* David Schlanger to serve as interim CEO
* Peter Anevski to replace Anthony Vuolo as CFO
* First-quarter loss $0.03/share vs loss $0.14 last year
* Sees full-year revenue $450 mln-$470 mln vs est $444.6 mln
* Shares up 16 pct after the bell
(Adds details, CEO quote)
By Pallavi Ail and Adithya Venkatesan
May 7 WebMD Health Corp said Chief
Executive Cavan Redmond will be leaving the health information
provider, less than a year after the former Pfizer Inc
executive was appointed to turn around the company's fortunes.
Shares of the company, which reported a smaller
first-quarter loss, were up about 16 percent at $29.50 in
after-hours trading. They closed at $25.51 on the Nasdaq on
The company said its senior vice president of strategic and
corporate development, David Schlanger, will serve as interim
WebMD's earnings have been hit as consumers use its websites
for specific information only without surfing the other content
on the site.
"One of the areas of investment is in the areas of
personalization to increase user frequency and how much time
they spend on the site when they are there," Schlanger said to
WebMD, which operates medical websites providing health and
disease related information, has struggled with a fall in
advertising revenue with pharmaceutical companies slashing
marketing budgets as several blockbuster drugs go off patent.
WebMD also said Anthony Vuolo will be replaced as chief
financial officer by Peter Anevski, currently a senior
vice-president of finance.
"We do not believe this management change will adversely
affect our recent momentum. Results that we issued today along
with improved outlook for the balance of the year are a result
of the collective efforts of our senior leadership team," WebMD
Chairman Martin Wygod said on a conference call with analysts.
UPBEAT OUTLOOK, NEW IDEAS
WebMD expects full-year revenue of $450 million to $470
million, ahead of analysts' expectations of $444.6 million,
according to Thomson Reuters I/B/E/S.
The company said it is developing a new channel called the
healthcare reform center which will be launched to coincide with
the next implementation phase of the Affordable Care Act in the
"We believe that this channel will become a valuable
resource for the tens of millions of consumers who will be
responsible for choosing a health plan for the first time and
will need to understand the impact of the Affordable Care Act
(ACA) to themselves and their families," Schlanger said.
Schlanger told Reuters that the channel will be free and
open to all users and its purpose will be to provide consumers
with content and tools to help in understanding the ACA and make
key decisions in choosing their health plan.
The company said the changes in Google's search
algorithms increased the traffic to its flagship site,
Public portal advertising and sponsorship which makes up
most of its revenue stream rose 6 percent to $93 million, while
overall revenue rose 5 percent to $112.8 million in the first
Schlanger said about 34 percent of the company's page views
were delivered to U.S. mobile devices during the quarter.
"We have been able to sustain our overall traffic growth in
an environment where PC traffic has been declining across the
web," Schlanger said.
WebMD's net loss narrowed by about 80 percent to $1.5
million, or 3 cents per share, from $7.8 million, or 14 cents
per share, a year earlier.
Analysts on average were expecting a loss of 15 cents per
share on revenue of $106.6 million.
(Reporting By Pallavi Ail and Adithya Venkatesan in Bangalore;
Editing by Anthony Kurian, Roshni Menon and Carol Bishopric)