Gold prices steady ahead of Fed decision, Trump’s tariff deadline
Investing.com -- HealthStream Inc. (NASDAQ:HSTM) saw its shares tumble 13.2% after the healthcare technology platform reported first-quarter earnings that fell short of analyst expectations and provided weaker-than-anticipated guidance for the full year.
The company posted adjusted earnings per share of $0.14 for the first quarter of 2025, missing the analyst consensus of $0.15. Revenue came in at $73.5 million, up 1% YoY but below the $74.89 million analysts were expecting.
HealthStream’s revenue growth was hampered by a $1.7 million reduction from attrition in legacy applications, a $0.9 million decrease in perpetual license sales, and a $0.6 million decline due to customer bankruptcies. These factors offset $3.9 million of revenue growth across the company’s portfolio of solutions.
Looking ahead, HealthStream lowered its full-year 2025 revenue guidance to a range of $297.5-$303.5 million, down from its previous outlook of $302-$307 million and below the consensus estimate of $304.6 million.
CEO Robert A. Frist, Jr. commented on the results, stating, "Due to recent issues of technology scaling with CredentialStream, which have been addressed but are impacting the year, and macroeconomic conditions affecting renewals and purchasing patterns for some elective content, we are trimming our financial outlook for the year."
The company’s operating income fell 23.1% YoY to $4.4 million, while adjusted EBITDA declined 5% to $16.2 million. HealthStream maintained a strong balance sheet with $113.3 million in cash and no outstanding debt as of March 31, 2025.
In a positive development, HealthStream’s Board of Directors declared a quarterly cash dividend of $0.031 per share, payable on May 30, 2025, to shareholders of record on May 19, 2025.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.