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,
	2009			2008
Revenue	$	90,264		$	80,650
Costs and expenses:
Cost of operations		36,565			30,927
Sales and marketing		27,561			25,149
General and administrative		14,726			13,480
Depreciation and amortization		6,937			6,672
Interest income		975			3,453
Impairment of auction rate securities		—			27,406
Income (loss) from continuing operations before income tax provision		5,450			(19,531	)
Income tax provision		2,211			3,432
Income (loss) from continuing operations		3,239			(22,963	)
Loss from discontinued operations, net of tax		(423	)		(372	)
Net income (loss)	$	2,816		$	(23,335	)
Basic and diluted income (loss) per common share:
Income (loss) from continuing operations	$	0.06		$	(0.40	)
Loss from discontinued operations		(0.01	)		(0.00	)
Net income (loss)	$	0.05		$	(0.40	)
Weighted-average shares outstanding used in computing basic and diluted net income (loss) per common share:
Basic		57,575			57,636
Diluted		58,109			57,636

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

	Three Months Ended
	March 31,
	2009			2008
Revenue
Advertising and sponsorship	$	65,428		$	56,482
Licensing		22,975			21,923
Print		1,861			2,245
	$	90,264		$	80,650
Earnings before interest, taxes, non-cash and other items (“Adjusted EBITDA”) (a)	$	18,688		$	16,332
Adjusted EBITDA per basic and diluted common share	$	0.32		$	0.28
Interest, taxes, non-cash and other items (b)
Interest income		975			3,453
Depreciation and amortization		(6,937	)		(6,672	)
Non-cash advertising		(1,753	)		(1,558	)
Non-cash stock-based compensation		(5,523	)		(3,680	)
Impairment of auction rate securities		—			(27,406	)
Income tax provision		(2,211	)		(3,432	)
Income (loss) from continuing operations		3,239			(22,963	)
Loss from discontinued operations, net of tax		(423	)		(372	)
Net income (loss)	$	2,816		$	(23,335	)
Basic and diluted income (loss) per common share:
Income (loss) from continuing operations	$	0.06		$	(0.40	)
Loss from discontinued operations		(0.01	)		(0.00	)
Net income (loss)	$	0.05		$	(0.40	)
Weighted-average shares outstanding used in computing basic and diluted net income (loss) per common share:
Basic		57,575			57,636
Diluted		58,109			57,636

(a)	See Annex A — Explanation of Non-GAAP Financial Measures
(b)	Reconciliation of Adjusted EBITDA to net income (loss)

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

	March 31, 2009		December 31, 2008
ASSETS
Current assets:
Cash and cash equivalents	$	204,803	$	191,659
Accounts receivable, net		90,835		93,082
Current portion of prepaid advertising		—		1,753
Other current assets		11,319		11,358
Assets of discontinued operations		11,839		12,575
Total current assets		318,796		310,427
Investments		127,033		133,563
Property and equipment, net		54,132		54,165
Goodwill		208,967		208,967
Intangible assets, net		24,520		26,237
Other assets		21,269		22,573
	$	754,717	$	755,932
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accrued expenses	$	20,355	$	31,241
Deferred revenue		84,574		79,613
Due to HLTH		199		427
Liabilities of discontinued operations		3,256		2,599
Total current liabilities		108,384		113,880
Other long-term liabilities		8,081		8,334
Stockholders’ equity		638,252		633,718
	$	754,717	$	755,932

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

	Three Months Ended March 31,
	2009			2008
Cash flows from operating activities:
Net income (loss)	$	2,816		$	(23,335	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Loss from discontinued operations, net of tax		423			372
Depreciation and amortization		6,937			6,672
Non-cash advertising		1,753			1,558
Non-cash stock-based compensation		5,523			3,680
Deferred and other income taxes		2,097			2,372
Impairment of auction rate securities		—			27,406
Changes in operating assets and liabilities:
Accounts receivable		2,247			10,449
Other assets		(689	)		(164	)
Accrued expenses and other long-term liabilities		(11,140	)		(8,791	)
Due to HLTH		(228	)		1,329
Deferred revenue		4,961			11,231
Net cash provided by continuing operations		14,700			32,779
Net cash provided by discontinued operations		1,062			1,912
Net cash provided by operating activities		15,762			34,691
Cash flows from investing activities:
Proceeds from maturities and sales of available-for-sale securities		600			40,350
Purchases of available-for-sale securities		—			(127,900	)
Purchases of property and equipment		(5,290	)		(2,626	)
Cash received from sale of business, net of fees		250			985
Net cash used in continuing operations		(4,440	)		(89,191	)
Net cash used by discontinued operations		(5	)		(11	)
Net cash used in investing activities		(4,445	)		(89,202	)
Cash flows from financing activities:
Proceeds from issuance of common stock		1,827			589
Net cash provided by financing activities		1,827			589
Net increase (decrease) in cash and cash equivalents		13,144			(53,922	)
Cash and cash equivalents at beginning of period		191,659			213,753
Cash and cash equivalents at end of period	$	204,803		$	159,831