WebMD generates the lion's share of its revenue through its Public Portal Advertising and Sponsorship segment, which includes online advertising, marketing sponsorships, and licensing fees earned from The WebMD Health Network websites. Beyond digital media, the Public Portal Advertising and Sponsorship segment publishes WebMD the Magazine , which is distributed free of charge to physicians' office waiting rooms. The company's remaining revenues come from its Private Portals segment, which produces custom versions of its content for corporations (Wal-Mart, IBM) and health plans (Cigna, Anthem) in order to manage their health and benefits Web portals.

Financial Performance

WebMD reported revenue of about $580 million for fiscal 2014. That was an increase of 13% compared to the prior fiscal period. The company's net income was $42 million in fiscal 2014, which was an increase of 178% compared to fiscal 2013. WebMD's cash on hand remained strong during fiscal 2014 as the company reported having $113 million in cash from operating activities.

Strategy

The company faces challenges in the face of generic competition; pharmaceutical and biotechnology companies are spending less on drug promotion and education.