of 22.17, suggesting HSTM is more aligned with its book value [6]. Group 3: Value Grades - Based on the analysis of various valuation metrics, HSTM holds a Value grade of B, while ZS has a Value grade of D, reinforcing HSTM's position as the superior value option [6].

Financial Performance - Operating income increased to $4.4 million in Q2 2024, up 10.1% from $4.0 million in Q2 2023[84] - Earnings per share (EPS) rose to $0.14 (diluted) in Q2 2024, up from $0.13 (diluted) in Q2 2023[84] - Adjusted EBITDA reached $15.8 million for Q2 2024, up 3.3% from $15.3 million in Q2 2023[106] - Net income increased to $4.2 million in Q2 2024, up 0.8% from $4.1 million in Q2 2023[106] - Revenues grew to $71.6 million in Q2 2024, up 3.4% from $69.2 million in Q2 2023[106] - Subscription revenues increased by $2.5 million (4%) in Q2 2024, partially offset by a $0.1 million decline in professional services revenues[112] - Subscription services revenue increased by 4% to $69.013 million in 2024 compared to $66.506 million in 2023[113] - Total revenues increased by 3% to $71.556 million in 2024 from $69.198 million in 2023[113] - Adjusted EBITDA increased to $32.9 million for the six months ended June 30, 2024, compared to $29.1 million in the same period in 2023[122] Expenses and Costs - Cost of revenues increased by $0.1 million (1%) to $23.7 million in Q2 2024, primarily due to higher software and cloud hosting costs[91] - Sales and marketing expenses rose by $0.1 million (1%) to $11.4 million in Q2 2024, driven by increased marketing and travel expenses[93] - Depreciation and amortization expense increased by $0.2 million (1%) to $10.4 million in Q2 2024, mainly due to higher amortization of capitalized software[94] - Product development expenses increased by 9% to $12.1 million in Q2 2024, representing 17% of revenues[115] - Cost of revenues increased by 2% to $48.4 million for the six months ended June 30, 2024[118] Capital and Investments - Capital expenditures were $6.7 million in Q2 2024, compared to $6.2 million in Q2 2023[109] - Net cash used in investing activities decreased to $19.0 million for the six months ended June 30, 2024, from $43.3 million in the same period in 2023[127] - Working capital increased to $27.2 million at June 30, 2024, from $11.8 million at December 31, 2023[128] - The company repurchased 404,188 shares at an aggregate fair value of $8.9 million under the share repurchase program[129] - The company's cash and investment balances were $83.0 million at June 30, 2024, with potential interest income impact of $0.4 million from a hypothetical 10% decrease in interest rates[160] - The company has an investment portfolio including strategic investments in early-stage healthcare technology companies, which could lead to volatility in its Consolidated Financial Statements due to market price changes and impairments[175] Growth Strategy and Risks - The company's growth strategy includes acquiring businesses or making strategic investments to complement or enhance its business, potentially using cash, stock, or a combination of both[172] - The issuance of stock for acquisitions or capital raising could have a dilutive effect on earnings per share and adversely affect the stock price[172] - The company's international operations face risks from currency fluctuations, which could increase costs, and it may consider foreign currency hedging contracts in the future[174] Financial Covenants and Compliance - The company's revolving credit facility has financial covenants setting a maximum leverage ratio of outstanding debt to adjusted EBITDA and an interest coverage ratio of adjusted EBITDA to interest expense[172] - As of June 30, 2024, the company was in compliance with all covenants under its revolving credit facility[172] Tax and Other Provisions - Income tax provision increased to $1.1 million in Q2 2024, with an effective tax rate of 21% compared to 8% in Q2 2023[116]

What's Next for HealthStream? HealthStream (HSTM) came out with quarterly earnings of $0.14 per share, beating the Zacks Consensus Estimate of $0.12 per share. This compares to earnings of $0.13 per share a year ago. These figures are adjusted for non-recurring items. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. It will be interesting to see how estimates ...

A charge associated with the customer bankruptcy referenced above negatively impacted operating income by $1.0 million, net income by $0.8 million, EPS by $0.02 (diluted), and adjusted EBITDA by $1.0 million in the second quarter of 2024. As previously disclosed, 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 typicall ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 | | | registered | | --- | --- | --- | | Title of each class Common Stock (Par Value $0.00) | Trading Symbol(s) HSTM | Name of each exchange on which Nasdaq Global Select Market | Commission File No.: 000-27701 HealthStream, Inc. (Registrant's telephone number, including area code) (Exact name of registrant as specified in its ...

HealthStream Announces First Quarter 2024 Results Page 1 April 22, 2024 Exhibit 99.1 Contact: 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 HEALTHSTREAM ANNOUNCES FIRST QUARTER 2024 RESULTS NASHVILLE, Tenn. (April 22, 2024)— HealthStream, Inc. (the "Company") (Nasdaq: HSTM), a leading healthcare technology platform for workforce solutions, announced toda ...

NASHVILLE, Tenn.--(BUSINESS WIRE)--HealthStream, Inc. (the “Company”) (Nasdaq: HSTM), a leading healthcare technology platform for workforce solutions announced today that, as disclosed in the Company’s earnings release dated February 19, 2024, the Board of Directors has approved a 12 percent increase in the Company’s quarterly dividend to $0.028 per share, up from $0.025 per share—and declared a cash dividend for the first quarter of 2024 of $0.028 per share of the Company’s outstanding common stock. The f ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO (Registrant's telephone number, including area code) Securities Registered Pursuant To Section 12(b) Of The Act: | Title of each class | Trading Symbol(s ...

NASHVILLE, Tenn.--(BUSINESS WIRE)--HealthStream, Inc. (the "Company") (Nasdaq: HSTM), a leading healthcare technology platform for workforce solutions, announced today results for the fourth quarter and full-year ended December 31, 2023. Fourth Quarter 2023 Revenues of $70.6 million, up 3% from $68.5 million in the fourth quarter of 2022 Operating income of $4.3 million, up 38% from $3.1 million in the fourth quarter of 2022 Net income of $4.6 million, up 87% from $2.5 million in the fourth quarter o ...

NASHVILLE, Tenn.--(BUSINESS WIRE)--HealthStream, Inc. (Nasdaq: HSTM), a leading healthcare technology platform for workforce solutions, announced today that it will hold a conference call and webcast to discuss its fourth quarter & full-year 2023 financial results on Tuesday, February 20th, 2024. The Company’s financial results for the fourth quarter and full-year ended December 31st, 2023 will be released after the routine time for the close of the market on Monday, February 19th, 2024. HealthStream’s fou ...