Shares of HealthStream surged Tuesday morning after the health education provider met first-quarter profit estimates and topped analysts' revenue expectations.
Downtown-based HealthStream earned $1.9 million, or 7 cents per share, versus $1.4 million last year. Revenues came in at $29.6 million, 3 percent above the Street's consensus, as the company brought on 95,000 new subscribers and signed contracts for 68,000 others. Operating income for the quarter jumped 36 percent to $3.2 million.
HealthStream officials also rolled out a new metric, annualized revenue per subscriber, and say it rose 15 percent year over year to $28.47.
At about 11:30 a.m., HealthStream shares (Ticker: HSTM) were changing hands at $23.71, up 17 percent on the day. The move has taken the stock back to where it was two months ago. Year to date, it is down about 2 percent.
“2013 is starting strong for HealthStream,” said Bobby Frist, chairman and CEO. “Our focus remains on supporting healthcare organizations in developing their workforce and improving outcomes — and I believe our success in doing that positions us for sustained growth in 2013.”