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

Exhibit 99.2

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

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2006			2005			2006			2005
Revenue	$	56,612		$	40,979		$	106,663		$	74,740
Costs and expenses:
Cost of operations		25,716			18,616			50,426			33,511
Sales and marketing		16,932			12,141			32,469			23,129
General and administrative		12,565			8,665			24,455			15,205
Depreciation and amortization		4,013			3,019			7,542			5,252
Interest income		1,468			—			2,916			—
Loss before income tax provision		(1,146	)		(1,462	)		(5,313	)		(2,357	)
Income tax provision		12			91			12			152
Net loss	$	(1,158	)	$	(1,553	)	$	(5,325	)	$	(2,509	)
Net loss per common share:
Basic and diluted	$	(0.02	)	$	(0.03	)	$	(0.09	)	$	(0.05	)
Weighted-average shares outstanding used in computing basic and diluted net loss per common share:		56,054			48,100			56,054			48,100

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

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2006			2005			2006			2005
Revenue
Online Services:
Advertising and sponsorship	$	36,219		$	26,656		$	68,979		$	49,443
Licensing		12,304			8,239			23,746			14,044
Content syndication and other		1,096			2,010			1,972			4,573
Total Online Services		49,619			36,905			94,697			68,060
Publishing and Other Services		6,993			4,074			11,966			6,680
	$	56,612		$	40,979		$	106,663		$	74,740
Earnings (loss) before interest, taxes, depreciation, amortization and other non-cash items (“Adjusted EBITDA”)
Online Services	$	9,006		$	3,974		$	16,867		$	7,793
Publishing and Other Services		593			(668	)		(741	)		(915	)
		9,599			3,306			16,126			6,878
Adjusted EBITDA per diluted common share (a)	$	0.17		$	0.07		$	0.28		$	0.14
Interest, taxes, depreciation, amortization and other non-cash items (b)
Interest income		1,468			—			2,916			—
Depreciation and amortization		(4,013	)		(3,019	)		(7,542	)		(5,252	)
Non-cash advertising		(1,189	)		(1,663	)		(2,794	)		(3,414	)
Non-cash stock-based compensation		(7,011	)		(86	)		(14,019	)		(569	)
Income tax provision		(12	)		(91	)		(12	)		(152	)
Net loss	$	(1,158	)	$	(1,553	)	$	(5,325	)	$	(2,509	)
Net loss per common share:
Basic and diluted	$	(0.02	)	$	(0.03	)	$	(0.09	)	$	(0.05	)
Weighted-average shares outstanding used in computing basic and diluted net loss per common share:
Basic and diluted		56,054			48,100			56,054			48,100

(a)	Three and six months ended June 30, 2006 Adjusted EBITDA is calculated based on 58,092 and 57,905 diluted shares, respectively.
(b)	Reconciliation of Adjusted EBITDA to net loss (see Annex A — Explanation of Non-GAAP Financial Measures).

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

	June 30,		December 31,
	2006		2005
ASSETS
Current assets:
Cash and cash equivalents	$	4,620	$	75,704
Short-term investments		99,655		78,073
Accounts receivable, net		55,814		57,245
Current portion of prepaid advertising		5,625		7,424
Other current assets		6,522		3,977
Total current assets		172,236		222,423
Property and equipment, net		32,108		21,014
Prepaid advertising		11,110		12,104
Goodwill		142,427		100,669
Intangible assets, net		32,109		20,503
Other assets		170		176
	$	390,160	$	376,889
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accrued expenses	$	21,715	$	30,400
Deferred revenue		50,191		36,495
Due to Emdeon		3,005		3,672
Total current liabilities		74,911		70,567
Other long-term liabilities		7,460		7,010
Stockholders’ equity		307,789		299,312
	$	390,160	$	376,889

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

	Six Months Ended
	June 30,
	2006			2005
Cash flows from operating activities:
Net loss	$	(5,325	)	$	(2,509	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		7,542			5,252
Non-cash advertising		2,794			3,414
Non-cash stock-based compensation		14,019			569
Changes in operating assets and liabilities:
Accounts receivable		4,221			1,173
Other assets		(2,945	)		(1,156	)
Accrued expenses and other long-term liabilities		(1,364	)		2,032
Due to Emdeon		(667	)		—
Deferred revenue		9,984			4,587
Net cash provided by operating activities		28,259			13,362
Cash flows from investing activities:
Proceeds from maturities and sales of available-for-sale securities		171,000			—
Purchases of available-for-sale securities		(192,000	)		—
Purchases of property and equipment		(12,775	)		(14,207	)
Cash paid in business combinations, net of cash acquired		(65,568	)		(30,612	)
Net cash used in investing activities		(99,343	)		(44,819	)
Cash flows from financing activities:
Net cash transfers from Emdeon		—			29,835
Net cash provided by financing activities		—			29,835
Net decrease in cash and cash equivalents		(71,084	)		(1,622	)
Cash and cash equivalents at beginning of period		75,704			3,456
Cash and cash equivalents at end of period	$	4,620		$	1,834