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Streamline Health Solutions, Inc. (STRM)
Q1 2019 Results Earnings Conference Call
Jun 13, 2019, 9:00 am ET
Randy Salisbury - Senior Vice President, Chief Marketing Officer
David Sides - President, Chief Executive Officer
Tom Gibson - Senior Vice President, Chief Financial Officer
Conference Call Participants
Matt Hewitt - Craig-Hallum Capital Group
Frank Sparacino - First Analysis
Previous Statements by STRM
» Streamline Health Solutions, Inc. (STRM) CEO David Sides on Q4 2018 Results - Earnings Call Transcript
» Streamline Health Solutions, Inc. (STRM) CEO David Sides on Q3 2018 Results - Earnings Call Transcript
» Streamline Health Solutions, Inc. (STRM) CEO David Sides on Q2 2018 Results - Earnings Call Transcript
I would now like to turn the conference over to your host, Mr. Randy Salisbury, Senior Vice President and Chief Marketing Officer for Streamline Health Solutions. Thank you. You may begin
Thank you for joining us to review the financial results of Streamline Health Solutions for the first quarter of fiscal 2019, which ended March 30 of 2019. 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 is David Sides, President and Chief Executive Officer and Tom Gibson, 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 may retrieve it from the company's website at 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 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 backlog and 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 utilize in calculating their own non-GAAP measures. To help you compare these amounts on consistent terms, please refer to our website at streamlinehealth.net, our earnings release and Form 10-Q 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. This morning I want to talk about the progress we are making to accelerate the pace of new client acquisitions and expansion within our current client base as we transition investment spending from product development to sales and marketing. Our CFO, Tom Gibson, will cover more of the specifics of our financial performance for the quarter.
Before I begin, let me summarize some key financial metrics from yesterday's announcement of our performance for the first quarter of fiscal year 2019. We generated revenue of approximately $5.4 million, down approximately 2% sequentially, as compared with the previous quarter's revenue and down approximately 15% from the first quarter of last fiscal year.
The delta in the year-over-year revenue is attributable to lower perpetual license fees in the current quarter. In Q1 of 2018, we recognized approximately $1.1 million of perpetual license revenue. And in Q1 of this year, we realized approximately $200,000. Recurring revenues were approximately 76% of total revenue for the first quarter, down from 86% in the previous sequential quarter, but up from 70% for the same period a year ago. The difference from Q4 to Q1 in percentage of recurring revenue is due primarily to an increase in professional fees in Q1.
Looking ahead, we continue to believe that new organic revenue growth, primarily via the compounding effect of monthly recurring SaaS revenue from current and future eValuator installations will outpace the revenue attrition of our older legacy solutions. For fiscal 2019, eValuator growth should yield single digit percentage topline growth for the company. Projected growth will begin to expand in 2020 with consistent low double digit percentage topline growth. Again, this will occur as the eValuator SaaS revenue expands at an accelerated pace over the legacy technology revenue.
Moving now to adjusted EBITDA. We generated approximately $1.1 million in Q1 of 2019, up slightly from the previous sequential quarter and up nearly 75% over Q1 of fiscal 2018. Our rapid expansion in adjusted EBITDA in the result of the number of strategic moves we have made in the last several quarters and we remain pleased with our current cost run rate. We do not foresee further moves in this area as any excess earnings or excess cash will be reinvested in our selling efforts. More on this in a minute.