WebMD Announces Fourth Quarter Financial Results
"WebMD's fourth quarter operating results demonstrate the strong progressthat we continue to make towards delivering on the Company's overall strategicplan and I am confident in our growth outlook for the future," said WayneGattinella, President and CEO. "We continue to build our leadership positionas the most recognized and trusted brand of health information."
Revenue for the fourth quarter was $96.6 million compared to $79.4 millionin the prior year period, an increase of 22%. Earnings before interest, taxes,depreciation, amortization, and other non-cash items ("Adjusted EBITDA") forthe fourth quarter increased 48% to $33.1 million or $0.55 per share comparedto $22.4 million or $0.38 per share in the prior year period. Income fromcontinuing operations was $45.1 million or $0.75 per share for the fourthquarter compared to $6.0 million or $0.10 per share in the prior year period.Net income for the December 2007 quarter was $48.3 million or $0.81 per sharecompared to $6.0 million or $0.10 per share in the prior year period. Incomefrom continuing operations and net income for the fourth quarter 2007 includea benefit of $24.7 million, or $0.41 per share, relating to certain reversalsof WebMD's valuation allowance against deferred tax assets, primarily netoperating loss ("NOL") carryforwards.
Revenue for the year ended December 31, 2007 was $332.0 million comparedto $248.8 million a year ago, an increase of 33%. Adjusted EBITDA for the yearwas $84.7 million or $1.42 per share compared to $52.7 million or $0.91 pershare a year ago, an increase of 61%. Income from continuing operations forthe year was $62.4 million or $1.05 per share compared to $2.2 million or$0.04 per share a year ago. Net income for the year was $65.9 million or $1.10per share compared to $2.5 million or $0.04 per share in the prior year.Income from continuing operations and net income for the year ended December31, 2007 include a benefit of $24.7 million, or $0.41 per share, relating tocertain reversals of WebMD's valuation allowance against deferred tax assets,primarily NOL carryforwards.
WebMD's revenue for the fourth quarter and full year excludesapproximately $1 million and $4 million, respectively, related to its offlineprofessional medical reference and textbook publication business which wassold on December 31, 2007 and is now reflected as a discontinued operation inWebMD's financial statements for current and prior periods.
Online Services segment revenue was $92.3 million for the fourth quartercompared to $76.1 million in the prior year period, an increase of 21%.Advertising and sponsorship revenue increased 21% to $70.4 million. Privateportal licensing revenue increased 25% to $21.6 million. Online Servicessegment Adjusted EBITDA increased 39% to $31.6 million compared to $22.7million in the prior year period.
The WebMD Health Network continued to expand with the average number ofunique users reaching 44.8 million per month and total traffic of 968 millionpage views during the fourth quarter, increases of 26% and 19%, respectively,from a year ago. Excluding the prior year period's traffic from AOL (whichceased to be part of The WebMD Health Network earlier this year), the averagemonthly unique users of The WebMD Health Network increased 32% and page viewtraffic increased 22%. In the fourth quarter, 936,000 continuing medicaleducation (CME) programs were completed on the Network, an increase of 50%from the prior year period.
WebMD continued to expand its base of large employers and health plansutilizing its private Health and Benefits portals during the fourth quarter,bringing total platform customers to 117 from 99 a year ago. The installedbase of c
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