WebMD Health Management Discusses Q3 2012 Results - Earnings Call Transcript
November 1, 2012 7:10 PM ET
WebMD Health (WBMD)
Q3 2012 Earnings Call
November 01, 2012 4:45 pm ET
Cavan M. Redmond - Chief Executive Officer, Director and Member of Executive Committee
Anthony Vuolo - Chief Financial Officer, Principal Accounting Officer and Executive Vice President
Martin J. Wygod - Chairman, Member of Executive Committee and Member of Strategic Planning Committee
Ryan Daniels - William Blair & Company L.L.C., Research Division
Jordan Monahan - Morgan Stanley, Research Division
Steve Rubis - Stifel, Nicolaus & Co., Inc., Research Division
Good afternoon, and welcome to WebMD Health Corp.'s Third Quarter 2012 Conference Call. Today's call is being recorded. I would now turn the call over to Risa Fisher, Vice President of Investor Relations.
Good afternoon. This conference call is to discuss WebMD's third quarter results. The earnings release issued today by WebMD is available at www.wbmd.com in the Investor Relations section. The release includes reconciliations between GAAP and non-GAAP financial measures, which will be discussed during this call. The explanatory paragraphs in the release concerning forward-looking disclosures and related risks and uncertainties also apply to forward-looking disclosures made during this call, including those regarding our guidance on future financial results and other projections or measures of WebMD's future performance. Information concerning the risks and uncertainties can be found in WebMD's SEC filings.
Joining us on today's call are Marty Wygod, Chairman of WebMD; Cavan Redmond, Chief Executive Officer; and Tony Vuolo, Chief Financial Officer. At the conclusion of our prepared remarks, we will open the call and take questions.
Now I'd like to turn the call over to our CEO, Cavan Redmond.
Cavan M. Redmond
Thank you, Risa. Good afternoon, and thank you for joining us today. I hope that all of you that have been impacted by Hurricane Sandy will be up on the road to recovery shortly. Our headquarters are located in lower Manhattan, where there's an out of power since Monday. Although our corporate offices are physically close, we have not had any disruption of our services to our consumers or to our physician users. A very special thanks to our technical operations teams, who have been working around-the-clock to make this happen.
Today, WebMD is at the crossroad of 2 changing industries, healthcare and the Internet, that holds a clear promise of our future long-term growth. WebMD's competitive advantage remains strong. Our brands, WebMD and Medscape, provide the largest combined reach to healthcare professionals, patients and health-oriented consumers on the Internet. We have established our brands as the source of trusted healthcare information, and we are well positioned to remain the market leader by focusing on: continued personalization of the user experience through our multiscreen approach, leveraging the use apps and other deeper engagement tools on mobile devices and desktops; continued expansion beyond conditioned areas into health, wellness and lifestyle; and creating ways to support consumers and physicians by developing applications that provide timely information and interactions throughout the patients and physician healthcare continuum.
We are building the future based upon the fact that WebMD attracts the largest, most engaged audience seeking health and wellness information and is one of the most trusted brands in the U.S. We engage consumers, patients, physicians and other healthcare professionals across our multiscreen experience, allowing us to empower and enable health decisions anytime and anywhere.
During the quarter, we reached an average of 107 million monthly unique visitors and delivered 2.5 billion page views, increases of 22% and 24% over the prior-year period, respectively.
Also, we not only provide scale in general health categories, but we also provide high-quality scale in specific areas of importance to biopharma and health-oriented consumer product companies. According to comScore's latest report, we ranked #1 in the reached for both the overall health category and in every one of the top 25 health topics they track, including allergy, chronic pain and asthma. With our Professional Network, we believe that we've reached more physicians, more healthcare professionals, more frequently in more countries than any other health information resource. During the quarter, traffic to Medscape and our Professional Network averaged approximately 2.8 million physician visits per month.
As with many Internet companies, mobile phones and tablet utilization is driving overall page view growth, with approximately 25% of our page views in the first 9 months of this year delivered on a smartphone or a tablet. We are seeing -- we are starting to see a shift in traffic from desktop to tablet, with desktop pages view starting to decline year-over-year and being offset by the growth of tablet page views. We are well positioned to capitalize on this consumer trend as our websites are optimized for tablet and can deliver the similar experience on both audience and sponsors on the tablet.
We have comprehensive view of our business underway. While this review is ongoing, we have begun to make changes to better meet customer requirements and best position us for future success. This will not be a short-term fix but rather a series of steps required to build the company towards long-term sustainable growth.
During the quarter, we brought new products to market and continued to expand our footprint, which will help us to create a platform for future growth and opportunities. WebMD Baby, our award-winning app targeted at new moms, which expanded to the Android platform. WebMD Pain Coach, a mobile for consumers and patients living with chronic pain, is a mobile companion to assist consumers through daily health and wellness choices so that they can manage their pain while living healthier lives.
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