HealthStream, Inc.

The conference will begin shortly. To raise and lower your hand during Q&A, you can dial star 1-1. And welcome to Healthstream's fourth quarter and full year 2022 earnings conference call. At this time, I would like to inform you that this conference is being recorded and that all participants are in a listen-only mode. At the request of the company, we will open the conference up for questions and answers after the presentation. I will now turn the conference over to Molly Condra, Vice President of Investor Relations and Communications. Please go ahead, Ms. Condra.

Thank you, and good morning. Thank you for joining us today. to discuss Healthstream's fourth quarter and full year 2022 results. Also in the conference call with me today is Robert A. Frist, Jr., CEO and Chairman of Healthstream, and Scotty Roberts, CFO and Senior Vice President of Finance and Accounting. I would also like to remind you that this conference call may contain forward-looking statements regarding future events and the future performance of Healthstream that involve risk and uncertainties that could cause the actual results to differ materially from those projected in the forward-looking statements. Information concerning these risks and other factors that could cause the results to differ materially from those forward-looking statements are contained in the company's filings with the SEC, including forms 10-K, 10-Q, and our earnings release. Additionally, we may reference measures such as adjusted EBITDA, which is a non-GAAP financial measure. A table providing supplemental information on adjusted EBITDA and reconciling to net income attributable to Healthstream is included in the earnings release that we issued yesterday and may refer to in this call. So with that start, I'll now turn over to CEO Bobby Frist.

Thank you, Molly. Good morning and welcome to our fourth quarter and full year 2022 earnings call. We do have a lot of developments to cover in this morning. So let's first look at a quick view of financial performance. move into in-depth discussion of operational enhancements we've made to begin 2023. I'll turn it over to Scotty Roberts for a more detailed look at financials. And I do want to kind of reiterate the fundamentals of who we are and where we're going. So let's start with that. And then exciting news around starting a cash dividend policy to share as well. So first, the financials. Each of the financial metrics highlighted in our earnings release, we did show growth in both the fourth quarter and the year when compared against the same periods last year. For the full year of 2022, we delivered a record high amount of top line revenue of $266.8 million and a record adjusted EBITDA of $53.4 million. In 2023, we expect to eclipse both of these high watermarks due in part to our streamlining of the company around our single platform strategy, where we used to be organized Around two business segments, workforce solutions and provider solutions, we are now organized and managed as one operating company, unifying our work to enhance and leverage our HStream technology platform. We call this our One HealthStream approach or initiative, and we're going to talk a little bit more about that in the rest of the script here. Before we go further, I want to cap 2022 and start 2023 by grounding everyone in our business. First and foremost, HealthStream is a healthcare technology company dedicated to developing, credentialing, and scheduling the healthcare workforce through SaaS-based software solutions, each of which are becoming more valuable because of the interoperability they're achieving through our HStream technology platform. We sell our solutions on a subscription basis under contracts which average three to five years in length. That means our revenues are recurring and predictable. We are profitable, and we have little to no debt. We are solely focused on healthcare and more specifically, the healthcare workforce. The 10.9 million healthcare professionals working in the United States are the end users of our SaaS solutions and the target for our core applications. We are led by a seasoned team of executives who have proven track record of generating strong earnings and cash flows through both organic and inorganic means. And I'm pleased that our executive leadership continues to evolve along with our business. Today, we are announcing new executive positions But the individuals filling those positions are familiar to you all and have shown themselves capable of driving growth through innovation. For example, as part of our one health care approach, we are consolidating our credentialing and scheduling solution groups into one group that will be internally known as Enterprise Application Solutions. Michael Souza is being promoted to Executive Vice President of Enterprise Applications to lead this new group. It's kind of like a new group in a product family based on the similarities the product finds. Having joined HealthStream in 2004, Michael has already distinguished himself as the executive leader of our enterprise sales department and more recently, as the president of VerityStream. As many of you know, VerityStream is the brand we have used to refer to our credentialing business up to this point. Now we will drop the VerityStream brand in favor of operating as one HealthStream. We believe the consolidation of credentialing and scheduling into enterprise applications will benefit customers as we receive a more integrated set of workflow solutions. And we are pleased to have one of the top SAS solution executives in health care leading this new group. We have also formed a new group called Digital Network Development to focus on business to professional solutions. This group is innovative and new and exciting in their direction. It's being led by established health care executive Scott McQuigg. We have a deep history of serving institutional customers through our b2b business model but the growth of nurse grid and the footprint of my clinical exchange both acquired businesses through our m a program have shown us that we have a lot to offer the individuals who would like to become our customers as well with that opportunity in front of us scott and this new group take on the opportunity to turn subscriptions into subscribers when we expand our business to professional offerings Considering Scott's many accomplishments at Healthstream and his prior entrepreneurial successes, he is uniquely qualified to grow professional audiences, user engagement, and modernization strategies in this newly defined solution group. Scott will serve as senior vice president over our new digital and network solutions group. Our alignment around One Healthstream means organizing our company to achieve future growth and investing in areas where we see potential for growth and see key growth drivers. Our philosophy has always been to invest in the innovation necessary to deliver technology solutions that help improve the quality of healthcare. Streamlining around one health stream is the next step in that journey. We believe the realignment announced today positions us to deliver strong financial growth and market-leading innovations going forward. This can be seen in the 2023 financial outlook described in our earnings release and the longer-term financial goals discussed during our September 2022 Investor Day presentation. As the macroeconomic forces of inflation and recession add challenges and uncertainty on the global scale, we are confident that Hellstream will continue to deliver strong and growing profits. There's still a great deal to talk about, but first, let's look at a detailed look at the financials, and I'll call on Scotty Roberts to do that, our CFO.