Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of HealthStream (NASDAQ:HSTM), an Internet-based research solutions company providing training and education for the health care industry, jumped as much as 18% after the company reported first-quarter earnings results.

So what: For the quarter, HealthStream reported 25% growth in revenue to $29.6 million and a 37% increase in net income, working out to a profit of $0.07 per share. Wall Street had been expecting EPS of $0.07 (which HealthStream delivered), but was only looking for revenue of $28.7 million. Looking ahead, HealthStream forecast revenue growth of 20% to 22% in 2013, placing its revenue range right in line with current Street estimates. The company notes that the majority of its fast-paced growth will come from its learning and talent management segment, which is anticipated to grow by 24% to 26% in 2013.

Now what: HealthStream is a complete toss-up in my book from an investing perspective. On one hand, the company's software-as-a-service operational model makes a lot of sense on paper with all the information moving into a digital platform in the health-care sector. On the flipside, investors are already paying 60 times forward earnings for a company slated to grow by 20%-22% in 2013 for a PEG ratio nearing 3. That seems awfully expensive to me and would be reason enough to wait for a hefty pullback before even considering a purchase.

Craving more input? Start by adding HealthStream to your free and personalized watchlist so you can keep up on the latest news with the company.

Fool contributor Sean Williams has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.