Edit Symbol List
Enter up to 25 symbols separated by commas or spaces in the text box below. These symbols will be available during your session for use on applicable pages.
Don't know the stock symbol? Use the
Symbol Lookup tool.
Alphabetize the sort order of my symbols
Investing just got easier…
Sign up now to become a NASDAQ.com member and begin receiving instant notifications when key events occur that affect the stocks you follow.Access Now
Streamline Health Solutions, Inc. (STRM)
Q4 2016 Earnings Conference Call
April 10, 2017 17:00 ET
Randy Salisbury - SVP and Chief Marketing Officer
David Sides - President and Chief Executive Officer
Nick Meeks - SVP and Chief Financial Officer
Matt Hewitt - Craig-Hallum Capital Group
Kyle Davis - CG Capital
Previous Statements by STRM
» Streamline Health Solutions' (STRM) CEO David Sides on Q3 2016 Results - Earnings Call Transcript
» Streamline Health Solutions' (STRM) CEO David Sides on Q2 2016 Results - Earnings Call Transcript
» Streamline Health Solutions' (STRM) CEO David Sides on Q1 2016 Results - Earnings Call Transcript
Thank you for joining us to review the financial results of Streamline Health Solutions for the fourth quarter and fiscal year end of 2016, which ended January 31, 2017. As the conference call operator indicated, my name is Randy Salisbury. As Senior Vice President and Chief Marketing Officer here at Streamline Health, I manage all communications including Investor Relations.
Joining me on the call today are David Sides, our President and Chief Executive Officer and Nick Meeks, Senior Vice President and Chief Financial Officer. At the conclusion of today’s prepared remarks, we will open the call for a question-and-answer session. If anyone participating on today’s call does not have a full text copy of the release, you can retrieve it from the company’s website at streamlinehealth.net or at numerous financial websites.
Before we begin with prepared remarks, we want to be sure we are clear for everyone on the record how certain information, which maybe provided today as with all of our earnings calls, should be viewed. We therefore submit for the record the following statement. First, statements made on this conference call that are not historical facts are considered to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These are subject to risks, uncertainties, assumptions and other factors that could cause actual results to differ materially from those we may discuss. Please refer to the company’s press releases and filings made with the U.S. Securities and Exchange Commission, including our most recent Form 10-K, annual report, for more information about these risks, uncertainties and assumptions and other factors. As always, we are presenting management’s current analysis of these items as of today. Our participants on this call should take into account these risks when evaluating the topics we will discuss. And please note, Streamline Health is not undertaking any commitment or obligation to publicly revise any such forward-looking statements made today.
Second, we will discuss non-GAAP financial measures such as adjusted EBITDA. Management uses these measures to help provide better insight into our financial performance. However, certain items of income and expense are not included in these measures, so these calculations may differ from those which another entity may reach using their own non-GAAP measures. To help you compare these amounts on consistent terms, please again refer to our website at streamlinehealth.net and our earnings release for a reconciliation of such non-GAAP measures to the most comparable GAAP measures.
With that said, let me turn the call over to David Sides, President and Chief Executive Officer. David?
Thank you, Randy, and good afternoon everyone. Today, I want to comment on our fourth quarter and year end performance, after which I will share some of our thoughts and plans for fiscal year 2017. As released earlier today, for the fourth quarter of fiscal 2016, we generated revenues of approximately $6.4 million, which is the same as Q4 a year ago. Recurring revenues were 82.7% of total revenue for the fourth quarter, down by 1.6 percentage points over 84.4% in Q3, driven by the acquisition of Opportune IT in September 2016.
For the fiscal year 2016, we generated $27.1 million in revenue, which was within the range we provided in our third quarter earnings call last December and down approximately 4% as compared to $28.3 million in revenue in fiscal year 2015. As stated in our third quarter call, the reasons for the 4% decline were the lower year-over-year contribution of perpetual license revenue from one of our larger reselling partners and the loss of 2 months of revenue from our former patient scheduling solution following the divestiture in early December. Previewing my later marks on 2017 expectations, I attended the meeting last week with our largest channel partner and I am excited by the possibilities of that relationship for the second half of this year and beyond.
Turning our attention now to professional services, revenues were approximately $526,000 in the fourth quarter, a decrease of approximately 9% over same quarter a year ago and approximately $2.4 million for the fiscal year 2016, an increase of approximately 8.3% over fiscal year 2015. I stated last quarter that we believe that our bookings for the fourth quarter for 2016 will continue to be strong as our investment in sales and marketing begins to take hold. I am pleased with the $2.9 million we booked in the quarter, especially given that the bookings were almost exclusively software sales. We also are seeing interest in each of our solutions, with the bookings in the quarter covering at least one instance of every solution we sell in the coding and auditing arena, from abstracting to CDI to our new coding audit services suite.
Adjusted EBITDA for the fourth quarter was $533,000, up approximately 13% from $472,000 in the fourth quarter of 2015. Adjusted EBITDA for the fiscal year 2016 totaled $2.9 million or approximately 11% of revenue, a slight improvement over our fiscal year 2015 adjusted EBITDA of $2.8 million just under 10%. In GAAP terms, our net loss for the fourth quarter was $1 million and $5.2 million for the fiscal year. This compares to last year’s performance when our net loss for Q4 was $1.4 million and $4.3 million for the fiscal year. Nick Meeks, our CFO, will address these items more specifically in his prepared remarks coming up in a few minutes.