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 June 30,					Six Months Ended June 30,
	2012			2011		2012			2011
Revenue	$	112,668		$	141,369	$	219,615		$	272,978
Cost of operations		54,243			51,152		107,714			99,601
Sales and marketing		31,822			32,270		61,925			64,564
General and administrative		21,746			22,006		50,768			44,827
Depreciation and amortization		6,713			6,724		13,643			13,148
Interest income		34			51		45			67
Interest expense		5,832			5,833		11,668			8,974
Gain on investments		—			1,769		8,074			15,829
Other expense		1,097			—		2,297			53
(Loss) income from continuing operations before income tax (benefit) provision		(8,751	)		25,204		(20,281	)		57,707
Income tax (benefit) provision		(2,649	)		11,003		(6,402	)		23,961
(Loss) income from continuing operations		(6,102	)		14,201		(13,879	)		33,746
Income from discontinued operations, net of tax		508			7,394		508			7,394
Net (loss) income	$	(5,594	)	$	21,595	$	(13,371	)	$	41,140
Basic (loss) income per common share:
(Loss) income from continuing operations	$	(0.12	)	$	0.24	$	(0.26	)	$	0.58
Income from discontinued operations		0.01			0.13		0.01			0.12
Net (loss) income	$	(0.11	)	$	0.37	$	(0.25	)	$	0.70
Diluted (loss) income per common share:
(Loss) income from continuing operations	$	(0.12	)	$	0.23	$	(0.26	)	$	0.55
Income from discontinued operations		0.01			0.13		0.01			0.13
Net (loss) income	$	(0.11	)	$	0.36	$	(0.25	)	$	0.68
Weighted-average shares outstanding used in computing (loss) income per common share:
Basic		49,615			58,096		52,692			58,140
Diluted		49,615			60,236		52,692			60,473

WEBMD HEALTH CORP.

CONSOLIDATED SUPPLEMENTAL FINANCIAL INFORMATION

(In thousands, unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Revenue
Public portal advertising and sponsorship	$	93,744		$	121,108		$	181,520		$	231,471
Private portal services		18,924			20,261			38,095			41,507
	$	112,668		$	141,369		$	219,615		$	272,978
Earnings before interest, taxes, non-cash and other items (“Adjusted EBITDA”) (a)	$	14,238		$	45,289		$	25,489		$	83,147
Interest, taxes, non-cash and other items (b)
Interest income		34			51			45			67
Interest expense		(5,832	)		(5,833	)		(11,668	)		(8,974	)
Income tax benefit (provision)		2,649			(11,003	)		6,402			(23,961	)
Depreciation and amortization		(6,713	)		(6,724	)		(13,643	)		(13,148	)
Non-cash stock-based compensation		(9,381	)		(9,348	)		(26,281	)		(19,161	)
Gain on investments		—			1,769			8,074			15,829
Other expense		(1,097	)		—			(2,297	)		(53	)
(Loss) income from continuing operations		(6,102	)		14,201			(13,879	)		33,746
Income from discontinued operations, net of tax		508			7,394			508			7,394
Net (loss) income	$	(5,594	)	$	21,595		$	(13,371	)	$	41,140

(a) See Annex A-Explanation of Non-GAAP Financial Measures.

(b) Reconciliation of Adjusted EBITDA to net (loss) income.

WEBMD HEALTH CORP.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, unaudited)

	June 30, 2012		December 31, 2011
Assets
Cash and cash equivalents	$	964,226	$	1,121,217
Accounts receivable, net		96,834		121,335
Prepaid expenses and other current assets		16,933		12,690
Deferred tax assets		21,872		20,482
Total current assets		1,099,865		1,275,724
Property and equipment, net		65,193		57,139
Goodwill		202,104		202,104
Intangible assets, net		18,686		19,999
Deferred tax assets		52,816		55,017
Other assets		28,875		31,042
Total Assets	$	1,467,539	$	1,641,025
Liabilities and Stockholders’ Equity
Accrued expenses	$	49,322	$	55,238
Deferred revenue		89,285		88,055
Liabilities of discontinued operations		1,506		1,506
Total current liabilities		140,113		144,799
2.25% convertible notes due 2016		400,000		400,000
2.50% convertible notes due 2018		400,000		400,000
Other long-term liabilities		22,942		21,790
Stockholders’ equity		504,484		674,436
Total Liabilities and Stockholders’ Equity	$	1,467,539	$	1,641,025

WEBMD HEALTH CORP.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands, unaudited)

	Six Months Ended June 30,
	2012			2011
Cash flows from operating activities:
Net (loss) income	$	(13,371	)	$	41,140
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Income from discontinued operations, net of tax		(508	)		(7,394	)
Depreciation and amortization		13,643			13,148
Non-cash interest, net		2,163			1,599
Non-cash stock-based compensation		26,281			19,161
Deferred income taxes		(6,870	)		4,423
Gain on investments		(8,074	)		(15,829	)
Changes in operating assets and liabilities:
Accounts receivable		24,501			19,234
Prepaid expenses and other, net		(4,469	)		(2,103	)
Accrued expenses and other long-term liabilities		(9,128	)		4,765
Deferred revenue		1,230			(1,044	)
Net cash provided by continuing operations		25,398			77,100
Net cash used in discontinued operations		—			(136	)
Net cash provided by operating activities		25,398			76,964
Cash flows from investing activities:
Proceeds received from ARS option		9,269			16,561
Purchases of property and equipment		(16,606	)		(9,557	)
			��
Net cash (used in) provided by investing activities		(7,337	)		7,004
Cash flows from financing activities:
Proceeds from exercise of stock options		816			25,053
Cash used for withholding taxes due on stock-based awards		(1,958	)		(6,632	)
Net proceeds from issuance of the 2.50% Notes and 2.25% Notes		—			774,745
Purchases of treasury stock		(173,910	)		(150,417	)
Excess tax benefit on stock-based awards		—			17,843
Net cash (used in) provided by financing activities		(175,052	)		660,592
Net (decrease) increase in cash and cash equivalents		(156,991	)		744,560
Cash and cash equivalents at beginning of period		1,121,217			400,501
Cash and cash equivalents at end of period	$	964,226		$	1,145,061