Exhibit 99.3
FINANCIAL GUIDANCE SUMMARY
WebMD Health Corp.
2010 Financial Guidance
(in millions, except per share amounts)
2010 Financial Guidance
(in millions, except per share amounts)
Year Ended | ||||||||
December 31, 2010 | ||||||||
Guidance Range | ||||||||
Revenue | $ | 510.0 | $ | 525.0 | ||||
Earnings before interest, taxes, non-cash and other items (“Adjusted EBITDA”) (a) | $ | 150.0 | $ | 158.0 | ||||
Interest, taxes, non-cash and other items (b) | ||||||||
Interest income | 4.0 | 4.0 | ||||||
Interest expense | (13.0 | ) | (12.0 | ) | ||||
Depreciation and amortization | (30.0 | ) | (28.0 | ) | ||||
Non-cash stock-based compensation | (33.0 | ) | (31.0 | ) | ||||
Loss on convertible notes | (3.7 | ) | (3.7 | ) | ||||
Loss on auction rate securities | (28.8 | ) | (28.8 | ) | ||||
Other expenses, net | (0.3 | ) | (0.3 | ) | ||||
Consolidated pre-tax income from continuing operations | 45.2 | 58.2 | ||||||
Income tax provision | (9.0 | ) | (15.0 | ) | ||||
Consolidated income from continuing operations | $ | 36.2 | $ | 43.2 | ||||
Income from continuing operations per share: | ||||||||
Basic | $ | 0.64 | $ | 0.76 | ||||
Diluted | $ | 0.56 | $ | 0.66 | ||||
Weighted-average shares outstanding used in computing income from continuing operations per common share: | ||||||||
Basic | 57.0 | 57.0 | ||||||
Diluted | 65.0 | 65.0 |
(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 second quarter of 2010:
• | Revenue is forecasted to be in excess of $115 in quarter ending June 30, 2010, an increase in excess of 16% from last year. Public portal advertising and sponsorship revenue is expected to grow in excess of 23%. | ||
• | Adjusted EBITDA as a percentage of revenue is forecasted to be in excess of 26% in quarter ending June 30, 2010 | ||
• | Income from continuing operations as a percentage of revenue is forecasted to be in excess of 6% in quarter ending June 30, 2010 |
Additional information regarding full year 2010 forecast:
• | Income tax rate is forecasted to be approximately 43% of pretax income for the second, third and fourth quarters of 2010. | ||
• | 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: |
• | Additional conversion and / or repurchases of convertible notes | ||
• | Sales of Porex Senior Secured Notes and / or other investments |