WebMD Health Corp. (WBMD) has reported 31.78 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $36.19 million, or $0.73 a share in the quarter, compared with $27.46 million, or $0.60 a share for the same period last year.
Revenue during the quarter grew 7.99 percent to $207.47 million from $192.13 million in the previous year period. Gross margin for the quarter expanded 103 basis points over the previous year period to 64.87 percent. Total expenses were 70.05 percent of quarterly revenues, down from 73.49 percent for the same period last year. This has led to an improvement of 344 basis points in operating margin to 29.95 percent.
"We are pleased to report fourth quarter and full year results near the high end of our expectations," said Steve Zatz, chief executive officer, WebMD. "The future of health care is undeniably tied to digital interactions and, as the leading online service for physicians and consumers, we believe that WebMD will be a vital force in shaping that future."
For the first-quarter, Webmd Health Corp forecasts revenue to be in the range of $151 million to $154 million. The company projects net income to be in the range of $9.80 million to $11.50 million.
For financial year 2017, Webmd Health Corp forecasts revenue to be in the range of $710 million to $730 million. The company projects net income to be in the range of $89 million to $98 million. The company expects basic earnings per share to be in the range of $2.41 to $2.61. The company expects diluted earnings per share to be in the range of $1.97 to $2.10.
Operating cash flow improves significantly
WebMD Health Corp. has generated cash of $161.15 million from operating activities during the year, up 49.82 percent or $53.59 million, when compared with the last year. The company has spent $525.52 million cash to meet investing activities during the year as against cash outgo of $48.23 million in the last year.
Cash flow from financing activities was $215.62 million for the year as against cash outgo of $124.94 million in the last year period.
Cash and cash equivalents stood at $492.42 million as on Dec. 31, 2016, down 23.20 percent or $148.74 million from $641.16 million on Dec. 31, 2015.
Working capital increases sharply
WebMD Health Corp. has recorded an increase in the working capital over the last year. It stood at $1,001.76 million as at Dec. 31, 2016, up 77.45 percent or $437.22 million from $564.54 million on Dec. 31, 2015. Current ratio was at 6.45 as on Dec. 31, 2016, up from 2.97 on Dec. 31, 2015.
Days sales outstanding went down to 40 days for the quarter compared with 42 days for the same period last year.
Debt increases substantially
WebMD Health Corp. has witnessed an increase in total debt over the last one year. It stood at $1,044.69 million as on Dec. 31, 2016, up 31.73 percent or $251.62 million from $793.07 million on Dec. 31, 2015. Total debt was 69.59 percent of total assets as on Dec. 31, 2016, compared with 68.02 percent on Dec. 31, 2015. Debt to equity ratio was at 4.28 as on Dec. 31, 2016, down from 5.08 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 8.79 for the quarter from 9.99 for the same period last year.
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