WebMD Health Corp. (NASDAQ:WBMD) Q2 2016 Earnings Conference Call - Final Transcript
Aug 08, 2016 • 04:45 pm ET
Good afternoon, and welcome to WebMD Health Corporation's Second Quarter 2016 conference call. Today's call is being recorded. I will now turn the call over to Risa Fisher, VP of IR.
Good afternoon. This conference call is to discuss WebMD's second quarter results. The earnings release issued today by WebMD is available at WBMD.com in the IR section. The release includes reconciliations between GAAP and non-GAAP financial measures which will be discussed during this call.
(Forward-Looking Cautionary Statements)
Joining us with prepared remarks today are David Schlanger, CEO; and Pete Anevski, CFO. We will take questions at the conclusion of our prepared remarks.
I would now like to turn it over to David Schlanger, CEO of WebMD.
Thank you for joining us this afternoon.
We are pleased to report strong second quarter results that are consistent with the high end of the range of financial guidance we provided in May. Our revenue increased 13% to $167.6 million. Net income increased 33% to $17.8 million and adjusted EBITDA increased 23% to $50.1 million.
We are confident in our outlook for the second half of this year and are reaffirming our 2016 revenue and adjusted EBITDA guidance today, and updating our 2016 net income guidance principally to reflect the issuance of our 262.5% convertible notes during the second quarter.
Our strong second quarter results were driven by the 17% revenue growth we experienced in our biopharma advertising business. The environment for our biopharma customers remains positive, and WebMD and Medscape continue to be integral to our customers' digital marketing strategies.
WebMD and Medscape are the preeminent sources and brands of health information and tools for consumers, physicians and other health care professionals. For consumers, according to comScore nearly one-third of the US online population visits the WebMD Health Network monthly.
Within the health category, we are the clear leaders by a significant margin across unique visitors, page views and time spent on both desktop and mobile. We have approximately 55% more monthly visitors and three times more page views than the next largest competitor. For physicians and health care professionals, according to Manhattan Research, Medscape is the number one site for physicians in the US, and it's also now the number one site in most major markets outside of the US.
Medscape reaches 1.6 million physicians outside of the US and is number one in each of the EU, Latin America, India and Australia. In China, we are also the number one site with our partner DXY. Medscape, which accounts for approximately 60% of our advertising revenue, is the premier source of medical news, clinical reference, point-of-care tools and medical education for physicians and health care professionals around the world. Our professional marketing capabilities uniquely drive value for our biopharma customers throughout the whole product lifecycle from launch to product maturity to post-exclusivity status, where digital becomes the only practical and cost-effective approach.
We continue to expand and improve our offerings across both promotion and education to create additional touch points and drive