IPOs/recent issues: HEALTHSTREAM –

Nashville, Tenn.

Went public 4/11/2000 at $9 apiece

Filing Range:5 mil. shares @ $11 to $13

Shares Outstanding:19.48 mil. shares

Underwriters:Robertson Stephens

CIBC World Markets/J.C. Bradford/E*Offering


(Data in $ millions)


12/98 12/99

Total Revenue $1.72 $7.23

Net Loss -1.59 -10.08

The Company:

HealthStream develops a Web-based solution serving the continuing education and training needs of the health-care community. Through strategic relationships with its content partners, including Vanderbilt University Medical Center, Duke University Medical Center, The Cleveland Clinic Foundation and Challenger, the company has amassed over 3,000 hours of continuing education and training content throughout a range of medical specialities. HealthStream currently distributes over 1,300 hours of continuing education and training content to doctors, nurses, allied health professionals and other health-care workers through its network of strategic distribution partners, which includes GE Medical Systems, Medsite.com, IDX.com, PhyCor and HealthGate. This network of distribution partners reaches more than 30 distribution partners, including Healtheon/WebMD, MedicaLogic, GE Medical Systems, Pointshare, Medsite.com, Healthgate and ChannelHealth (an IDX company). The company is developing and implementing a comprehensive set of online administrative and management tools which it will host on an application service provider basis, which enable health-care administrators to configure, assess and manage training for employees in their organizations. HealthStream has entered into a five-year agreement with Healtheon/WebMD to be the exclusive provider of education and training for health-care organizations, health-care professionals and health-care workers on Web sites owned and operated by Healtheon/WebMD.


Estimated net proceeds of $65.3 million will be used for general corporate purposes, including working capital and sales and marketing initiatives. A portion of the proceeds may be used to acquire or invest in complementary businesses, technologies, services or products.

Venture Backers:

Morgan Stanley Venture Partners, Martin Investment Partnership, HealthStream Partners, GE Capital Equity Capital Group, Seven Partnership

Board Members:

Robert Frist

Jeffrey McLaren

Charles Martin, Jr.

Thompson Dent

M. Fazle Husain

John Dayani, Sr.

James Daniell

William Stead