Exhibit 99.3
FINANCIAL GUIDANCE SUMMARY
WebMD Health Corp.
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 |
