Exhibit 99.3
FINANCIAL GUIDANCE SUMMARY
WebMD Health Corp.
2011 Financial Guidance
(in millions, except per share amounts)
Year Ending | ||||||||
December 31, 2011 | ||||||||
Guidance Range | ||||||||
Revenue | $ | 610.0 | $ | 640.0 | ||||
Earnings before interest, taxes, depreciation, amortization and other non-cash items (“Adjusted EBITDA”) (a) | $ | 215.0 | $ | 230.0 | ||||
Interest, taxes, depreciation, amortization and other non-cash items (b) | ||||||||
Interest income | 0.5 | 0.5 | ||||||
Interest expense | (11.5 | ) | (11.5 | ) | ||||
Depreciation and amortization | (30.0 | ) | (28.0 | ) | ||||
Non-cash stock-based compensation | (41.0 | ) | (38.0 | ) | ||||
Pre-tax income from continuing operations | 133.0 | 153.0 | ||||||
Income tax provision | (56.0 | ) | (64.0 | ) | ||||
Income from continuing operations | $ | 77.0 | $ | 89.0 | ||||
Income from continuing operations per share: | ||||||||
Basic | $ | 1.27 | $ | 1.47 | ||||
Diluted | $ | 1.22 | $ | 1.40 | ||||
Weighted-average shares outstanding used in computing income from continuing operations per common share: | ||||||||
Basic | 60.0 | 60.0 | ||||||
Diluted | 68.0 | 68.0 |
(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 the first quarter of 2011:
– | Revenue is forecasted to be in excess of $125 million in the quarter ending March 31, 2011. | ||
– | Adjusted EBITDA as a percentage of revenue is forecasted to be approximately 27% in the quarter ending March 31, 2011. | ||
– | Income from continuing operations as a percentage of revenue is forecasted to be approximately 7% in the quarter ending March 31, 2011. |
Additional information regarding full year forecast:
– | Income tax rate for 2011 is forecasted to be approximately 42% of pretax income. | ||
– | The distribution of the annual revenue is expected to be approximately 85% public portals advertising and sponsorship and 15% private portal licensing. Quarterly revenue distributions may vary from this annual estimate. | ||
– | 2011 guidance excludes any gains or losses related to investments / convertible notes. |
Additional information regarding full year income per share calculation:
– | Basic income per share: Reflects a reduction to income from continuing operations of $0.6 million to consider the effect of restricted stock. | ||
– | Diluted income per share: Reflects an increase to income from continuing operations of $6.1 million for the interest expense (net of tax) on the 2.5% Notes of $6.7 million, offset by $0.6 million to consider the effect of restricted stock. The diluted share count of 68 million includes the weighted impact of 6 million shares related to the 2.5% Notes. |