Exhibit 99.3
FINANCIAL GUIDANCE SUMMARY
WEBMD HEALTH CORP.
2009 Financial Guidance
(in millions, except per share amounts)
| | | | | | | | | |
| | | Year Ending | |
| | | December 31, 2009 | |
| | | Range(c) | |
| | | |
| Revenue | | $ | 420.0 | | | $ | 440.0 | |
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| Earnings before interest, taxes, non-cash and other items (“Adjusted EBITDA”) (a) | | $ | 110.0 | | | $ | 120.0 | |
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| Adjusted EBITDA per diluted common share | | $ | 1.77 | | | $ | 1.94 | |
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| Interest, taxes, non-cash and other items (b) | | | | | | | | |
| Interest income | | | 4.0 | | | | 4.0 | |
| Depreciation and amortization | | | (33.0 | ) | | | (30.0 | ) |
| Non-cash advertising | | | (1.8 | ) | | | (1.8 | ) |
| Non-cash stock-based compensation | | | (26.0 | ) | | | (23.0 | ) |
| Impairment of auction rate securities | | | — | | | | — | |
| Restructuring | | | — | | | | — | |
| Income tax provision | | | (21.8 | ) | | | (28.4 | ) |
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| Income from continuing operations | | $ | 31.4 | | | $ | 40.8 | |
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| Income from continuing operations per common share: | | | | | | | | |
| Basic | | $ | 0.53 | | | $ | 0.69 | |
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| Diluted | | $ | 0.51 | | | $ | 0.66 | |
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| Weighted-average shares outstanding used in computing income from continuing operations per common share: | | | | | | | | |
| Basic | | | 59.0 | | | | 59.0 | |
| Diluted | | | 62.0 | | | | 62.0 | |
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| (a) | | See Annex A — Explanation of Non-GAAP Financial Measures. |
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| (b) | | Reconciliation of Adjusted EBITDA to income from continuing operations. |
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| (c) | | The guidance for the year ending December 31, 2009 has been adjusted to exclude the discontinued operations of the Little Blue Book print directory business. |
Additional information regarding guidance for third quarter of 2009:
| | • | | Revenue is forecasted to be approximately $109 to $112 in the quarter ending September 30, 2009 |
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| | • | | Adjusted EBITDA as a percentage of revenue is forecasted to be approximately 28% in the quarter ending September 30, 2009 |
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| | • | | Income from continuing operations as a percentage of revenue is forecasted to be approximately 10% in the quarter ending September 30, 2009 |
Additional information regarding full year guidance:
| | • | | Income tax rate for 2009 is forecasted to be approximately 41% of pretax income. The income tax provision excludes any benefit relating to any reversal in 2009 of the valuation allowance against deferred tax assets. |
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| | • | | The distribution of the annual revenue is expected to be approximately 78.5% public portal advertising and sponsorship and 21.5% private portal services. Quarterly revenue distribuitions may vary from this annual estimate. |
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| | • | | Excludes the impact of the pending merger of WebMD and HLTH. |
