Very good questions.
However, if you consult the last Q&A session, you’ll find most of them have been asked and answered:
- Are they a technology company or a media company?
Well, in fact they’re both. And hence it’s so difficult to put a fair value on them. In the past, emphasis has been on media, but now Marty has decided to turn them into something more what I would call a real “Marty” company, an entity that provides a wider public with information and services.
- Whatever happened to the: 1) partnership with Qualcomm and 2) acquisition of Avado.
They are both INSIDE Healthy Target and other applications:
Avado: “David, can you give us an update on where you guys stand with the development on what you've been calling the WebMD connect platform in terms of rollout calendars and expected applications and things of that nature?”
“Sure. We're continuing on our development efforts. And again, as we said in the prepared remarks, the initial features that connect our audiences will be rolled out in early 2015. So some of the examples of those features and capabilities are, for example, the ability of a Healthy Target user to share their weekly report and their progress in that program with their physician, the ability for people to book appointments with their physicians. So as we roll out those various features and functions, we'll start talking about them, but those are the -- probably the first couple you're going to see. And you should see those relatively soon.”
Qualcomm: “About 1.5 years ago, you did the deal with QUALCOMM to develop certain technologies. Could you give some colour? Are there any updates of what's going on with the arrangement with them?”
“Sure. So within our Healthy Target program that exists on the WebMD flagship app, there's the ability to sync data from various biometric devices. For several of those devices, we use QUALCOMM technology and the QUALCOMM 2net platform to allow us to get data from those devices in a HIPAA-compliant way. So it's kind of inside the app so it's not evident to a user.”
- Mobile presents a challenge to all healthcare content providers. Screen real-estate is less so there's less ads to serve per page (or app page) viewed. And some pharma companies are reluctant to advertise with the new pop-up mobile ad form factors since they are limited in how the creative/information can be displayed.
Heath P. Terry - Goldman Sachs Group Inc., Research Division
“And then, particularly, on the WebMD property, to what extent you're starting to see pharma advertisers embrace mobile in an environment where it seems like we're still waiting on any sort of additional clarity from the FDA in terms of their stance on the availability of mobile?”
David Schlanger: “…and just with respect to your last comment, Heath, there's nothing we're waiting for from the FDA on mobile. There's no unique regulation with respect to mobile. The same fair balance rules apply. And the industry in general across both pharma and CPG advertisers, and pharma in particular because they're the ones that have the fair balance requirement, have learned how to deal with smaller screen size in presenting safety information. As I said in the prepared remarks, particularly in this selling season, we are seeing the most demand we've seen for mobile to date. Currently, the programs we are selling, a majority of them have a mobile element, and that's across our business. As we've said previously, Medscape is ahead of the consumer side with respect to pharma in monetizing mobile, primarily because we've been at it longer with Medscape. But across our business, we are seeing much stronger demand and acceptance of mobile as a marketing platform. And again, that applies across our advertising segments.”
And please, don’t forget Walgreens:
“Visitors to WebMD will be able to easily use Walgreens' prescription refill from within the WebMD experience across desktop and mobile.”
If somebody knows how to bring prescription drugs to the consumer and at the same time make money out of it, it’s the creator of Medco, Marty Wygod.
“Believing 2015 estimates are too high, SunTrust has downgraded WebMD to Neutral, and slashed its target by $15 to $40”.
I didn’t know we had any 2015 estimates!
I’m still convinced this whole thing is a manipulation orchestrated by Marty.
It could well be that some of his buddies, like Kensico, are in cahoots with him, as well as that analyst from Stiefel Nicolaus. After all, when an experienced analyst asks questions on which he gets repeatedly as answer “We don’t know what you are talking about”, one should be permitted to have some doubts.
As for today’s downgrade, I never heard of these people.
We are getting pretty close to the point when Santa is going to distribute more options to management and employees. They already paid the annual retainers for services as a non-employee member of the board and its committees a few days ago.
Afterwards, we can go up again.
Hints for 2015 :
…particularly in this selling season, we are seeing the most demand we’ve seen for mobile to date.
…But across our business, we are seeing much stronger demand and acceptance of mobile as a marketing platform.
…the initial features that connect our audience will be rolled out in early 2015.
Concerning Walgreens, the terms of the contract have not been talked about. And as the revenues from that contract ARE ALL 2015 REVENUES, we haven’t even provided guidance for 2015, so it’s a bit early to talk about how that contract may affect our year.
Are you thinking that more as a revenue generator? Or is it really more about the marketing presence, being in the stores? And do you see opportunities for this kind of partnership, either doing something deeper with Walgreens or with other partners?
Well, I would say yes to all of the above.
We are certainly pleased with the economic terms of the agreement.
We think it’s a terrific opportunity to leverage Walgreens’ substantial reach with consumers.
They get 8 million store visits a day, to make WebMD content and tools more accessible to people where they are.
And lastly, because of the breadth of Walgreens’ organization, we certainly see additional opportunities to work with them beyond what we’ve already contracted for.
Revenue $143.5 million compared to $130.9 million = + 10%
EBITDA $ 39.3 million compared to $31.7 million = + 24%
Net income per share $0.23 compare to $0.10 = + 130%
Traffic 191million users, 3.6 billion pages = + 38% and 22%
And there are people who call that “No Growth”
No, there was no guidance for 2015, as this comes ALWAYS out in mid-February of the New Year
Sentiment: Strong Buy
For once a good week.
And next week, should we have excellent earnings and guidance, we might even see the 50s after all this year.
Have a good week end!
Tracey, Marty’s son has a B.A. from Duke University and a MBA from NYU Stern School of Business.
He has been working at WebMD’s Business Development for two years and since May 2014 is WebMD’s Senior Manager, Business Strategy
I doubt very much he needs a helping hand from his father and if asking for it, would probably not get it.
If you bought this stock with the idea of making a fast buck through it being sold by Marty, you bought it for the wrong reason.
Marty is not going to sell it, but turn it into a large powerhouse that will cover everything concerned with healthcare. Contrary to general believe, not everything in this world is about money. There are still guys out there with a vision and the conviction that they can contribute something to the general good. Marty is one of them.
Of course, there will be money as well, but it will be the result and not the aim.
As for his horses, they are being managed by his daughter, and he has no reason to interfere.
As for Stifel Nicolaus and their “hold” recommendation, they are pretty close to the company and their timing was just right with view of the general sell-off in the market and the need for Marty to get the stock down to where he can issue new options.
As for Marty being too old, well, we’re all getting on. At least he knows more about the health care industry than anybody else, and certainly more than some of the doom and gloom jokers on this board. And not all the smarties in this world are kids like Zuckerberg.
And yes, he makes mistakes and has done so in the past.
But then he is human, and not God.
Only a Wygod.
P.S. But if the upcoming earnings report and their 2015 guidance should not be very positive, yes, I would be grumpy.
Yes, I do. Most or nearly all of the institutions are friends of Marty. They have a longer horizon than WSt.
If he succeeds, this could be the Google of Health, and with an increase in price accordingly.
Tracey, there are still more than 6million shares short, and no volume in the stock. Once this thing goes up, it might go through the roof.
Steve, I've said it before: I don't think Marty is ever going to sell this company!
He is turning it into a one stop shop for all Health Issues.
Walgreens for prescriptions
The next thing might be insurance
and so on, and so on.
But always with partnerships, and he keeps the company and slowly turns it into a something where employees have the say.