Analyst & Investor Day -...

Analyst & Investor

Day September 15, 2016

2

Safe Harbor

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regarding the company's future financial and operating results, future market conditions, and the plans

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historical facts, but rather are based on our current expectations and beliefs and are based on information

currently available to us. The outcome of the events described in these forward-looking statements is

subject to known and unknown risks and uncertainties that could cause actual results to differ materially

from the results anticipated by these forward-looking statements, including, but not limited to those factors

contained in the Risk Factors section of the quarterly and annual reports we file with the SEC. All

information provided in this presentation is as of today. Except as required by law, we undertake no

obligation to update publicly any forward-looking statement to conform the statement to actual results or

changes in our expectations. In light of Regulation FD, it is our policy not to comment on our financial

guidance other than in public communications.

Today’s Meeting

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● 9:00am – 10:30am Welcome Remarks Melanie Goldey, SVP, Strategic Planning & IR

EVDY Vision & Strategy Ben Wolin, Co-Founder & CEO

Going Deeper with Pharma Michael du Toit, President

Consumer Overview Yadin Shemmer, President, EH Consumer

Michael Rose, President, EH Pregnancy & Parenting

Professional Overview Greg Jackson, President, EH Professional

● 10:30am – 10:45am BREAK

● 10:45am – 12:00pm Payer / Provider Overview Miki Kapoor, President

Financials Brian Cooper, EVP & CFO

Wrap-Up and Q&A

EVDY

Vision & Strategy

4

5

● Founded Everyday Health in 2002

● CEO since inception

● Serves on the Board of Directors of Diplomat

Pharmacy (NYSE: DPLO)

● Previous experience:

● Beliefnet (acquired by News Corp), PBS,

Tribune Interactive, Warner Bros., A&E

● B.A. from Bowdoin College

Ben Wolin

Co-Founder & CEO

6

We operate the leading digital marketing and communications platform

for healthcare marketers who want to engage with consumers

or healthcare professionals.

PHARMA

COMPANIES

PAYERS /

EMPLOYERS

PROVIDERS CPG & OTC

COMPANIES

RETAIL /

PHARMACIES

A Large and Growing Market Opportunity

7

● Approximately $30B spent in the U.S.

on health marketing

● Rx, OTC, Payers and Providers all

focused on creating direct

relationships with consumers and

healthcare professionals (“HCPs”)

● Digital is the #1 area of healthcare

information consumption

● Majority of marketing is still offline

$5

$15

$3

$7

–

$2

$4

$6

$8

$10

$12

$14

$16

0%

25%

50%

75%

100%

Pharma DTC Pharma DTP Provider Other

Dig

ital

Mark

eti

ng

Sp

en

d a

s %

of

To

tal

Total Marketing Spend ($B)

Other Health

(e.g. OTC)

Source: EVDY estimates

Trends Driving Our Business

8

It’s all about ROI 3

Outsourced marketing and communications

The full solution 4

20%

50%

2009 2018

The rise of specialty Rx 1

Specialty drug sales as a % of total drug sales

102

63

2005 2014

Sales force reductions 2

Pharmaceutical sales representative jobs in the US (000s)

(2) ZS Associates’ 2014 AffinityMonitor report: http://www.pharmavoice.com/article/sales-reps-gone/

Source: EVDY estimates, ZS Associates 2014 AffinityMonitor

Our Platform Addresses Our Customers’ Needs

9

CRM and

Database Audience

Content Advanced

Analytics

Reach

Engage Measure

Identify

Our solutions help identify, reach, and engage target audiences and are supported

by deep data and analytics expertise to optimize and measure the impact

Going Deeper

with Pharma

10

11

Michael du Toit

President

● Joined EVDY as President in February 2015

● Oversees Everyday Health – Consumer and Professional

Businesses

● Previous experience:

● Publicis Health – Global Group President

● Digitas Health – President

● Razorfish Health – President

● Glaxo – VP Marketing

● Grey Advertising – Managing Director

● Unilever – Finance

● Serves on Board of Directors for Aerie Pharmaceuticals

(NASDAQ: AERI)

● BCom from Stellenbosch University, South Africa

Solving Pharma’s Marketing Needs

Across Two Dimensions

Size of Patient Population Orphan

& Rare

Mass

Market

Lifecycle of a Drug Pre-

Market

Patent

Expiration

12

Everyday Health

Consumer

13

● Joined EVDY in 2013

● Oversees EVDY Consumer Health

● Previously served as SVP of Data Sciences at EVDY

● Previous experience:

● Endeavour Health, Grosvenor Park Investment

Partners, Broadview International

● M.B.A. from London Business School and B.A. from

University of Pennsylvania

14

Yadin Shemmer

President,

Consumer Health

Vision

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To be the nexus for consumers

seeking to manage their health

and marketers seeking

to influence a health decision

Everyday Health Consumer

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• Sponsorship • Endemic Media • Lead Generation • HealthReach

• Orphan and Rare Disease Programs • TVRx

KEY BRANDS:

SOLUTIONS:

Identifying and Engaging

High Value MS Patients

C L I E N T

• Top multiple sclerosis

brand

O B J E C T I V E S S O L U T I O N

SUCCESS

STORY

• Maximize reach

among MS patients

currently on therapy

• Motivate specialist visit

• Drive requests /

discussions about

brand alternatives

• Identified target

audience through

EVDY database

• Engaged audience

with human interest

content from high-

profile patients

17

Identifying and Engaging High Value MS Patients SUCCESS

STORY

Drove

78K doctor visits

for MS

RESULTS:

Reached

30% of MS patients

currently on

treatment

Generated nearly

6K new patient starts

for the brand

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Key Takeaways – Consumer Health

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● Large, growing market

● Relevant, engaged audiences in key conditions

● Proven results for clients

20

● Joined EVDY in 2012

● Oversees EVDY Pregnancy & Parenting

● Previously served as SVP of Product and GM of

Lifestyle at EVDY

● Previous experience:

● Gerson Lehrman Group (GLG), iVillage,

Delphi Internet / News Corporation

● B.A. from George Washington University

Michael Rose

President,

Pregnancy &

Parenting

21

Vision

To be the nexus for consumers

seeking to manage their health

and marketers seeking

to influence a health decision

22

Pregnancy Approach

The marriage of content, technology,

data and monetization

personalized by user,

and specifically packaged

for the platforms moms prefer most WTE

DIGITAL

PRODUCTS

WTE MOBILE APP

STAR RATING

#1 Pregnancy app

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Registering >50% of all U.S. Pregnant Women Data Capture Driving Revenue + Engagement

DATA COLLECTION INCLUDES:

• Email

• Due date

• Zip code

• Postal address

• Interest-based behaviors

• Insurance provider

REGISTERED USERS

vs NON REGISTERED

Revenue

Engagement

What To Expect Baby Registry

Direct Response Case Study

O B J E C T I V E

• Grow share of

baby registry

creates for leading

online retailer

S O L U T I O N R E S U LT S

• Custom Baby

Registry

Integration

• Solo Emails

• Mobile Native

• Media Banners

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SUCCESS

STORY

OVER

25K REGISTRY

CREATES

$19M VALUE

CREATED OVER

THREE

MONTHS¹

¹ Assumes average baby registry size of $750

Key Takeaways – Pregnancy & Parenting

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● Pregnancy is a critical healthcare moment

● Our assets are unique competitive advantages

● Big runway in pregnancy – greenfield opportunity in parenting

Everyday Health

Professional

26

27

● Joined EVDY in 2006

● Oversees all aspects of Everyday Health Professional

● Previously served as EVP and Chief Data Officer for

Everyday Health

● Previous experience:

● Fathead, GoodTimes Entertainment, Columbia

House

● M.B.A. from Rutgers University and B.S. from Boston

University

Greg Jackson

President,

Everyday Health

Professional

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To be the leading digital

resource for pharmaceutical

marketing to HCPs

Vision

29

Everyday Health Professional

SOLUTIONS:

• Display media and sponsorship programs

• Gain-share

• Orphan & rare disease programs

• Market research

KEY BRANDS & PARTNERS:

Physician Reach Growth

30

AUDIENCE REACH

• 738K U.S. Practicing Physicians

• 103K Nurse Practitioners/Physician Assistants

ENGAGEMENT

• Total HCP engagements grew 16% Y-o-Y in 1H16

2012 2016

150K

738K

Association Relationships

31

IncreaseRx Gain-Share Program

Drives Significant Incremental Profit

C L I E N T

• Post-patent

blockbuster drug

• Reverse trend and

slow erosion of

mature, non-promoted

brand facing

significant generic

competition

O B J E C T I V E S S O L U T I O N

SUCCESS

STORY

• Generated

transactional

opportunities with

high-value writers

through no-risk gain-

share promotion

• Identified receptive

market

• Engaged segment on-

and off-network through

content and patient

assistance programs

32

IncreaseRx Gain-Share Program Drives

Significant Incremental Profit SUCCESS

STORY

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$46M net

incremental lift

123K+ incremental

scripts over

49 months

66K+ savings card

redemptions

RESULTS:

Key Takeaways – Professional

34

● We have aggregated and engaged the vast majority of HCPs

● Our digital platform is more efficient than salesforce

● Our sophisticated analytics deliver strong results for our

customers

35

BREAK

Everyday Health

Payer / Provider

36

● Joined EVDY as President in 2014

● Oversees Everyday Health Payer / Provider solutions

● Serves on the boards of Montefiore Medical Center and

several other healthcare organizations across the country

● Previous experience:

● IMS Health, McKinsey & Company, The Clinton

Foundation, Cowen & Company

● M.B.A. and M.P.H. from Yale University, B.S. from Washington

University in St. Louis, Fulbright Fellow

37

Miki Kapoor

President

38

To build the leading platform

in data-driven patient

communication for healthcare

payers and providers

Vision

Hospital Strategic Growth Is A $3 Billion Opportunity

~$300 M ~$2 B ~$800 M

Source: Kantar Research, EVDY estimates 39

Strategic Analysis

& Planning

Consumer Marketing Physician

Engagement

40

Everyday Health Payer / Provider

• Tea Leaves Health – SaaS-based

marketing and analytics CRM

• Maternity Outcomes Management

(“MOM”) program – High-risk

pregnancy identification program

• Display and custom marketing

programs

SOLUTIONS

• 6 of the top 10 largest health systems

• More than 350 hospitals across 30

states

• 3 MOM pilots

CUSTOMERS

SaaS Progress - Annualized Contract Value

41

$ millions

$6

$10

$17

$0

$2

$4

$6

$8

$10

$12

$14

$16

$18

At 6/30/15 At 12/31/15 2016 guide12/31/16 guide

Patientology Case Study Positive Response for a Knee and Hip Replacement Program

Results Feb ‘15 – Apr ‘16

Total Charges $21M

New Patients 2,285

Response Rate 17.1%

Commercially

Insured

91%

SUCCESS

STORY

C L I E N T

• 284 bed medical

center in Midwest

• Increase knee and hip

replacement

procedures

O B J E C T I V E S O L U T I O N

• Consumers targeted

utilizing Patientology

platform

• Disparate data sets

ingested from hospital

to identify consumers

likely to need services

• Payer predictive model

used to identify

commercially insured or

those likely to pay

R E S U LT S

42

MOM Connect Case Study Combining WTE and TLH Assets

SUCCESS

STORY

43

C L I E N T

• Large academic

medical center in the

Midwest

• Drive pediatric

services volume

O B J E C T I V E

S O L U T I O N

• An engaging digital

experience combining

WTE audience and

registration data with

Tea Leaves platform to

identify pregnant

women at weeks 28

and 32 in the Midwest

R E S U LT S

• Pilot resulted in ~30 net

new appointment

requests

• Renewed for full MOM

Connect

• Scaling offering across

country to 400+

systems

Key Takeaways – Payer / Provider

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● We have a huge market opportunity with lots of room to grow

● We are making substantial progress right out of the gate

toward building a sizable business

● We are leveraging Everyday Health

Financials

45

● Joined EVDY as CFO in 2003

● Oversees finance, investor relations, corporate and

strategic development, legal and business affairs, and

ad operations

● Previous experience:

● KPMG, AdOne Classified Network

● University of Pennsylvania Wharton School Executive

Development Program and B.S. from American

University

46

Brian Cooper

EVP & CFO

$134.9 $166.5

$209.1 $239.5

$21.0

$17.9

$22.9

$16.5

$155.8

$184.3

$232.0

$256.0

2013 2014 2015 2016 Guide

Advertising Premium Services

Annual P&L Summary

47

Total Revenue $ millions

¹ 2016 Guide reflects midpoint of guidance range provided on August 4, 2016.

1

$21.7

$36.0

$45.6 $45.6

14%

20% 20% 18%

2013 2014 2015 2016 Guide

Adj. EBITDA and Adj. EBITDA Margin % $ millions

1

Investments

in Pro &

Payer/

Provider

Pro Forma Revenue Growth

48

Pro forma ad revenue growth of 11% (projected) in 20161

¹ 2016 Guide reflects midpoint of guidance range provided on August 4, 2016.

Note: Pro forma assumes EVDY owned all acquisitions as of January 1, 2015.

Revenue Breakdown by Business Unit

49

2015 REVENUE

Total Revenue = $232 million

2016 GUIDE¹

Total Revenue = $256 million

Consumer, 63%

Pro, 33%

Payer & Provider,

4%

Consumer, 78%

Pro, 19%

Payer & Provider,

3%

Consumer, 57%

Pro, 36%

Payer & Provider,

7%

Total Revenue = $184 million

2014 REVENUE

¹ 2016 Guide reflects midpoint of guidance range provided on August 4, 2016.

Long-Term Financial Profile

50

●Revenue growth of ~15%

●Continued success with pharma

●Executing on hospital opportunity

●Adjusted EBITDA margins of ~30%

●Audience leverage

●Sales leverage

●SaaS revenue growth

WRAP-UP

51

Incremental Growth Opportunities

52

●CRM for Pharma

●Continuing Medical Education (“CME”)

●Leverage WTE for larger parenting opportunity

●Payer solutions

Q&A

53

54

THANK YOU

IR Contact:

Melanie Goldey

SVP, Strategic Planning & Investor Relations

mgoldey@everydayhealthinc.com

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APPENDIX

Adjusted EBITDA Reconciliation

56

2013 2014 2015

Adjusted EBITDA 21,742$ 36,019$ 45,644$

Less:

Interest expense, net 8,442 3,711 5,236

Income tax provision (benefit) 1,102 (8,666) 1,304

Depreciation and amortization expense 15,450 14,943 20,408

Stock-based compensation expense 2,969 9,100 10,936

Warrant mark-to-market adjustment - 252 -

Compensation expense related to acquisition earnout and retention bonuses 2,211 135 11,968

Write-off of unamortized deferred financing costs - 3,861 -

Executive transition and reduction in force severance charges 3,188 - 3,655

Contract settlement charge - - 1,725

Asset impairment charge 1,377 - 2,052

Loss from discontinued operations 5,239

Net income (loss) (18,236)$ 12,683$ (11,640)$

Twelve months ended December 31,

Note: A reconciliation of Adjusted EBITDA guidance for 2016 to net income (loss) is not available without unreasonable efforts due to the high variability and low

visibility of certain of the above-enumerated expense items (e.g., stock-based compensation expense), which are excluded from Adjusted EBITDA. We expect the

variability of such expenses to have a significant, and potentially unpredictable, impact on our future GAAP financial results.