WebMD Health reports record revenue, earnings for fourth quarter and full year 2015

WebMD Health Corp. (NASDAQ: WBMD), the leading source of health information, today announced fourth quarter and full year financial results for 2015.

"We are pleased to report record revenue and earnings for the fourth quarter and full year 2015," said David Schlanger, Chief Executive Officer, WebMD. "In 2015, we delivered meaningful experiences for our users, measurable results for our customers and further strengthened both our brands and our # 1 standing among consumers and healthcare professionals."

Financial Highlights
For the three months ended December 31, 2015:

• Revenue was $192.1 million, compared to $162.7 million in the prior year period, an increase of 18%. Advertising and sponsorship revenue was $158.3 million compared to $127.0 million in the prior year period. Private portal services revenue was $27.2 million compared to $28.6 million in the prior year period. Information services revenue was $6.6 million compared to $7.1 million in the prior year period.
• Earnings before interest, taxes, non-cash and other items ("Adjusted EBITDA") increased 40% to $67.4 million, or 35% of revenue, compared to $48.1 million, or 30% of revenue, in the prior year period.
• Net income was $27.5 million or $0.60 per diluted share, compared to $16.3 million, or $0.38 per diluted share in the prior year period.

For the year ended December 31, 2015:

• Revenue was $636.4 million compared to $580.4 million in the prior year period, an increase of 10%. Advertising and sponsorship revenue was $499.0 million compared to $454.0 million in the prior year. Private portal services revenue was $110.4 million compared to $103.2 million in the prior year. Information services revenue was $26.9 million compared to $23.3 million in the prior year.
• Adjusted EBITDA increased 22% to $193.2 million, or 30% of revenue, compared to $158.6 million, or 27% of revenue, in the prior year.
• Net income was $64.0 million or $1.48 per diluted share compared to $42.1 million or $1.00 per diluted share in the prior year.

Traffic Highlights
Traffic to the WebMD Health Network during the fourth quarter of 2015 reached an average of 201 million unique users per month generating 3.97 billion page views for the quarter, increases of 6% and 7%, respectively, from the prior year period.

Balance Sheet Highlights
As of December 31, 2015, WebMD had: approximately $641 million in cash and cash equivalents; $803 million in aggregate principal amount of convertible notes outstanding; and approximately 37.7 million shares of its common stock outstanding (including approximately 0.8 million unvested shares of restricted stock).

As of December 31, 2015, approximately $34 million remained available for repurchases under WebMD's stock repurchase program. Under its stock 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 issued financial guidance for the first quarter and full year 2016.

Mr. Schlanger continued, "The biopharma environment remains healthy and we expect to further accelerate revenue growth in this important customer segment in 2016."

For the full year ending December 31, 2016, WebMD expects:

• Revenue to be approximately $685 million to $705 million, an increase of 8% to 11% from the prior year.
  • $549 million to $567 million of revenue is expected to be from advertising and sponsorship, an increase of 10% to 14% from the prior year. Growth in advertising and sponsorship is expected to be driven by growth in revenue from biopharma customers of approximately 13% to 17%.
  • $109 million to $110 million of revenue is expected to be from private portals services, compared to $110.4 million in 2015.
  • $27 million to $28 million of revenue is expected to be from information services, compared to $26.9 million in 2015.
• Adjusted EBITDA to be approximately $219 million to $230 million, an increase of 13% to 19% from the prior year. Adjusted EBITDA, as a percentage of revenue, to be approximately 32% to 33%, compared to 30% in the prior year.
• Net income to be approximately $79 million to $89 million, or $1.75 to $1.90 per diluted share, compared to $64 million, or $1.48 per diluted share, in 2015.

For the first quarter of 2016, WebMD expects:

• Revenue to be approximately $154.5 million to $157.5 million, an increase of 8% to 10% from the prior year period.
• Adjusted EBITDA to be approximately $43.5 million to $45.5 million, an increase of approximately 12% to 17% from the prior year period.
• Net income to be approximately $13.2 million to $14.7 million.