WebMD Announces Preliminary Second Quarter Results and Increases Financial Guidance for 2013

  WebMD Announces Preliminary Second Quarter Results and Increases Financial
                              Guidance for 2013

PR Newswire

NEW YORK, July 12, 2013

NEW YORK, July 12, 2013 /PRNewswire/ --WebMD Health Corp. (NASDAQ: WBMD), the
leading source of health information, today announced preliminary financial
results for the three months ended June 30, 2013 and increased financial
guidance for 2013.

Preliminary Results for the Three Months Ended June 30, 2013
For the three months ended June 30, 2013, WebMD expects:

  oRevenue to be between $124 million and $125 million, an increase of 10% to
    11% from the prior year period. Prior financial guidance provided for
    revenue to be in excess of $115 million.
  oEarnings before interest, taxes, non-cash and other items ("Adjusted
    EBITDA") to be approximately $29 million, or approximately 23% of revenue,
    an increase of 104% from the prior year period. Prior financial guidance
    provided for Adjusted EBITDA, as a percentage of revenue, to be in excess
    of 18%.
  oNet income to be approximately $3 million, or $0.05 per diluted share, or
    approximately 2% of revenue. Prior financial guidance provided for net
    loss, as a percentage of revenue, to be approximately (1%).

Balance Sheet Highlights
As of June 30, 2013, WebMD had approximately $1 billion in cash and cash
equivalents and $800 million in aggregate principal amount of convertible
notes outstanding.

Traffic Highlights
Traffic to the WebMD Health Network during the second quarter reached an
average of 125.5 million unique users per month and total traffic of 2.64
billion page views for the quarter, increases of 17% and 6%, respectively,
from the prior year period.

Increased2013 Financial Guidance
WebMD has increased its financial guidance for 2013 and expects the following:

  oRevenue of $485 million to $505 million, an increase of 3% to 7% from the
    prior year. Prior financial guidance provided for revenue of $450 million
    to $470 million.
  oAdjusted EBITDA of $100 million to $110 million, an increase of 37% to 50%
    from the prior year. Prior financial guidance provided for Adjusted EBITDA
    of $75 million to $88 million.
  oNet income of $3 million to $11 million. Prior financial guidance provided
    for net loss of $(13) million to $(1.5) million.

WebMD's prior financial guidance for 2013 was last disseminated on May 7,
2013.

WebMD expects 2013 revenue of $485 million to $505 million to assume the
following distribution:

  oApproximately 83% from public portals advertising and sponsorship,
    representing growth of approximately 3% to 7% over the prior year, and
  oApproximately 17% from private portal licensing, representing growth of
    approximately 5% to 9% over the prior year.

WebMD's revised guidance reflects: (a) actual results for the first half of
2013; (b) improved visibility for the second half of 2013 based upon several
factors, includingorders received to date and those expected over the balance
of the year; and (c) anticipated expenses relating to new private portal
customer implementations as well as public portal initiatives such as enhanced
data and analytics and new content and enhanced offerings for both users and
advertisers.

"Our better than anticipated second quarter preliminary results and our
increased financial guidance for 2013 is primarily due to increased demand for
our public portals advertising and sponsorship services, particularly from
biopharmaceutical customers," said David J. Schlanger, Interim CEO, WebMD.
"Additionally, while not impacting our increased 2013 guidance, we are
experiencing significant new commitments for our private portal offerings,
including the previously announced contract with Blue Cross and Blue Shield
Association Federal Employee Program, which are expected to generate revenue
beginning in 2014."

A schedule outlining WebMD's preliminary second quarter results and updated
2013 financial guidance is attached to this press release.

Final Results to Be Released on July 31, 2013
The information in this release is preliminary. WebMD is completing its normal
closing process and will release its second quarter results on July 31, 2013,
at approximately 4:00 p.m. (Eastern time) and will hold a conference call with
investors and analysts to discuss its second quarter results at 4:45 p.m.
(Eastern time) on that day. 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 Health, Medscape, MedicineNet,
eMedicineHealth, RxList, theheart.org, Medscape Education and other owned
WebMD sites.

*****************************

All statements contained in this press release other than statements of
historical fact, are forward-looking statements, including those regarding:
our preliminary second quarter results (which reflect what we currently expect
to report and is subject to adjustment); guidance on our future financial
results and other projections or measures of our future performance; market
opportunities and our ability to capitalize on them; and the benefits expected
from new or expected contracts with customers, from 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 strategic partners; 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 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.

*************************************

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.

*****************************

WebMD®, Medscape®, CME Circle®, Medpulse®, eMedicine®, MedicineNet®,
theheart.org® and RxList® are among the trademarks of WebMD Health Corp. or
its subsidiaries.



WebMD Health Corp.
Preliminary Financial Information for the Quarter Ended June 30, 2013
and Updated Financial Guidance Summary
(In millions, except per share amounts)
                              Quarter Ended              Year Ending
                              June 30, 2013              December 31, 2013
                              Preliminary Results        Guidance Range
Revenue                       $   124.0    $         $        $  
                                             125.0      485.0     505.0
Earnings before interest,
taxes, non-cash
 and other items             $           $        $        $  
("Adjusted EBITDA") (a)       29.0           29.5       100.0     110.0
Interest, taxes, non-cash
and other items (b)
Interest expense, net         (5.8)          (5.8)       (23.0)     (23.0)
Depreciation and              (6.7)          (6.7)       (28.0)     (27.0)
amortization
Non-cash stock-based          (11.2)         (11.2)      (39.0)     (37.0)
compensation
Other expense (c)            (1.4)          (1.4)       (1.4)      (1.4)
Pre-tax income                3.9            4.4         8.6        21.6
Income tax provision          (1.4)          (1.6)       (5.6)      (10.6)
Net income                    $          $       $      $   
                              2.5            2.8        3.0       11.0
Net income per share:
Basic                         $           $        $       $    
                              0.05           0.06       0.06      0.22
Diluted                       $           $        $       $   
                              0.05           0.05       0.06      0.21
Weighted-average shares
outstanding used

in computing per share
amounts:
Basic                         49.0           49.0        50.0       50.0
Diluted                       51.0           51.0        52.0       52.0
(a) See Annex A - Explanation of Non-GAAP Financial Measures
(b) Reconciliation of Adjusted EBITDA to Net Income
(c) Represents severance expense for the Company's former Chief Executive
Officer
Additional information regarding full year forecast:
 - The distribution of the annual revenue is expected to be approximately
83% public portals advertising and sponsorshipand 17% private portal
licensing. Quarterly revenue distributions may vary from this annual estimate.
 - Convertible Notes are not expected to be dilutive for the full year or
any quarter.
The above guidance does not include the impact, if any, of future deployment
of capital for items such as share repurchasesor acquisitions, gains or
losses from discontinued operations, or other non-recurring, one-time or
unusual items.

 ANNEX A

Explanation of Non-GAAP Financial Measures

 The accompanying WebMD Health Corp. press release and attachment include
both financial measures in accordance with U.S. generally accepted accounting
principles, or GAAP, as well as non-GAAP financial measures. The non-GAAP
financial measures represent earnings before interest, taxes, non-cash and
other items (which we refer to as "Adjusted EBITDA") and related per share
amounts. Adjusted EBITDA should be viewed as supplemental to, and not as an
alternative for net income or loss calculated in accordance with GAAP
(referred to below as "net income"). The attachment to the press release
includes reconciliations of non-GAAP financial measures to GAAP financial
measures.

 Adjusted EBITDA is used by our management as an additional measure of our
company's performance for purposes of business decision-making, including
developing budgets, managing expenditures, and evaluating potential
acquisitions or divestitures. Period-to-period comparisons of Adjusted EBITDA
help our management identify additional trends in our company's financial
results that may not be shown solely by period-to-period comparisons of net
income. In addition, we may use Adjusted EBITDA in the incentive compensation
programs applicable to some of our employees in order to evaluate our
company's performance. Our management recognizes that Adjusted EBITDA has
inherent limitations because of the excluded items, particularly those items
that are recurring in nature. In order to compensate for those limitations,
management also reviews the specific items that are excluded from Adjusted
EBITDA, but included in net income, as well as trends in those items. The
amounts of those items are set forth, for the applicable periods, in the
reconciliations of Adjusted EBITDA to net income that accompany our press
releases and disclosure documents containing non-GAAP financial measures,
including the reconciliations contained in the accompanying press release
attachment.

 We believe that the presentation of Adjusted EBITDA is useful to investors
in their analysis of our results for reasons similar to the reasons why our
management finds it useful and because it helps facilitate investor
understanding of decisions made by management in light of the performance
metrics used in making those decisions. In addition, as more fully described
below, we believe that providing Adjusted EBITDA, together with a
reconciliation of Adjusted EBITDA to net income, helps investors make
comparisons between our company and other companies that may have different
capital structures, different effective income tax rates and tax attributes,
different capitalized asset values and/or different forms of employee
compensation. However, Adjusted EBITDA is intended to provide a supplemental
way of comparing our company with other public companies and is not intended
as a substitute for comparisons based on net income. In making any
comparisons to other companies, investors need to be aware that companies use
different non-GAAP measures to evaluate their financial performance.
Investors should pay close attention to the specific definition being used and
to the reconciliation between such measures and the corresponding GAAP
measures provided by each company under applicable SEC rules.

 The following is an explanation of the items excluded by us from Adjusted
EBITDA but included in net income:

  oDepreciation and Amortization. Depreciation and amortization expense is a
    non-cash expense relating to capital expenditures and intangible assets
    arising from acquisitions that are expensed on a straight-line basis over
    the estimated useful life of the related assets. We exclude depreciation
    and amortization expense from Adjusted EBITDA because we believe that (i)
    the amount of such expenses in any specific period may not directly
    correlate to the underlying performance of our business operations and
    (ii) such expenses can vary significantly between periods as a result of
    new acquisitions and full amortization of previously acquired tangible and
    intangible assets. Accordingly, we believe that this exclusion assists
    management and investors in making period-to-period comparisons of
    operating performance. Investors should note that the use of tangible and
    intangible assets contributed to revenue in the periods presented and will
    contribute to future revenue generation and should also note that such
    expense will recur in future periods.
  oStock-Based Compensation Expense. Stock-based compensation expense is a
    non-cash expense arising from the grant of stock-based awards to
    employees. We believe that excluding the effect of stock-based
    compensation from Adjusted EBITDA assists management and investors in
    making period-to-period comparisons in our company's operating performance
    because (i)the amount of such expenses in any specific period may not
    directly correlate to the underlying performance of our business
    operations and (ii)such expenses can vary significantly between periods
    as a result of the timing of grants of new stock-based awards, including
    grants in connection with acquisitions. Additionally, we believe that
    excluding stock-based compensation from Adjusted EBITDA assists management
    and investors in making meaningful comparisons between our company's
    operating performance and the operating performance of other companies
    that may use different forms of employee compensation or different
    valuation methodologies for their stock-based compensation. Investors
    should note that stock-based compensation is a key incentive offered to
    employees whose efforts contributed to the operating results in the
    periods presented and are expected to contribute to operating results in
    future periods. Investors should also note that such expenses will recur
    in the future.
  oInterest Income and Expense. Interest income is associated with the level
    of marketable debt securities and other interest bearing accounts in which
    we invest, and interest expense is related to our company's capital
    structure (including non-cash interest expense relating to our convertible
    notes). Interest income and expense varies over time due to a variety of
    financing transactions and due to acquisitions and divestitures that we
    have entered into or may enter into in the future. We have, in the past,
    issued convertible debentures, repurchased shares in cash tender offers
    and repurchased shares and convertible debentures through other repurchase
    transactions, and completed the divestiture of certain businesses. We
    exclude interest income and interest expense from Adjusted EBITDA (i)
    because these items are not directly attributable to the performance of
    our business operations and, accordingly, their exclusion assists
    management and investors in making period-to-period comparisons of
    operating performance and (ii) to assist management and investors in
    making comparisons to companies with different capital structures.
    Investors should note that interest income and expense will recur in
    future periods.
  oIncome Tax Provision (Benefit). We maintain a valuation allowance on a
    portion of our net deferred tax assets (including our net operating loss
    carryforwards), the amount of which may change from quarter to quarter
    based on factors that are not directly related to our results for the
    quarter. The valuation allowance is either adjusted through the statement
    of operations or additional paid-in capital. The timing of such
    adjustments has not been consistent and as a result, our income tax
    expense can fluctuate significantly from period to period in a manner not
    directly related to our operating performance. We exclude the income tax
    provision (benefit) from Adjusted EBITDA (i) because we believe that the
    income tax provision (benefit) is not directly attributable to the
    underlying performance of our business operations and, accordingly, its
    exclusion assists management and investors in making period-to-period
    comparisons of operating performance and (ii)to assist management and
    investors in making comparisons to companies with different tax
    attributes. Investors should note that income tax provision (benefit)
    will recur in future periods.
  oOther Items. We engage in other activities and transactions that can
    impact our net income. In recent periods, these other items have
    included, but were not limited to: (i) gain or loss on investments; (ii)
    a restructuring charge; and (iii) severance expense. We exclude these
    other items from Adjusted EBITDA because we believe these activities or
    transactions are not directly attributable to the performance of our
    business operations and, accordingly, their exclusion assists management
    and investors in making period-to-period comparisons of operating
    performance. Investors should note that some of these other items may
    recur in future periods.



SOURCE WebMD Health Corp.

Website: http://www.wbmd.com
Contact: Investors: Risa Fisher, rfisher@webmd.net, 212-624-3817, or Media:
Kate Hahn, khahn@webmd.net, 212-624-3760