Exhibit 99.3
FINANCIAL GUIDANCE SUMMARY
WebMD Health Corp
2010 Financial Guidance
(in millions, except per share amounts)
Year Ended | Year Ended | |||||||||||
December 31, 2009 | December 31, 2010 | |||||||||||
Actuals | Guidance Range | |||||||||||
Revenue | $ | 438.5 | $ | 510.0 | $ | 525.0 | ||||||
Earnings before interest, taxes, non-cash and other items (“Adjusted EBITDA”) (a) | $ | 112.3 | $ | 150.0 | $ | 158.0 | ||||||
Adjusted EBITDA per diluted common share | $ | 1.94 | $ | 2.27 | $ | 2.39 | ||||||
Interest, taxes, non-cash and other items (b) | ||||||||||||
Interest income | 9.2 | 11.0 | 12.0 | |||||||||
Interest expense | (23.5 | ) | (19.0 | ) | (18.0 | ) | ||||||
Depreciation and amortization | (28.2 | ) | (30.0 | ) | (28.0 | ) | ||||||
Non-cash stock-based compensation | (39.4 | ) | (33.0 | ) | (31.0 | ) | ||||||
Non-cash advertising | (1.8 | ) | — | — | ||||||||
Severance and other transaction expenses | (11.1 | ) | — | — | ||||||||
Gain on repurchases of convertible notes | 10.1 | — | — | |||||||||
Other expenses, net | (1.4 | ) | — | — | ||||||||
Consolidated pre-tax income from continuing operations | 26.2 | 79.0 | 93.0 | |||||||||
Income tax benefit (provision) | 45.5 | (34.0 | ) | (40.0 | ) | |||||||
Consolidated income from continuing operations | 71.7 | 45.0 | 53.0 | |||||||||
Income attributable to noncontrolling interest | (4.7 | ) | — | — | ||||||||
Income from continuing operations | $ | 67.0 | $ | 45.0 | $ | 53.0 | ||||||
Income from continuing operations per share | ||||||||||||
Basic | $ | 1.40 | $ | 0.79 | $ | 0.93 | ||||||
Diluted | $ | 1.21 | $ | 0.68 | $ | 0.80 | ||||||
Weighted-average shares outstanding used in computing income from continuing operations per common share: | ||||||||||||
Basic | 47.4 | 57.0 | 57.0 | |||||||||
Diluted | 57.7 | 66.0 | 66.0 |
(a) | See Annex A — Explanation of Non-GAAP Financial Measures | |
(b) | Reconciliation of Adjusted EBITDA to consolidated income from continuing operations |
Additional information regarding forecast for first quarter of 2010:
• | Revenue is forecasted to be approximately $103 to $106 in quarter ending March 31, 2010 | ||
• | Adjusted EBITDA as a percentage of revenue is forecasted to be approximately 21.5% to 22.5% in quarter ending March 31, 2010 | ||
• | Net Income as a percentage of revenue is forecasted to be approximately 2% to 3.5% in quarter ending March 31, 2010 |
Additional information regarding full year 2010 forecast:
• | Income tax rate for 2010 is forecasted to be approximately 43% of pretax income. | ||
• | The distribution of the annual revenue is expected to be approximately 83% public portal advertising and sponsorship and 17% private portal services. Quarterly revenue distributions may vary from this annual estimate | ||
• | 2010 guidance excludes any gains or losses related to repurchase of convertible notes. |