Scotty, any more details?
Scotty Roberts: Yes, I think ARR is one that we’re obviously, we’ve looked at and used internally, as Bobby mentioned, on a more an account-by-account basis, but you know, Constantine, you know, some other retention metrics, we’re considering whether or not those are worth sharing publicly. But, you know, obviously been focused on those internally as well, but just trying to get to the point where we want to share those publicly. So net retention in particular is a possible metric as well.
Constantine Davides: Great, that’s helpful. And then, Bobby, the 104 organizations you called out hitting the portal, I just want to be clear, they’re not paying at all for that kind of access. So I guess, you know, what is the expectation on maybe starting to monetize that and what do you need to do to commercialize that or support it? And how — is that sort of a later this year event, is it a next year event, just wondering how to think about that opportunity.
Bobby Frist: Yes, sure. So a couple things. First of all, effectively they are paying for it. And here’s how. When you buy an application like HealthStream Learning Center, you also buy a subscription to hStream for Learning. hStream for Learning is a license in your agreement that gives you access to some of the APIs that comes with your right, and you do pay for that hStream for learning subscription. So those two subscriptions together are what give you the access to several APIs as a customer. So, most of those 104, they are utilizing the rights they’ve gained by paying for the hStream for learning license, for example. That said, we have had some examples, commercial success of individually licensing some of the data sets, and we have some proposals out to other customers to license the functionality of the platform directly.
And I think we’ve given some examples. But the — as we get more and more of our data sets, like our privilege library, our regulatory compliance library, that are content libraries directly accessing them through the platform for a license fee, for example or we’ve also given the example of looking up a license validity. We currently give our customers access to that function in our applications, but we have an example of a third-party licensing that function to check a license validity on an API basis only. And we had a health system that didn’t buy an application from us, they just paid for checking licenses. And so, we have some limited examples of directly monetizing both the data and the functionality of the platform. But mostly, the 104 people and 200 new developers in the portal are there by the right they gained by paying for their hStream for learning license and they’re utilizing those APIs to thread our technology more into their technical environment, like their [Technical Difficulty] for example.
So, it is paid for in a way. In fact, it’s part of, if you say what’s the value proposition of hStream, the platform? Customer would say, oh, I get access to the developer portal, and I get to use some of these APIs. A lot of them are being engineered in a way where they could be sold to non-customers, directly the APIs, and that will be the learning journey. And I hope to have examples of monetizing directly in that way, in each category of data and APIs by the end of the year.
Constantine Davides: Got it. Thanks. If I could just squeeze one last one in here. Obviously, you guys are in a really good cash position, no debt. In terms of just M&A opportunities, I’m just curious, are you pretty committed, at least in the near term, to the three application suites you currently have or is there a possibility you even start to sort of expand upon that prior to having the unified platform sort of fully realized?
Bobby Frist: Yes. I think, Constantine, we are already focused on expanding the kind of these three areas — these three application suites, meaning within their own context. So if we find something that bolsters our learning capability, that would be something to look at our credentialing, our scheduling, but not adding a fourth dimension. The only fourth dimension we have is the platform itself, we call hStream, so we want to get all four of those, the three application suites and the hStream platform working together really well. And I think this is the year, where we want all these ways to demonstrate that interoperability. We just talked about one, which is when you license the learning center and you get the license hStream for learning, you get access to the APIs. That’s a good example of adding value to our network.
And so, our M&A strategy is adding to those areas that they already exist more than creating new areas of business. And focused on the interoperability is kind of a key word for this year and also focused on the migration of legacy customers, so if you’re on a legacy credentialing application that we acquired to say the credential, the modern application we’ve been building and selling now with over 750 accounts on it. So, you’ll see this year as more of this on conversions from legacy to existing, which unfortunately don’t have a lot of revenue growth, I mean they do grow revenue a little bit when we convert, but what they really do is get people solidly on the new application suite. So that’s a focus this year and then our M&A strategy specifically asked about is to bolster existing areas.
So incremental add-ons to existing areas more than expanding the model into new areas. Now, if we get it all working in the next 18 months, then maybe adding a fourth operational dimension to the network would be exciting. But right now, M&A would be focused on areas that strengthen the current lines of business.
Constantine Davides: Thanks, Bobby.
Operator: Thank you. Our next question comes from Vincent Colicchio with Barrington Research. Your line is open.
Vincent Colicchio: Yes, Bobby, another strong quarter for ShiftWizard. You added a few new clients. Curious if they were mostly, I assume they’re mostly mid-market clients. And if that’s correct, when may you be prepared to move up to larger enterprise clients?
Bobby Frist: Well, we’re working on that, I think you’re right. I mean, generally that product is great. We have some good examples of big systems that are using it. But I think in general, the successes are coming in the mid-market right now and that’s the focus of our sales team. So, we continue to try to expand this capability and make it more relevant. We have ambition to integrate properties like NurseGrid, the app, to the ShiftWizard application, which would extend its functionality. And so, I think right now, though, for the next six to nine months, maybe even for the full year, the remainder of this year, our focus is at middle market.
Vincent Colicchio: And one last one. Anything in the competitive market worth calling out since last quarter?
Bobby Frist: Well, you know, no, I don’t think anything particularly, I mean, everyone, including HealthStream is working on their AI strategies, so we see different approaches to that, you know, with our Jane Technology continues to evolve, we’re excited. We have some things in the pipeline to refresh our learning technology stack that we’re really excited about for the second-half of this year, so we’re working on our competitive positioning there and our thought leadership and our application leadership in that area, which hasn’t been revitalized in quite some time. So that’s a little sneak peek that we’ve got coming in our learning business that we hope to catch the competitors with. So but in general, it is a very competitive landscape with lots of good startups and big established companies as well. And we’re just fighting for our piece of that or more than our fair share.
Vincent Colicchio: Thanks, Bobby.
Operator: Thank you. Our next question comes from Stephanie Davis with Barclays. Your line is open.
Stephanie Davis: Hey, guys, thank you for taking my question. I’ll try to keep it brief, given the length of the call, but you’ve been talking a little bit more about sunsetting activity and being more proactive on the prepared remarks, is there first any way to tease out what your growth would look like excluding the sunset impacts and get a cleaner number for your go forward? And as a follow-up, could you talk to us more about maybe the pushback you’re getting and any sort of updates on the timeline for the process?
Bobby Frist: Yes, I think we’ve determined early this year, like in January, that we need to focus in some areas, like where [Technical Difficulty] so credentialing and scheduling, and both have legacy platforms, that the message to our existing customers is two-fold. We’re not sunsetting, so that word we need to tone a little bit, because we’re still, of course, supporting and releasing enhances to some of those legacy platforms and communicating frequently with customers how to better optimize their use. So, you did see, for example, expansion of ANSOS. We actually had two big wins at ANSOS, we were able to convert another big contract into a more healthy model financially, and then we had the big ANSOS license expansion. So we are supporting those.
We’re just not actively outselling. If a customer wants to expand useful sell, but we’re not sunsetting. We are changing the tone of our message, though, beginning in January, at that conference that we mentioned earlier, we said now is the year to migrate to the SaaS application stacks. And so, that’s different than stay comfortable where you are and wait for migration, now we’re actively promoting to customers that now is the year to migrate. And so the tone of the sales organization, and the tone of HealthStream is that. And as I mentioned, that does tamp down growth a little bit, because you’re kind of switching from $1 set to another. There is a bit of an uplift in the annual recurring revenue when you [Technical Difficulty] application from the maintenance models that they’re under.
So it’s positive, but it’s not nearly the same as, say, acquiring a wholly new customer. So yes, that does have a little bit of a dampening effect on to have that as a focus has a bit of a dampening effect on the topline. But look, it’s the healthiest thing to do and the right thing to do is to begin a more aggressive migration strategy from the older. And so, but we’re not doing that by actually sunsetting, we’re doing that by encouraging and stating and giving examples of where migrations are successful. We’re just better at it, we’re better at the tools, so you talk about barriers. We have better data migration tool sets, we have better methodologies. We’ve learned a lot from the early migrations. And overall, our teams are doing a great job.
And so we’re communicating. We have more confidence, we could handle more migrations now too, because of all that I just mentioned. So, great question. It does — it makes topline growth look a little less stellar to make that a focus, but it is absolutely the right thing to do for a 24 month horizon. And again, we’re better equipped technologically to facilitate those and the marketing message has changed. So thanks for the question and hope I got the answer.
Stephanie Davis: Thank you.
Operator: Thank you. There are no further questions at this time. I’d like to turn the call back over to Bobby Frist for any closing remarks.
Bobby Frist: Thank you, everyone, and congrats to our employees a lot of hard work going on to make all this happen. Look forward to reporting the next earnings call to everyone and we’ll see you on the next call. Thanks everybody.
Operator: Thank you for your participation. This does conclude the program and you may now disconnect. Everyone, have a great day.
