WebMD Health (WBMD) 8-K WebMD Announces Fourth Quarter 2005 Financial Results

Exhibit 99.2

WEBMD HEALTH CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data, unaudited)

	Three Months Ended				Year Ended
	December 31,				December 31,
	2005		2004		2005		2004
Revenue	$	49,104	$	39,097	$	168,938	$	134,148
Costs and expenses:
Cost of operations		19,007		14,606		70,538		52,377
Sales and marketing		15,093		12,032		51,756		47,358
General and administrative		7,763		6,616		29,550		22,122
Depreciation and amortization		2,668		1,858		10,653		5,620
Interest income		1,780		—		1,790		—
Income before income tax provision		6,353		3,985		8,231		6,671
Income tax provision		222		58		486		210
Net income	$	6,131	$	3,927	$	7,745	$	6,461
Net income per common share:
Basic	$	0.11	$	0.08	$	0.15	$	0.13
Diluted	$	0.11	$	0.08	$	0.15	$	0.13
Weighted-average shares outstanding used in computing net income per common share:
Basic		56,054		48,100		50,132		48,100
Diluted		57,627		48,100		50,532		48,100

WEBMD HEALTH CORP.
CONSOLIDATED SEGMENT INFORMATION
(In thousands, except per share data, unaudited)

	Three Months Ended						Year Ended
	December 31,						December 31,
	2005			2004			2005 (b)			2004
Revenues
Online Services:
Advertising and sponsorship	$	32,480		$	25,998		$	109,977		$	83,828
Licensing		11,016			5,629			34,113			15,841
Content syndication and other		1,513			5,538			8,210			20,618
Total Online Services		45,009			37,165			152,300			120,287
Publishing and Other Services		4,095			1,932			16,638			13,861
	$	49,104		$	39,097		$	168,938		$	134,148
Earnings before interest, taxes, depreciation, amortization and other non-cash items (“Adjusted EBITDA”)
Online Services	$	12,725		$	9,583		$	28,313		$	24,902
Publishing and Other Services		(279	)		(878	)		88			1,285
		12,446			8,705			28,401			26,187
Adjusted EBITDA per basic common share	$	0.22		$	0.18		$	0.57		$	0.54
Adjusted EBITDA per diluted common share	$	0.22		$	0.18		$	0.56		$	0.54
Interest, taxes, depreciation, amortization and other non-cash items (a)
Interest income		1,780			—			1,790			—
Depreciation and amortization		(2,668	)		(1,858	)		(10,653	)		(5,620	)
Non-cash advertising and distribution services (included in cost of operations)		(45	)		(196	)		(336	)		(901	)
Non-cash advertising and distribution services (included in sales and marketing)		(3,826	)		(2,112	)		(8,656	)		(11,246	)
Non-cash stock-based compensation		(1,334	)		(554	)		(2,315	)		(1,749	)
Income tax provision		(222	)		(58	)		(486	)		(210	)
Net income	$	6,131		$	3,927		$	7,745		$	6,461
Net income per common share:
Basic	$	0.11		$	0.08		$	0.15		$	0.13
Diluted	$	0.11		$	0.08		$	0.15		$	0.13
Weighted-average shares outstanding used in computing net income per common share:
Basic		56,054			48,100			50,132			48,100
Diluted		57,627			48,100			50,532			48,100

(a)	Reconciliation of Adjusted EBITDA to net income
(b)	The year ended December 31, 2005 results include a $3,150 charge primarily related to severance expense incurred during the quarter ended June 30, 2005.

WEBMD HEALTH CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, unaudited)

	December 31,		December 31,
	2005		2004
ASSETS
Current assets:
Cash and cash equivalents	$	75,704	$	3,456
Short-term investments		78,073		—
Accounts receivable, net		57,245		38,453
Current portion of prepaid advertising		7,424		10,350
Other current assets		3,977		2,619
Total current assets		222,423		54,878
Property and equipment, net		21,014		6,316
Prepaid advertising		12,104		20,047
Goodwill		100,669		52,614
Intangible assets, net		20,503		12,065
Other assets		176		576
	$	376,889	$	146,496
LIABILITIES, STOCKHOLDERS’ EQUITY AND OWNER’S NET INVESTMENT
Current liabilities:
Accrued expenses	$	34,072	$	15,874
Deferred revenue		36,495		29,885
Total current liabilities		70,567		45,759
Other long-term liabilities		7,010		—
Stockholders’ equity		299,312		—
Owner’s net investment		—		100,737
	$	376,889	$	146,496

WEBMD HEALTH CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, unaudited)

	Year Ended
	December 31,
	2005			2004
Cash flows from operating activities:
Net income	$	7,745		$	6,461
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		10,653			5,620
Non-cash advertising and distribution services		8,992			12,147
Non-cash stock-based compensation		2,315			1,749
Changes in operating assets and liabilities:
Accounts receivable		(13,974	)		(17,125	)
Other assets		(567	)		1,456
Accrued expenses		3,711			2,952
Due to Emdeon		3,672			—
Deferred revenue		(952	)		4,878
Other long-term liabilities		7,010			—
Net cash provided by operating activities		28,605			18,138
Cash flows from investing activities:
Proceeds from maturities and sales of available-for-sale securities		87,450			—
Purchases of available-for-sale securities		(165,178	)		—
Purchases of property and equipment		(18,126	)		(4,321	)
Cash paid in business combinations, net of cash acquired		(50,752	)		(22,421	)
Net cash used in investing activities		(146,606	)		(26,742	)
Cash flows from financing activities:
Net proceeds from initial public offering		125,392			—
Net cash transfers from Emdeon		64,857			11,702
Net cash provided by financing activities		190,249			11,702
Net increase in cash and cash equivalents		72,248			3,098
Cash and cash equivalents at beginning of period		3,456			358
Cash and cash equivalents at end of period	$	75,704		$	3,456