HealthStream, Inc. (NASDAQ:HSTM) Q2 2021 Earnings Conference Call July 27, 2021 9:00 AM ET Company Participants Mollie Condra – VP, IR and Communications Robert Frist - Chairman and CEO Scotty Roberts - SVP and CFO Conference Call Participants Richard Close - Canaccord Genuity Jared Haase - William Blair Matthew Hewitt - Craig-Hallum Steve Pointer - Cantor Fitzgerald Vince Colicchio - Barrington Research Operator Welcome to HealthStream’s Second Quarter 2021 Earnings Conference Call. At this time, all parti ...

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 For the quarterly period ended March 31, 2021 ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File No.: 000-27701 HealthStream, Inc. (Exact name of registrant as specified in its charter) Tennessee 62-1443555 (State or other jurisdiction of incorporation or organization) 500 ...

Financial Data and Key Metrics Changes - The company reported revenues of $63.5 million, a 3% increase year-over-year, despite a $1.6 million reduction due to deferred revenue write-downs related to acquisitions [52][56] - Operating income decreased by 54% to $3.3 million, while net income fell by 68% to $2.3 million, resulting in EPS of $0.07, down from $0.22 in the prior year [53][54] - Adjusted EBITDA improved to $13.6 million, marking a 14% increase and a record quarterly high for the company [54][55] - Gross margin was 66.5%, slightly down from 66.9% last year, but improved from an adjusted 61.3% when excluding a one-time reduction in cost of revenues [58] Business Line Data and Key Metrics Changes - Workforce Solutions revenues were $51.3 million, up 3%, while Provider Solutions revenues reached $12.2 million, up 4% [55] - Revenues from legacy resuscitation products declined significantly, contributing only $1.8 million in Q1 2021, down from $11.2 million last year [56][57] - Excluding legacy product revenues, consolidated revenues grew by 22%, with 8% organic growth and 14% from acquisitions [57] Market Data and Key Metrics Changes - The company added approximately 21,000 net new hStream subscriptions, bringing the total to about 4.34 million subscriptions [47] - The Verity hStream Application Suite contracted with 45 new customer accounts, totaling approximately 390 customers [39][40] Company Strategy and Development Direction - The company is focused on innovation, particularly with new products like Jane, an AI-driven competency development system for healthcare professionals [19][24] - The transition to a more comprehensive portfolio, including the Red Cross Resuscitation Suite and the Verity hStream platform, is seen as a key strategic move [30][39] - The company aims to achieve a gross margin of approximately 65% and return to adjusted EBITDA margins of 15% to 20% [17] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the ongoing pandemic and its impact on operations, emphasizing the need for continued investment and adaptation to new work-from-home models [8][50] - The company anticipates revenue growth despite challenges from declining legacy products and expects to achieve revenue between $245 million and $255 million for the full year 2021 [13][64] - Management highlighted the importance of customer adoption of new technologies and the potential for improved patient outcomes through investments in workforce competency [110][114] Other Important Information - The company ended the quarter with approximately $56 million in cash and investments, no debt, and full availability under its $65 million line of credit [76] - The company is evaluating potential M&A opportunities to support long-term growth objectives [77] Q&A Session Summary Question: What is driving the success of the Verity hStream product line? - Management attributed success to the comprehensive nature of the CredentialStream platform, which integrates the best features from acquired companies, leading to improved win rates in competitive situations [96][98] Question: How does the demand for workforce management solutions fit into broader AI priorities? - Management noted that while education and training often rank lower in budget priorities, organizations that recognize the link between competency and clinical outcomes are beginning to invest in solutions like Jane [108][110] Question: How are hospitals shifting their priorities as the pandemic eases? - Management observed a continued focus on quality outcomes, with stronger organizations prioritizing tools that can help achieve these goals, including the Verity hStream and other solutions [121][122]

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, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission File Number 000-27701 HEALTHSTREAM, INC. Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of t ...

Financial Data and Key Metrics Changes - For Q4 2020, revenues were $61.8 million, down 1% year-over-year, while operating income decreased by 66% to $1.1 million [20][25] - Income from continuing operations was $0.9 million, down 74%, and EPS from continuing operations was $0.03 per diluted share, down from $0.11 [20][25] - Adjusted EBITDA was $10.7 million, a decline of 4% [20][25] - Cash flows from operations were $35.9 million, down from $65.7 million the previous year, primarily due to lower cash receipts from legacy resuscitation products [26] Business Line Data and Key Metrics Changes - Workforce Solutions segment revenues totaled $49.7 million, down 2% year-over-year, while revenues from legacy resuscitation products declined by $5.7 million [22] - Revenues from the American Red Cross simulation suite program contributed positively to Q4 revenue growth [23] - Provider Solutions segment revenues were $12.1 million, growing by 3% year-over-year, mainly due to the acquisition of CredentialMyDoc [23] Market Data and Key Metrics Changes - The company signed over 180 new contracts for the Red Cross Suite in 2020, indicating strong market acceptance [14] - Approximately 345 customer accounts were contracted for the Verity hStream application suite, showing significant adoption [16] - The company added approximately 380,000 net new hStream subscriptions, bringing the total to approximately 4.2 million [17] Company Strategy and Development Direction - The company aims for organic high single-digit revenue growth rates and a gross margin profile of approximately 65% by 2022 [10][11] - The focus is on transitioning from legacy resuscitation products to new offerings, including the Red Cross Resuscitation Suite and Verity hStream [13][18] - The company plans to invest in R&D and acquisitions to enhance its technology platform and maintain a competitive edge [12][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about a gradual return to normalcy in hospital operations as vaccination rates increase [62][64] - The company anticipates that customer purchasing decisions will improve as healthcare providers adapt to operating under COVID-19 conditions [63] - There is confidence in achieving revenue growth despite the challenges posed by the pandemic and the decline in legacy product revenues [57] Other Important Information - The company completed several acquisitions, including ShiftWizard, ANSOS, and myClinicalExchange, which are expected to enhance its service offerings [21][39] - The company ended the year with $46.5 million in cash and investments and renewed its revolving credit facility [34] - The company received two patents for its next-generation clinical solutions, indicating ongoing innovation [37][38] Q&A Session Summary Question: Can you elaborate on the 2022 outlook and specific drivers for growth? - Management highlighted confidence in achieving high single-digit organic growth due to successful adoption of the Red Cross Resuscitation Suite and the new Jane platform [50][52] Question: How are hospital purchasing conversations changing as the pandemic evolves? - Management noted that hospitals are learning to operate under both COVID-19 and traditional service models, leading to a gradual return to normal operations [62][63] Question: Will the sales cycle shorten with the new platforms? - Management refrained from projecting a shorter sales cycle due to ongoing uncertainties but noted that as the hStream architecture matures, it may facilitate quicker product launches [65] Question: Should we expect three different segments in financial modeling? - Management indicated that for the near future, the company will maintain its current segment structure but aims for a unified platform approach in the long term [69]

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 For the quarterly period ended September 30, 2020 ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File No.: 000-27701 HealthStream, Inc. (Exact name of registrant as specified in its charter) Indicate by check mark whether the registrant is a large accelerated filer, an acce ...

HealthStream, Inc. (NASDAQ:HSTM) Q3 2020 Earnings Conference Call October 27, 2020 9:00 AM ET Company Participants Mollie Condra - Vice President, Investor Relations & Communications Robert Frist, Jr. - Chief Executive Officer & Chairman Scotty Roberts - Chief Financial Officer & Senior Vice President Conference Call Participants Jared Haase - William Blair Matt Hewitt - Craig-Hallum Steve Halper - Cantor Vincent Colicchio - Barrington Research Operator Ladies and gentlemen thank you for standing by and wel ...

(Mark One) ☒ Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q For the quarterly period ended June 30, 2020 Commission File No.: 000-27701 HealthStream, Inc. (Exact name of registrant as specified in its charter) Tennessee 62-1443555 (State or other jurisdiction of incorporation or organization) 500 11th Avenue North , Suite 1000, Nashville, Tennessee 37203 (Address of principal executive ...

HealthStream, Inc. (NASDAQ:HSTM) Q2 2020 Earnings Conference Call July 28, 2020 9:00 AM ET Company Participants Mollie Condra - Vice President, Investor Relations & Communications Robert Frist, Jr. - Chief Executive Officer & Chairman Scotty Roberts - Chief Financial Officer & Senior Vice President Conference Call Participants Jared Haase - William Blair Matthew Hewitt - Craig-Hallum Richard Close - Canaccord Genuity Vincent Colicchio - Barrington Research Operator Ladies and gentlemen, thank you for standi ...

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 For the quarterly period ended March 31, 2020 ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File No.: 000-27701 HealthStream, Inc. (Exact name of registrant as specified in its charter) Tennessee 62-1443555 (State or other jurisdiction of incorporation or organization) 500 ...