Good morning and w elcome to HealthStream's First Quarter 2021 Earnings Conference Call. At this time, I would like to inform you that this conference is being recorded and that all participants are in listen only mode. At the request of the company, we will open the conference up for questions and answers after presentation. I will now turn the conference over to Mollie 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 our First Quarter 2021 results. Also in the conference call with me today are Robert A. Frist Jr., CEO and Chairman of HealthStream, and Scotty Roberts, CFO and Senior Vice President. 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 could 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. The 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. With that start, at this time, I'll turn the call over to Bobby Frist. Thank you, Mollie. Good morning and welcome to our First Quarter 2021 Earnings Conference Call. There is so much news to cover this morning. I can't wait to get started, but I think context is very important, and so f irst we'll contextualize. The nation continues to move through the pandemic, and there are reasons for cautious optimism, especially here in the U.S., given that over half of U.S. adults have now had at least one vaccine dose, and a 1/3 are fully vaccinated. As we celebrate this remarkable progress, there are plenty of challenges still remaining regarding the pandemic that affects us as individuals and, of course, our company as well. For example, figuring out our new work from home models, and our approach to operating as a business and making them more whatever the new norm is, the new permanent new norm is going to be. We're working on that diligently now. What I can tell you with absolute certainty is that HealthStream's mission that's focused on the people of healthcare and improving the quality of healthcare by helping develop, retain, engage, and credential those that are in healthcare remains constant. As you listen to our call today, I hope you recognize our commitment to that mission, how we're striving to achieve it, and you're going to hear how we're executing on it through some of our exciting new products, many of which have been in development for years, and are emerging into the marketplace as we speak. I'm going to give a little more detail today about some of these exciting new products or progress with them. To start out, though, I do want to start on our financial guidance, which we updated after a strong first quarter of necessity. The quarter included a record high adjusted EBITDA, that's in our company's history, and record quarterly sales for VerityStream, which is, as you know, been working diligently on VerityStream for several years through a combination of three or four acquisitions to build a new application set in credentialing and privileging, and w e're seeing it emerge now delivering record quarterly sales, and I can't wait to share more details on that. There were also two multi-million dollar contracts for our emerging products. These are products that we are excited about, and now we're glad to see the market get excited about them as well. With all that context, we expect revenue for the full- year 2021 to be in the range of $245 million to $255 million, and adjusted EBITDA to be in the range of $40 million to $44 million. I'm excited to provide that updated guidance to all of our financial community and current investors. As I stated in our call in February, I believe one of the most remarkable things about this guidance is that we are projecting potential revenue growth despite a $38.4 million revenue decline in legacy resuscitation products from 2020 to 2021, and the $4 million to $4.3 million negative impact of acquisition-related deferred revenue write downs. Despite these headwinds, our first quarter performance gives us confidence in our improved financial expectations for 2021, where we believe we have a good shot at showing top-line revenue growth on a year-over-year basis. I think that's a great accomplishment by our team to figure out the balance of both organic growth, as we'll talk about, and inorganic growth to deliver what looks like the potential now to actually deliver growth in a year with such material financial headwinds from a declining product set. I'm going to take a moment to reiterate some of the directional information I provided in our last call on what we could expect beyond the current year, which is a little bit longer view than we normally provide. It's building on our anticipated results for 2021. In 2022, we expect to deliver organic high single- digit revenue growth rates. Second, we've been focused on our gross margin profile. We're expecting a gross margin profile of 65%, approximately 65% in that timeframe as well, and t hird, a return to adjusted EBITDA margins of 15% to 20%. We saw some depression in those margins as we saw the product changes and investment changes we've been making in the last few years. We see a return to those margins for adjusted EBITDA in 2021. It's not only the continued success of our longstanding product portfolios, but also the market's enthusiastic response to our innovative new solutions that contributes to our confidence in the company's future growth, and I'm going to highlight a couple of those now. One of those new innovative products that we call Jane. It's the first of its kind in the market and to the best of our knowledge. Jane is AI-driven. It has components of really exciting technology in it, but it's not the technology that's exciting about it, it's about what it does for clinicians. It's one of the first intelligent competency development systems in the market. It's got components like natural language processing by IBM Watson and so the state-of-the-art technology is changing the way nurses assess and develop and maintain their clinical competencies. Let me explain how it works just a little bit. Through two acquisitions, through our M&A program, we acquired testing services and data sets that some of which had 30 years of history on how to evaluate the clinical competence of nurses, specifically. Over the years, we painstakingly converted that data into dynamic algorithms that involve components of AI, capable of having real-time conversations with nurses. Next, we developed high-quality video and simulations that present clinical events that nurses respond to in real-time by telling Jane what they believe is happening and what should be done for the patient. This produces an assessment that identifies a nurse's strengths and areas for improvement but w e didn't stop there. In order to make Jane a true virtual coach, like a mentor to nurses, we took our proprietary taxonomy engine and connected it from the assessments that I talked about that are included in Jane, to a library of 1,800 content titles. This allows Jane to provide a personalized learning plan to each nurse by identifying particular areas of need, and then recommending actual education and training to address their unique individual needs. You can probably tell we're excited about Jane, and I'm excited about it, because it's been what, over five years in development, and we started selling it 18 months ago. We're not the only ones excited about Jane. Jane just recently won six of the industry's most prestigious awards, including two first-place awards from the Brandon Hall Group. One was a gold medal for best advance in AI and machine learning, and another was a gold medal for best advance in emerging learning technology. We're excited that others are seeing what we see in our new Jane capabilities. These awards recognize that Jane has moved assessments from the pen and paper world, and click-through online tests, to an immersive multimedia journey that is specifically tailored to each nurse. We're also pleased that Jane was awarded a patent and to further recognize its one-of-a-kind technology and approach. Awards aside, we think the greatest impact Jane can deliver is adoption by our customers, right, because we think it can have an impact on eventually the skills, the capabilities, and competencies of their staff. In 2020, when we first began offering Jane at scale, our goal was to sell Jane to one account per week every week of the year. We actually accomplished that goal and are on a similar pace so far in 2021. As I mentioned earlier, we had a leading health system make a multimillion-dollar enterprise-wide purchase of Jane, kind of the first of its type at scale in this first quarter of 2021. As customer utilization grows and Jane's capabilities expand, we look forward to updating you on how Jane is helping healthcare providers improve the quality of care that patients receive, and I think it's one of the most exciting developments we've had at HealthStream in a long time. It's not an overnight thing. It's taken many years to build, tune, and refine, and test, and have customers evaluate the Jane technologies. Our focus remains on innovation, and that's a little hard to see given all the transitions we've been talking about in the last several years. We think these innovations can deliver improved outcomes and higher-skilled workers in healthcare. I do want to talk a bit about the transitions, though. An important part of our strategic focus has involved several key transitions we've discussed on, really for over two years. I believe we've crossed an inflection point where the major business risks associated with the transitions are market acceptance, so t hese are the major risks. Will the market accept what we built? Will we get any adoption of the technology? Will the technology be viable, even? There's always questions like that if you've been building technology for a long time. It's my sense that many of those kind of major business risks, I call them existential risks, are behind us, and we're kind of doing operational risk phase on these three transitions. It's a different kind of risk, and we're two years in into this three-year, a little more than two years into the three-year transitions, and, I guess, I'm kind of declaring the existential risks of these major transitions behind us, and we have normal market competitive risks, and the normal dynamics. The technologies we've been building are viable now and they're starting to make a difference. For example, the Red Cross Resuscitation Suite program, comprised of BLS, ALS, and PALS competency development curricula, and w e launched it in January of 2019. It brings an updated, highly adaptive, competency-based development solution to healthcare professionals. It offers certification to healthcare professionals successfully demonstrating proficiency of life-saving resuscitation knowledge and skills. It's a really well-defined product, and I think when we first went on the journey in early 2019, we were uncertain of its adoption. B y way of an update, the program has been adopted across all 50 states, and s ince its launch, we have amassed over 289 new contracts signed by customers, which includes healthcare facilities of all types and sizes from across the continuum of care. It includes some of the industry's largest acute care health systems like HCA, Community Health Systems, Coram, and Trinity, along with many of the most award-winning, thought-leading acute care organizations like Cedars-Sinai and Kettering Health Network. In the non-acute space as well, we have really great wins and customer benefits going to say, Fresenius Medical Care, one of the largest renal care providers in the U.S., and the LHC Group, a leading home healthcare service provider operating in 35 states. All of them have seen the innovation of the Red Cross Resuscitation Suite, particularly how it's executed through the HealthStream network, and the HealthStream platform, bringing just really exceptional capabilities to this relatively new product. But like I said, with 289 new contracts, and some of those representing 100s and 100s, if not more, locations and facilities and 1,000s, over 500,000 workers have now moved through the program or are engaged in the program. We're through the concept of, look, will it be accepted as a viable solution in the market? I mean, now we face normal execution against our competition. How much market share can we gain? How will it continue its growth trajectory? It's helpful to think through a bit of history. It took us 12 years to build our highest level of adjusted EBITDA contribution from our legacy resuscitation offerings, so 1 2 years of selling and marketing the legacy products. We expect to eclipse that level of adjusted EBITDA contribution from sales of our Red Cross Suite in just 3.5 years. By the middle of 2022 is our current forecast, where we will eclipse what was the highest level of adjusted EBITDA from the prior legacy platform. We do have some time to go in front of us, but we're on an incredible trajectory with the Red Cross Resuscitation Suite. Speaking of resuscitation offerings, it's important to understand too that we're building a more comprehensive portfolio of simulation offerings and resuscitation offerings. In February of 2020, we announced the addition of the S.T.A.B.L.E. Program. That's a leading neonatal education solution. It's highly respected, and it's now available online exclusively through HealthStream. We saw strong sales in the first quarter that was adding to our 1,000s of subscriptions to the S.T.A.B.L.E. Program. It's just a really well-known program nationally, and in some cases internationally, and w e've helped to develop and take it online in an online format from a classroom format, and it's being well-received in the market. Our portfolio is no longer dependent on a single application point in our simulation suite and our resuscitation training offerings. It's being broadened. We're committed to the continued diversification of that product portfolio and have exciting new advances coming in areas like OB-specific dimensions to resuscitation and specific care settings. The second transition that we've talked about is VerityStream, and w e've created it through four acquisitions, and been working diligently for four years to build a kind of a common vision, a common team to focus on credentialing and privileging enrollment needs in healthcare. During the first quarter of 2021, 45 customer accounts contracted for the VerityStream application suite, and we call that the CredentialStream suite, bringing our cumulative total to approximately 390 customers on the new CredentialStream suite. This included one new customer that signed a multi-year, multi-million dollar contract for VerityStream's next generation SaaS application, and it represents the single largest sale in VerityStream's history. We're really excited that this product, this transition, if you will, from four acquisitions to one common approach, and one SaaS application suite called CredentialStream. You know, with 390 accounts now contracted for that new platform, we think we're beyond just proving its technical viability, and so t he existential risk of the four acquisitions, bringing them into one company, we think is behind us. Now we're in the normal business risks of how much market share can we gain against the competition, and how well can we position the product for future growth, and how competitive it will be. I think we're well-positioned on all those fronts with VerityStream and the CredentialStream platform. It's measured by the kind of customers you see coming onto the platform. In the first quarter, you know, Providence Health & Services and Mount Sinai Health System and Atlantic Health System and Seattle Children's Hospital, all these new customers, including the distinguished ones I just mentioned, came onto the new enterprise CredentialStream platform through contract. We're in the midst of working through implementation strategies for all of them. We're excited to be gaining adoption of the best-in-class solution, it's our belief, and with best-in-class customers. It's really kind of an exciting part of this transitional journey. Again, there's always challenges in front of us, learning the new selling models that are more virtual, and getting through all these implementation backlogs from some new signed customers to get the revenue recognition. There's plenty to do to continue to execute in this area, and there's plenty of business risk, but I do think that at this point, 27 months into this migration, we've at least proven the viability and the acceptability, the market acceptance of the CredentialStream platform built by the VerityStream team. They've done a fantastic job. The third area to talk about is the upgrade, our move to a PaaS strategy through the hStream platform, and w e do have a lot of work left here. Not all of our application sets, particularly our new acquisitions in the fourth quarter and the first quarter, are wired to or even benefiting from this new PaaS architecture we've been building for over three and a half years. Increasingly, we are connecting them to the PaaS architecture, and that's allowing us to develop things more rapidly. It's allowing us to interconnect applications that connect down to the hStream platform. It's allowing us to put value-added services in the new platform that can manifest back out in the application sets, like the learning and development set, credentialing and privileging set, and the scheduling and capacity management set of applications. We're finding ways to this PaaS infrastructure we've been building to connect to and power up into each of those application sets. Just a quick update on that. In the first quarter, we added approximately 121,000 net new hStream subscriptions, bringing our cumulative totals to about 4.34 million subscriptions. Those are subscriptions, not subscribers, it's important to note. If you're using an application that connects to hStream, you're going to get a subscription to hStream, and that could be tailored a little bit based on the application you're licensing from us, the features of hStream you're getting, and the benefits from that subscription. It is possible for an individual to have multiple subscriptions to the hStream platform by buying multiple applications that connect to the hStream platform or derive benefit from it, say, economically, like maybe a discount. hStream brings value to customers and partners alike, and it's important to remember that since inception, for example, the American Red Cross suite has been powered by the hStream PaaS architecture. Our updates with regard to these business transitions began at the start of 2019. That's 27 months ago from really about now, and we continue to work on each of these transitions. As I've said, we're moved to an operational execution phase of these. We're going to talk a lot less about transitions and transitional risks on a go-forward basis and talk a little bit more about the things that are exciting that are emerging, like Jane and other new products that are coming into the market as we speak. At this time, I think it's important to take a look at the finances. The one thing we want everyone to hear and our analysts to hear, we had a really good first quarter and, o bviously, we're excited about it. There are reasons to be conservative as we go forward, including increased need for investment, some one-time expenses that were not in Q1, that as we return to normal operations, like putting pay raises back in place for employees, we'll have increased expenses. We still need to, even though we had a strong first quarter, be cautious about how we model the future, because we're still in an investment phase. With that, I'll turn it over to Scotty Roberts. Good morning, everyone. Let me start with a summary of our results for the quarter. Our revenues were $63.5 million, which is up 3% over last year, and included modest growth within both reporting segments. Revenues for 2021 were impacted by a $1.6 million reduction associated with deferred revenue write-downs, which were primarily related to acquisitions that we had completed during the fourth quarter of last year. Operating income was $3.3 million, or down 54%. Net income was $2.3 million, or down 68%, and EPS was $0.07 per diluted share, down from $0.22 per diluted share in the prior year. Operating income, net income, and EPS were all down, in part because last year's first quarter included a $3.4 million non-cash reduction to cost of revenues. While these GAAP-based financial measures experienced declines, our non-GAAP performance measure, adjusted EBITDA, improved to $13.6 million or up 14%, which is a record quarterly high for the company. Both business segments achieved revenue growth over the prior year. Workforce Solutions revenues were $51.3 million and were up 3%, and revenues from Provider Solutions were $12.2 million and were up 4%. As we've previously discussed the past several years, we no longer sell legacy resuscitation products, and revenues from these products have been declining over the past two years as subscriptions expired. We indicated that revenues would cease at the end of 2020, which essentially occurred as expected. However, with our partners' support, we extended utilization of these products for a small group of customers, which resulted in a $1.8 million of revenues on legacy products during the first quarter. Similarly, we expect legacy product revenues in the second quarter of approximately $700,000, then to be de minimis for the remainder of the year. Despite a year-over-year decline of over $9 million, revenues from the legacy products were $11.2 million last year, we more than offset the decline in revenues through contributions from recent acquisitions, coupled with growth in other solutions from both segments. Excluding revenues from the legacy resuscitation business, consolidated revenues grew by 22%, which was comprised of 8% organic growth and 14% from acquisitions. Our gross margin was 66.5% compared to 66.9% last year. Gross margins last year were also positively impacted by the one-time $3.4 million non-cash reduction to cost of revenues. If you exclude the impact of this favorable adjustment, gross margins would have been 61.3% last year. This margin improvement is in line with our goal to achieve a gross margin in the mid-60% range for 2021. Operating expenses, excluding cost of revenues, were up 15% or $5 million. This increase reflects both investments in our core business as well as incremental expenses associated with acquired businesses, including integration and transition services costs. Operating expenses from the acquired companies makes up the majority of the $5 million year-over-year increase. Offsetting these cost increases, though, were lower expenses such as commissions associated with the decline in legacy resuscitation revenues, reduced travel as a result of COVID-19, and we had a non-recurring non-cash expense reduction based on changes to our paid time off policy. The combination of these factors led to our operating income declining by $3.9 million or 54% to $3.3 million, while adjusted EBITDA improved by $1.7 million or 14% to $13.6 million. Our cash flows from operations improved to $19.1 million this year compared to $6.1 million last year, which mainly resulted from higher collections. Our DSO was 52 days compared to 44 days last year, and this increase was primarily impacted by the additional receivables from acquisitions that we completed at the end of last year. Free cash flows were $11.9 million compared to $1 million last year, and we ended the quarter with cash and investment balances of $56 million. Coming off the closing of three acquisitions in the fourth quarter of last year, we completed one more during the first quarter, which is included in our Workforce segment. We paid $2 million in cash to fund this acquisition. We also increased our position in an existing minority investment by $1 million during the quarter. Our capital expenditures incurred, which includes capitalized software development, were $4.3 million. Now, let's review our financial expectations for 2021, which we've updated after our strong first quarter performance. As a reminder, though, COVID-19's continued impact on our operating results and financial condition could influence our actual performance compared to our guidance assumptions. We are raising our revenue ranges and now forecast that consolidated revenues will range between $245 million and $255 million, with Workforce revenues forecasted to range between $197 million and $205 million, and Providers revenues forecasted to range between $48 million and $50 million. Also following the first quarter's performance, we're also raising our EBITDA forecast to now range between $40 million and $44 million, which equates to a 17% EBITDA margin at the midpoint of our guidance ranges. We anticipate the capital expenditures, which includes both capitalized software development and content, to range between $25 million and $27 million. For purposes of modeling the full year and better understanding our guidance, we want to highlight some key variances between the first quarter's results and the rest of the year. In short, we believe it would be a mistake to annualize the first quarter performance when trying to extrapolate cumulative performance for the year. This is true for the following reasons. Our first quarter revenue performance benefited from a couple of factors that will not recur at the same level, including the $1.8 million in legacy Resuscitation revenues that I described earlier, which we expect to be only about $700,000 in the second quarter. We also had some non-recurring professional services and one-time software license revenues from our scheduling and capacity management solutions during the quarter. Also, our adjusted EBITDA guidance reflects increased investments in sales, marketing, and product development, which will accelerate across the remainder of the year. These investments will be more weighted towards the new companies that we've recently acquired. In addition to making these new investments, our forecast also assumes that business travel gradually resumes, and it also includes annual compensation increases, which were frozen last year, and those will take effect beginning in Q2. We also anticipate that costs associated with acquisition integrations will continue over the next three quarters at levels higher than the first quarter. We expect those to decline when these integrations are completed. Finally, our forecast does not include the impact of any other potential acquisitions that we may complete during the remainder of 2021. Now let me take a moment to provide a few comments about the COVID-19 impact on our business. While our forecasts assume a gradual improvement in sales and renewals, the pandemic may continue to negatively impact our customers, which may continue to cause uncertainty in their purchasing decisions for our products. Since the onset of the pandemic, our business operations shifted to remote selling and remote implementation, and over the past year, we've conducted very little travel to our clients. Our customers have generally limited or prohibited vendors to their facilities during the pandemic. Our sales and operations teams have adapted well to accomplishing their work virtually, and we're pleased with their ability to maintain sales pipelines, win new business, and implement our solutions all without traveling. While we have adapted to this new operating environment, we continue to experience some continued uncertainty in our customers' purchasing decisions. With a diverse product portfolio, bookings of certain products have performed better than others at times. Overall, our bookings for the first quarter outpaced the same period last year. Product categories where we gained momentum include the multi-year, multimillion-dollar contract for our Jane solution, and our credentialing and privileging solutions achieved record sales results this quarter. Our offices remain closed and all employees continue to work remotely, but we are optimistic that we can reopen later this year, and provide the opportunity for our employees to connect and collaborate in person again. We're also continuing to monitor our liquidity, including weekly cash flows, customer payment patterns, and bankruptcy notices. We've been fortunate not to experience any significant bad debts and our customer payment patterns have been more stable over the past few months. Although, if economic conditions worsen and our customers' financial condition deteriorates, it could negatively impact our future cash flows. We ended the quarter with approximately $56 million in cash and investments, no debt, and full availability under our $65 million line of credit facility. Our share repurchase program expired last month, and w e remain open to establishing a new program in the future, depending on market conditions and other needs for capital allocation. We also continue to evaluate potential M&A opportunities. We believe our multi-year objective to grow revenues, improve and maintain gross margins, and deliver incremental EBITDA are in the long-term best interest of shareholders and the company. Thank you. That concludes my comments for this morning. Bobby, back over to you. Thank you, Scotty. Speaking of working from home, I was in my office. In my office, there's a fireplace, a t the top of the fireplace had a songbird, so I guess I was competing with the songbird to share the news. I've moved to a location, so hopefully you can hear me better. It's kind of fun to just adapt to all the new working conditions. As Scotty mentioned, our President and COO is working on our return to office strategies now for our 1,000 employees, and we're excited to get back together again and work together again here in the not too distant future. A few more things to cover as we wrap up and then before we go to Q&A. Our last earnings call, we introduced this metaphor of a three-legged stool to describe the totality of our business. It's a three-legged stool standing on the foundation of our past hStream architecture. I thought I'd just refresh you on that analog, we'll probably drop the three-legged stool analog, know that we have these three focus areas for our business, with each of our solution group areas representing a leg of the stool. Let's review what they are. The first, Learning and Development Solutions, you know, l ong-standing core of our business is Learning and Development. Obviously, we've expanded and have next generation technologies there, like the Jane platform, working alongside of our HealthStream Learning Center, the most adopted learning platform in healthcare. There's our Credentialing and Privileging Solutions. Of course, that's the VerityStream organization, 250 employees strong and gaining momentum with setting new records in the quarter. Credentialing and privileging is an area we think that we have a good market positioning in and are beginning to show what we've built to the world and be well received. The new area that we're assembling through acquisitions in the fourth quarter and first quarter and earlier last year, is our scheduling capacity management solutions. That's in the storming phase now. We're assembling the management team, figuring out the best of each of the platforms. We bought some really exciting platforms like the Nursegrid platform or application set, the ANSOS application set, and the ShiftWizard application set, all which were recognized for different capabilities. It's, I think, our unique skill of picking the best of all of those and the people and assembling a strategy that can lever each of the best of those teams that we've assembled and applications. We'll be excited to speak to you more about scheduling and capacity management advances in the coming years. It won't be without its challenges. Anytime you inherit three companies, three cultures, and three application sets, there's always going to be hurdles. I feel like we've learned a lot from how we assembled in credentialing and privileging and plan to use that playbook to do an even better job with scheduling capacity management. Each of these solution groups is leveraged to connect to the past technology, the platform hStream. Again, while the wiring isn't all there yet and the hStream platform is maturing, increasingly, I'm optimistic that the platform is viable and its ability to create, say, interoperability between the application sets is real. Everything from identity management, the hStream Identity Management system, to the data mobility across application sets are things that and to the API libraries we're building that will improve the rapid development of new applications and services, like our taxonomy service. It took us three years to build with medical librarians, but the taxonomy service is a core service of the hStream platform. For those of you who know how ecosystems are built, the taxonomy is the connected web. It relates topics and content and application tables and data sets to each other and allows you to use them and manifest them in new ways and new products. We're really excited about all that's happening with the hStream platform. The tech team's leading that, and Jeff Cunningham, as our CTO, has been leading the continued evolution of that platform. I'm just excited to see some of the capabilities emerging now as we connect that platform to, you know, advances in learning technologies like Jane and the American Red Cross Resuscitation suite. I think, you know, our customers are increasingly able to make sure that the right people are at the right place and the right time, providing patient care in the right way. The competency development systems and screenings for sanction screening and verifying credentials to make sure it's the right people, the right place, the right time with the right care provided is something that increasingly we see HealthStream's tool sets playing an important role in. When we talk about growth, it's important to think about the people of HealthStream and the challenging conditions of the pandemic. It's fun to celebrate when they achieve something unique. We continue to look at the data out of our Comparably survey, where we had over 11,000 comments from our nearly 800 employees at the time. They were all put on public display on comparably.com. Comparably continues to parse that data from our employees and tell us where we perform well. We just received news from them that in April, HealthStream received an award from Comparably called Best Operations Team. All the people that self-identified as operations people at HealthStream when compared to other companies where employees identified as operations personnel rated our environment as positive and one which they're proud of to operate in. Congratulations to the best operations team, as determined by comparably.com at HealthStream. Again, it's fun to continue to learn from the feedback of our employees, t hose 11,000 publicly made comments. We essentially conducted our employer reviews in front of the world, and we learned a lot about it, our employees did, and we're using that data to make our company better. As we wrap up, I just want to remind everybody that on Thursday, May 20th at 2:00 P.M. Central, we will have our virtual annual shareholder meeting, a gain, virtual as last year, and that should make it easier to participate for those of you that are shareholders, and look forward to giving you that report here on May 20th at 2:00 P.M. Central. With that, I'd like to turn it over to questions for the operator to take questions. Thank you. As a reminder, to ask a question, you'll need to press star one on your telephone. We ask that if you are on the speakerphone, that you please pick up the handset. To withdraw your question, press the pound key. Please stand by. We'll compile the Q&A roster, and once again, that is star one if you would like to ask a question, and o ur first question comes from Ryan Daniels from William Blair. Your line is now open. Jared Haase in for Ryan. Thanks for taking the questions and congrats on a solid quarter. I wanted to ask two questions related to the demand environment generally. The first, you're looking at the VerityStream product line. I know, Bobby, you talked about having record quarterly sales there and as well as the single largest sale in the history of that product line, so n ice to see some of the success. I'm just curious if you could talk a little bit further on what's driving that success in the marketplace, you know, if there's any specific tailwinds or competitive advantages to call out there. Yeah, I can comment a bit on that. I think we acquired four companies that are all in the space. We carefully sorted through the best capabilities of those companies. For example, some had the best privileging libraries, which are kind of a data asset. Some had the best workflows, and w hen we built the CredentialStream platform, we not only incorporated the best of those into that platform, we also created a more comprehensive view of all the services and related functions around the core credentialing process. It's my belief that our application suite in credentialing, privileging, and enrollment is just simply more complete in its thoughtfulness and approach to not just the credentialing process, but the related processes like the physician onboarding process. There are elements of that where credentialing plays a role. The privileging process, which affects the time to practice from the time you hire a new physician to the time they can actually practice medicine on your behalf at an organization. The vision that the team put together and as they built the new CredentialStream platform, I think is just simply more robust than the competition. What we're beginning to see is an improving win rate in the head-to-head competitions because of the completeness of the vision of the VerityStream team and the execution of the platform. With that said, you know, there was definitely a delay period through the middle of last year where organizations just stopped shopping. If they had something that was okay or it functioned, they weren't really in a position to evaluate other vendors or switch platforms, even if it's a better platform. We're beginning to see a little bit more heads up from our customers, and they see the benefits of the more comprehensive platform. I'd say they're looking more and they're considering at a higher rate replacing legacy platforms that we believe are less effective. Even sometimes in the case of our own legacy platforms that they acquired from us, they're more interested in upgrading to the newer ones. Now there's still going to be implementation lags just because the nature of where everybody is operationally. We're kind of emerging from the pandemic, at least in the U.S., and t here are definitely hotspots, as you know, in our country where there, again, the health systems are experiencing, you know, operations being overwhelmed again. On the whole, just a general improved buying environment. I do think we have one of the more complete application suites in the area for VerityStream, now known as the CredentialStream application set. Got it, y eah, that's super helpful, and then, yeah, I wanted to circle back on some of the comments you made around the Jane product. One other thing I'd like to add, just because I want people to hear it, is that we're also beginning to see the first small benefits of its connectivity to the hStream ecosystem. For example, the ability now, if a customer is on the Red Cross Resuscitation suite, they use our learning platform, and they're a VerityStream customer of the CredentialStream application set. If those three conditions exist, the data flows seamlessly from the consumption of the Red Cross program as an earned credential in the learning platform to manifest automatically in the credentialing platform. That may sound simple, but really it's the integration of those three applications that creates a seamless workflow, reduces the burden of gathering the information of that credential in the credentialing process. It's the first sign of light of the power of interconnectivity between application sets when connected through hStream engineering, which we talk about. You know, everyone will say, "What's the concrete benefit of hStream?" That's one small example, and it's a unique Venn diagram. Like, you have to be on our learning platform with Red Cross program and with our CredentialStream platform. When those three conditions exist, you definitely have an easier workflow, automated data communication, and less manual intervention to credential that part of a physician's record. I wanted to give that example because I think there'll be dozens more over time, and we're just getting the first signs of power of the HealthStream ecosystem. Yeah, thanks for that. I think that all makes sense and, you know, j ust a follow-up that I wanted to add, I wanted to circle back to some of the comments you made on the Jane product, and, you know, I think you mentioned it's one of the first AI-driven workforce competency management products in the marketplace. I'm curious how you would characterize the demand from health systems for workforce management solutions within the context of their broader AI priorities, right? I think we often hear about things like, whether it's chatbots for patient engagement or other sort of AI solutions related more so to operations or patient throughput, things like that, so j ust curious how you would characterize workforce development or competency management tools within the broader budget or context for AI priorities? Yeah, it's a great question. I think, you know, just in general, this is a disappointment for us for our long legacy, is that the value of high-quality education and training is often hard to quantify, even though we all strive. We kind of intuitively know that the more competent the teams, the better the healthcare outcomes, but p roving it is difficult. Of ten education and training is lower in the budget priorities. I think that's sad because I think patient outcomes could be most greatly affected if they increased their willingness to invest in those areas instead of just new equipment and technologies. You know, the incremental gains of a new MRI machine are good, but they may not be nearly as much as a focused competency development on your clinical staff. That said, you asked me where it ranks. I'd say it's lower in the priority poll. When things get tight, education tends to be cut. Investment in competency is most appreciated by the highest of quality organizations. The leading organizations investing in Jane right now are the ones that I think I view as the enlightened customers. They're the ones that see the link between competency and clinical outcomes. Unfortunately, sometimes it has to be a little bit more of an intuitive link. Jane has definitely made it easier to see that link, because it more accurately quantifies not just knowledge deficits, but competency, kind of decision-making deficits. That's where the errors occur, is when clinicians make poor decisions. It's hard to judge, as you know, it takes an expert to judge someone's quality of decision making, and now that expert capability is built into Jane. I would say it's early adopter. It's a higher price point than products we usually sell, so the adoption is slower. You heard me say one per week, you know, t hat's great. It's 52 contracts last year. Against the thousands of organizations I think need it's very low, and p art of that is because the higher price point, and part of that is because it's a lower priority, as you asked me to prioritize, and part of that is because it's going to take time for people to get the link between investment and competency development. Not just knowledge, like test-taking, but actual competency development and quality outcomes. That's the journey we're on and we serve a higher purpose. The education training of the healthcare workforce is sometimes not as valued as it should be. I think the enlightened organizations, particularly the ones that just bought at the system level, are beginning to see the potential impact on clinical outcomes by making real dollar investments into staff and clinical competency development. That's my hope, t hat's our ambition, and w e believe in it. We need the rest of the world to see it. I think some of these thought leading organizations that are buying Jane now will begin to have competitive advantage, and by that I mean better patient outcomes. Okay, great. Yeah, thanks for that. Sadly, it is a lower priority though, and so w hen things get tough, education, training, competency development all in the weak organizations gets pushed to the bottom, along with things like marketing, you know. That's always been a frustration probably for every educator on the planet, that it's hard to quantify and know the value of investing in quality competency development. Thank you and o ur next question comes from Matthew Hewitt from Craig-Hallum Capital Group. Your line is now open. Good morning and c ongratulations on a great quarter. I guess this might be a good follow-up to that question. When you think back to Q2 and Q3 last year, you had hospitals that were dealing with the pandemic that were shifting employees from one, you know, maybe from elective surgeries to emergency care. You had some employees that were even laid off. As we were kind of getting through that now with the vaccinations and with some pockets of pandemic easing, how are hospitals shifting their priorities, and how does that play into your products, quite frankly? I mean, where are you seeing them prioritize VerityStream or some of the other solutions? Are you seeing that in your discussions with them, and how does that play out over the remainder of the year? Well, I think, if you think about the last decade, there's been a big move towards the EHRs and huge growth for them, and a lot of those transitions have been done. There's still work in front of them there. The digitization of the patient record, the mobility of data, a lot of that made a lot of progress on that. As patients, we know it's still kind of immature feeling, but a lot of progress has been made there. I think there's a continued move towards focus on quality outcomes. The organizations that are bigger and stronger that can afford to invest in achieving the quality outcomes, I think, are beginning to prioritize the tool sets that can get them there. There's just some of our products, another good thing about how some of them are positioned is that, you know, we help provide against the regulatory requirements. It's a highly regulated environment. For example, the credentialing and privileging process is not just important to ensure quality workers, quality physicians and nurses are in the staff, but it's important to keep those that aren't quality out of practicing medicine. So there's kind of gatekeeper functions on quality provided by the credentialing services that are important. They need to be accurate and the tools need to be good. So, new products like our Workforce Validate product, which looks and checks for sanctions against workers to warn healthcare organizations when there's a sanctioned employee trying to enter the workforce, I think will be increasingly important. Maybe that's a sad comment on things, but it is. Then I do think things like Jane are well-positioned to kind of be the next generation approach to learning. I think the idea of an individualized learning plan is far more exciting than assignment-driven regulatory compliance training, which is at our core, and b oth have to coexist. One is more developmental, and one is more regulatory in nature, but b oth have to be done well to achieve quality outcomes. I think Jane gives us a new dimension, beyond just compliance training, which is required and frankly, viewed as more commoditized. How do you do that the least expensive way? We're kind of the low-cost, high-quality provider in regulatory training. With Jane, we're now kind of also the higher cost, and higher quality educational development platform. I'm pretty excited about our positioning. As was noted, the uptake, while exciting at one contract a week, we think could go a lot faster. We're looking for the right combination of price point and value add in Jane to make it go faster. I don't know. I think areas of credentialing and privileging, learning and development, and managing schedules and time effectively are all things that are going to go up on the radar a little bit higher. Some of the things that have consumed us wholly, like COVID or EHR transitions of last decade, are going to recede a little bit in the background. On balance, I think there'll be a little more visibility to certain types of application sets that we provide. That said, there's a long runway in front of us and lots to do to convince people that they need to invest in quality the way we want to see them invest in quality. Understood, t hank you, and then m aybe a little bit more mundane question, but as far as implementations are concerned, you spoke a little bit about the lag. Where do those sit today? Maybe where were they pre-pandemic, and where do you see that kind of shaking out as we exit, say, this year, as we get into fiscal 2022? Thank you. Yeah, there's definitely a period in, I guess, February to June of last year where really no one was even taking phone calls, much less implementing new systems. Now everybody's putting things on the schedule, thinking about when to get them done. They're a little less urgent. All the vendors had to build new deployment models, because you don't go on site as much to do deployments, if at all. There's a kind of natural lag from both the transitioning models and implementation and the slow recovery back to what the new normal is of operations for our customers. Those two things together are creating a little bit of a lag and time to revenue issue. With that said, I feel like everything's getting on the schedules now, and different products have different horizons for implementing, like that multimillion-dollar, multi-year contract for credentialing. It will take, you know, two years to implement fully and get the full revenue, or maybe more, because you're talking about taking dozens, if not, in this case, more than 50 or 60 locations and upgrading legacy installed systems and SaaS systems and unifying the process. They also use it to improve the process of credentialing and privileging at the same time, so it implies operational changes. For example, we ask them to standardize on certain practices when they adopt our platform and use our taxonomies and our libraries of data to classify things. It's a big change management journey. To your point and question, I think people are putting them on the schedule and getting on with the changes they need to make to make their organizations better now, and that feels better to me. Understood. Thank you. Thank you and o ur next question comes from Richard Close from Canaccord Genuity. Your line is now open. Great. Thank you. Congratulations on a solid start to 2021. Scotty, I was wondering just on a housekeeping, can you go over the organic and acquired growth again? I didn't catch those. I didn't write fast enough, but if you could go over those again, and then are all the acquisitions in the workforce area? Just as a reminder there. Sure, Richard. I think we characterized it as organic growth, excluding the legacy resuscitation business. Organic growing 8% and acquisitions contributing about 14%, so t he combination of both of those yielded about a 22% growth rate once you factor out the legacy business from prior year and current year. Then the acquisitions that we've completed, we've done five since the beginning of 2020, and t hey're all included in the Workforce business unit. Okay, great, and w ith respect to the, I guess the third leg of the stool, so to speak, Bobby, can you just go over the scheduling area, how you're thinking about that? You know, that's where the acquisitions have been, and just trying to get a feel of do you expect a similar sort of path that you had on the credentialing side in terms of timeframe on integration of those products, and then j ust how do you look at that? Yeah, Richard, I think it will be a bit of a journey. The good news is, the team from the VerityStream put together over a 30-page document to tell us about all that they learned, about everything from how quick to work on the branding issues, to how to select the core architecture and rebuild the platforms, to how to combine the feature sets. It's a really great document, a roadmap for how to do what they've done at VerityStream, and lo ok at the market conditions and build the right output. We're going to repeat the playbook. We acquired, as you know, Nursegrid early last year. By the way, that app has continued to grow its organic user base, even with minimal investments. It still continues to be the most popular adopted nurse app that nurses use to help manage their professional life and schedule. We're really excited about Nursegrid. We acquired ShiftWizard and ANSOS assets, ShiftWizard separately and the ANSOS assets from Change Healthcare. They each have capabilities that the market appreciates, like ANSOS is more enterprise capable than any of the others. With ShiftWizard, it's got market-leading workflows, award-winning recognition for the innovation in their application set, but it has some scale issues, and l ike any set of acquisitions, we're 100 days in and finding all the things we have to work on to make it better. I got a great leader over that in Scott McQuigg, a 20-year veteran of healthcare technology. We've got a great roadmap that Michael Sousa and his team at VerityStream have created for Scott. Yes, we plan to repeat it again. Hopefully, instead of four years of assembling all those companies, we can do it in three or less, and announce our new product strategy and vision, and one that levers the best of each of NurseGrid, ANSOS, and ShiftWizard, along with efforts to create smooth branding approach and catch the eye and ear and wallet of the competitive landscape. It is a repeat playbook. We gained some market share. We gained some unique assets like NurseGrid. We gained the people that know a lot about and have a long history of understanding time management and scheduling for nurses in our company, now over 120 new employees in the business unit or business area. It is embedded within workforce. It 's a little harder to see, but we are thinking of it as a business leader in Scott McQuigg, and a trajectory and a roadmap to get there. It will be a bit of a repeat. I hope to get to it a little faster and have a fewer bumps than we had maybe with VerityStream. As you can see, VerityStream, I think is coming out the back end of that, and I can't wait to report that we've done the same thing in credentialing, I mean in scheduling, and what we call capacity management. Is there any thoughts on the margin profile? A lot of our investments. Yeah, the margin profile should be similar. The 60%, 65% range. It's a little higher than that right now. I think it's around 64% of that business. It is a good SaaS or application set with decent software margins, and so we're excited about that. There's some content dimensions to what we're building, and the engagement parts of those platform and promotional efforts to say, around Nursegrid that maybe lower the gross margin a bit. Generally consistent with our goals as a unit, as an operating area, and then d efinitely an area of investment. For example, the sales team right now across all those sets is about 10 strong. We plan to take it to 22 by the middle of the year, so j ust in the next three months, we plan to double the sales organization on scheduling capacity management. Great. Thank you. Thank you. Ladies and gentlemen, if you have a question, that is star one, and our next question comes from Vincent Colicchio from Barrington Research. Your line is now open. Yes, Bobby, you just answered part of my question, but I'm curious if you can give us more color on what investments you'll be making this year. Yeah, a lot of investments, you know, t hings like Jane, you have to continue to invest to refine those technologies and add value to that product. The VerityStream team has an incredible R&D team, and they continue to evolve their application set. In technology, the vision's always grander than the ability to execute it, and you're always chasing that and trying to decide how much money to put into R&D and product development. Clearly, the newest area of investment that will consume a material part of our growing investment rates will be shaping the leadership team and the technologies and roadmap for scheduling and capacity management. I just gave one concrete example. We plan to take the sales team from, say, 10 with new leadership to or added leadership from 10 to over 20, I think 22, in the next three months. Similarly, the tech teams there, like in that area, will take the best of the technology people from those three acquisitions. We've got a new leader over that tech group as kind of a CTO of the scheduling capacity management business. They'll be hiring and adding the team members there because they have to build a unified technology roadmap. You'll see R&D increase in the scheduling application sets. Of necessity too, some of those applications needed to be updated and modernized. What you'll also see is work on interconnectivity, say, between NurseGrid and ANSOS, and between NurseGrid and ShiftWizard. In addition to all that, we'll be working on the branding and positioning of those product sets to create more clarity on the role of each of those technologies, and that will cost money. In addition to all of that, don't forget, we didn't do raises last year. We limited the executive bonus programs. We reduced travel, and a ll of that in the second half of this year, which was in the second half of last year, is coming back. That's why we need to be careful as we look at Q1, the sales and marketing ramp, the tech investments are beginning in the new areas of our business in Q2. Scotty, one for you. How much was the non-recurring professional services and software license revenue in Q1? We didn't quantify it, Vince, but it was mainly from the ANSOS organization that we acquired in Q4. It's less than $1 million. Okay. Thanks for answering my questions and a nice quarter, guys. Thank you. Thank you. I'm showing no further questions. I would now like to turn the call back over to Robert Frist for closing remarks. Thank you to all the analysts following us. We appreciate you telling our story and w e want you to be careful as you model out. We've tried to explain the second half of this year, including increased investments. We did have a really strong first quarter. We want to be careful to look at the new guidance ranges and make your models fit within those guidance ranges because we make them as thoughtful as we can, as accurate as we can, and w e don't want you to over-model or annualize Q1 because we have more investments coming into the business in Q2, Q3, and Q4. With that said, we're excited to raise guidance and look forward to your continued research on our company. To our shareholders, we look forward to hearing from you in our shareholder meeting. To our employees, I just want to say thank you for your continued feedback. We listen, and we do it in a public forum, and we try to make our company better and stronger, and a more fun place to work. Now what I can say is many of you been working for years on these products like Jane, and it's fun to see them and Workforce Validate and others, and now these new acquisitions and new employees, and I want to encourage you that you're making a difference and say thank you to all of our over 1,000 employees now at HealthStream. Thank you all. I look forward to seeing you all on the next quarterly earnings and before that at the annual shareholder meeting. Thank you. Bye-bye. This concludes today's conference call. Thank you for participating and you may now disconnect.