Healthstream, Inc. · NASDAQ:HSTM
Healthstream — Q3 2020 Earnings Presentation
29 slides from Healthstream's earnings presentation, November 2020
Slide 1: Third Quarter Investor Presentation
2020 Third Quarter Investor Presentation
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation includes certain forward-looking statements (statements other than solely with respect to historical fact), including statements regarding expectations for the financial performance for 2020 that involve risks and uncertainties regarding HealthStream. These st
Slide 3: High-quality healthcare depends on a highly trained and engaged workforce
“High-quality healthcare depends on a highly trained and engaged workforce.” American Hospital Association, 2019 3
Slide 4: Vision
HealthStream Vision “ 96% of employees report that HealthStream’s vision inspires their performance. “ To improve the quality of healthcare by developing the people who deliver care 4
Slide 5: HealthStream Overview
HealthStream Overview Nasdaq: HSTM Market ✓ Market Leader of workforce solutions for U.S. healthcare providers. Leader ✓ Most adopted workforce platform among U.S. healthcare providers: subscription-based producing recurring revenues; deployed enterprise-wide ✓ Largest marketplace of content and app
Slide 6: Focused on the Healthcare Industry and its Workforce
Focused on the Healthcare Industry and its Workforce $3.6 trillion industry 20M+ Employees 18% of GDP 80% Female Hospital Care = approx. 1/3 5.2M = Acute care-based Fastest growing sector of U.S. economy 5.3M = Non-Acute care-based 6
Slide 7: Target Market
Target Market Institutions that employ, collectively, approximately 10,500,000 healthcare professionals Acute Care Continuum 5,200,000 5,300,000 Employees of Care Employees Source: Bureau of Labor Statistics. 7
Slide 8: Healthcare Organizations Use HealthStream Solutions to:
Healthcare Organizations Use HealthStream Solutions to: Meet Compliance Manage Credentialing & Increase Resuscitation Requirements Privileging workforce Outcomes Develop Clinical Manage Improve the Workforce Talent Revenue Cycle 8
Slide 9: Compliance Solution
Compliance Solution Required OSHA / Joint Commission Training • Requirement of every employee, every year • SaaS-based compliance solution • 3+ year, enterprise-wide contracts • Solution contains platform, content, and reporting 9
Slide 10: Critical Validation of Nursing Skills
Critical Validation of Nursing Skills “The volume and complexity of what we know has exceeded our individual ability to deliver its benefits correctly, safely, or reliably” - Atul Gawande 10
Slide 11: 20K+ Course Library, World-class Partnerships
20K+ 75+ Course Library World-class Partnerships 11
Slide 12: Established, Nation-wide Customer Base
Established, Nation-wide Customer Base 12
Slide 13: Three Transitions in Progress
Three Transitions in Progress 1 Converting to hStream Subscriptions Approx. 3.82 million hStream subscriptions as of 3Q 2020 2 Migrating customers to new VerityStream platform Migrations to new platform slower than expected, but new sales in segment continue 3 Replacing Existing with New Resuscitati
Slide 14: Converting to hStream Subscriptions
1 Converting to hStream Subscriptions 14
Slide 15: hStream is the essential technology powering the HealthStream ecosystem
hStream is the essential technology working behind the scenes that powers all activity in the HealthStream ecosystem. Launched April 30, 2018 15
Slide 16: 3.82M Subscriptions
MaStream. 3.82M Subscriptions
Slide 17: Migrating customers to new VerityStream platform
2 Migrating customers to new VerityStream platform 17
Slide 18: Modernizing Credentialing & Privileging
Modernizing Credentialing & Privileging October 2012 March 2015 August 2016 December 2019 18
Slide 19: Replacing Existing with New Resuscitation Solutions
3 Replacing Existing with New Resuscitation Solutions 19
Slide 20: The New Choice in Advancing Resuscitation Competence
The New Choice in Advancing Resuscitation Competence 20
Slide 21: American Red Cross Resuscitation Suite
American Red Cross Resuscitation Suite™ Launched 17 January 2019 Basic Life Support Advanced Life Support Pediatric Advanced Life Support 21
Slide 22: Community Health Systems Selects American Red Cross Resuscitation Suite
PRESS RELEASE HealthStream. For Immediate Release: Contact: Mollie Condra, Ph.D. HealthStream (615)-301-3237 mollie.condra@healthstream.com Community Health Systems Selects American Red Cross Resuscitation Suite™ Program in Enterprise-wide Agreement with HealthStream NASHVILLE, Tennessee (June 5, 20
Slide 23: $38.8M Order Value
$38.8M Order Value Accounts, Nationwide (as of 4Q 2019) 23
Slide 24: High-level Growth Strategies
High-level Growth Strategies • Expand Customer Network; Add new customers • Increase the value of each account; Provide more solutions to each customer; Cross-sell • Grow new revenue streams via PaaS capabilities • Inorganic growth 24
Slide 25: Case Study in Growth
Case Study in Growth Ohio-based Health System 2020 14,000 Employees $61.00 Annual Revenue Per Employee Clinical Content NRP + Performance Center + + 2006 Compliance Solutions hStream + $7.00 Annual Revenue Per Employee 25
Slide 26: Revenue
Revenue* ($ in millions) $254.1 $231.6 $214.9 $192.1 $174.8 $138.8 $103.8 $78.6 $58.1 $62.5 $60.9 2011 2012 2013 2014 2015 2016 2017 2018 2019 Q3 2019 Q3 2020 *2011-2018 Full-Year revenue metrics adjusted retroactively to exclude PX business. 26
Slide 27: Adjusted EBITDA
Adjusted EBITDA* ($ in millions) $46.9 $41.5 $35.2 $31.3 $29.5 $27.3 $20.5 $17.1 $13.2 $11.5 $11.1 2011 2012 2013 2014 2015 2016 2017 2018 2019 Q3 2019 Q3 2020 * (1) Adjusted EBITDA is a non-GAAP measure. See “Disclaimers: Financial Information.” A reconciliation of Adjusted EBITDA to net income, th
Slide 28: Independent Research Coverage
Independent Research Coverage 28
Slide 29: HealthStream Investor Relations Contact
HealthStream Investor Relations Contact: Mollie Condra, Ph.D. Vice President, Investor Relations & Communications mollie.condra@healthstream.com 29