Everyday Health, Inc. (EVDY) research, news, and more from GeoInvesting

Company description

Wed, 17 Jun 2015 01:17:30 GMT

Everyday Health, Inc. provides digital health and wellness solutions. The EVDY’s portfolio includes Websites, mobile applications, and social media assets that provide consumers and healthcare professionals with access to health and wellness content. It enables consumers to manage their health; healthcare professionals to stay informed and make decisions for their patients; and marketers to communicate and engage with consumers and healthcare professionals. The company’s content and solutions are delivered through various channels, including desktop, mobile Web, and mobile phone and tablet applications, as well as through video and social media. It owns and operates Everyday Health, MedPage Today, CarePages, Recipe Rehab, My Calorie Counter, What To Expect, Jillian Michaels, South Beach Diet, Dr. Sanjay Gupta, Physicians’ Desk Reference, Denise Austin, Suzanne Somers' Sexy Forever, Mayo Clinic, Drugstore, and KevinMD brands. The company was formerly known as Waterfront Media Inc. and changed its name to Everyday Health, Inc. in January 2010. Everyday Health, Inc. was founded in 2002 and is headquartered in New York, New York...

Research

Wed, 11 Nov 2015 15:54:31 GMT

Removing EVDY ($10.05, marked down 20%) From GeoBargain List and Will Look To Sell Our Long Position

On June 17, 2015 we coded EVDY a GeoBargain and initiated our long position based on a bullish Q1 2015 conference call and, at that time, strong analyst EPS estimates. Shares had a brief run hitting $14.24 on June 25, 2015. Yesterday after the close, EVDY reported weak Q3 2015 results and its Q4 revenue guidance was below analysts estimates.

Revenues of $54.3 million vs $42.3 million in the prior year but below analyst estimates of $56.8 million
Non-GAAP EPS of $0.07 vs $0.09 in the prior year period and below analyst estimates of $0.08
Q4 revenue guidance of $75 to $80 million vs analyst estimates of $87.2 million

As these facts have changed, so has our outlook on the company. We will look to close out our long position and move on to other opportunities.

Research

Wed, 12 Aug 2015 16:01:38 GMT

Maintaining long position in GeoBargain EVDY

We plan to maintain our long position in EVDY and potentially add on significant pullbacks if investors punish the shares in reaction to the company:

Reporting Q2 2015 financial results slightly below analyst estimates.
Reducing 2015 EBITDA guidance due to what appear to be costs associated with an acquisition of a Software as a Service (SAAS) announced in conjunction with its Q2 press release.

Q2 2015 results have been reported:

Q2 2015 sales of $54.8 million vs $41.4 million in the prior year and in line with analyst estimates of $54.4 million.
Q2 2015 non-gaap EPS of $0.11 vs non-GAAP $0.19 in the prior year and slightly below analyst estimates of $0.13. The company reported non-GAAP EPS of $0.27 in its release; we adjusted our non-GAAP number to take out the $5.5 million tax benefit.

The Company:

Announced the acquisition of Tea Leaves Health for a purchase price of $30 million, plus a potential earnout based on a specified financial target as of the end of 2016. Based in Georgia, Tea Leaves Health is a leading provider of a SaaS-based marketing and analytics platform for hospital systems to identify and engage consumers and physicians.
Issued Q3 2015 guidance of sales of $51.5 to $56.0 million, analyst estimates are $56.4 million. Adjusted EBITDA of $9.0 to $11.0 million
Maintained full year revenue guidance of $236.0 to $244.0 million compared with analyst estimates of $238.9 million.
Slightly lowered full year EBITDA guidance range by $3 million to $46.5 to $49.5 million, from $49.5 to $52.5 million. Management stated on the conference call that EBITDA guidance would have been maintained if not for costs associated with the Tea Leaf acquisition. Management also stated it believes it can double Tea Leaves revenue rate by the end of 2016.

Quotes from management:

“The acquisition of Tea Leaves Health will further extend Everyday Health's presence in the hospital systems market, which represents a high-growth opportunity for the Company. By combining Everyday Health's existing content, data and assets with Tea Leaves Health's premier customer base and robust data and marketing platform, the Company will become a full service marketing platform for hospital systems.

"We continued to deliver profitable growth in the second quarter," said Brian Cooper, CFO of Everyday Health. "We have significantly broadened and deepened the range of solutions we offer to our customers, and we are very excited about the large market opportunity we have in front of us."

It is unclear how the market will react to the slight decrease in EBITDA guidance due to the acquisition of Tea Leaf. It’s encouraging that Tea Leaf acquisition adds a recurring revenue stream as well as many cross selling opportunities. It’s helpful to read the conference call transcript for more color on the Tea Leaf acquisition as well as the company’s long term growth goals.

Research

Thu, 25 Jun 2015 14:04:30 GMT

Initiated a long position in newest GeoBargain $EVDY

In our June 17, 2015 we mentioned EVDY as one of the new long candidates in our pipeline. Yesterday, via premium tweet we coded EVDY as a GeoBargain. A bullish Q1 2015 conference call and strong analyst estimates initially piqued our interest in the EVDY story. We initiated a small position and will look to build EVDY into a core holding. We recently performed additional due diligence and will provide further update shortly. Our initial price target range is between $16.80 and $19.20.

Research

Wed, 17 Jun 2015 16:18:43 GMT

Strong estimated EPS growth for 2015 and 2016 has lead us to begin our initial due diligence on both EVDY($13.33).

A bullish Q1 2015 conference call and strong analyst estimates has piqued our interest in the EVDY story. We have a scheduled interview with the company on Friday where we hope to learn more about the company’s growth prospects. Analyst 2015 and 2016 EPS estimates are $0.84 and $1.28 respectively, calling for 42% and 52% growth. EVDY provides digital health and wellness solutions. The company’’s portfolio includes websites, mobile applications, and social media assets that provide consumers and healthcare professionals with access to health and wellness content.