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

EXHIBIT 99.2

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

	Three Months Ended
	March 31,
	2006			2005
Revenue	$	50,051		$	33,761
Costs and expenses:
Cost of operations		24,710			14,895
Sales and marketing		15,537			10,988
General and administrative		11,890			6,540
Depreciation and amortization		3,529			2,233
Interest income		1,448			—
Loss before income tax provision		(4,167	)		(895	)
Income tax provision		—			61
Net loss	$	(4,167	)	$	(956	)
Net loss per common share:
Basic and diluted	$	(0.07	)	$	(0.02	)
Weighted-average shares outstanding used in computing basic and diluted net loss per common share:		56,054			48,100

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

	Three Months Ended
	March 31,
	2006			2005
Revenue
Online Services:
Advertising and sponsorship	$	32,760		$	22,787
Licensing		11,442			5,805
Content syndication and other		876			2,563
Total Online Services		45,078			31,155
Publishing and Other Services		4,973			2,606
	$	50,051		$	33,761
Earnings before interest, taxes, depreciation, amortization and other non-cash items (“Adjusted EBITDA”)
Online Services	$	7,861		$	3,819
Publishing and Other Services		(1,334	)		(247	)
		6,527			3,572
Adjusted EBITDA per diluted common share (a)	$	0.11		$	0.07
Interest, taxes, depreciation, amortization and other non-cash items (b)
Interest income		1,448			—
Depreciation and amortization		(3,529	)		(2,233	)
Non-cash advertising		(1,605	)		(1,751	)
Non-cash stock-based compensation		(7,008	)		(483	)
Income tax provision		—			(61	)
Net loss	$	(4,167	)	$	(956	)
Net loss per common share:
Basic and diluted	$	(0.07	)	$	(0.02	)
Weighted-average shares outstanding used in computing basic and diluted net loss per common share:
Basic and diluted		56,054			48,100

(a)	Three months ended March 31, 2006 Adjusted EBITDA is calculated based on 57,717 diluted shares
(b)	Reconciliation of Adjusted EBITDA to net loss

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

	March 31,		December 31,
	2006		2005
ASSETS
Current assets:
Cash and cash equivalents	$	38,347	$	75,704
Short-term investments		94,456		78,073
Accounts receivable, net		54,914		57,245
Current portion of prepaid advertising		6,524		7,424
Other current assets		5,178		3,977
Total current assets		199,419		222,423
Property and equipment, net		26,796		21,014
Prepaid advertising		11,399		12,104
Goodwill		117,495		100,669
Intangible assets, net		27,065		20,503
Other assets		130		176
	$	382,304	$	376,889
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accrued expenses	$	23,499	$	30,400
Deferred revenue		48,665		36,495
Due to Emdeon		1,130		3,672
Total current liabilities		73,294		70,567
Other long-term liabilities		7,008		7,010
Stockholders’ equity		302,002		299,312
	$	382,304	$	376,889

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

	Three Months Ended
	March 31,
	2006			2005
Cash flows from operating activities:
Net loss	$	(4,167	)	$	(956	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		3,529			2,233
Non-cash advertising		1,605			1,751
Non-cash stock-based compensation		7,008			483
Changes in operating assets and liabilities:
Accounts receivable		4,048			5,724
Other assets		(1,722	)		(488	)
Accrued expenses and other long-term liabilities		(5,287	)		(1,449	)
Due to Emdeon		(2,521	)		—
Deferred revenue		9,784			(1,124	)
Net cash provided by operating activities		12,277			6,174
Cash flows from investing activities:
Proceeds from maturities and sales of available-for-sale securities		23,650			—
Purchases of available-for-sale securities		(39,650	)		—
Purchases of property and equipment		(6,757	)		(932	)
Cash paid in business combinations, net of cash acquired		(26,877	)		(30,308	)
Net cash used in investing activities		(49,634	)		(31,240	)
Cash flows from financing activities:
Net cash transfers from Emdeon		—			25,450
Net cash provided by financing activities		—			25,450
Net (decrease) increase in cash and cash equivalents		(37,357	)		384
Cash and cash equivalents at beginning of period		75,704			3,456
Cash and cash equivalents at end of period	$	38,347		$	3,840