Everyday Health Reports Second Quarter 2016 Financial Results

NEW YORK, Aug. 4, 2016 /PRNewswire/ -- Everyday Health, Inc. (NYSE: EVDY), a leading provider of digital health marketing and communications solutions, today announced financial results for the second quarter ended June 30, 2016.

For the second quarter:

• Total revenue grew 5% year-over-year.
• Advertising and sponsorship revenue increased 7% year-over-year.
• Pharma revenue grew 8% year-over-year.

For the first half of 2016:

• Total revenue grew 18% year-over-year.
• Advertising and sponsorship revenue increased 21% year-over-year.
• Pharma revenue grew 20% year-over-year.

"We delivered strong second quarter and first half 2016 results, which demonstrate that the strategic investments we have made are paying off," said Ben Wolin, Co-Founder and CEO of Everyday Health.  "We are pleased to see our consumer advertising growing again, and we are very excited about the solid growth and revenue opportunity across our professional and payer/provider businesses."

Financial Highlights

For the three months ended June 30, 2016:

• Total revenue was $57.7 million, a 5% increase from the prior year period.
  • Advertising and sponsorship revenue was $53.5 million, a 7% increase from the prior year period.
  • Premium services revenue was $4.1 million, a 10% decrease from the prior year period and consistent with the Company's expectations.  The anticipated decline in revenue from consumer subscriptions was partially offset by increasing SaaS fees from hospitals.
• Adjusted EBITDA was $5.7 million, a 44% decrease from the prior year period and consistent with the Company's expectations.
• Net loss on a non-GAAP basis was $(1.7) million, compared to net income of $3.6 million in the prior year period when the Company recorded an income tax benefit of $5.5 million. Loss per share on a non-GAAP basic and diluted basis was $(0.05), compared to income per share on a non-GAAP basic and diluted basis of $0.11 in the second quarter of 2015. A description of the non-GAAP calculations and reconciliation to comparable GAAP measures is provided in the accompanying tables entitled "Adjusted EBITDA Reconciliation" and "Reconciliation of Non-GAAP Net Income (Loss)."
• Net loss on a GAAP basis was $(9.0) million, compared to net income on a GAAP basis of $1.7 million in the prior year period when the Company recorded an income tax benefit of $5.5 million. Loss per share on a GAAP basic and diluted basis was $(0.27), compared to income per share on a GAAP basic and diluted basis of $0.05 in the second quarter of 2015.

"We are pleased with the progress with our core pharma customers, and remain encouraged by the strong growth in our hospital SaaS revenue and our demonstrated ability to drive incremental advertising dollars from those customers," said Brian Cooper, CFO of Everyday Health. "We are well-positioned to achieve our financial goals for 2016."

Financial Outlook

For the third quarter of 2016, the Company anticipates achieving financial results as set forth below:

The Company is maintaining its full-year revenue and Adjusted EBITDA guidance as set forth below:

Earnings Teleconference Information
The Company will discuss its second quarter 2016 financial results and business outlook during a teleconference today, August 4, 2016, at 4:30 PM ET.  The conference call can be accessed at (877) 201-0168 or (647) 788-4901 (International), conference ID# 46194820 or via live webcast at http://ir.everydayhealth.com.

Following completion of the call, a recorded replay of the webcast will be available on Everyday Health's website.  To listen to the telephone replay, call toll-free (855) 859-2056 or (404) 537-3406 (International), conference ID# 46194820. The telephone replay will be available from 7:30 PM ET August 4, 2016 through 11:59 PM ET August 11, 2016. Additional investor information can be accessed at http://ir.everydayhealth.com.

About Everyday Health, Inc.  
Everyday Health, Inc. (NYSE: EVDY) is a leading provider of digital health marketing and communications solutions. Everyday Health attracts a large and engaged audience of consumers and healthcare professionals to its premier health and wellness properties, and utilizes its data and analytics expertise to deliver highly personalized content experiences and efficient and effective marketing and engagement solutions. Everyday Health enables consumers to manage their daily health and wellness needs, healthcare professionals to stay informed and make better decisions for their patients, and marketers, health payers and providers to communicate and engage with consumers and healthcare professionals to drive better health outcomes. Everyday Health's content and solutions are delivered through multiple channels, including desktop, mobile web, and mobile phone and tablet applications, as well as video and social media.

Safe Harbor Provision
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by their use of terms and phrases such as "anticipate," "enable," "expect," "will," "believe," "continue" and other similar terms and phrases, and such forward-looking statements include, but are not limited to, the statements regarding our future financial performance set forth under the heading "Financial Outlook." The outcome of the events described in these forward-looking statements is subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated by these forward-looking statements, including, but not limited to: our ability to attract and retain users to our properties; our ability to attract and retain customers; the timing and amount of advertising spending by our current and future customers; our ability to effectively integrate the acquisitions that we make; our ability to enter into new, or extend existing, partnership arrangements; our ability to successfully pursue opportunities in the broader health and wellness sectors; as well as those factors contained in the "Risk Factors" section of our SEC filings. All information in this release is as of August 4, 2016. Except as required by law, we undertake no obligation to update publicly any forward-looking statement made herein for any reason to conform the statement to actual results or changes in our expectations.

Use of Non-GAAP Financial Measures
To supplement the financial measures presented in the Company's press release and related conference call or webcast in accordance with accounting principles generally accepted in the United States ("GAAP"), we also present the following non-GAAP measures of financial performance: Adjusted EBITDA, non-GAAP net income (loss), and non-GAAP income (loss) per share ("EPS").

A "non-GAAP financial measure" refers to a numerical measure of the Company's historical or future financial performance, financial position, or cash flows that excludes (or includes) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP in the Company's financial statements. The Company provides certain non-GAAP measures as additional information relating to its operating results as a complement to results provided in accordance with GAAP. The non-GAAP financial information presented here should be considered in conjunction with, and not as a substitute for or superior to, the financial information presented in accordance with GAAP and should not be considered a measure of the Company's liquidity. There are significant limitations associated with the use of non-GAAP financial measures. Further, these measures may differ from the non-GAAP information, even where similarly titled, used by other companies and therefore should not be used to compare the Company's performance to that of other companies.

The Company has presented Adjusted EBITDA, non-GAAP net income (loss) and non-GAAP EPS as non-GAAP financial measures in this press release. We define Adjusted EBITDA as net income (loss) plus: interest expense, net; income tax provision (benefit); depreciation and amortization expense; stock-based compensation expense; compensation expense related to acquisition earnout and retention bonus arrangements; write-offs of unamortized deferred financing and other debt extinguishment costs; executive transition and reduction in force charges; contract settlement charges; and asset impairment and other charges. We define non-GAAP net income (loss) as net income (loss), plus non-cash stock-based compensation expense, compensation expense related to acquisition earnout and retention bonus arrangements, income tax provision (benefit), and other unusual or significant adjustments such as the write-off of deferred financing costs and other debt extinguishment costs, executive transition and reduction in force charges, contract settlement charges, and asset impairment and other charges. We define non-GAAP EPS as non-GAAP net income (loss), divided by weighted-average shares outstanding.

The Company believes the use of non-GAAP financial measures, as a supplement to GAAP measures, is useful to investors in that they eliminate items that are either not part of the Company's core operations or do not require a cash outlay, such as stock-based compensation. Our management uses these non-GAAP financial measures when evaluating the Company's operating performance and for internal planning and forecasting purposes. The Company believes that these non-GAAP financial measures help indicate underlying trends in the Company's business, are important in comparing current results with prior period results, and are useful to investors and financial analysts in assessing the Company's operating performance.

SOURCE Everyday Health, Inc.