Demand Media President Charles Hilliard Steps DownBy: Chris Crum - June 15, 2012
Demand Media President and CFO Charles Hilliard is stepping down. He will be replaced, at least in the CFO role, by Senior Vice President, Finance and Treasurer Mel Tang, effective August 16.
Hilliard will become Special Advisor to Demand Media’s Board. According to an SEC filing (h/t: Peter Kafka), Hilliard entered into a one-year consulting agreement with the company. For this, he’ll get $30,000 and 15,000 non-qualified stock options.
CEO Richard Rosenblatt had this to say about Hilliard: “Over the past five years, Charles has played an instrumental role in building Demand Media and its operations, leading our IPO, and placing the company on solid financial ground. We thank Charles for his many valuable contributions and look forward to working with him as Special Advisor to the Board of Directors.”
Hilliard said, “After having accomplished what I set out to do in an operating role, I look forward to working with the company and the Board in an advisory capacity,” said Hilliard. “I want to thank all of my Demand Media colleagues for an amazing five years and the opportunity to work with such a talented team that has built an exciting company well positioned for future success.”
“Mel has been an integral part of our team since 2006 and this promotion is well deserved,” Rosenblatt said of Hilliard’s replacement. “His leadership skills, strategic insights and financial acumen will be important contributors to our future success.”
“I look forward to working more closely with our executive team, Board and stockholders in this new position,” said Tang. “Innovation and financial discipline have helped make Demand Media a leader in content and social media, and I am excited to carry forward that legacy as we take the company to its next level of growth.”
The company also reaffirmed its financial guidance for the second quarter and full year.
“Demand Media’s increased guidance reflects our first quarter performance, our improved outlook for the remainder of 2012 and, for the first time in more than a year, a return to accelerating year-over-year revenue growth beginning in Q2,” Hilliard said in Demand Media’s Q1 earnings report.
From that same report:
Excluding up to $4 million of 2012 expenses that the Company expects to incur related to the formation of its generic Top Level Domain (“gTLD”) initiative, the Company’s guidance for the second quarter endingJune 30, 2012 and fiscal year ending December 31, 2012 is as follows:
Second Quarter 2012
Revenue in the range of $89.0 – $91.0 million
Revenue ex-TAC in the range of $85.0 – $87.0 million
Adjusted EBITDA in the range of $22.0 – $23.0 million
Adjusted EPS in the range of $0.07 – $0.08 per share
Weighted average diluted shares of 86.0 – 87.0 million
Full Year 2012
Revenue in the range of $361.0 – $367.0 million
Revenue ex-TAC in the range of $347.0 – $353.0 million
Adjusted EBITDA in the range of $96.0 – $99.0 million
Adjusted EPS in the range of $0.33 – $0.35 per share
Weighted average diluted shares of 86.5 – 87.5 million
And speaking of gTLDs, the big list of those applied for (and who applied for them) came out this week, with Demand Media revealing the 26 it applied for on a standalone basis. Among them were political gTLDs like .democrat and .republican and military gTLDs like .army, .navy and .airforce.
The company also has a partnership with Donuts, which will enable it to acquire more gTLDs applied for by that company.