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 |
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| | • | | 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. |
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| | • | | 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 |
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| | • | | 2010 guidance excludes any gains or losses related to repurchase of convertible notes. |
