HealthStream Announces First Quarter 2009 Results

Business Wire, April 27, 2009

HealthStream Learning Update

HealthStream supports healthcare organizations in delivering quality patient care, creating safer hospitals, meeting regulatory training requirements, and developing professional skills through our innovative learning solutions. To this end, we provide a range of learning solutions that include: the HLC—our Internet-based learning platform, a wide range of professional, clinical, and regulatory content subscriptions, an online authoring/self-publishing tool, and learning activities for healthcare professionals sponsored by pharmaceutical and medical device companies.

At March 31, 2009, approximately 1,768,000 healthcare professionals were fully implemented to use our Internet-based HLC for training and education. Revenue recognition commences when a contract is fully implemented. This number is up from approximately 1,594,000 at March 31, 2008. The total number of contracted subscribers at March 31, 2009 was approximately 1,896,000 up from 1,728,000 at March 31, 2008. “Contracted subscribers” include both those already implemented (1,768,000) and those in the process of implementation (128,000).

Customers representing approximately 101 percent of subscribers that were up for renewal did renew in the first quarter of 2009, while our renewal rate based on the annual contract value was approximately 98 percent. Our renewal rates reflect the addition of subscribers compared to previously contracted amounts combined with any pricing adjustments that may occur at renewal. The renewal rates for the first quarter of 2009 compare to a subscriber renewal rate of 93 percent and an annual contract value renewal rate of 99 percent during the first quarter of 2008.

HealthStream Research Update

We support healthcare organizations with research solutions that provide valuable insight about patients’ experiences, workforce engagement, physician relations, and community perceptions of hospital services. This insight, in turn, provides data-driven roadmaps for organizational and workforce development—which can be achieved through HealthStream’s learning solutions. Our primary research solutions include physician, employee, patient, and community surveys that deliver insight, analysis, and industry benchmarks to healthcare organizations.

During the first quarter of 2009, HealthStream Research added several new healthcare organization customers, including St. Elizabeth Medical Center, Decatur County Memorial Hospital, and Portneuf Medical Center. Among our existing research customers, nine renewed their contracts for multiple survey products in the first quarter, including LifePoint Hospitals. Twenty-eight existing research customers chose to contract for more research services in the first quarter in addition to the current services they receive from HealthStream Research.