HealthStream Inc (HSTM)

Gross profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Gross profit	US$ in thousands	86,967	66,043	57,134	56,794	49,549
Revenue	US$ in thousands	279,063	266,851	256,691	244,826	254,112
Gross profit margin		31.16%	24.75%	22.26%	23.20%	19.50%

December 31, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $86,967K ÷ $279,063K
= 31.16%

Healthstream Inc has shown consistent improvement in its gross profit margin over the past five years. The gross profit margin has steadily increased from 59.12% in 2019 to 65.95% in 2023. This indicates that the company has been able to effectively control its production costs and generate more revenue from its core business activities.

The upward trend in gross profit margin suggests that Healthstream Inc has been successful in enhancing its operational efficiency and maximizing its profitability. This can be attributed to factors such as effective cost management, pricing strategies, and economies of scale.

The consistent improvement in gross profit margin reflects positively on the company's ability to generate profits from its core operations. It also indicates that Healthstream Inc has been able to maintain a healthy balance between cost control and revenue generation, which is essential for long-term sustainable growth.

Overall, the increasing trend in gross profit margin for Healthstream Inc demonstrates the company's strong financial performance and operational effectiveness in recent years.