WebMD Health (WBMD) 8-K WebMD Announces Second Quarter Financial Results

Exhibit 99.2

WEBMD HEALTH CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data, unaudited)

	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2009			2008		2009			2008
Revenue	$	98,631		$	86,004	$	188,895		$	166,654
Cost of operations		39,229			31,968		75,794			62,895
Sales and marketing		26,797			24,898		54,358			50,047
General and administrative		15,139			14,211		29,865			27,691
Depreciation and amortization		6,804			7,087		13,741			13,759
Interest income		924			2,350		1,899			5,803
Impairment of auction rate securities		—			—		—			27,406
Income (loss) from continuing operations before income tax provision		11,586			10,190		17,036			(9,341	)
Income tax provision		4,636			4,501		6,847			7,933
Income (loss) from continuing operations		6,950			5,689		10,189			(17,274	)
(Loss) income from discontinued operations, net of tax		(4,867	)		663		(5,290	)		291
Net income (loss)	$	2,083		$	6,352	$	4,899		$	(16,983	)
Basic income (loss) per common share:
Income (loss) from continuing operations	$	0.12		$	0.10	$	0.18		$	(0.30	)
(Loss) income from discontinued operations		(0.08	)		0.01		(0.09	)		0.01
Net income (loss)	$	0.04		$	0.11	$	0.09		$	(0.29	)
Diluted income (loss) per common share:
Income (loss) from continuing operations	$	0.12		$	0.10	$	0.17		$	(0.30	)
(Loss) income from discontinued operations		(0.08	)		0.01		(0.09	)		0.01
Net income (loss)	$	0.04		$	0.11	$	0.08		$	(0.29	)
Weighted-average shares outstanding used in computing basic and diluted net income (loss) per common share:
Basic		57,675			57,693		57,625			57,664
Diluted		58,632			59,061		58,370			57,664

WEBMD HEALTH CORP.
CONSOLIDATED SUPPLEMENTAL FINANCIAL INFORMATION
(In thousands, except per share data, unaudited)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2009			2008			2009			2008
Revenue
Public portal advertising and sponsorship	$	75,992		$	64,138		$	143,281		$	122,865
Private portal services		22,639			21,866			45,614			43,789
	$	98,631		$	86,004		$	188,895		$	166,654
Earnings before interest, taxes, non-cash and other items (“Adjusted EBITDA”) (a)	$	23,218		$	18,392		$	41,906		$	34,724
Adjusted EBITDA per basic common share	$	0.40		$	0.32		$	0.73		$	0.60
Adjusted EBITDA per diluted common share	$	0.40		$	0.31		$	0.72		$	0.60
Interest, taxes, non-cash and other items (b)
Interest income		924			2,350			1,899			5,803
Depreciation and amortization		(6,804	)		(7,087	)		(13,741	)		(13,759	)
Non-cash advertising		—			—			(1,753	)		(1,558	)
Non-cash stock-based compensation		(5,752	)		(3,465	)		(11,275	)		(7,145	)
Impairment of auction rate securities		—			—			—			(27,406	)
Income tax provision		(4,636	)		(4,501	)		(6,847	)		(7,933	)
Income (loss) from continuing operations		6,950			5,689			10,189			(17,274	)
(Loss) income from discontinued operations, net of tax		(4,867	)		663			(5,290	)		291
Net income (loss)	$	2,083		$	6,352		$	4,899		$	(16,983	)
Basic income (loss) per common share:
Income (loss) from continuing operations	$	0.12		$	0.10		$	0.18		$	(0.30	)
(Loss) income from discontinued operations		(0.08	)		0.01			(0.09	)		0.01
Net income (loss)	$	0.04		$	0.11		$	0.09		$	(0.29	)
Diluted income (loss) per common share:
Income (loss) from continuing operations	$	0.12		$	0.10		$	0.17		$	(0.30	)
(Loss) income from discontinued operations		(0.08	)		0.01			(0.09	)		0.01
Net income (loss)	$	0.04		$	0.11		$	0.08		$	(0.29	)
Weighted-average shares outstanding used in computing per share amounts:
Basic		57,675			57,693			57,625			57,664
Diluted		58,632			59,061			58,370			57,664

(a)	See Annex A — Explanation of Non-GAAP Financial Measures
(b)	Reconciliation of Adjusted EBITDA to net income (loss)

WEBMD HEALTH CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, unaudited)

	June 30, 2009		December 31, 2008
ASSETS
Current assets:
Cash and cash equivalents	$	246,878	$	191,659
Accounts receivable, net		78,674		93,082
Current portion of prepaid advertising		—		1,753
Other current assets		11,147		11,358
Assets of discontinued operations		5,111		12,575
Total current assets		341,810		310,427
Investments		126,330		133,563
Property and equipment, net		54,513		54,165
Goodwill		208,967		208,967
Intangible assets, net		22,878		26,237
Other assets		17,956		22,573
	$	772,454	$	755,932
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accrued expenses	$	29,273	$	31,241
Deferred revenue		86,261		79,613
Due to HLTH		736		427
Liabilities of discontinued operations		792		2,599
Total current liabilities		117,062		113,880
Other long-term liabilities		7,803		8,334
Stockholders’ equity		647,589		633,718
	$	772,454	$	755,932

WEBMD HEALTH CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, unaudited)

	Six Months Ended June 30,
	2009			2008
Cash flows from operating activities:
Net income (loss)	$	4,899		$	(16,983	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Loss (income) from discontinued operations, net of tax		5,290			(291	)
Depreciation and amortization		13,741			13,759
Non-cash advertising		1,753			1,558
Non-cash stock-based compensation		11,275			7,145
Deferred and other income taxes		6,545			6,568
Impairment of auction rate securities		—			27,406
Changes in operating assets and liabilities:
Accounts receivable		14,408			15,249
Other assets		(1,139	)		(1,393	)
Accrued expenses and other long-term liabilities		(2,499	)		(5,056	)
Due to HLTH		309			1,246
Deferred revenue		6,648			10,195
Net cash provided by continuing operations		61,230			59,403
Net cash provided by discontinued operations		506			3,355
Net cash provided by operating activities		61,736			62,758
Cash flows from investing activities:
Proceeds from maturities and sales of available-for-sale securities		900			41,300
Purchases of available-for-sale securities		—			(127,900	)
Purchases of property and equipment		(10,833	)		(6,906	)
Cash received from sale of business, net of fees		250			1,133
Net cash used in continuing operations		(9,683	)		(92,373	)
Net cash used in discontinued operations		(7	)		(40	)
Net cash used in investing activities		(9,690	)		(92,413	)
Cash flows from financing activities:
Proceeds from issuance of common stock		3,173			2,392
Net cash provided by financing activities		3,173			2,392
Net increase (decrease) in cash and cash equivalents		55,219			(27,263	)
Cash and cash equivalents at beginning of period		191,659			213,753
Cash and cash equivalents at end of period	$	246,878		$	186,490