HealthStream, Inc. reported a solid performance for the third quarter and the first nine months of 2024, with notable increases in revenue and profitability compared to the same periods in 2023. For the three months ended September 30, 2024, the company generated total revenues of $73.1 million, reflecting a 3.9% increase from $70.3 million in Q3 2023. Subscription services revenue also rose to $69.9 million, up from $67.5 million, while professional services revenue increased by 11% to $3.2 million, primarily due to a one-time payment from a customer acquisition.
Operating income for Q3 2024 was $6.5 million, a significant increase of 33.6% from $4.9 million in the prior year. Net income for the same period reached $5.7 million, up 48% from $3.9 million in Q3 2023, resulting in diluted earnings per share of $0.19, compared to $0.13 in the previous year. Adjusted EBITDA for Q3 2024 was $17.7 million, an increase of 9% from $16.2 million in Q3 2023.
For the nine months ended September 30, 2024, HealthStream reported total revenues of $217.4 million, up 4% from $208.5 million in the same period in 2023. Subscription revenues increased by 5% to $209.1 million. Net income for the nine-month period was $15.1 million, compared to $10.6 million in 2023, with diluted earnings per share rising to $0.50 from $0.35.
The company’s financial position improved, with cash and cash equivalents increasing to $57.5 million as of September 30, 2024, up from $40.3 million at the end of 2023. Total current assets also rose to $145.6 million, compared to $130.2 million at year-end 2023. Total liabilities decreased to $110.6 million from $118.4 million, contributing to a total shareholders' equity of $355.5 million, up from $340.8 million.
HealthStream has also made strategic financial moves, including entering into an Amended and Restated Revolving Credit Agreement on October 6, 2023, allowing for borrowing up to $50 million, which remains unused as of September 30, 2024. The company declared a quarterly cash dividend of $0.028 per share, payable on November 15, 2024.
Overall, HealthStream's performance in 2024 reflects a positive trajectory in revenue growth and profitability, supported by strategic investments and effective cost management.
About HEALTHSTREAM INC
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