Demand Media Posts First Earnings Report as Public Company
Demand Media posted its fourth quarter financial results today – the company’s first earnings report since going public last month. Demand posted revenue of $73.6 million, an increase of 33% compared to $55.5 million in the same quarter the previous year.
Income from operations was $2.8 million compared to a net loss from operations of ($3.2) million in Q409. Net income was $1.0 million compared to a net loss of ($3.9) million in Q409. Cash flows from operations was $20.9 million, up 95% compared to $10.7 million in Q409.
"We are pleased to report strong financial results in our first earnings release as a public company,” said CEO Richard Rosenblatt. “Our record performance in the fourth quarter was driven by our ability to attract and engage consumers while delivering great results for our growing base of advertisers."
"In the fourth quarter, new brand advertisers helped fuel 36% year-over-year growth in revenue per thousand page views, or RPM, on our owned and operated properties, while our audience grew organically to more than 100 million unique monthly visitors worldwide (as measured by comScore)," he added. "Increased engagement and audience growth during the quarter from emerging channels, particularly Facebook and mobile, highlight just some of the large opportunities for our business model."
“Ongoing revenue growth from high-quality, long-lived content published in prior years, compounded with new discretionary content investments, positions Demand Media for significant growth in 2011,” said President and CFO Charles Hilliard.
Highlights from the quarter, as indicated by the press release:
– Content & Media Revenue was $46.8 million, up 46% compared to $32.1 million in Q409.
– Traffic acquisition costs (TAC), which represent the portion of Content & Media revenue shared with Demand Media partners, was $3.3 million, or 7.1% of Content & Media revenue, compared to $3.6 million, or 11.2% of Content & Media revenue in Q409.
– Content & Media Revenue ex-TAC was $43.5 million, up 53% compared to $28.5 million in Q409.
– Registrar Revenue was $26.8 million, up 14% compared to $23.4 million in Q409.
– Investment in Intangible Assets was $12.8 million, up 58% compared to $8.1 million n Q409.