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,
	2008			2007
Revenue	$	81,682		$	71,944
Costs and expenses:
Cost of operations		31,570			28,618
Sales and marketing		25,830			22,870
General and administrative		13,775			15,505
Impairment of auction rate securities		27,406			—
Depreciation and amortization		6,785			5,991
Interest income		3,453			1,985
Income (loss) from continuing operations before income tax provision		(20,231	)		945
Income tax provision		3,104			210
Income (loss) from continuing operations		(23,335	)		735
Loss from discontinued operations, net of tax		—			(29	)
Net income (loss)	$	(23,335	)	$	706
Basic income (loss) per common share:
Income (loss) from continuing operations	$	(0.40	)	$	0.01
Loss from discontinued operations		—			(0.00	)
Net Income (loss)	$	(0.40	)	$	0.01
Diluted income (loss) per common share:
Income (loss) from continuing operations	$	(0.40	)	$	0.01
Loss from discontinued operations		—			(0.00	)
Net Income (loss)	$	(0.40	)	$	0.01
Weighted-average shares outstanding used in computing basic and diluted net income (loss) per common share:
Basic		57,636			56,976
Diluted		57,636			59,630

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

	Three Months Ended
	March 31,
	2008			2007
Revenue
Online Services:
Advertising and sponsorship	$	56,065		$	47,421
Licensing		21,923			20,115
Content syndication and other		417			884
Total Online Services		78,405			68,420
Publishing and Other Services		3,277			3,524
	$	81,682		$	71,944
Earnings (loss) before interest, taxes, depreciation, amortization and other non-cash items (“Adjusted EBITDA”) (a)
Online Services	$	16,531		$	12,992
Publishing and Other Services		(754	)		(358	)
		15,777			12,634
Adjusted EBITDA per basic common share	$	0.27		$	0.22
Adjusted EBITDA per diluted common share ( c )	$	0.27		$	0.21
Interest, taxes, depreciation, amortization and other non-cash items (b)
Interest income		3,453			1,985
Depreciation and amortization		(6,785	)		(5,991	)
Non-cash advertising		(1,558	)		(2,320	)
Non-cash stock-based compensation		(3,712	)		(5,363	)
Impairment of auction rate securities		(27,406	)		—
Income tax provision		(3,104	)		(210	)
Income (loss) from continuing operations		(23,335	)		735
Loss from discontinued operations, net of tax		—			(29	)
Net income (loss)	$	(23,335	)	$	706
Basic income (loss) per common share:
Income (loss) from continuing operations	$	(0.40	)	$	0.01
Loss from discontinued operations		—			(0.00	)
Net Income (loss)	$	(0.40	)	$	0.01
Diluted income (loss) per common share:
Income (loss) from continuing operations	$	(0.40	)	$	0.01
Loss from discontinued operations		—			(0.00	)
Net Income (loss)	$	(0.40	)	$	0.01
Weighted-average shares outstanding used in computing basic and diluted net income (loss) per common share:
Basic		57,636			56,976
Diluted		57,636			59,630

(a)	See Annex A — Explanation of Non-GAAP Financial Measures
(b)	Reconciliation of Adjusted EBITDA to net income (loss)
(c)	Three months ended March 31, 2008 Adjusted EBITDA per share is calculated based on 59,145 diluted shares.

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

	March 31,		December 31,
	2008		2007
ASSETS
Current assets:
Cash and cash equivalents	$	159,831	$	213,753
Marketable securities		141,044		80,900
Accounts receivable, net		73,861		86,081
Current portion of prepaid advertising		2,275		2,329
Due from HLTH		—		1,153
Other current assets		8,837		10,840
Total current assets		385,848		395,056
Property and equipment, net		46,995		48,589
Prepaid advertising		3,017		4,521
Goodwill		221,429		221,429
Intangible assets, net		33,766		36,314
Other assets		10,889		12,955
	$	701,944	$	718,864
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accrued expenses	$	16,731	$	26,498
Deferred revenue		88,114		76,401
Due to HLTH		207		—
Total current liabilities		105,052		102,899
Other long-term liabilities		9,033		9,210
Stockholders’ equity		587,859		606,755
	$	701,944	$	718,864

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

	Three Months Ended
	March 31,
	2008			2007
Cash flows from operating activities:
Net income (loss)	$	(23,335	)	$	706
Adjustments to reconcile net income to net cash provided by operating activities:
Loss from discontinued operations, net of tax		—			29
Depreciation and amortization		6,785			5,991
Non-cash advertising		1,558			2,320
Non-cash stock-based compensation		3,712			5,363
Deferred income taxes		2,415			78
Impairment of auction rate securities		27,406			—
Changes in operating assets and liabilities:
Accounts receivable		12,220			2,185
Other assets		(164	)		(66	)
Accrued expenses and other long-term liabilities		(8,949	)		(11,545	)
Due to HLTH		1,329			228
Deferred revenue		11,714			7,678
Net cash provided by continuing operations		34,691			12,967
Net cash provided by discontinued operations		—			54
Net cash provided by operating activities		34,691			13,021
Cash flows from investing activities:
Proceeds from maturities and sales of available-for-sale securities		40,350			28,122
Purchases of available-for-sale securities		(127,900	)		(48,632	)
Purchases of property and equipment		(2,637	)		(4,762	)
Cash received from sale of business, net of fees		985			—
Net cash used in investing activities		(89,202	)		(25,272	)
Cash flows from financing activities:
Proceeds from issuance of common stock		589			4,458
Net cash transfers with HLTH		—			145,257
Net cash provided by financing activities		589			149,715
Net (decrease) increase in cash and cash equivalents		(53,922	)		137,464
Cash and cash equivalents at beginning of period		213,753			44,660
Cash and cash equivalents at end of period	$	159,831		$	182,124