WebMD Health Corp.'s (NASDAQ:WBMD) small cap stock was deep into negative territory on Tuesday after the company's second-quarter financial report failed to whet the appetite of investors.
WebMD, which supplies verified health information to the public through an online resource, announced that in the three months ended June 30, it experienced losses stemming from continued operations that totaled to about $6.3 million, or $0.13 cents per share, on revenue of $112 million. The loss was 5.6 percent of total revenue, which came in higher than the 4 percent analysts had expected.
According to RTTNews, analysts surveyed by Reuters expected WebMD to report a quarterly loss of $0.10 per share on revenues of $115.06 million
"My immediate focus has been to review the business and to prioritize the steps necessary to meet our clients' needs," said Cavan Redmond, CEO of WebMD, in response to the earnings report. "Of equal importance, I am reevaluating the company's infrastructure across-the-board to drive operational improvements and cost efficiencies. The challenges are clear."
The company's shares were down 23.21 percent to $13.73 as of 11:59 a.m. on Tuesday, July 24.