An investment fund backed primarily by the California Public Employees' Retirement System (CalPERS) made a $100 million investment in WebMD, the company announced today as it reported increased quarterly and yearly revenues and a profitable fourth quarter 2003, but a net loss for the year.
CalPERS CEO Fred Buenrostro said the stock purchase was "a strategic investment for us. We believe that WebMD will play an important role in reining in America's runaway healthcare costs."
The private purchase was made by the PCG Corporate Partners Fund, a private equity fund, of convertible redeemable exchangeable WebMD preferred stock.
For the year ending Dec. 31, 2003, WebMD reported a net loss of $17 million, or -$0.05 a share, on just under $964 million in revenues, improved from a 2002 loss of $49.7 million, or -$0.16 a share, on $871.7 million in revenues.
For the fourth quarter 2003, it reported net income of $10.5 million, or $0.03 a share, on nearly $258.4 million in revenue vs. a loss of $2.4 million, or -$0.01 a share, on revenues of $229.4 million during the same period in 2002.