Everyday Health, Inc.'s (EVDY) CEO Ben Wolin on Q2 2. Results - Earnings Call Transcript. Everyday Health, Inc. My name is Kristin, and I will be your conference operator today. PhD Diet Whey is a protein supplement which helps shed fat while maintaining lean muscle. Read our PhD Diet Whey review to learn more.![]() ![]() All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question- and- answer session. Alan Shapiro, General Counsel, you may begin your conference. Alan Shapiro. Thank you. Good afternoon everyone, and thank you for joining Everyday Health's Q2 2. Joining me today are Ben Wolin, our Co- Founder and CEO; and Brian Cooper, our Executive Vice President and CFO. Melanie Goldey is still out on maternity leave, but we are looking forward to having her back very shortly. ![]() The first day of the diet allows you to eat as many fruits as you like. There are no restrictions on when you can eat. Watermelons and cantaloupes are the recommended. Are you an overpronator or pronator, walking on the outside of your foot? Fix overpronation by finding the cause and correcting imbalance. Before we get started, I. Any forward- looking statements are based on our current expectations and beliefs, and are based on information currently available to us.
![]() Future events are subject to risks and uncertainties that could cause actual results to differ materially from the views expressed today, including, but not limited to those factors contained in the Risk Factors section of our SEC filings. All information discussed on this call is as of today and we do not intend to update this information to reflect future events or circumstances except as required by law. In today. Finally, in light of Regulation FD, it is our policy not to comment on financial guidance other than in public communication. I will now turn the call over to Ben. Ben Wolin. Thanks, Alan, and thank you all for joining us today. Q2 is a very solid quarter for Everyday Health. Our Q2 total revenue of almost $5. Advertising and sponsorship revenue was up almost 7% in Q2 and over 2. Adjusted EBITDA for Q2 was over $5. We are executing well and we are very pleased with what we are seeing across our three business areas. Our consumer advertising business improved notably in the first half of 2. Total consumer advertising growth was in the mid single- digits in the first half, while consumer pharma advertising our key customer set saw double- digit growth. We expect these consumer advertising trends to continue in the back half of the year. The consumer pharma advertising market remains robust, and with the better execution we are seeing from our team, we are confident that our largest business segment can accelerate growth in the years to come. Our professional business which is more than one- third of the total business remains very strong. ![]() We are not only going deeper with existing customers, but we are succeeding in further penetrating our market and adding numerous new brands to our platform. The total number professional brands we worked with in the first half of 2. Underlying this growth is increasing engagement with our physician audience which improved 1. Our payer and provider business, anchored by the hospital CRM solution, we acquired exactly a year ago is doing great and exceeding all our key financial and operating metrics. While moving into the category created a short- term drag on our EBITDA in 2. For example, we recently signed a three- year enterprise deal with a top five U. S. We are on track to almost double our payer/provider business this year and are positioned for substantial growth next year. Our decision in late 2. We have upgraded the sales talent in each of the three teams and we will continue to reap the benefits from having dedicated team focused on discrete market segments. Likewise, the investments we made this year, particularly in our professional and payer/provider units are already paying off for us. Before reviewing each business unit in more detail, I wanted take a moment to remind everyone of the strategic goal we are singularly focused on, namely to operate the leading marketing and communications platform for all healthcare marketers, seeking to engage and influence consumers and healthcare professionals. We remain convinced that connecting with consumers and physicians through digital channels will continue to increase in importance for all healthcare entities, whether it. That is where the audience is moving and the ability to target and measure in real- time is far superior. It is no longer debate whether digital marketing budgets will dramatically increase in the coming years. The debate at this point is really around how quickly the shift can and will occur. The macro trends in our business remain quite positive. Our thesis is that all of our clients whether it. First, identifying who they want to reach; second, being able to actually reach that target audience; third, engaging with the target audience in a compelling way; and fourth, measuring the results of the marketing efforts to see what's working. Our unique digital platform enables any healthcare entity targeting consumers or healthcare professionals to address all four of these objectives. Our platform has three pillars. First, a large and engage health- focused audience; second, premier health content and actionable tools for both consumers and healthcare professionals; and third, best- in- class data and analytics technology that can deliver effective marketing and communication programs that we measure in real- time. Let me now share with you in more detail what we are seeing across three business units. We are pleased our consumer business continues to make good progress in 2. As I noted at the outset our consumer advertising increased mid single- digits in the first half of the year, while consumer pharma advertising experienced double- digit growth. We expect the same performance in the second half of 2. We expect future growth in consumer advertising revenue to come from pharma brand and marketing on our What to Expect property. On the pharma side the continuing focus on specialty drug development across the pharma sector, particularly orphan and rare brand, should benefit our consumer business. For niche patient population, our digital platform remains a superior engagement platform compared to TV and other legacy marketing channels. As I mentioned on our last call spending on specialty drugs is currently 3. It's only around one to two percent of patients constitutes specialty drug usage is very small sliver of the patient population will soon be responsible for 5. This represents a significant opportunity for us as large and small pharma companies will increasingly turn to digital channels to engage these highly targeted audiences. Our leading What to Expect pregnancy and parenting brand is doing great. In the first half of 2. We continue to see around 5. U. S. The power of the What to Expect brand on a global scale was very evident just yesterday. As you may have seen yesterday was global Bump. Day. What to Expect in partnership with the international health organizations such as the United Nations Foundation and the International Medical Corps and major corporate sponsors such as Duracell, Ameri. Corps and Disney created Bump. Day to help raise awareness about the need for maternal health care worldwide. Almost 1,0. 00 women die every day as a result of pregnancy related causes and most of these deaths are preventable with access to prenatal care and pregnancy, skilled care during childbirth and Karen support in the weeks after childbirth. This was the second annual Bump. Day and the growth and success of this day measured not only by social media and other activity, but also by donations from around the world is a real testament to the prestige and credibility of the What to Expect brand and its ability to really drive public health benefits. Our professional business continues to perform very well. As we said in the past, pharma companies spend approximately three to five times more on marketing to physicians than they do on marketing to consumers and digital solutions are replacing the feet on the street sales model and pharma companies are slashing their sales forces and doctors increasingly refuse to see sales reps. Our professional growth in 2. First, we are succeeding in signing up new pharma brands. We have already signed up 9. Second, as we shared in the past pharma clients are increasingly interested in performance based programs. We are the clear leader here, and our gain share model is an important revenue driver for the professional business. These programs increase prescription activity for our clients and they can accurately measure the effectiveness of these programs. There is no guesswork as to whether the marketing is working or whether the dollars are being well spent. These programs were initially sold to single brand through the end of our beyond patent exclusivity, but an interesting development we are seeing in the marketing - - in the market is that a broader set of pharma brands are attracted to these programs and companies are increasingly willing to do broader enterprise deals incorporating multiple brands. We think this trend towards performance based programs will continue, and we believe our successful track record at driving prescription volume for our clients will allow us to maintain our strong leadership position here. We're also making excellent progress in driving increased engagement across our professional audience. Professional engagement defined as a validated healthier professionals interacting with our properties with a consumer content participating in a market research study, asking for product sample, are earnings CRE credit, increased 1. Physician registrations are also up 2. We invested significantly in our professional business across product and sales in the first half of 2. These investments are paying off, and we continue to see our professional business as a very large revenue opportunity for us. Turning now to our payer/provider business, which focuses on selling a CRM platform and marketing solutions to hospitals and marketing programs to help insurers. We acquired Tea Leaves Health, a hospital CRM, exactly a year ago. During this time, we have seen three main dynamics at play. Nutritional Ketosis Diet May Be Key for Optimal Health. By Dr. Mercola. Obesity and top killers such as diabetes, heart disease, Alzheimer's and cancer have something significant in common — they're all rooted in insulin and leptin resistance. Sugars found in processed foods and grains are the primary culprits, and the standard American diet is chockfull of both. This is good news, as it significantly simplifies your approach to improving your health. You won't need a different set of strategies to address each condition. So how do you correct these metabolic imbalances? The timing of your meals can also play an important role. Nutritional Ketosis May Be Key for Optimal Health. By eating a healthy high- fat, low- carbohydrate and low- to moderate- protein diet, you enter into what is known as nutritional ketosis: a state in which your body burns fat as its primary fuel rather than glucose (sugar). Mounting research suggests nutritional ketosis is the answer to a long list of health problems, starting with obesity. In fact, endurance athletes are turning away from conventional high- carb strategies and adopting this way of eating because it boosts physical stamina and endurance. Cancer is another area where ketogenic diets show great promise. Other benefits include fewer hunger pangs and a dramatic drop in food cravings once you've made the shift from burning sugar to burning fat as your primary fuel. Being an efficient fat burner may also boost your longevity. Researchers have identified about a dozen genes associated with longevity. According to Jeff Volek, Ph. D., a registered dietitian and professor in the Human Science Department at Ohio State University, who has done enormous work in the field of high- fat, low- carbohydrate diets and has authored several books on this topic, the primary function of one of these genes is to cripple the degradation of branched- chain amino acids (BCAAs), such as leucine. Preventing this degradation can help preserve your muscle mass. BCAAs have other benefits as well: In a number of studies involving middle- aged animal models, adding BCAAs increased muscle and cardiac mitochondrial biogenesis (the creation of new mitochondria), improving both health span and longevity. Interestingly, BCAAs are very similar in structure to ketones — energy molecules created by your liver from fats — and ketones seem to be preferentially metabolized. In other words, ketones spare those branched- chain amino acids, leaving higher levels of them in circulation while also helping you retain muscle mass and promoting longevity. Ketones — A Healthy, Clean- Burning Fuel. The primary reason that so many people are overweight and/or in poor health these days is that the Westernized diet is overloaded with non- fiber carbs as the primary fuel, which in turn inhibit your body's ability to access and burn body fat. High- quality fats, meanwhile, are a far preferable fuel, as they are utilized far more efficiently than carbs. When you burn fat as your primary fuel, your respiratory quotient (the amount of oxygen you need) typically goes down,2 which is a sign that your metabolism is running more efficiently. How to Enter Into Nutritional Ketosis. The most efficient way to train your body to use fat for fuel is to remove most of the sugars and starches from your diet, and that's true for everyone, whether you're an elite athlete or a sedentary diabetic. At the same time, you'll want to replace those carbs with healthy fats. This is only a generalization, as each person responds to foods in a different way. Some people can enter into full ketosis while eating as much as 7. Others, especially if you're insulin resistant or have type 2 diabetes, may require less than 4. This will give you an objective measure of whether or not you're truly in ketosis, rather than just relying on counting the grams of carbohydrates you consume. Nutritional ketosis is defined as blood ketones that stay in the range of 0. L). My first choice is Cronometer. That's my upgrade to the basic Cronometer nutrient tracker, and the default is set to macronutrient levels that will support nutritional ketosis. Avoid Milk and Consider MCT Oil. Aside from added sugars and grains, it is best to avoid milk for the time being, as it can be difficult to stay in ketosis if you eat or drink a lot of it. The galactose in milk is a carbohydrate and you can easily exceed your net carb allotment by drinking a single glass of milk. Casein, the primary protein in milk, can also trigger or contribute to inflammation. When you keep net carbs low, your body switches to burning fat for fuel and your liver begins to convert some of that fat into ketone bodies. This is endogenous production, meaning that they are made by your body from your fat stores or from the fats in the foods that you eat. You can boost your level of ketones by taking them in supplement form, but these exogenous ketones (made in a lab, not in your body) are not likely to be as beneficial unless you are already . Based on my understanding of mitochondrial health and metabolic function, a vast majority of health conditions could fall into this category. One of the conditions for which a ketogenic diet has the longest and best documented track record is epilepsy. This diet has been effectively used to treat drug resistant epileptic seizures since the 1. In my view, it would be wise to implement a ketogenic diet as a first- line therapy, but in conventional medicine, it's typically not considered or recommended unless the patient fails to respond to medication. Even then, this conversation may have to be initiated by the patient, or the parent of a child with seizures. As noted in the featured article: 5. This is also known as a 4: 1 ketogenic diet because it provides four times as much fat as protein and carbs combined. The modified Atkins diet (MAD) is based on a considerably less restrictive 1: 1 ratio of fat to protein and carbs. It has been shown to be equally effective for seizure control in most adults and children older than two years of age. While fats are unable to cross the blood brain barrier, ketones, being water- soluble fats, can cross it and feed your brain. They also appear to lower markers of systemic inflammation, such as IL- 6 and others. Many times, improved cognition and mental acuity are among the first things people notice when entering nutritional ketosis. Ketones are the preferred source of energy for your brain in general, but especially for those affected by diabetes, Alzheimer's, Parkinson's and maybe even ALS, because in these diseases certain neurons have become insulin resistant or have lost the ability to efficiently utilize glucose, which causes the neurons to die off. When ketones are present, these neurons have a better chance of surviving and thriving. As noted in the featured article, . They also do not need insulin to help them cross cell membranes, including neuronal membranes. Instead, they use simple diffusion, so they can even enter cells that have become insulin resistant. This is likely one of the reasons nutritional ketosis works so well for a variety of neurological problems and diseases. It even shows promise for. Migraine headaches: Following a ketogenic diet for four weeks has been shown to reduce migraine frequency and lower the use of pain medication. Traumatic brain injuries: Animal studies suggest it can help reduce brain swelling, improve motor function and speed up recovery, although it appears more effective in the young than the old. Human studies still need to validate these findings. Metabolic Conditions Improve on Ketogenic Diet Nutritional ketosis is also indicated for obesity, metabolic syndrome (prediabetes) and diabetes. This is not surprising, considering the fact that one of its beneficial effects is correcting insulin resistance. If you meet at least three of the following criteria, you may be diagnosed with metabolic syndrome: abdominal obesity, elevated triglycerides, low HDL cholesterol, high blood pressure and/or elevated fasting blood sugar. Nutritional ketosis has been shown to improve most of these. Nonalcoholic fatty liver disease (NAFLD), which is strongly associated with obesity, type 2 diabetes and metabolic syndrome, has also been shown to improve on a low- carb diet high in healthy fats. In one study,1. 3 obese men diagnosed with metabolic syndrome and NAFLD showed significant improvement in their weight, blood pressure, liver enzymes and liver fat after four months on a ketogenic diet; 2. NAFLD. Glycogen storage disease (GSD) and glucose transporter 1 (GLUT1) deficiency syndrome are two other conditions for which a ketogenic diet is a literal life saver. GSD is characterized by a lack of an enzyme that helps store glucose as glycogen or break glycogen down into glucose. The exact form of the disease depends on which enzyme in question that's lacking. As noted by Authority Nutrition. However, early research suggests that a ketogenic diet may benefit people with some forms of GSD, . Seizures and impaired motor skills are two common symptoms that typically manifest shortly after birth. The benefit of a ketogenic diet is quite apparent in this case, as ketones do not need this protein in order to enter your brain. Hence ketones are an ideal fuel for GLUT1 deficient people, allowing their brains to function more normally. Hormonal and Nervous System Disorders May Improve on Ketogenic Diet. Your hormone regulation and nervous system may also benefit from being an effective fat burner. Polycystic ovary syndrome (PCOS) and multiple sclerosis (MS) are two conditions that appear to respond well to this switch in primary fuel.
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