Attached files
| file | filename |
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| EX-99.4 - EX-99.4 - WebMD Health Corp. | d275292dex994.htm |
| EX-99.3 - EX-99.3 - WebMD Health Corp. | d275292dex993.htm |
| EX-99.2 - EX-99.2 - WebMD Health Corp. | d275292dex992.htm |
| 8-K - 8-K - WebMD Health Corp. | d275292d8k.htm |
Exhibit 99.1
| Contacts: | ||||||
| Investors: | Media: | |||||
| Risa Fisher | Adam Grossberg | |||||
| rfisher@webmd.net | agrossberg@webmd.net | |||||
| 212-624-3817 | 212-624-3790 |
WebMD Reports Strong Third Quarter Revenue and Earnings Growth
New York, NY (November 1, 2016)—WebMD Health Corp. (NASDAQ: WBMD), the leading source of health information, today announced financial results for the three months ended September 30, 2016.
“We are pleased to report third quarter results around the high end of our expectations and we remain well positioned to deliver strong fourth quarter and full year performance,” said Steve Zatz, Chief Executive Officer, WebMD. “WebMD continues to demonstrate the value that we bring to our customers across both our professional and consumer platforms.”
Financial Highlights
For the three months ended September 30, 2016:
| • | Revenue was $171.4 million, compared to $152.6 million in the prior year period, an increase of 12%. Advertising and sponsorship revenue was $136.1 million compared to $118.7 million in the prior year period. Health services revenue, which we previously reported as private portal services revenue, was $28.2 million compared to $27.5 million in the prior year period. Information services revenue was $7.1 million compared to $6.4 million in the prior year period. |
| • | Net income increased 64% to $21.6 million or $0.47 per diluted share compared to $13.2 million, or $0.32 per diluted share in the prior year period. |
| • | Earnings before interest, taxes, non-cash and other items (“Adjusted EBITDA”) increased 19% to $55.3 million, or 32% of revenue, compared to $46.4 million, or 30% of revenue, in the prior year period. |
Balance Sheet Highlights
As of September 30, 2016, WebMD had: approximately $1.04 billion in investments and cash and cash equivalents; $1.06 billion in aggregate principal amount of convertible notes outstanding; and approximately 38.7 million shares of its common stock outstanding (including approximately 600 thousand unvested shares of restricted stock).
During the third quarter, WebMD used $22.4 million in cash to repurchase approximately 432 thousand shares of its common stock under its stock repurchase program. As of September 30, 2016, approximately $47 million remained available for repurchases under WebMD’s stock repurchase program. Under its stock repurchase program, WebMD may repurchase shares from time to time in the open market, through block trades or in private transactions, depending on market conditions and other factors.
Traffic Highlights
Traffic to the WebMD Health Network during the third quarter of 2016 averaged 184 million unique users per month, generating 3.84 billion page views for the quarter, representing decreases of 11% and 4% in users and page views, respectively, when compared to the prior year period.
“During the third quarter, we achieved 15% advertising revenue growth despite a 4% decline in page views, demonstrating that trends in our aggregate traffic and our advertising revenue are not correlated to one another,” said Dr. Zatz. “We are able to achieve these results because the majority of our advertising revenue is related to the highly targeted audiences that are of greatest value to our customers.”
Financial Guidance
Today, WebMD updated its 2016 financial guidance.
For the full year ending December 31, 2016, WebMD expects:
| • | Revenue to be approximately $698 million to $708 million, an increase of 10% to 11% from the prior year. |
| ○ | $557 million to $565 million of revenue is expected to be from advertising and sponsorship, an increase of 12% to 13% from the prior year. Growth in advertising and sponsorship revenue is expected to be driven by growth in revenue from biopharma customers of approximately 15% to 16%. |
| ○ | $112 million to $113 million of revenue is expected to be from health services revenue, compared to $110.4 million in 2015. |
| ○ | $29 million to $30 million of revenue is expected to be from information services, compared to $26.9 million in 2015. |
| • | Net income to be approximately $86.8 million to $92.3 million, or $1.88 to $1.97 per diluted share, compared to $64 million, or $1.48 per diluted share, in 2015. |
| • | Adjusted EBITDA to be approximately $226 million to $233 million, an increase of 17% to 21% from the prior year. Adjusted EBITDA, as a percentage of revenue, is expected to be approximately 32% to 33%, compared to 30% in the prior year. |
For the fourth quarter of 2016, WebMD expects:
| • | Revenue to be approximately $200 million to $210 million, an increase of 4% to 10% from the prior year period. |
| • | Net income to be approximately $32 million to $37 million, an increase of approximately 15% to 35% from the prior year period. |
| • | Adjusted EBITDA to be approximately $73.5 million to $80.5 million, an increase of approximately 9% to 20% from the prior year period. |
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A schedule summarizing the Company’s financial guidance is attached to this press release.
Analyst and Investor Conference Call
WebMD will hold a conference call with investors and analysts at 4:45 p.m. (Eastern) today. The call can be accessed at www.wbmd.com (in the Investor Relations section). A replay of the audio webcast will be available at the same web address.
About WebMD
WebMD Health Corp. (NASDAQ: WBMD) is the leading provider of health information services, serving consumers, physicians, healthcare professionals, employers, and health plans through our public and private online portals, mobile platforms and health-focused publications.
The WebMD Health Network includes WebMD.com, Medscape.com, MedicineNet.com, eMedicineHealth.com, RxList.com, Medscape Education (Medscape.org) and other WebMD owned sites and apps.
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All statements contained in this press release and the related analyst and investor conference call, other than statements of historical fact, are forward-looking statements, including those regarding: guidance on our future financial results and other projections or measures of our future performance; market opportunities or momentum and our ability to capitalize on them; and the benefits expected from new or expected contracts with customers, from new or updated products or services and from other potential sources of additional revenue. These statements speak only as of the date of this press release, are based on our current plans and expectations, and involve risks and uncertainties that could cause actual future events or results to be different than those described in or implied by such forward-looking statements. These risks and uncertainties include those relating to: market acceptance of our products and services; our relationships with customers and other factors affecting their use of our services and the timing of entry into and implementation of specific contracts with customers, including regulatory matters affecting their products and services; our ability to deploy new or updated services and to create new or enhanced revenue streams from those services; our ability to attract and retain qualified personnel; and changes in economic, political or regulatory conditions or other trends affecting the healthcare, Internet and information technology industries. Further information about these matters can be found in our Securities and Exchange Commission filings and this press release is intended to be read in conjunction with information contained in those filings. Except as required by applicable law or regulation, we do not undertake any obligation to update our forward-looking statements to reflect future events or circumstances.
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This press release, and the accompanying tables, include both financial measures in accordance with accounting principles generally accepted in the United States of America, or GAAP, as well as certain non-GAAP financial measures. The tables attached to this press release include reconciliations of these non-GAAP financial measures to GAAP financial measures. In addition, an “Explanation of Non-GAAP Financial Measures” is attached to this press release as Annex A.
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WebMD®, Medscape®, CME Circle®, Medpulse®, eMedicine®, MedicineNet®, theheart.org® and RxList® are among the trademarks of WebMD Health Corp. or its subsidiaries.
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