Healthstream, Inc. · NASDAQ:HSTM
Healthstream — Q1 2025 Earnings Presentation
30 slides from Healthstream's earnings presentation, May 6, 2025
Slide 1: 1Q 2025 Investor Presentation
HealthStream. 1Q 2025 Investor Presentation ©2025 HealthStream
Slide 2: Safe Harbor Statement
HealthStream. 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 2025 that involve risks and uncertainties regarding HealthSt
Slide 3: Our Vision
HealthStream. OUR VISION: To improve the quality of healthcare by developing the people who deliver care.
Slide 4: HealthStream Constitution
HEALTHSTREAM CONSTITUTION HealthStream. 96% of employees report that HealthStream’s vision inspires their performance HealthStream.
Slide 5: High-quality healthcare starts with a well-trained workforce
6¢ High-quality healthcare starts with a well-trained, adequately supplied, and well-distributed healthcare workforce. National Center for Health Workforce Analysis, 2024 | data.hrsa.gov HealthStream.
Slide 6: Focused on the healthcare industry and its workforce
Focused on the healthcare industry and its workforce $4.9 trillion industry 17.6% of GDP Hospital Care = approx. 1/3 Fastest growing sector of U.S. economy
Slide 7: HealthStream Overview
HealthStream Overview MARKET LEADER A market leader of workforce solutions for U.S. healthcare organizations for learning, credentialing, and scheduling. Enterprise-level, subscription- based products, producing recurring revenues. HealthStream. GROWING DEMAND Large and growing workforce marketplace
Slide 8: Learning Center
HealthStream. Learning Center A. HealthStream Learning Center a has been ranked #1 in Best . SET SOFTWARE Healthcare Software by G2. soak Top 50 CredentialStream. . HEALTHCARE by HealthStream. PRODUCTS CredentialStream has been ranked #5 on G2’s 2025 list of Top Healthcare Software Products.
Slide 9: Three Primary Application Suites
HealthStream. Three Primary Application Suites a @ ®
Slide 10: Healthcare Organizations
Healthcare Organizations Use HealthStream Enterprise Applications to: _.-* Develop Clinical Workforce --* Meet Compliance Requirements ne ~—° — Increase Resuscitation Outcomes ~~e Manage Credentialing & Privileging ee Optimize Workforce Scheduling HealthStream.
Slide 11: Nursing Students and Acute Care Employees
Nursing Students 1,000,000 5,700,000 Acute Care Continuum Employees of Care Employees
Slide 12: HealthStream Expands its Total Addressable Market
HealthStream. HealthStream Expands its Total Addressable Market TARGETING 1,000+ NURSING SCHOOLS & 1,000,000+ NURSING STUDENTS HealthStream.. PRESS RELEASE For Immediate Release: Contact: Mollie Condra, Ph.D. Vice President, Investor Relations & ‘Communications HealthStream (615)-301-3237 mollie.con
Slide 13: 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 Partners & PaaS capabilities Inorganic growth 2-3% per year HealthStream.
Slide 14: Subscriptions Added Over Time
SUBSCRIPTIONS ADDED OVER TIME • • • • • • • • •
Slide 15: Subscriptions Added Over Time
SUBSCRIPTIONS ADDED OVER TIME • • • • • • • • • • • •
Slide 16: Revenue
Revenue* (Sin millions) $291.6 $279.1 $2567 $2668 $72.8 $73.5 2001 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 = 2024: 1Q2024 1Q2025 *2011-2018 Full-Year revenue metrics adjusted retroactively to exclude PX business.
Slide 17: Gross Margins
68.0% 66.0% 64.0% 62.0% 60.0% 58.0% 56.0% 54.0% Gross Margins 9 65.3% — J 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 =1Q2025 (1) Gross margin excludes depreciation and amortization expense.
Slide 18: Adjusted EBITDA
($ in millions) $66.8 $61.3 $52.7 $53.4 $47.2 $46.0 $42.4 $38.1 $36.8 $33.4 $28.7 $20.6 $17.1 $13.2 * (1) Adjusted EBITDA is a non-GAAP measure. See “Disclaimers: Financial Information.” A reconciliation of Adjusted EBITDA to net income, the corresponding GAAP financial measure, is provided in the A
Slide 19: Medium Term (~3-year) Objectives
ANNOUNCED SEPTEMBER 2022 Medium Term (~3-year) Objectives Organic Revenue 5-7% 1Q - 2025 Gross Margin 65-68% 1Q- 2025 65.3% 60% 65% 68% 70% Adj. EBITDA Margin 21-24% 1Q- 2025 22.0% = 20% 21% 24% 30%
Slide 20: Cash Dividend Program
Cash Dividend Program: 2" quarterly dividend increase since launch HealthStream Announess Fourth Quarter and Full-Year 2023 Results February 19, 2024 Contact: Scott A. Roberts Ghief Financial Officer (615) 301-3182 irg@healthstream.com Media: Mollie Condra, Ph.D. Vice President, Investor Relations &
Slide 21: Exciting Products: Highlights
Exciting Products: Highlights HealthStream.
Slide 22: Safety & Compliance Training: SafetyQ ComplyQ
Safety & Compliance Training: SafetyQ ComplyQ Leading the Market High margin SaaS-based compliance training solutions; includes HealthStream- developed software, content, and reporting Helps organizations meet OSHA & Joint Commission training requirements of every employee, every year , enterprise-w
Slide 23: HealthStream Learning Experience
HealthStream HealthStream Learning Experience Learning Experience”: New AlI-driven Application Empower individuals with curated 1 skills and professional pathways Engage the healthcare workforce 1 with social features and mentoring Retain Staff with Career Mobility and Personalized Experiences
Slide 24: Resuscitation Suite: Enhanced Life-Saving Training
Resuscitation Suite: Enhanced Life-Saving Training HealthStream. So Red Gross Resuscitation Training for physicians, nurses and clinical staff for critical life-saving skills Launched January 2019 and now 1 adopted in all 50 states certifications issued through the HealthStream network since launch
Slide 25: Credentialing Solutions: Best in Class Application Suite
Credentialing Solutions: Best in Class Application Suite Shortening Time to Revenue for Physicians Ist provider-centric solution Rated top Credentialing Software on prestigious G2 site Industry first Solution that accelerates entire physician onboarding process Industry first: Solution for Health Pl
Slide 26: Nursegrid: #1 Most Adopted App for Nurses
Nursegrid®: Nursegrid. #1 Most Adopted App for Nurses Manage their work and personal calendar Coordinate shift swaps, open shifts Connect with nurse colleagues & see who ! is working when Store credentials and work history #1RATED APP BY NURSES 130k Reviews Free in Apple Store
Slide 27: hStream Platform
“A hStream’ The platform that connects everything in the HealthStream ecosystem and includes exclusive applications, services, discounts, content, and other benefits [Ny
Slide 28: Components of the hStream Platform Subscription
“A hStream” HealthStream. Components of the hStream Platform Subscription Free Applications Compelling Member Robust Platform & Content Benefits Services ay 2000 A. em 2) 3 a a= GOP © & oe MyTeam MyPortfolio Content Discounts Collaboratives Identity APIs eens Service
Slide 29: Independent Research Coverage
Independent Research Coverage ACCORD Genuity Willan Blan & Comm hany Initiated July 2015 Initiated November 2011 (Z| CRAIG-HALLUM CAPITAL GROUP Kuo % Barrington Research Initiated October 2010 initiated ‘une 2016 Initiated December 2023
Slide 30: HealthStream Investor Relations Contact
HEALTHSTREAM INVESTOR RELATIONS CONTACT: Mollie Condra, Ph.D. Head, Investor Relations & Communications mollie.condra@healthstream.com