Exhibit 99.1
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Contacts: Investors: Risa Fisher rfisher@webmd.net 212-624-3817 | | | | Media: Michael Heinley mheinley@webmd.net 212-624-3926 |
WebMD Announces Second Quarter Financial Results
WebMD Reaffirms High End and Raises Low End of 2015 Financial Guidance
New York, NY (July 30, 2015)—WebMD Health Corp. (NASDAQ: WBMD), the leading source of health information, today announced financial results for the three months ended June 30, 2015.
“We are pleased to report second quarter results consistent with the high end of our expectations,” said David Schlanger, Chief Executive Officer, WebMD. “Today, we are reaffirming the high end and raising the low end of the range of the 2015 financial guidance we previously provided. We expect to accelerate growth in biopharma revenue and finish the year delivering 11% to 12% growth from this customer segment, which is up from 8% growth in each of the past two years. This acceleration reflects a healthy macro environment and the increasingly important role that we play in helping our advertising customers connect with highly targeted consumer and physician audiences at scale.”
Financial Highlights
For the three months ended June 30, 2015:
| | • | | Revenue was $148.3 million, compared to $140.4 million in the prior year period, an increase of 6%. Advertising and sponsorship revenue was $116.2 million compared to $111.5 million in the prior year period. Private portal services revenue was $26.4 million compared to $24.2 million in the prior year period. Information services revenue was $5.7 million compared to $4.7 million in the prior year period. |
| | • | | Earnings before interest, taxes, non-cash and other items (“Adjusted EBITDA”) was $40.5 million, compared to $37.9 million in the prior year period, an increase of 7%. |
| | • | | Net income was $13.4 million or $0.32 per diluted share, compared to $9.7 million, or $0.23 per diluted share in the prior year period. Net income would have been $11.1 million or $0.27 per diluted share without the impact of a $2.5 million after-tax charge incurred in conjunction with the settlement of a patent infringement claim, a $4.7 million non-cash income tax benefit due to the reversal of a tax valuation allowance, and an after-tax gain on investments of $0.1 million. |
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Traffic Highlights
Traffic to the WebMD Health Network during the second quarter reached an average of 212 million unique users per month generating 4.12 billion page views for the quarter, increases of 18% and 19%, respectively, from the prior year period.
Balance Sheet Highlights
As of June 30, 2015, WebMD had: approximately $757 million in cash and cash equivalents; $952 million in aggregate principal amount of convertible notes outstanding; and approximately 37.9 million shares of its common stock outstanding (including approximately 1.1 million unvested shares of restricted stock).
During the quarter, WebMD used $2.1 million in cash to repurchase approximately 47 thousand shares of its common stock under its stock repurchase program. As of June 30, 2015, approximately $29.7 million remains available for repurchases under WebMD’s stock repurchase program. Under the repurchase program, WebMD may repurchase shares from time to time in the open market, through block trades or in private transactions, depending on market conditions and other factors.
Financial Guidance
Today, WebMD reaffirmed the high end and raised the low end of the range of the 2015 financial guidance that it provided on May 6, 2015.
For the full year ending December 31, 2015, WebMD expects:
| | • | | Revenue to be approximately $625 million to $635 million, an increase of 8% to 9% from the prior year. |
| | ¡ | | Approximately $492 million to $500 million of revenue is expected to be from advertising and sponsorship, an increase of 8% to 10% from the prior year. Growth in advertising and sponsorship is expected to be driven primarily by growth in revenue from biopharma and medical device customers of approximately 11% to 12% in 2015. |
| | ¡ | | Approximately $107 million to $108.5 million of revenue is expected to be from private portals services, an increase of 4% to 5% from the prior year. |
| | ¡ | | Approximately $26 million to $26.5 million of revenue is expected to be from information services, an increase of 12% to 14% from the prior year. |
| | • | | Adjusted EBITDA to be approximately $185 million to $190 million, an increase of approximately 17% to 20% from the prior year. |
| | • | | Net income to be approximately $58 million to $63.5 million. |
For the third quarter of 2015, WebMD expects:
| | • | | Revenue to be approximately $148.5 million to $151.5 million, an increase of approximately 3% to 6% from the prior year period. |
| | • | | Adjusted EBITDA is expected to be approximately $41 million to $43 million, an increase of approximately 4% to 9% from the prior year period. |
| | • | | Net income to be approximately $10.5 million to $11.5 million. |
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“In the updated financial guidance issued today, we have slightly adjusted the breakdown of revenue within our consolidated revenue guidance to reflect our backlog and visibility in each of our revenue streams, including the expected timing of the implementation of customer promotion and education programs,” said Mr. Schlanger.
A schedule summarizing the Company’s financial guidance is attached to this press release.
Analyst and Investor Conference Call
WebMD will hold a conference call with investors and analysts at 4:45 p.m. (Eastern) today. The call can be accessed at www.wbmd.com (in the Investor Relations section). A replay of the audio webcast will be available at the same web address.
About WebMD
WebMD Health Corp. (NASDAQ: WBMD) is the leading provider of health information services, serving consumers, physicians, healthcare professionals, employers, and health plans through our public and private online portals, mobile platforms and health-focused publications.
The WebMD Health Network includes WebMD.com, Medscape.com, MedicineNet.com, eMedicineHealth.com, RxList.com, Medscape Education (Medscape.org) and other WebMD owned sites and apps.
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All statements contained in this press release and the related analyst and investor conference call, other than statements of historical fact, are forward-looking statements, including those regarding: guidance on our future financial results and other projections or measures of our future performance; market opportunities or momentum and our ability to capitalize on them; and the benefits expected from new or expected contracts with customers, new or updated products or services and from other potential sources of additional revenue. These statements speak only as of the date of this press release, are based on our current plans and expectations, and involve risks and uncertainties that could cause actual future events or results to be different than those described in or implied by such forward-looking statements. These risks and uncertainties include those relating to: market acceptance of our products and services; our relationships with customers and other factors affecting their use of our services and the timing of entry into and implementation of specific contracts with customers, including regulatory matters affecting their products and services; our ability to deploy new or updated services and to create new or enhanced revenue streams from those services; our ability to attract and retain qualified personnel; and changes in economic, political or regulatory conditions or other trends affecting the healthcare, Internet and information technology industries. Further information about these matters can be found in our Securities and Exchange Commission filings and this press release is intended to be read in conjunction with information contained in those filings. Except as required by applicable law or regulation, we do not undertake any obligation to update our forward-looking statements to reflect future events or circumstances.
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This press release, and the accompanying tables, include both financial measures in accordance with accounting principles generally accepted in the United States of America, or GAAP, as well as certain non-GAAP financial measures. The tables attached to this press release include reconciliations of these non-GAAP financial measures to GAAP financial measures. In addition, an “Explanation of Non-GAAP Financial Measures” is attached to this press release as Annex A.
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WebMD®, Medscape®, CME Circle®, Medpulse®, eMedicine®, MedicineNet®, theheart.org® and RxList® are among the trademarks of WebMD Health Corp. or its subsidiaries.
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