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WebMD Announces Third Quarter Financial Results
Date:11/3/2009

an vary significantly between periods as a result of the timing of grants 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        Nine Months
                                              Ended              Ended
                                         September 30,       September 30,
                                        -------------        -------------
                                        2009      2008      2009       2008
                                        ----      ----      ----       ----
    Non-cash stock-based compensation
     included in:
      Cost of operations               $(1,743)    $(997)  $(4,921)  $(2,930)
      Sales and marketing              $(1,948)  $(1,215)  $(5,499)  $(3,602)
      General and administrative       $(2,055)  $(1,300)  $(6,601)  $(4,125)
      Income (loss) from
       discontinued operations             $85      $(63)     $(89)    $(118)
  • Non-Cash Advertising Expense. This expense relates to the usage of non-cash advertising obtained from News Corporation ("Newscorp") in exchange for equity securi
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