Steve, I think Marty at one time was offered EVDY, and was not interested.
They always reminded me of Dr.Koop - a lot of noise.
Who was that guy on this board that recommended to us to throw out WBMD and buy EVDY?
Of course, for our stock we probably have to send a delegation to do some shouting at the Wall of Lamentation...
The company just announced
for the last quarter EBITDA + 18%, Net income + 39%
expects the next quarter to be the largest in the Company's history
with Revenue + 17%, EBITDA +37%, Income +85%, Net income +72%
and expects for the whole year
EBITDA +21%, Income +56%, Net income +52%
It now makes a sales effort on the international market where it has already 1.5million potential customers compared to the 645.000 in the US
and it makes a big effort at Health Service to “create additional ways to bring their assets together to create new revenue streams”.
So after these announcements, and after one day of euphoria, the stock of the company is going to go back down again to the depressed price it has been at before?
That makes sense to you?
I think the one fact you are not considering in your assessment is that the “new” WebMD has decided to always surprise the market on the up-side.
So all guidance should be taken with a bit of salt, and when David Schlanger states something like this:
“Ben and I are working closely together to accelerate growth with our employer and payer customers as well as create additional ways to bring the assets of WebMD together to create new revenue streams. In his first three month Ben has initiated enhancements to our product offering and made immediate improvements to our go to market strategy and customer delivery processes. On a practical basis based on the sales cycle for our services it's going to be difficult for Ben and the new management team to really impact 2016 revenue. Accordingly for 2016 we are expecting to see a continuation of modest growth we’re currently expressing.”
You can be sure he's making fun of us in a nice way.
It has been confirmed before that the “Turn-key solution” was bein implemented this fall – so there won't be any results showing in 2016?
My eye – as the frenchmen use to say!
WebMD Third Quarter Financial Results 2015 and Excerpts from comments by the CEO
Earnings before interest, taxes, non-cash and other items ("Adjusted EBITDA") was $46.4 million, compared to $39.3 million in the prior year period, an increase of 18%.
Net income was $13.2 million or $0.32 per diluted share, compared to $9.8 million, or $0.23 per diluted share in the prior year period (+39%).
We expect to deliver in the fourth quarter the largest quarter in the Company's history.
For the fourth quarter of 2015, WebMD expects:
Revenue to be approximately $181 million to $191 million, an increase of approximately 11% to 17% from the prior year period.
Adjusted EBITDA to be approximately $59 million to $66 million, an increase of approximately 23% to 37% from the prior year period.
Income from continuing operations and net income to be approximately $22 million to $28 million, an increase in income from continuing operations of approximately 45% to 85% from the prior year period and an increase in net income of approximately 35% to 72% from the prior year period.
For the full year ending December 31, 2015, WebMD expects:
Adjusted EBITDA to be approximately $185 million to $192 million, an increase of approximately 17% to 21% from the prior year.
ncome from continuing operations and net income to be approximately $59 million to $64 million, an increase in income from continuing operations of approximately 44% to 56% from the prior year and an increase in net income of approximately 40% to 52% from the prior year.
For physicians and healthcare professionals throughout the world Medscape is the premier source of medical news, clinical reference, point of care tools and medical education.
In the U.S. Medscape has approximate 645,000 registered U.S. positions that are active on an annual basis representing a substantial majority of the practicing physicians in the US. During the third quarter an average of approximately 380,000 U.S. physicians were active monthly.
We also reached approximately 2 million other U.S. healthcare professionals many of whom engage with patients and impact prescribing decisions such as nurse practitioners and physician's assistant and are therefore important audience for our advertisers.
Currently there are approximately 1.5 million physicians outside of the U.S. that are active on Medscape. We believe Medscape has the largest global audience of physicians and health care professionals because we provide an unparalleled level of value to physicians around the world.
WebMD Health Services
Turning to our private portal services, WebMD health services works with many of the country's largest and most respected employers and health plans to help improve the health of their employees and plan participants. Revenue from private portal services grew 6% to $27.5 million in the third quarter compared to the prior year period.
As we’ve talked about in the past, we view the health services business as a substantial opportunity for us. Ben Slocum the new CEO of our private portal services business joined our team in July . Ben and I are working closely together to accelerate growth with our employer and payer customers as well as create additional ways to bring the assets of WebMD together to create new revenue streams. In his first three month Ben has initiated enhancements to our product offering and made immediate improvements to our go to market strategy and customer delivery processes. On a practical basis based on the sales cycle for our services it's going to be difficult for Ben and the new management team to really impact 2016 revenue. Accordingly for 2016 we are expecting to see a continuation of modest growth we’re currently expressing.
Looking ahead to 2016
The current pace of sales activity continues to be strong, so although visibility for 2016 is limited at this time, I believe that we are well positioned to grow revenue and further build on our market leadership.
Sales commitments over the next few months will be the primary driver of the rate of revenue growth in 2016. I look forward to sharing our continued progress in providing detail on our 2016 expectations when we report our fourth quarter results.
Having had leadership sales positions at Ingenix, Aetna National Accounts, Anthem Blue Cross and Blue Shield and WellPoint, she should have the right skills and contacts needed with the sale of WebMD Health Services' “turnkey solution”. Just my humble opinion.
Having checked up a bit on the newly appointed Donna Geringer, I am impressed.
She fits perfectly into the “turnkey solution” that’s readily adopted by employers, as WebMD Health Services has been described.
When asked about it, David Schlanger said they would move into the new offices towards the end of the year.
The collaboration with Michigan Blue Cross Blue Shields is going to be implemented this fall.
When it was announced in March of this year, Aaron MacDonald, Blue Cross Blue Shield’s director of small group sales and external distribution described WebMD Health Services as a “turnkey solution” that’s readily adopted by employers.”
They just announced new executives for WebMD Health Services.
Taken together, I conclude the Health Services Division is getting a huge boost.
Tracey, Why don't you ask yourself the following questions:
With an attitude towards money that would even make the most stingy scotsman point with pride at him, do you really think Marty would increase office space by 50% without a good reason?
Would he have asked shareholder consent for the 1.7million new shares now if something was not cooking?
And what about the possibility of a meeting of great minds between him and fast moving Stefano?
Why do you think Icahn left when he already had his boys on the board?
I think he was told very clearly that WBMD was not for sale.
And as he is not a longterm investor, but a short term opportunist, he left.
Tracey, I never thought Walgreens or anybody else would buy us out.
As I have stated often, in my opinion WBMD is NOT for sale.
Concerning Walgreens acquisitions, I am confident Stefano knows what he is doing.
He has proved it over and over again.
This is to inform you that lucid posted some info on the message board that was aparantely cancelled by yahoo:
Health 2.0: Exclusive Interview with Gregory Orr, Senior Director of Digital Health at Walgreens
This is very interesting. I suppose it was chucked out because they don't like people posting internet addresses, which is one of several complaints I have about yahoo.
Thanks, lucid, for posting this!
Marty Wygod, looking at WebMD in 2001:
"This is the biggest challenge I've faced - it's also by far the biggest opportunity. We'll improve patient outcomes and bring down the expense of health care, and as a byproduct, the company will make a ton of money."
Nearly 15 years later, this company is now the leading destination for consumers and healthcare professionals seeking health information - and the “ton of money” might be within reach.
Future revenues in big numbers will only come directly from the consumer, as he in the end pays for everything.
To achieve this, you have to offer him deals that will save him time and money and thereby healthcare as a whole will become more efficient and afordable.
WebMD Health Services
As analyst Charles Rhyee of Cowen put it recently: “WBMD remains well positioned in its core biopharma advertising business, but we think the more interesting story is its transformation into a broader healthcare service platform, which investors have yet to fully appreciate. As growth inflects in these areas, we think WBMD will see multiple expansion."
Management is now pushing very hard it's Health Services and the contract with Blue Cross Blue Shield of Michigan is a good beginning and hopefully the first step of many.
As Aaron MacDonald, Blue Cross Blue Shield’s director of small group sales and external distribution said, WebMD Health Services has a “turnkey solution” that’s readily adopted by employers.”
According to the U.S. Census Bureau, Bureau of Labor Statistics, there are 27.9 million small businesses in the U.S. and over 50% of the working population (120 million individuals) works in a small business
Small businesses have generated over 65% of the net new jobs since 1995
This is the ideal tool to reach a large part of the popuation, which in turn opens the door for other sources of return that would profit from the big numbers now available to the company.
Partnership with Walgreens
This comes in addition to the above, and it is going to be interesting to see in which way it is going to be used. Stefano Pessina, the CEO and biggest single shareholder of Walgreens, is probably the greatest expert on the international health care market.
With Marty Wygod being by THE expert on the American market, there could be a very interesting collaboration between these two knowledgable men.
Perhaps a result of this is the new push by WebMD on the International Market.
1) many more people live outside the U.S. than inside and
2) most big pharmaceutical companies have their headquarters abroad.
Their budgets for the rest of the world should be at least as big as for the U.S., if not far bigger.
With the company's connection in the U.S., introductions to the international offices should be easy.
Increase in advertising revenues
The recent increase by 50% of the growth rate of revenue from biopharma advertising is encouraging as it proves WebMD's growing importance to big pharma's efforts to reach their audience.
However, with the transformation of the company as mentioned by Cowen's analyst, revenue from advertising should in future be a secondary source of income, as the direct relationship with consumers should by far be more profitable.
Future revenue numbers of WebMD could be counted in the billions, with a stock price to match.
Steve, I couldn't follow the webcast because of technical problems.
I have a transcript of the whole conference and am basing my points on that one.
Steve, I already said I expressed myself badly. I should have said the growth rate of the biopharma advertising increased by 50%.
I'm terribly sorry for the many mistakes I'm making.
According to the transcript, Schlanger said: "in 2013 and 2014, our biopharma advertising grew at about 8% and in 2015, that growth will be between 11% and 12%.
To me, that's an increase of about 50%.