HealthStream, Inc. (NASDAQ:HSTM) Q1 2022 Earnings Conference Call April 26, 2022 9:00 AM ET
Company Participants
Mollie Condra - Vice President, Investor Relations and Communications
Robert Frist - Chairman and Chief Executive Officer
Scotty Roberts - Senior Vice President and Chief Financial Officer
Conference Call Participants
Jared Haase - William Blair
Matt Hewitt - Craig-Hallum Capital Group
Vincent Colicchio - Barrington Research
Richard Close - Canaccord Genuity
Operator
Good morning and welcome to HealthStream’s First Quarter 2022 Earnings Conference Call. At this time, I would like to inform you that this conference is being recorded and that all participants are in a listen-only mode. At the request of the company, we will open the conference up for question-and-answers after the presentation.
I will now turn the conference over to Mollie Condra, Vice President, Investor Relations and Communications. Please go ahead, Ms. Condra.
Mollie Condra
Thank you and good morning. Thank you for joining us today to discuss our first quarter 2022 results. Also in the conference call with me are Robert A. Frist Junior, CEO and Chairman of HealthStream and Scotty Roberts, CFO and Senior Vice President.
I would also like to remind you that this conference call may contain forward-looking statements regarding future events and future performance of HealthStream that could involve risks and uncertainties that could cause the actual results to differ materially from those projected in the forward-looking statements. Information concerning these risks and other factors that could cause the results to differ materially from those forward-looking statements are contained in the company’s filings with the SEC, including Forms 10-K, 10-Q, and our earnings release.
Additionally, we may reference measures such as adjusted EBITDA, which is a non-GAAP financial measure. A table providing supplemental information on adjusted EBITDA and reconciling to net income attributable to HealthStream is included in the earnings release that we issued yesterday and may refer to in this call.
So with that start, I’ll now turn the call over CEO, Bobby Frist.
Robert Frist
Thank you, Molly. Good morning, everyone and welcome to our first quarter 2022 earnings call.
As I reflect on the first quarter, in the first quarter, management delivered several key results I’d like to review. First, we did deliver record top line revenue in the first quarter, lapping previous high watermarks set in Q1 of 2019 where legacy resuscitation revenue reached a peak of 17.3 million in Q1 of 2019. We’ve now replaced and grown through that amount with a nearly even mix of organic and inorganic growth strategies. Second, I told you that one of our multi-year goals was to become a higher gross margin company. Our gross margins for Q1 of 2022 were 66.3%, a 750 basis point improvement over Q1 of 2019. Third, our ecosystem and ecosystem strategy, as reflected in the hStream platform strategy, continues to expand. With hStream subscriptions now at 5.13 million, we believe that our platform strategy is well positioned for the future. I believe we’re delivering on some of the key promises that we’ve made on our key operational commitments over the last several years.