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,
	2015		2014
Revenue	$	143,343	$	133,832
Cost of operations		57,877		52,564
Sales and marketing		32,476		32,911
General and administrative		21,453		23,781
Depreciation and amortization		8,245		7,328
Interest income		17		15
Interest expense		6,172		6,172
Income before income tax provision		17,137		11,091
Income tax provision		7,133		4,825
Net income	$	10,004	$	6,266
Net income per common share:
Basic	$	0.27	$	0.16
Diluted	$	0.25	$	0.15
Weighted-average shares outstanding used in computing income per common share:
Basic		36,393		39,268
Diluted		43,465		41,852

WEBMD HEALTH CORP.

CONSOLIDATED SUPPLEMENTAL FINANCIAL INFORMATION

(In thousands, unaudited)

	Three Months Ended March 31,
	2015			2014
Revenue
Advertising and sponsorship
Biopharma and medical device	$	75,845		$	68,488
OTC, CPG and other		29,948			34,469
		105,793			102,957
Private portal services		29,322			24,629
Information services		8,228			6,246
	$	143,343		$	133,832
Earnings before interest, taxes, non-cash and other items (“Adjusted EBITDA”) (a)	$	38,918		$	33,266
Interest, taxes, non-cash and other items (b)
Interest income		17			15
Interest expense		(6,172	)		(6,172	)
Income tax provision		(7,133	)		(4,825	)
Depreciation and amortization		(8,245	)		(7,328	)
Non-cash stock-based compensation		(7,381	)		(8,690	)
Net income	$	10,004		$	6,266

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

(b) Reconciliation of Adjusted EBITDA to net income.

WEBMD HEALTH CORP.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

	March 31, 2015		December 31, 2014
	(unaudited)
Assets
Cash and cash equivalents	$	735,292	$	706,776
Accounts receivable, net		130,381		136,806
Prepaid expenses and other current assets		17,413		13,877
Deferred tax assets		18,453		18,147
Total current assets		901,539		875,606
Property and equipment, net		55,790		59,573
Goodwill		202,980		202,980
Intangible assets, net		13,382		14,215
Deferred tax assets		20,083		18,947
Other assets		26,509		26,236
Total Assets	$	1,220,283	$	1,197,557
Liabilities and Stockholders’ Equity
Accrued expenses	$	55,615	$	72,658
Deferred revenue		104,616		89,785
2.25% convertible notes due 2016		252,232		—
Total current liabilities		412,463		162,443
2.25% convertible notes due 2016		—		252,232
2.50% convertible notes due 2018		400,000		400,000
1.50% convertible notes due 2020		300,000		300,000
Other long-term liabilities		20,823		21,293
Stockholders’ equity		86,997		61,589
Total Liabilities and Stockholders’ Equity	$	1,220,283	$	1,197,557

WEBMD HEALTH CORP.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands, unaudited)

	Three Months Ended March 31,
	2015			2014
Cash flows from operating activities:
Net income	$	10,004		$	6,266
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		8,245			7,328
Non-cash interest, net		1,128			1,128
Non-cash stock-based compensation		7,381			8,690
Deferred income taxes		(1,535	)		201
Changes in operating assets and liabilities:
Accounts receivable		6,425			(10,009	)
Prepaid expenses and other, net		(4,587	)		210
Accrued expenses and other long-term liabilities		(17,515	)		(20,401	)
Deferred revenue		14,831			14,490
Net cash provided by operating activities		24,377			7,903
Cash flows from investing activities:
Purchases of property and equipment		(3,670	)		(5,533	)
Net cash used in investing activities		(3,670	)		(5,533	)
Cash flows from financing activities:
Proceeds from exercise of stock options		4,488			17,482
Cash used for withholding taxes due on stock-based awards		(1,044	)		(5,326	)
Purchases of treasury stock		(3,219	)		(65,052	)
Excess tax benefit on stock-based awards		7,584			4,047
Net cash provided by (used in) financing activities		7,809			(48,849	)
Net increase (decrease) in cash and cash equivalents		28,516			(46,479	)
Cash and cash equivalents at beginning of period		706,776			824,880
Cash and cash equivalents at end of period	$	735,292		$	778,401

WEBMD HEALTH CORP.

NET INCOME PER COMMON SHARE

(In thousands, except per share data, unaudited)

	Three Months Ended March 31,
	2015		2014
Numerator:
Net income — Basic	$	10,004	$	6,266
Interest expense on 1.50% convertible notes, net of tax		864		—
Net income — Diluted	$	10,868	$	6,266
Denominator:
Weighted-average shares — Basic		36,393		39,268
Stock options and restricted stock		1,378		2,584
1.50% convertible notes		5,694		—
Adjusted weighted-average shares after assumed conversions — Diluted		43,465		41,852
Net income per common share:
Basic	$	0.27	$	0.16
Diluted	$	0.25	$	0.15