Health Grades, Inc. (NASDAQ:HGRD), the leading independent healthcare ratings company, today reported financial results for the third quarter ended September 30, 2009.
Ratings and advisory revenue for the three months ended September 30, 2009 increased $3.3 million, or 33%, to $13.3 million from $10.0 million for the three months ended September 30, 2008. The revenue growth was principally driven by an increase of $2.9 million or 134% from the Company’s Internet Business Group compared to the three months ended September 30, 2008 and $0.4 million, or 6%, from the Company’s Provider Services business compared to the three months ended September 30, 2008.
Gross margins for the three months ended September 30, 2009 and 2008 were approximately 87% and 84%, respectively. Operating margins for the three months ended September 30, 2009 and 2008 were approximately 22% and 20%, respectively.
Operating income for the three months ended September 30, 2009 was $2.9 million, a $0.9 million increase, or 46%, over the three months ended September 30, 2008. Net income attributable to HealthGrades for the three months ended September 30, 2009 was $1.8 million or $0.06 per diluted share, compared to approximately $1.3 million, or $0.04 per diluted share, for the same period of 2008.
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