WebMD Downsizes as Revenue Drops
Medical information content vendor WebMD Health Corp. has struggled financially during 2012 and is substantially reducing its expenses to save about $45 million annually.
Medical information content vendor WebMD Health Corp. has struggled financially during 2012 and is substantially reducing its expenses to save about $45 million annually.
The New York-based company will eliminate approximately 250 positions, about 14 percent of its employees, and streamline sales and delivery processes to better collaborate with sponsors and agency clients, it says. It expects to record a pre-tax restructuring charge of $6 million to $8 million.
Through the first nine months of 2012, WebMD had a net loss of nearly $14.3 million as total revenue fell 17 percent. Still, traffic to WebMD’s sites continued to grow during the third quarter, with unique users per month up 22 percent and page views increasing by 24 percent. And the company remains flush with cash, ending the third quarter with $969 million in cash and cash equivalents. The company’s stock price rose nearly 11 percent in late morning trading on December 11.
The New York-based company will eliminate approximately 250 positions, about 14 percent of its employees, and streamline sales and delivery processes to better collaborate with sponsors and agency clients, it says. It expects to record a pre-tax restructuring charge of $6 million to $8 million.
Through the first nine months of 2012, WebMD had a net loss of nearly $14.3 million as total revenue fell 17 percent. Still, traffic to WebMD’s sites continued to grow during the third quarter, with unique users per month up 22 percent and page views increasing by 24 percent. And the company remains flush with cash, ending the third quarter with $969 million in cash and cash equivalents. The company’s stock price rose nearly 11 percent in late morning trading on December 11.
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