WebMD (NSDQ: WBMD) Q3 results were buoyed by big gains in advertising, sponsorship and online services revenue. Sales rose 66 percent to $66.6 million but profit fell to $992,000, or 2 cents a share, because of stock-based compensation costs. Excluding that, profit rose 61 percent to $14.6 million or 26 cents per share.
-- The WebMD Health Network expanded roughly 30 percent over last year to 32.3 million monthly uniques and 729 million page views during the quarter.
-- Online services revenue rose 50 percent to $58.9 million, while advertising and sponsorship jumped 55 percent to $43.5 million.
-- Private portal licensing revenue rose 61 percent to $14.6 million.
Acquires Subimo: The company also announced an agreement to acquire Subimo, a provider of health care decision support applications to large employers, health plans and financial institutions. The purchase price for Subimo is $60 million, $34 million in cash payable on the closing date and $26 million in WebMD Class A Common stock/and or cash. If the value of the deferred consideration is less than $15.6 million at the second anniversary, WebMD will cover the shortfall with cash or additional shares.
CEO Wayne Gattinella: “As health care consumerism continues to grow, WebMD is committed to partnering with health plans, employers and financial institutions in order to enable consumers to make more informed choices and plan for future health care costs.” Release
Earnings Release|Conference Call