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Streamline Health Solutions, Inc. (STRM)
Q1 2018 Earnings Conference Call
June 7, 2018 9:00 am ET
David Sides - President, Chief Executive Officer
Nicholas Meeks - Senior Vice President, Chief Financial Officer
Randy Salisbury - Senior Vice President, Chief Marketing Officer
Charlie Eidson - Craig-Hallum Capital
Frank Sparacino - First Analysis
Previous Statements by STRM
» Streamline Health Solutions' (STRM) CEO David Sides on Q4 2017 Results - Earnings Call Transcript
» Streamline Health Solutions' (STRM) CEO, David Sides on Q3 2017 Results - Earnings Call Transcript
» Streamline Health Solutions' (STRM) CEO David Sides on Q2 2017 Results - Earnings Call Transcript
Thank you for joining us to review the financial results of Streamline Health Solutions for the first quarter of fiscal year 2018, which ended April 30, 2018. 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, President and Chief Executive Officer, and Nick Meeks, Senior Vice President and Chief Financial Officer. At the conclusion of today’s prepared remarks, we’ll 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 website at www.streamlinehealth.net or at numerous other 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 may be 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. 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 website at www.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 first quarter performance, look at our second quarter performance to date, and comment a bit on what we anticipate seeing for the remainder of the fiscal year.
Yesterday afternoon we announced first quarter 2018 revenue of approximately $6.3 million, about 6% higher than Q1 a year ago and 3% higher than last quarter. This revenue performance was bolstered by a nice deal for abstracting and clinical documentation integrity solutions signed in the quarter with one of our existing clients. University Hospitals of Cleveland has been a long-term client and they have been expanding their scope in the northeastern Ohio area through acquisition, and we are growing along with them. This client prefers the perpetual license model and the contract contributed approximately $1.1 million in revenue in the quarter. We included this revenue in our 2018 fiscal year guidance because it’s from an existing client, one of only a handful we have who prefer to purchase solutions via the perpetual license mode. At this time, we do not have any other meaningful perpetual license contracts from existing clients or resellers in our sales pipeline.
Recurring revenues were 70% of total revenue for the first quarter of 2018. Obviously this number is lower than usual due to the perpetual license revenue we recognized in the quarter, as I just stated. We generated approximately $238,000 of professional services revenue during the first quarter, down substantially from first quarter of last year. The reasons for this decline, which was expected, relate primarily to two issues. First, in the first quarter of last year, we were very active with two large paid for implementation projects, one for a large reseller and one for an existing client. In the first quarter of this year, the bulk of our professional services time was spent on new eValuator go-lives which do not require as much time to install as some of our other solutions and whose implementation is included in our SaaS fees.
Bookings for the first quarter of this year were up substantially from first quarter of last year and from last quarter, totaling approximately $3.4 million. During the quarter, we sold abstracting, CDI and eValuator solutions. Since selling our first eValuator client just last October, we have closed a total of nine deals to date, seven of which are new client relationships for us. Eight clients have been implemented and are using eValuator every day, and the newest client could be up and running as soon as the end of this month.