WebMD Health Corp. (NASDAQ:WBMD) Q3 2016 Earnings Conference Call - Final Transcript
Nov 01, 2016 • 04:45 pm ET
Good afternoon and welcome to WebMD Health Corp's third-quarter 2016 conference call. Today's call is being recorded. I will now turn the call over to Risa Fisher, Vice President of Investor Relations.
Good afternoon. This conference call is to discuss WebMD's third-quarter results. The earnings release issued today by WebMD is available at WBMD.com in the investor relations section.
The release includes reconciliations between GAAP and non-GAAP financial measures which will be discussed during this call. The explanatory paragraphs in the release concerning forward-looking disclosures and related risks and uncertainties also apply to forward-looking disclosures made during this call including those regarding our guidance on future financial results and other projections or measures of WebMD's future performance. Further information regarding WebMD, including information concerning risks and uncertainties, can be found in WebMD's SEC filings and the information on this conference call is intended to be presented in conjunction with the information contained in such filings.
Joining us with prepared remarks today are Steve Zatz, Chief Executive Officer, and Blake DeSimone, Chief Financial Officer. We will take questions at the conclusion of our prepared remarks. I'd now like to turn over to Steve Zatz, CEO of WebMD.
Think for joining us this afternoon. I'm very pleased to be here with you here in my new role as CEO. As I said at our annual meeting of stockholders last month it is an honor and a privilege to lead WebMD. We are a unique Company in a dynamic and important industry. Given my tenure with the Company the transition into my new role and for Blake as well has been smooth for our employees, customers and partners.
Turning now to the financial results we reported today. Our third-quarter revenue increased 12% to $171.4 million which is consistent with the high end of the guidance range we provided in August. Net income increased 64% to $21.6 million and adjusted EBITDA increased 19% to $55.3 million, which is above the high end of our guidance. Our overall revenue growth in the quarter was fueled by strength in biopharma advertising as we continued to demonstrate the value of our professional and consumer platforms.
Medscape which accounts for approximately 60% of our annual advertising revenue is the premier source of medical news, clinical reference and medical education for physicians and healthcare professionals around the world. Our professional marketing capabilities drive value for our pharma customers throughout the lifecycle of the products they market from launch through growth phase to the period around loss of exclusivity. We continue to expand and enhance our content offering for physicians as well as the marketing solutions that we provide to our pharma industry customers.
In September we launched an exciting addition to our professional-facing video offerings called Medscape TV. These highly produced series featured internationally recognized thought leaders and compelling stories about patients who are dealing with serious medical conditions, which help educate physicians about the latest advances in their fields. This month we will launch Medscape Physician Business Academy, a