Webmd Health Corporation (WBMD) has reported 21.54 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $12.33 million, or $0.30 a share in the quarter, compared with $15.72 million, or $0.36 a share for the same period last year.
Revenue during the quarter went down marginally by 2.84 percent to $154.06 million from $158.55 million in the previous year period. Gross margin for the quarter contracted 179 basis points over the previous year period to 58.78 percent. Total expenses were 83.86 percent of quarterly revenues, up from 80.42 percent for the same period last year. That has resulted in a contraction of 344 basis points in operating margin to 16.14 percent.
However, the adjusted EBITDA for the quarter stood at $40.95 million compared with $47.06 million in the prior year period. At the same time, adjusted EBITDA margin contracted 310 basis points in the quarter to 26.58 percent from 29.68 percent in the last year period.
"As expected, our first quarter results were below last year’s reflecting a more challenging macro environment for many of our biopharma customers and disappointing sales in 2016 in our Health Services business," said Dr. Steven Zatz, chief executive officer of WebMD. "We remain focused on restoring WebMD’s growth by providing the highest-quality health content, guidance and tools for both consumers and healthcare professionals, as well as delivering superior results for our advertisers and value for our shareholders."
For the second-quarter, Webmd Health Corporation expects revenue to be in the range of $170 million to $173 million. It forecasts net income to be in the range of $16.90 million to $18.50 million.
For fiscal year 2017, Webmd Health Corporation expects revenue to be in the range of $710 million to $730 million. It forecasts net income to be in the range of $89 million to $98 million, the company projects diluted earnings per share to be in the range of $1.97 to $2.10.
Operating cash flow improves significantlyWebmd Health Corporation has generated cash of $44.87 million from operating activities during the quarter, up 32.69 percent or $11.06 million, when compared with the last year period. The company has spent $451.47 million cash to meet investing activities during the quarter as against cash outgo of $8.70 million in the last year period.
Cash flow from financing activities was $2.74 million for the quarter as against cash outgo of $73.41 million in the last year period.
Cash and cash equivalents stood at $88.57 million as on Mar. 31, 2017, down 85.06 percent or $504.30 million from $592.87 million on Mar. 31, 2016.
Working capital increases marginally
Webmd Health Corporation has recorded an increase in the working capital over the last year. It stood at $636.06 million as at Mar. 31, 2017, up 4.12 percent or $25.15 million from $610.91 million on Mar. 31, 2016. Current ratio was at 2.10 as on Mar. 31, 2017, down from 4.40 on Mar. 31, 2016.
Days sales outstanding went down to 97 days for the quarter compared with 101 days for the same period last year.
Debt increases substantiallyWebmd Health Corporation has witnessed an increase in total debt over the last one year. It stood at $1,045.77 million as on Mar. 31, 2017, up 51.28 percent or $354.48 million from $691.28 million on Mar. 31, 2016. Short-term debt stood at $398.51 million as on Mar. 31, 2017. Total debt was 60.59 percent of total assets as on Mar. 31, 2017, compared with 61.95 percent on Mar. 31, 2016. Debt to equity ratio was at 2.21 as on Mar. 31, 2017, down from 3.13 as on Mar. 31, 2016. Interest coverage ratio deteriorated to 3.52 for the quarter from 6.09 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
