WebMD Health Corp (NASDAQ: WBMD) is a company with growth opportunities, stability and long-term strategic investment value. WebMD is in the business of online media advertising and digital health. WebMD's median price for the period between Tuesday, February 26, 2013 and Thursday, March 28, 2013 is 24.28 with a coefficient variation of 5.47. Competitive advantage remains strong. WebMD holds 40% market share to date and has reached an average of 107 million monthly unique visitors, 2.5 billion page views in FY 2012. Its shares have increased by more than 28% since January 1. WebMD announced that for fiscal 2013, it expects revenue to be approximately $430 million to $455 million.
WebMD announced this month the launch of the WebMD Pregnancy app, a free iPhone® app, offering expectant moms WebMD's physician-reviewed pregnancy information that is customizable to fit a woman's unique pregnancy. WebMD and Qualcomm Inc.'s (NASDAQ: QCOM) subsidiary, Qualcomm Life, Inc., also this month had announced a partnership of new personalized wireless health data. 2013 presents big investment opportunities for WebMD in digital health innovation and consumerization. Revenue for WebMD investors is expected to be between $430 and $455 million FY 2013. WebMD's mobile apps for consumers having been downloaded over 16 million times.
WebMD's 2013 competitive strategy is to focus on personalization of customer experience through a multi-screen approach. The company will leverage apps and digital tools that support both consumer and physician. Competition from large insurers is expected in 2013, but WebMD is confident in its sales growth and new customers like Boeing.
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eMarketer estimates that digital pharma US ad spending will reach $1.19 billion in 2013 and climb to $1.33 billion by 2016. 2012 marked a year of many opportunities in digital health enjoying high growth rates over the past twelve months. Digital health investments for software rose 19 percent and digital health grew 45 percent. Personal health tools and health tracking totaled $143 million. Consumer engagement was at $237 million. The market has also remained cautious in its investment strategies following regulations and standards.
The WebMD Pregnancy App is WebMD's latest addition to its multi-screen platform approach which provides actionable health information when consumers want it most, enabling them to better manage their health. WebMD is the leader in mobile for health information. The company is capitalizing on multi-screen platform throughout this year.
Qualcomm is a company that leads investing in digital health. A forecast of 5 billion sales of smartphones are expected from Qualcomm between 2012 and 2016. The mHealth partnership shows investors Qualcomm's market capabilities where the company is able to lead ahead of its rivals.
Qualcomm Life's 2net Platform is an FDA-listed, Class I Medical Device Data System (MDDS) that will enable millions of consumers to connect to the device. The WebMD and Qualcomm Life collaboration will help consumers sync data collected and give consumers the opportunity to take charge of their health via a technology ecosystem of digital health apps and third-party devices.
WebMD's net loss was $900,000 for Q3 2012 or $0.02 per diluted share compared to net income of $14.2 million or $0.24 per diluted share. Operating cash flow was $18.6 million for third quarter. WebMD has seen a sequential decline in revenue and earnings between the fourth quarter and the first quarter. The trend is expected to continue in 2013.
WebMD Historic Stock Price
Why invest in WebMD today? There is a lot of strategic long-term investment value to WebMD. As technology costs decline, WebMD's 100+ million unique visitors per month shows there is strong growth opportunity. WebMD has a strong balance sheet and plans to continue acquiring companies that can assist in leveraging its profits. According to PWC "Advertising budgets allocated to internet media represented 16% of total advertising expenditure worldwide, and this figure could reach 21% within the next four years." The collaboration of WebMD and Qualcomm would benefit significantly in easing complexities for consumers managing their health through its next generation personalized wireless data. Companies such as WebMD and Qualcomm understand the benefits of cloud services. WebMD reported better-than-expected revenue in the fourth quarter and forecast a smaller sales decline in 2013. Delivering support, personalization, scalability, speed and flexibility are attractive areas for growth.
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