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WebMD Announces Second Quarter Financial Results
Date:7/30/2009

of new stock-based awards, including grants in connection with acquisitions. Additionally, WebMD believes that excluding stock-based compensation from Adjusted EBITDA assists management and investors in making meaningful comparisons between WebMD's operating performance and the operating performance of other companies that may use different forms of employee compensation or different valuation methodologies for their stock-based compensation. Investors should note that stock-based compensation is a key incentive offered to employees whose efforts contributed to the operating results in the periods presented and are expected to contribute to operating results in future periods. Investors should also note that such expenses will recur in the future. Stock-based compensation expenses included in the Statement of Operations are summarized as follows:

                                   Three Months Ended    Six Months Ended
                                        June 30,             June 30,
                                    2009      2008        2009      2008

    Non-cash stock-based
     compensation included in:
          Cost of operations     $(1,555)    $(817)    $(3,178)  $(1,933)
          Sales and marketing    $(2,001)  $(1,261)    $(3,551)  $(2,387)
          General and
           administrative        $(2,196)  $(1,387)    $(4,546)  $(2,825)
          (Loss) income from
            discontinued
            operations              $(43)     $(23)      $(174)     $(55)

  • Non-Cash Advertising Expense. This expense relates to the usage of non-cash advertising obtained from News Corporation ("Newscorp") in exchange for equity securities issued by our parent, HLTH Corporation in 2000. The advertising was available only on various Newscorp properties, primarily its television network and cable channels, without any cash cost to WebMD and
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SOURCE WebMD
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