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Streamline Health Solutions, Inc. (STRM)
Q2 2017 Earnings Conference Call
September 14, 2017, 09:00 AM ET
Randy Salisbury - SVP & Chief Marketing Officer
David Sides - President & CEO
Nick Meeks - SVP & CFO
Matt Hewitt - Craig-Hallum Capital Group
Frank Sparacino - First Analysis
Previous Statements by STRM
» Streamline Health Solutions' (STRM) CEO David Sides on Q1 2017 Results - Earnings Call Transcript
» Streamline Health Solutions' (STRM) CEO David Sides on Q4 2016 Results - Earnings Call Transcript
» Streamline Health Solutions' (STRM) CEO David Sides on Q3 2016 Results - Earnings Call Transcript
And at this time, I would like to turn the conference over to Randy Salisbury. Please go ahead.
Thank you for joining us to review the financial results of Streamline Health Solutions for the second quarter and first half of fiscal year 2017, which ended July 31, 2017. As the conference call operator indicated, my name is Randy Salisbury. I'm the 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, our 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 our press release announcing these results, you can retrieve it from the company's Web site at streamlinehealth.net or at numerous other financial Web sites.
Before we begin with prepared remarks, we want to be sure we are clear for everyone on the record of 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 refer to our Web site 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 morning everyone.
This morning I want to comment on our second quarter first half of fiscal year 2017 performance. And as usual look at our third quarter performance to-date and comment on what we anticipate seeing for the remainder of our fiscal year.
As released yesterday afternoon for the second quarter of fiscal 2017, we generated revenues of approximately $5.9 million same as the first quarter of this fiscal year.
We projected during our Q1 earnings call back in June that we believe we had arrested the downward trending revenue as a result of the impact of last year's client attrition and the revenue reduction in the trade-off from selling our patient engagement solutions as compared to adding our coding audit services. Our second quarter revenue performance proved this to be the case.
Second quarter revenue was down approximately 7% as compared to the same period a year ago when including $1 million of perpetual license revenue in that quarter. It continues to be difficult to predict the timing of perpetual contract execution primarily through some of our channel partner relationships, but we identified opportunities in the reseller pipeline that we believe will generate material revenue contribution before this fiscal year is over.
Recurring revenues were 82% of total revenue for the second quarter about the same as last quarter.
Turning our attention now to professional services, revenues were approximately $570,000 in the second quarter, an increase of approximately 36% over the first quarter of this fiscal year. This was primarily due to additional service hours sold to existing ECM coding in TDI clients as well as the completion of several milestone projects that had been in the pipeline.
Our bookings for the second quarter of 2017 improved over Q1 to $1.1 million and consisted primarily of new auditing services clients as mentioned in our press release yesterday and additional professional services as well. We continue to be pleased with the addition of new clients which are the life blood of any organization.
In all of last year, we secured four net new clients to our roster, so far through the first half of this fiscal year, we've added six net new clients to our roster, two in the first quarter and four in the second quarter, and have added two more net new clients in the first month of our third quarter. We have a total of eight net new clients year-to-date.