Everyday Health (EVDY) Tops Q2 EPS by 14c; Announces Acquisition of Tea Leaves Health

Everyday Health (NYSE: EVDY) reported Q2 EPS of $0.27, $0.14 better than the analyst estimate of $0.13. Revenue for the quarter came in at $54.8 million versus the consensus estimate of $54.46 million.

EVDY also announced the acquisition of Tea Leaves Health. 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.

"Our mission is to build the leading digital marketing and communications platform for healthcare marketers," said Ben Wolin, Co-Founder and CEO of Everyday Health. "Our strategic acquisition of Tea Leaves Health allows us to diversify our customer base and expand our revenue opportunity into the large and fast-growing hospital systems market."

Providing a full service marketing and communications platform for hospital systems is a large and natural growth opportunity for Everyday Health. The changing regulatory and economic environment has resulted in major changes in the way hospitals operate. Hospital systems, like other healthcare constituents, have been forced to become much more strategic in how they engage and market to consumers and physicians. According to third-party market data, hospitals now spend approximately $2 billion per year marketing to consumers and physicians, and that number is growing at a compound annual growth rate of 16%.

Tea Leaves Health perfectly addresses this market opportunity and provides a sophisticated technology solution for hospital systems to address their key strategic challenges - whether it's generating profitable new patients, retaining existing patients, influencing where physicians refer their patients, or controlling costs. Tea Leaves Health is the market leader in this space and has a premier customer base of approximately two dozen hospital systems, which represent over 250 individual hospitals. Tea Leaves Health's robust sales pipeline is expected to lead to rapid growth in the coming years. Everyday Health also intends to leverage its existing audience, content and data assets to provide hospital systems with a unique full service ROI-based marketing and communications platform.

For earnings history and earnings-related data on Everyday Health (EVDY) click here.

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