WebMD Health Q4 revenue $207.5 million, may sell itself
Staff Writer |
WebMD Health Corp. announced fourth quarter and full year financial results for 2016.
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Q4 revenue was $207.5 million, compared to $192.1 million in the prior year period, an increase of 8%.
Advertising and sponsorship revenue was $171 million compared to $158.3 million in the prior year period.
Health services revenue, which we previously reported as private portal services revenue, was $28.8 million compared to $27.2 million in the prior year period.
Information services revenue was $7.7 million compared to $6.6 million in the prior year period.
Net income increased 32% to $36.2 million, or $0.73 per diluted share, compared to $27.5 million, or $0.60 per diluted share, in the prior year period.
Earnings before interest, taxes, non-cash and other items (Adjusted EBITDA) increased 16% to $78.1 million, or 38% of revenue, compared to $67.4 million, or 35% of revenue, in the prior year period.
For the year ended December 31, 2016:
Revenue was $705.0 million compared to $636.4 million in the prior year, an increase of 11%.
Advertising and sponsorship revenue was $561.3 million compared to $499.0 million in the prior year, an increase of 12%.
Health services revenue, which we previously reported as private portal services revenue, was $113.9 million compared to $110.4 million in the prior year, an increase of 3%.
Information services revenue was $29.8 million compared to $26.9 million in the prior year, an increase of 11%.
Net income increased 43% to $91.3 million, or $1.97 per diluted share, compared to $64.0 million, or $1.48 per diluted share, in the prior year.
Adjusted EBITDA increased 19% to $230.6 million, or 33% of revenue, compared to $193.2 million, or 30% of revenue, in the prior year.
WebMD announced that its board, working together with its management team and legal and financial advisors, has commenced a process to explore and evaluate potential strategic alternatives focused on maximizing shareholder value.
These alternatives could include, among other things, the sale of part or all of the company, a merger with another party or other strategic transaction or continuing to execute on WebMD's business plan. ■