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

Exhibit 99.2

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

	Preliminary
	Three Months Ended
	March 31,
	2007		2006
Revenue	$	72,962	$	50,051
Costs and expenses:
Cost of operations		29,663		24,710
Sales and marketing		22,870		15,537
General and administrative		15,505		11,890
Depreciation and amortization		5,993		3,529
Interest income		1,985		1,448
Income (loss) before income tax provision		916		(4,167	)
Income tax provision		210		—
Net income (loss)	$	706	$	(4,167	)
Net income (loss) per common share:
Basic	$	0.01	$	(0.07	)
Diluted	$	0.01	$	(0.07	)
Weighted-average shares outstanding used in computing basic and diluted net income (loss) per common share:
Basic		56,976		56,054
Diluted		59,630		56,054

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

	Preliminary
	Three Months Ended
	March 31,
	2007			2006
Revenue
Online Services:
Advertising and sponsorship	$	47,421		$	32,760
Licensing		20,115			11,442
Content syndication and other		884			876
Total Online Services		68,420			45,078
Publishing and Other Services		4,542			4,973
	$	72,962		$	50,051
Earnings (loss) before interest, taxes, depreciation, amortization and other non-cash items (“Adjusted EBITDA”) (a)
Online Services	$	12,992		$	7,861
Publishing and Other Services		(385	)		(1,334	)
		12,607			6,527
Adjusted EBITDA per basic common share	$	0.22		$	0.12
Adjusted EBITDA per diluted common share (c)	$	0.21		$	0.11
Interest, taxes, depreciation, amortization and other non-cash items (b)
Interest income		1,985			1,448
Depreciation and amortization		(5,993	)		(3,529	)
Non-cash advertising		(2,320	)		(1,605	)
Non-cash stock-based compensation		(5,363	)		(7,008	)
Income tax provision		(210	)		—
Net income (loss)	$	706		$	(4,167	)
Net income (loss) per common share:
Basic	$	0.01		$	(0.07	)
Diluted	$	0.01		$	(0.07	)
Weighted-average shares outstanding used in computing basic and diluted net income (loss) per common share:
Basic		56,976			56,054
Diluted		59,630			56,054

(a)	See Annex A — Explanation of Non-GAAP Financial Measures
(b)	Reconciliation of Adjusted EBITDA to net income
(c)	Three months ended March 31, 2006 Adjusted EBITDA per share is calculated based on 57,717 diluted shares

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

	Preliminary
	March 31,		December 31,
	2007		2006
ASSETS
Current assets:
Cash and cash equivalents	$	182,124	$	44,660
Short-term investments		30,000		9,490
Accounts receivable, net		87,467		89,652
Current portion of prepaid advertising		1,575		2,656
Due from Emdeon		—		143,153
Other current assets		5,296		5,360
Total current assets		306,462		294,971
Property and equipment, net		46,690		44,709
Prepaid advertising		8,220		9,459
Goodwill		225,253		225,028
Intangible assets, net		42,054		45,268
Other assets		499		530
	$	629,178	$	619,965
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accrued expenses	$	20,162	$	32,846
Deferred revenue		85,447		77,731
Due to Emdeon		2,358		—
Total current liabilities		107,967		110,577
Other long-term liabilities		9,547		7,912
Stockholders’ equity		511,664		501,476
	$	629,178	$	619,965

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

	Preliminary
	Three Months Ended
	March 31,
	2007			2006
Cash flows from operating activities:
Net income (loss)	$	706		$	(4,167	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		5,993			3,529
Non-cash advertising		2,320			1,605
Non-cash stock-based compensation		5,363			7,008
Changes in operating assets and liabilities:
Accounts receivable		2,185			4,048
Other assets		(23	)		(1,722	)
Accrued expenses and other long-term liabilities		(11,467	)		(5,287	)
Due (from) to Emdeon		228			(2,521	)
Deferred revenue		7,716			9,784
Net cash provided by operating activities		13,021			12,277
Cash flows from investing activities:
Proceeds from maturities and sales of available-for-sale securities		28,122			23,650
Purchases of available-for-sale securities		(48,632	)		(39,650	)
Purchases of property and equipment		(4,762	)		(6,757	)
Cash paid in business combinations, net of cash acquired		—			(26,877	)
Net cash used in investing activities		(25,272	)		(49,634	)
Cash flows from financing activities:
Proceeds from issuance of common stock		4,458			—
Net cash transfers with Emdeon		145,257			—
Net cash provided by financing activities		149,715			—
Net increase (decrease) in cash and cash equivalents		137,464			(37,357	)
Cash and cash equivalents at beginning of period		44,660			75,704
Cash and cash equivalents at end of period	$	182,124		$	38,347