HealthStream, Inc. (NASDAQ:HSTM) stock rose 5.11% (As on February 20, 11:15:33 AM UTC-4, Source: Google Finance) after the company posted mixed results for the fourth quarter of FY 23. Operating income of $4.3 million, up 38% from $3.1 million in the fourth quarter of 2022. The improvement in operating income was primarily attributable to the growth in revenues, a reduction in labor costs, and an increase in labor capitalized for software development activities. Partially offsetting these improvements were higher costs for software, cloud hosting, sales commissions, and bad debt, and an increase in amortization associated with capitalized software. Other income during the fourth quarter of 2023 included a $0.4 million gain associated with the sale of a company in which the company owned a minority equity interest. The company has reported net income of $4.6 million for the quarter, up 87% from $2.5 million in the fourth quarter of 2022. The company delivered Adjusted EBITDA of $16.0 million, up 17% from $13.6 million in the fourth quarter of 2022. Subscription revenues increased $2.6 million, or four percent, and professional services revenues declined by $0.5 million. At December 31, 2023, the Company had cash and cash equivalents and marketable securities of $71.1 million. Capital expenditures incurred during the fourth quarter of 2023 were $7.2 million.
Moreover, as of December 31, 2023, the company had approximately 5.79 million contracted subscriptions to hStream, the Platform-as-a-Service technology, which characterizes the single platform approach.
HSTM in the fourth quarter of FY 23 has reported the adjusted earnings per share of 15 cents, beating the analysts’ estimates for the adjusted earnings per share of 8 cents, according to Zacks Investment Research. The company had reported the adjusted revenue growth of 3 percent to $70.6 million in the fourth quarter of FY 23, missing the analysts’ estimates for revenue of $71.8 million.
Additionally, the company has declared a quarterly cash dividend of $0.028 per share, an increase of 12% over the previous quarter’s dividend of $0.025 per share. On September 13, 2023, the Company announced a share repurchase program approved by the Company’s Board of Directors under which the Company is authorized to repurchase of up to $10.0 million of its outstanding shares of common stock. Pursuant to this authorization, the Company has repurchased shares valued at $8.9 million through December 31, 2023, with $6.8 million repurchased during the fourth quarter.
HealthStream expects full-year revenue to be in the range of $292 million to $296 million.