Everyday Health wants to be your virtual apple a day. The online health information provider operates some 25 websites that give free and subscription-based advice regarding fitness, nutrition, and treatment options to some 43 million monthly visitors. Its websites -- such as EverydayHealth.com, Carepages.com, and JillianMichaels.com -- allow consumers to search health topics (including symptoms) and join online communities. Everyday Health also reaches an additional one million viewers per episode through its weekly TV series on ABC stations. It generates revenues primarily from advertising fees, sponsorships, and subscriptions. Everyday Health went public in 2014.
The company raised $100.1 million through its initial public offering, less than its $115 million target. It intends to use the net proceeds from the offering for working capital, capital expenditures, debt repayment, and investments.
Sales and Marketing
Primary advertisers include pharmaceutical and medical device manufacturers, over-the-counter medical product providers, and health care providers such as doctors and dentists. Advertising is sold though the company's direct sales force located in major cities across the country.
Advertising and sponsorship revenues increased 14.3% to $110.0 million in fiscal 2012, up from $96.2 million in fiscal 2011. The increase in advertising and sponsorship revenues was attributable to an increase in the number of advertisers that marketed their products and the continued expansion of the company's advertising solutions. The increase in advertising and sponsorship revenues was also driven by an increase in revenue per advertiser due to expanded relationships with existing advertisers.
The company's revenues increased 10% to $138.5 million in fiscal 2012, up from $125.8 million in fiscal 2011. The increase in total revenues consisted of a $13.8 million increase in advertising and sponsorship revenues partially offset by a $6.1 million decrease in premium services revenues.
Everyday Health's strategy for growth include developing new products, acquiring more advertisers, and building consumer awareness of its brand. The company also plans to continue acquiring similar businesses or technologies and to expand into international markets. Currently, all of the company's revenues are generated in the US.
Mergers and Acquisitions
In fiscal 2012 the company acquired EQAL, a media company that creates and manages digital media properties for consumer brands and celebrities, including Jennifer Lopez, Bethenny Frankel, and Lauren Conrad. Everyday Health is using the deal to diversify its content, further expanding its core lifestyle offerings. It is particularly attracted to EQAL's expertise in branded digital content, scripted video, social marketing, and celebrity influence. EQAL will be integrated into Everyday Health's Lifestyle Division.