Everyday Health Reports Record Full Year and Fourth Quarter 2015 Financial Results

For the full year 2015:

• Total revenue grew 26% year-over-year.
• Revenue from the top 30 strategic advertisers increased 30% year-over-year.
• Pharma revenue grew 30% year-over-year.
• Adjusted EBITDA increased 27% year-over-year.

For the fourth quarter:

• Total revenue grew 30% year-over-year.
• Revenue from the top 30 strategic advertisers increased 42% year-over-year.
• Pharma revenue grew 28% year-over-year.
• Adjusted EBITDA increased 39% year-over-year.

"In 2015, we made great strides in building the leading marketing platform for the healthcare sector," said Ben Wolin, Co-Founder and CEO of Everyday Health. "We dramatically expanded our market opportunity, diversified our customer base and invested in our sales capabilities to better serve our customers. We now provide innovative solutions to pharma companies, CPG marketers, hospital systems and health insurers, and we can help all of these customers achieve their most important strategic objectives."

Financial Highlights

For the twelve months ended December 31, 2015:

• Total revenue was$232.0 million, a 26% increase from the prior year period.
  • Advertising and sponsorship revenue was $209.1 million, a 26% increase from the prior year period.
  • Premium services revenue, which now includes SaaS fees from hospital systems, was $22.9 million, a 28% increase from the prior year period.
• Adjusted EBITDA was $45.6 million, a 27% increase from the prior year period.
• Net income on a non-GAAP basis was $20.0 million, compared to non-GAAP net income of $17.4 million in the prior year period. Earnings per share on a non-GAAP basic and diluted basis was $0.63 and $0.60, compared to $0.72 and $0.65, respectively, in 2014. A description of the non-GAAP calculations and reconciliation to comparable GAAP measures is provided in the accompanying tables entitled "Adjusted EBITDA Reconciliation" and "Reconciliation of Non-GAAP Net Income."
• Net loss on a GAAP basis was $(11.6) million, compared to net income of $12.7 million in the prior year period before the impact of the non-cash, one-time deemed dividend of $8.1 million associated with the conversion of the Company's Series G preferred stock at the time of its initial public offering. Loss per share on a GAAP basic and diluted basis was $(0.36), compared to earnings per share of $0.52 and $0.47, respectively, in 2014 before the Series G deemed dividend.
• Cash flow from operations was $20.9 million, up from $20.0 million in 2014.

For the three months ended December 31, 2015:

• Total revenue was$81.7 million, a 30% increase from the prior year period.
  • Advertising and sponsorship revenue was $72.9 million, a 24% increase from the prior year period.
  • Premium services revenue, including SaaS fees, was $8.8 million, a 116% increase from the prior year period.
• Adjusted EBITDA was $26.1 million, a 39% increase from the prior year period.
• Net income on a non-GAAP basis was $19.5 million, compared to non-GAAP net income of $13.9 million in the prior year period. Earnings per share on a non-GAAP basic and diluted basis was $0.60 and $0.59, respectively, compared to $0.45 and $0.42, respectively, in the fourth quarter of 2014. A description of the non-GAAP calculations and reconciliation to comparable GAAP measures is provided in the accompanying tables entitled "Adjusted EBITDA Reconciliation" and "Reconciliation of Non-GAAP Net Income."
• Net income on a GAAP basis was $7.5 million, compared to net income of $21.2 million in the prior year period. Earnings per share on both a GAAP basic and diluted basis was $0.23, compared to $0.68 and $0.64, respectively, in the fourth quarter of 2014.

"We delivered record results in 2015, with total revenue and Adjusted EBITDA each growing in excess of 25% over 2014," said Brian Cooper, CFO of Everyday Health. "The strategic investments we have made will drive further growth in 2016, and we remain confident in our ability to achieve our long term growth and profitability targets."