Exhibit 99.3
WebMD Health Corp.
Financial Guidance for the Year Ending December 31, 2012
(in millions, except per share amounts)
Year Ending December 31, 2012 Guidance Range | ||||||||
Revenue | $ | 500.0 | $ | 535.0 | ||||
|
|
|
| |||||
Earnings before interest, taxes, depreciation, amortization | $ | 100.0 | $ | 125.0 | ||||
Interest, taxes, depreciation, amortization and other non-cash items (b) | ||||||||
Interest expense, net | (23.0 | ) | (23.0 | ) | ||||
Depreciation and amortization | (28.0 | ) | (27.0 | ) | ||||
Non-cash stock-based compensation | (48.0 | ) | (46.0 | ) | ||||
Severance & other expense | (1.0 | ) | (1.0 | ) | ||||
|
|
|
| |||||
Pre-tax income from continuing operations | — | 28.0 | ||||||
Income tax provision | (2.0 | ) | (13.0 | ) | ||||
|
|
|
| |||||
(Loss) income from continuing operations | $ | (2.0 | ) | $ | 15.0 | |||
|
|
|
| |||||
(Loss) income from continuing operations per share: | ||||||||
Basic | $ | (0.04 | ) | $ | 0.26 | |||
|
|
|
| |||||
Diluted | $ | (0.04 | ) | $ | 0.26 | |||
|
|
|
| |||||
Weighted-average shares outstanding used in computing per share amounts: | ||||||||
Basic | 57.0 | 57.0 | ||||||
|
|
|
| |||||
Diluted | 57.0 | 58.0 | ||||||
|
|
|
|
(a) | See Annex A - Explanation of Non-GAAP Financial Measures |
(b) | Reconciliation of Adjusted EBITDA to income from continuing operations |
Additional information regarding forecast for the quarter ending March 31, 2012:
• | Revenue is forecasted to be in excess of $105 million. |
• | Adjusted EBITDA as a percentage of revenue is forecasted to be approximately 10% to 11%. |
• | Loss from continuing operations as a percentage of revenue is forecasted to be approximately 9% to 13%. |
• | Loss from continuing operations includes pre-tax stock-based compensation expense of approximately $8 million related to the surrender of certain stock options by WebMD’s directors and executive officers. |
Additional information regarding full year forecast:
• | The distribution of the annual revenue is expected to be approximately 84% public portals advertising and sponsorship and 16% private portal licensing. Quarterly revenue distributions may vary from this annual estimate. |
• | 2012 guidance excludes any gains or losses related to investments or convertible notes. |
• | Convertible notes are not expected to be dilutive for the full year or any quarter. |