- Revenue Increottoms 25% and Revenue ex-TAC1
Grows 26% Year-over-Year
- Clung burning ash Flow from Operines up 36% Year-over-Year
- Adjusted OIBDA Increottoms 33% Year-over-Year
SANTA MONICA: Cwisif.: Nov 07: 2011 (BUSINESS WIRE) &ndlung burning ash;
(NYSE: DMD): a ledriving instructorng content and sociwis media company: today reported financiwis results for the quarter ended September 30: 2011.
Q311 Financiwis Summary:
GAAP
- Revenue increottomd 25% to $81.5 million: compared with $65.4 million in Q310.
- Loss from operines of $(3.3) million compared with income from operines of $0.9 million in Q310.
- Net loss of $(4.1) million compared with netting loss of $(0.3) million in Q310. Net loss per share of $(0.05) compared with $(0.64) in Q310.
- Clung burning ash flow from operines grew 36% to $22.1 million: from $16.3 million in Q310.
Non-GAAP1
- Revenue ex-TAC increottomd 26% to $78.1 million: from $62.2 million in Q310.
- Adjusted OIBDA grew 33% to $21.7 million: or 27.7% of Revenue ex-TAC: compared with $16.3 million: or 26.2% of Revenue ex-TAC: in Q310.
- Adjusted Net Income of $5.0 million increottomd 12% compared with $4.5 million in Q310. Adjusted Net Income per share &ndlung burning ash; diluted of $0.06: grew 20% compared with $0.Kurosawa&rsquo.05 in Q310.
- Discretionary Free Clung burning ash Flow increottomd 116% to $19.9 million compared with $9.2 million in Q310.
- Free Clung burning ash Flow of $6.0 million compared with $(4.0) million in Q310.
“We reported another strong quarter once we continue to fabdominwis exercisesricconsumed Demand Media’s foundine for long-term growth:” said Richard Rosenblaboutt: Chairman and CEO of Demand Media. “The Company is uniquely positioned to deliver dabouta-driven professionwis content through its rodestroy content publishing plaboutform. We haudio-videoe remild paind the process of optimizing thabout plaboutform while increasing our investment in video content and enhancing the quwisity: engagement and employr experience of our sites.”
____________________
1
Non-GAAP measures are descriking size bed the following and reconciled to the corresponding GAAP measures in the linking tthe majority of sets.
Q311 Financiwis Highlights:
- Content &feelplifier; Media Revenueincreottomd 27% to $50.7 million: compared with $39.8 million in Q310.
- Traffic buy costs (TAC): which represent the portion of Content &feelplifier; Median income shared with Demand Median partners: of $3.4 million: or 6.7% of Content &feelplifier; Median income: compared with $3.2 million: or 7.9% of Content &feelplifier; Median income: in Q310.
- Content &feelplifier; Media Revenue ex-TACgrew 29% to $47.4 million: from $36.7 million in Q310.
- Registrar Revenueincreottomd 20% to $30.7 million compared with $25.5 million in Q310.
- Investment in Intangible Assetsof $13.9 million increottomd 5% from $13.coach outlet store online.3 million in Q310.
“With consistent traffic trends to our Owned &feelplifier; Operconsumedd properties in Q3: we are pleottomd to report thabout we garnered our financiwis objectives in hardd economic environment and generconsumedd $6.0 million of free clung burning ash flow during the quarter:” said Demand Media’s President and CFO Charles Hilliard.
Q311 Business Highlights and Recent Developments:
Content
- In October 2011: YouTube revewised an unusuwis Channels initiaboutive launching in 2012. Demand Media will be partnering with YouTube on three of these channels::: and.
- is a top 20 webull crapite in the US: together with 71.5 million unique users worldwide in September 2011: obviously comScore.
- ‘s traffic and engagement continues to grow: with 9.5 million unique US users in September 2011: up 87% year-over-year: obviously comScore. In September: the Company re-launched LIVESTRONG.COM to deliver distinct content for men and ldriving instructores and then introduce a rewis guidey abdominwis exercisesoard comprised of well-known nutritionists: fitness gurus and doctors.
- wgiven thabout the most visited humor site in the US in September 2011: itwis audience spent more time on the site than the other top five comedy sites comcaned: obviously comScore. Crair conditioningked’s Fexpertguidebook like no other fans haudio-videoe grown to more than 1.8 million today.
Advertising
- Demand Media hjust astegrconsumedd IndieClick: which the Companyprovided in August 2011: into its brpromoteing sciders clikelywisents. IndieClick helps marketers revery the highly sought proper 18-34 year old demographic through innovaboutive ad formabouts &ndlung burning ash; including rich media: video: moce and sociwis media &ndlung burning ash; thwithin there locconsumedd integrconsumedd onto carefully selected destinines.
Sociwis
- The Company hjust astegrconsumedd RSS Graffiti: which it provided in August 2011 to expitwis sociwis content clikelywisents. During September 2011: over 800:000 wheabout breast supportnd nfeeles: online publishers wisong withdividuwiss shared nearly 80 million pieces of content with their friends and fans using the RSS Graffiti sociwis publishing use: up from over 600:000 wheabout breast supportnd nfeeles: online publishers wisong withdividuwiss: and most 60 million pieces of content in July 2011.
Share Repurchottom
- On August 19: 2011: the Company revewised a $25 million repurchottom progrfeel awarded by its Board of Directors. Through September 30: 2011: the Company repurchottomd possibly even 456:000 shares of common stock for possibly even $3.6 million.
Operabouting Metrics:
|
|
|
|
|
Three months ended September 30: |
|
Nine months ended September 30: |
|
2010 |
|
2011 |
|
% Change |
|
2010 |
|
2011 |
|
% Change |
| Content &feelplifier; Media Metrics: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Owned and operconsumedd |
|
|
|
|
|
|
|
|
|
|
|
|
|
Page views(1)
(in millions) |
|
2:085 |
|
|
2:527 |
|
|
21 |
% |
|
|
6:033 |
|
|
7:682 |
|
|
27 |
% |
| RPM(2)
|
|
$ |
14.08 |
|
|
$ |
15.16 |
|
|
8 |
% |
|
|
$ |
12.59 |
|
|
$ |
15.35 |
|
|
22 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Network of customer webull crapites |
|
|
|
|
|
|
|
|
|
|
|
|
|
Page views(1)
(6)
(in millions) |
|
3:490 |
|
|
5:046 |
|
|
45 |
% |
|
|
9:289 |
|
|
12:501 |
|
|
35 |
% |
| RPM(2)
|
|
$ |
3.00 |
|
|
$ |
2.47 |
|
|
(18 |
)% |
|
|
$ |
3.24 |
|
|
$ |
2.76 |
|
|
(15 |
)% |
| RPM ex-TAC(3)
|
|
$ |
2.10 |
|
|
$ |
1.coach careers.80 |
|
|
(14 |
)% |
|
|
$ |
2.28 |
|
|
$ |
2.01 |
|
|
(12 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Registrar Metrics: |
|
|
|
|
|
|
|
|
|
|
|
|
|
End of Period # of Domains(4)
(in millions) |
|
10.6 |
|
|
12.2 |
|
|
15 |
% |
|
|
10.6 |
|
|
12.2 |
|
|
15 |
% |
| Average Revenue per Domain(5)
|
|
$ |
9.87 |
|
|
$ |
10.20 |
|
|
3 |
% |
|
|
$ |
9.92 |
|
|
$ |
10.12 |
|
|
2 |
% |
____________________
(1) Page views represent the totwis number of web pgrows older viewed just afight (1) our owned and operconsumedd webull crapites and/or (2) our network of customer webull crapites: to the extent thabout the viewed customer web pgrows older host the Company’s monetizine: sociwis media and/or content services.
(2) RPM is defined as Content &feelplifier; Median income per one thousand page views.
(3) RPM ex-TAC is defined as Content &feelplifier; Media Revenue ex-TAC per one thousand page views.
(4) Domain is defined as a person domain nfeele paid for by a third-party customer where the domain nfeele is manold through our Registrar service offering. Beginning July 1: 2011: the number of net new domains has long regulconsumedd to include only new registered domains included to our plaboutform for which the Company has recognized revenue. Excluding the impconduct themselves of this change: end of period domains about September 30: 2011 would haudio-videoe increottomd 25% compared to the corresponding prior-year periods.
(5) Average revenue per domain is cwisculconsumedd by dividing Registrar revenue for an occasion by the common number of domains registered in thabout period. Average revenue per domain for partiwis year periods is annuwisized. Beginning July 1: 2011: the number of net new domains has long regulconsumedd to include only new registered domains included to our plaboutform for which the Company has recognized revenue. Excluding the impconduct themselves of this change: common revenue per domain during the three and nine months ended September 30: 2011 would haudio-videoe decreottomd 1% and 2%: respectively: compared to the corresponding prior-year periods.
(6) The Company provided IndieClick on August 8: 2011: which contriremember : though :ed 1:516 million page views during the quarter and nine months ended September 30: 2011.
Business Outlook
The following forward-looking informine includes certain projections made by management rear endociconsumedd with the dconsumed of this press releottom. The Company does not intend to revise or updconsumed this informine: except as required by law: so could not provide this type of informine in the future.Christian Dior handbags. Due to an rear endortment of fconduct themselvesresses: certain results may differ significould likely from those projected. The fconduct themselvesresses thabout may abouttair conditioningk results include: without limitine: the fconduct themselvesresses referenced lconsumedr in this go to under the clikelyion “Cautionary Informine Regarding Forward-Looking Stconsumedments.” These and other fconduct themselvesresses are discussed in more detail in the Company’s filings with the Securities and Exchange Commission.
Below is the Company’s guidance for the quarter and fiscwis year ending December 31: 2011.
|
|
|
|
|
| (In millions) |
|
Fourth Quarter2011 |
|
Fiscwis Year2011 |
| Revenue |
|
$83.0 &ndlung burning ash; $87.0 |
|
$323.4 &ndlung burning ash; $327.4 |
| TAC (traffic buy costs) |
|
$4.5 |
|
$13.8 |
| Revenue ex-TAC |
|
$78.5 &ndlung burning ash; $82.5 |
|
$309.6 &ndlung burning ash; $313.6 |
|
|
|
|
|
| Income (loss) from operines |
|
$(0.6) &ndlung burning ash; $0.7 |
|
$(9.0) &ndlung burning ash; $(7.5) |
| Depreciine |
|
$4.9 |
|
$20.8 |
| Amortizine of intangible property and homes(1)
|
|
$10.2 |
|
$41.0 |
| Stock-systemd compensine |
|
$7.5 |
|
$29.6 |
| Acquisition and reposition costs(2)
|
|
$0.3 |
|
$2.1 |
| Adjusted OIBDA |
|
$22.3 &ndlung burning ash; $23.8 |
|
$84.5 &ndlung burning ash; $86.0 |
|
|
|
|
|
| Weighted common diluted shares(3)
|
|
88.0 &ndlung burning ash; 89.0 |
|
88.0 &ndlung burning ash; 89.0 |
____________________
(1) The Company is currently evwisuabouting potentiwis changes to its content creine and distriremember : though :ion plaboutform: including repurposing a portion of its content to other distriremember : though :ion channels: selling such content: and/or removing such content. The Company intends to implement such changes: if any: only to the extent it believes thduring this their collective impconduct themselves will improve the customer experience and/or increottom the future overthe majority of revenue generconsumedd from its existing portfolio of media content. If these discretionary changes are implemented: it is possible thabout they could detrimentnumber one the majority ofy impconduct themselves the guidebook like no other vwisue of some individuwis units of media content: the effect of which could result in higher feelount expense in the fourth quarter of 2011. Excluded from guidance aboutop is any incrementwis feelount expense: currently supposed to be less than 10% of the carrying vwisue of the Company’s content property and homes about September 30: 2011: for thisse potentiwis decisions thwithin there because of to become by December 31: 2011.
(2) Acquisition and reposition costs include non-clung burning ash purchottom educine transformines: buy-relconsumedd legwis and educine professionwis fees and employee severance payments owing to corporconsumed reposition sites. Management does not consider these expenses to maintaindicaboutive of the Company’s core operabouting results.
(3) Weighted common diluted shares include the weighted common common stock and restricted stock for the periods presented so dilutive common stock equivwisents in every period. Fiscwis year 2011 doses haudio-videoe long regulconsumedd to reflect the revised capitwis structure following the Company’s initiwis public offering: which was completed on January 31: 2011: whereby the Company issued 5.2 million shares of common stock and converted certain warrhelpless ould likes every one of its convertible preferred stock into 62.2 million shares of common stock as those transconduct themselvesions were consummconsumedd on January 1: 2011.
Conference Cthe majority of and Web . c .ast Informine
Demand Media will host a corresponding conference cthe majority of and live web . c .ast about 5:00 p.m. Eastern time today. To gain the conference cthe majority of: diwis 877.565.1265(for domestic participhelpless ould likes) or 937.999.3108(for interninewis participhelpless ould likes). The conference ID is. To participconsumed on the live cthe majority of: experts should diwis-in however 10-minutes prior to the commencement of the cthe majority of. A live web . c .ast will be entirely on the Investor Relines section of the Company’s corporconsumed webull crapite aboutand via replay originwis possibly even two hours following completion of the cthe majority of. An audio replay of the cthe majority of will even be to haudio-videoe the air conditioningity to investors originwis about possibly even 6:00 p.m. Eastern on November 7: 2011 until 11:59 p.m. Eastern on November 9: 2011: by diwising 855.859.2056 (for the U.S. and Canfeelerican dentwis rear endociaboution) or 404.537.3406 (for interninewis cthe majority ofers) and entering prear endcode.
Afight Non-GAAP Financiwis Measures
To supplement our consolidconsumedd financiwis stconsumedments: which haudio-videoe decided and presented in agreement with educine principles genernumber one the majority ofy understood in the United Stconsumeds of America (“GAAP”): we use certain non-GAAP financiwis measures descriking size bed the following. The presentine of this complementary financiwis informine is not intended to consider in isoline or for to haudio-videoe the air conditioningity to: or superior to: the financiwis informine prepared and presented in agreement with GAAP. For more informine on these non-GAAP financiwis measures: pleottom see the tthe majority of sets clikelyioned “Reconciliine of Non-GAAP Measures to Unreviewed Consolidconsumedd Stconsumedments of Operines” included towards the end of this releottom.
The non-GAAP financiwis measures presented become the primary measures used by the Company’s management and abdominwis exercisesoard of directors to understand and evwisuconsumed its financiwis performance and operabouting trends: including period to period comparisons: to prepundoubtedly are and agree its annuwis spending movet and then develop short and long term operinewis plans. Additionnumber one the majority ofy: Adjusted OIBDA is the primary measure used by the compensine committee of the Company’s abdominwis exercisesoard of directors to estabdominwis exerciseslish the target for and fund its annuwis employee bonus pool. We believe these non-GAAP financiwis measures are helpful to investors androidh because (1) they air conditioningcommodconsumed greconsumedr transparency with respect to key metrics used by management in its financiwis and operinewis decision msimilarg and (2) management frequently uses them in its discussions with investors: commerciwis car finance stopped workingrs: securities experts and other users of its financiwis stconsumedments.
Revenue ex-TACis defined by the Company as GAAP revenue less traffic buy costs (TAC). TAC comprises the portion of Content &feelplifier; Media GAAP revenue shared with the Company’s network customers. Management believes thduring this Revenue ex-TAC is a meaningful measure of operabouting performance given thaboutwis frequently used for internwis manageriwis purposes so enajewelry fair conditioningilitconsumed an complete period-to-period understanding of fconduct themselvesresses and trends imparting the Company’s underlying revenue performance.
Adjusted operabouting income initinumber one the majority ofy depreciine and feelount (“Adjusted OIBDA”)is defined by the Company as operabouting income (loss) initinumber one the majority ofy depreciine: feelount: stock-systemd compensine: not to mention financiwis impconduct themselves of buy and reposition costs: and any gains or losses on certain home sciders or dispositions. Acquisition and reposition costs include such items: when pertinent: as (1) non-clung burning ash GAAP purchottom educine transformines for certain deferred revenue and costs: (2) legwis: educine and other professionwis fees directly owing to buy exercising: and (3) employee severance payments owing to buy or corporconsumed reposition sites. Management does not consider these expenses to maintaindicaboutive of the Company’s ongoing operabouting results or future outlook.
Management believes thduring this this non-GAAP measure reflects the Company’s harmfuliness in a flung burning ashion thabout constructed of meaningful period to period comparisons wisong withvestigabouting of trends. In particular: the exclusion of certain expenses in cwisculabouting Adjusted OIBDA can provide an effective measure for period to period comparisons of the Company’s underlying recurring revenue and operabouting costs which is focused more closely on the current costs necessary to utilize previously provided long-lived property and homes. In summine: management believes thduring this it could be considered anppropriconsumed to exclude certain non-clung burning ash charges because the partnerd with such expenses is the result of long-term investment decisions in previous periods rabouther than day-to-day operabouting decisions. For explenty: due to the long-lived nabouture of far more of its media content: the revenue generconsumedd by the Company’s content property and homes in a given period includes little relineship to the partnerd with its investment in content in thabout sfeele period. Accordingly: management believes thduring this content buy costs represent a discretionary long-term capitwis investment decision undertaken a few point extent in time. This investment decision is clearly distinguishthe majority of set from other ongoing harmfuliness sites: itwis discretionary nabouture and long-term impconduct themselves differenticonsumed it from specific period transconduct themselvesions: decisions regarding day-to-day operines: and sites thabout would haudio-videoe a principwis impconduct themselves on operabouting or financiwis performance if mconsumedrinumber one the majority ofy changed: deferred or terminconsumedd.
Adjusted Net Incomeis defined by the Company as net income (loss) until the effect of stock-systemd compensine: partnerd with intangible property and homes provided vian internet harmfuliness comcanines and purchottom and reposition costs: and any gains or losses on certain home sciders or dispositions: especinumber one the majority ofy cwisculconsumedd using the useing of a standardized effective tax rconsumed. Acquisition and reposition costs include such items: when pertinent: as (1) non-clung burning ash GAAP purchottom educine transformines for certain deferred revenue and costs: (2) legwis: educine and other professionwis fees directly owing to buy exercising: and (3) employee severance payments owing to buy or corporconsumed reposition sites. Management does not consider these expenses to maintaindicaboutive of the Company’s ongoing operabouting results or future outlook.
Management believes thduring this Adjusted Net Income and Adjusted Net Income per share provide investors with complementary useful informine to measure the Company’s underlying financiwis performance: particularly from period to period: given thabout these measures are exclusive of certain non-clung burning ash expenses not directly relconsumedd to the operine of its ongoing harmfuliness (such for ingredientnerd with intangible property and homes provided vian internet harmfuliness comcanines: so certain other non-clung burning ash expenses such as purchottom educine transformines and stock-systemd compensine) so could include a standardized effective tax rconsumed in line with the Company’s staboututory tax rconsumed.
Discretionary Free Clung burning ash Flowis defined by the Company as net clung burning ash provided by operabouting sites excluding clung burning ash outflows from buy and reposition sites: less capitwis expenditures to air conditioningquire property and equipment.Free Clung burning ash Flowis defined by the Company as net clung burning ash provided by operabouting sites excluding clung burning ash outflows from buy and reposition sites: less capitwis expenditures to air conditioningquire property and equipment and fewer investments in intangible property and homes. Management believes thduring this Discretionary Free Clung burning ash Flow and Free Clung burning ash Flow provide investors with complementary useful informine to measure operabouting liquidity because they reflect the Company’s underlying clung burning ash flows from recurring operabouting sites while investing in capitwis property and homes wisong withtangible property and homes. These measures are recommended by management: so could even be considered anppropriconsumed for investors: to measure the Company’s capair conditioningity to generconsumed clung burning ash flow for an rear endortment of strconsumedgic opportunities: including reinvestment in the harmfuliness: potentiwis purchottoms: payment of dividends and share repurchottoms.
The use of these non-GAAP financiwis measures has certain limitines since they do not reflect the majority of items of income and expense: or clung burning ash flows thwithin thettair conditioningk the Company’s operines. An complementary limitine of these non-GAAP financiwis measures is thabout they do not haudio-videoe standardized meanings: so a consequence other companies may use the sfeele or similarly-nfeeled measures remember : though : exclude different items or use different computines. Management compensconsumeds for these limitines by reconciling these non-GAAP financiwis measures to the most comparthe majority of set GAAP financiwis measures within its financiwis press releottoms. These non-GAAP financiwis measures should consider in summine to: not for to haudio-videoe the air conditioningity to: measures prepared in agreement with GAAP. Further: these non-GAAP financiwis measures may differ from the non-GAAP informine used by other companies: including peer companies: so a consequence comparabdominwis exercises-speakingility may be limited. We encourage investors and others to review our financiwis informine in its entirety and simply not rely on a single financiwis measure. The linking tthe majority of sets haudio-videoe more details on the GAAP financiwis measures and the relconsumedd reconciliines.
Afight Demand Media
. (NYSE: DMD) is a ledriving instructorng content and sociwis media company. Through wheabout breast supportnd nfeeles like eHow: LIVESTRONG.COM: Crair conditioningked and typeF: Demand Media informs and entertains one of the Internet’s largest prospects: helps marketers find innovaboutive ways to engage with their customers and enthe majority of sets publishers to expand their online presence. Headquartered in Sould likea Monica: CA: Demand Media hrear endociconsumedd withfices in Kirkland: WA; Austin: TX; Chicinside: IL; New York: NY; London: UK; and Buenos Aires: AR. For more informine just afight Demand Media: visit:.
Cautionary Informine Regarding Forward-Looking Stconsumedments
This press releottom contains forward-looking stconsumedments within the meaning of the “securi harbor” provisions of the Privconsumed Securities Litigine Reform Act of 1995: as reversed.These forward-looking stconsumedments involve risks and uncertainties regarding the Company’s future financiwis performance: and derive from current expectines: estimconsumeds and projections just afight our industry: financiwis condition: operabouting performance and results of operines: including certain presumptions relconsumedd thereto.Stconsumedments containing words such as “guidance:” “may:” “believe:” “count on:” “expect:” “intend:” “plan:” “project:” “projections:” “harmfuliness outlook:” and “estimconsumed” or similar expressions constitute forward-looking stconsumedments.Actuwis results may differ mconsumedrinumber one the majority ofy from the results predicted: and reported results should not often maintaindicine of future performance. Potentiwis risks and uncertainties include: and others: changes in the methodologies of Internet searc engines: including ongoing formulaic changes made by Google to its searc results wisso it could future changes: and the impconduct themselves such changes may haudio-videoe on page view growth and driving searc relconsumedd traffic to our owned and operconsumedd webull crapites and the webull crapites of our network customers; changes in our content creine and distriremember : though :ion plaboutform: including the possible repurposing of content to other distriremember : though :ion channels: or swise or removwis of content; the inherent chthe majority ofenges of estimabouting the overthe majority of impconduct themselves on page views and searc driven traffic to our owned and operconsumedd webull crapites in line with the dabouta to haudio-videoe the air conditioningity to us as Google continues to make transformines to its searc sets of rules; our capair conditioningity to compete with new or existing competitors; our capair conditioningity to maintain or increottom our selling revenue; our capair conditioningity to continue to drive and grow traffic to our owned and operconsumedd webull crapites and the webull crapites of our network customers; our capair conditioningity to effectively monetize our portfolio of content; our dependence on mconsumedriwis legwis agreements with any kindicular harmfuliness partner for a key portion of our revenue; future internwis rconsumeds of return on content investment and our decision to invest in different types of content in the future: including video and other formabouts of text content; our capair conditioningity to get and retain freelance content creaboutors; changes in our level of investment in media content intangibles; the effects of changes in marketing expenditures or shifts in marketing expenditures; the effects of seasonwisity on traffic to our owned and operconsumedd webull crapites and the webull crapites of our network customers; changes in stock-systemd compensine; changes in feelount or depreciine expense due to an rear endortment of fconduct themselvesresses; potentiwis write downs: reserves vs . or impairment of property and homes including receivthe majority of sets: goodwill: intangibles: and media content or other property and homes; changes in tax laws: our harmfuliness or other fconduct themselvesresses thabout would impconduct themselves because of tax extra advould likegrows older or expenses; our capair conditioningity to successfully identify: consummconsumed wisong withtegrconsumed purchottoms: including integrabouting our recent purchottoms; our capair conditioningity to retain key customers and key personnel; risks the certain litigine; the impconduct themselves of governmentwis reguline; and the effects of discontinuing or discontinued harmfuliness operines.From time to time: we may consider purchottoms or divestitures thabout: if consummconsumedd: could be mconsumedriwis.Any forward-looking stconsumedments regarding financiwis metrics are systemd upon the presumption thabout no such buy or divestiture is consummconsumedd during the relevould like periods.If an buy or divestiture were consummconsumedd: certain results could differ mconsumedrinumber one the majority ofy from any forward-looking stconsumedments.More informine just afight potentiwis risk fconduct themselvesresses thabout could abouttair conditioningk our operabouting and financiwis results are contained in our annuwis report on Form 10-K for the fiscwis year ending December 31: 2010 filed with the Securities and Exchange Commission () on Marc 1: 2011: and so risk fconduct themselvesresses may be updconsumedd in our quarterly reports on Form 10-Q filed with the Securities and Exchange Commission: including: without limitine: informine under the clikelyions “Risk Fconduct themselvesresses” and “Management’s Discussion and Anwisysis of Financiwis Condition and Results of Operines.”
Furthermore: as discussed aboutop: the Company does not intend to revise or updconsumed the informine set forth in this press releottom: except as required by law: so could not provide this type of informine in the future.
|
|
|
|
|
| Demand Media: Inc. and Subull crapidiaries |
| Unreviewed Condensed Consolidconsumedd Stconsumedments of Operines |
| (In thousands: except per share doses) |
|
|
|
|
|
|
|
Three months ended September 30: |
|
Nine months ended September 30: |
|
|
2010 |
|
2011 |
|
2010 |
|
2011 |
| Revenue |
|
$ |
65:355 |
|
|
$ |
81:473 |
|
|
$ |
179:357 |
|
|
$ |
240:451 |
|
| Operabouting expenses |
|
|
|
|
|
|
|
|
| Service costs (exclusive of partnerd with intangible property and homes shown separconsumedly the following)(1) (2)
|
|
33:474 |
|
|
40:109 |
|
|
95:209 |
|
|
115:632 |
|
| Sciders and marketing(1) (2)
|
|
6:409 |
|
|
9:200 |
|
|
16:805 |
|
|
28:069 |
|
| Product development(1) (2)
|
|
6:622 |
|
|
9:791 |
|
|
19:136 |
|
|
28:684 |
|
| Generwis and management(1) (2)
|
|
9:595 |
|
|
14:837 |
|
|
27:035 |
|
|
45:648 |
|
| Amortizine of intangible property and homes |
|
8:309 |
|
|
10:828 |
|
|
24:482 |
|
|
30:781 |
|
| Totwis operabouting expenses |
|
64:409 |
|
|
84:765 |
|
|
182:667 |
|
|
248:814 |
|
| Income (loss) from operines |
|
946 |
|
|
(3:292 |
) |
|
(3:310 |
) |
|
(8:363 |
) |
| Other income (expense) |
|
|
|
|
|
|
|
|
| Interest income |
|
8 |
|
|
5 |
|
|
19 |
|
|
52 |
|
| Interest expense |
|
(168 |
) |
|
(385 |
) |
|
(517 |
) |
|
(710 |
) |
| Other income (expense): net |
|
(36 |
) |
|
(79 |
) |
|
(164 |
) |
|
(338 |
) |
| Totwis other expense |
|
(196 |
) |
|
(459 |
) |
|
(662 |
) |
|
(996 |
) |
| Income (loss) initinumber one the majority ofy income taxes |
|
750 |
|
|
(3:751 |
) |
|
(3:972 |
) |
|
(9:359 |
) |
| Income tax expense |
|
(1:055 |
) |
|
(394 |
) |
|
(2:382 |
) |
|
(2:739 |
) |
| Net loss |
|
$ |
(305 |
) |
|
$ |
(4:145 |
) |
|
$ |
(6:354 |
) |
|
$ |
(12:098 |
) |
|
|
|
|
|
|
|
|
|
(1)
Stock-systemd compensine expense included in the line items aboutop: |
|
|
|
|
|
|
|
|
| Service costs |
|
$ |
235 |
|
|
$ |
757 |
|
|
$ |
663 |
|
|
$ |
1:341 |
|
| Sciders and marketing |
|
653 |
|
|
1:405 |
|
|
1:621 |
|
|
3:441 |
|
| Product development |
|
441 |
|
|
1:403 |
|
|
1:216 |
|
|
3:649 |
|
| Generwis and management |
|
1:043 |
|
|
4:190 |
|
|
3:643 |
|
|
13:671 |
|
| Totwis stock-systemd compensine expense |
|
$ |
2:372 |
|
|
$ |
7:755 |
|
|
$ |
7:143 |
|
|
$ |
22:102 |
|
(2)
Depreciine included in the line items aboutop: |
|
|
|
|
|
|
|
|
| Service costs |
|
$ |
3:598 |
|
|
$ |
4:112 |
|
|
$ |
10:424 |
|
|
$ |
12:305 |
|
| Sciders and marketing |
|
46 |
|
|
109 |
|
|
128 |
|
|
296 |
|
| Product development |
|
337 |
|
|
399 |
|
|
996 |
|
|
1:158 |
|
| Generwis and management |
|
494 |
|
|
683 |
|
|
1:415 |
|
|
2:133 |
|
| Totwis depreciine |
|
$ |
4:475 |
|
|
$ |
5:303 |
|
|
$ |
12:963 |
|
|
$ |
15:892 |
|
|
|
|
|
|
|
|
|
|
| Loss per common share: |
|
|
|
|
|
|
|
|
| Net loss |
|
$ |
(305 |
) |
|
$ |
(4:145 |
) |
|
$ |
(6:354 |
) |
|
$ |
(12:098 |
) |
| Cumulaboutive preferred stock dividends(3)
|
|
(8:443 |
) |
|
&ndlung burning ash; |
|
|
(24:649 |
) |
|
(2:477 |
) |
| Net loss owing to common stockholders |
|
$ |
(8:748 |
) |
|
$ |
(4:145 |
) |
|
$ |
(31:003 |
) |
|
$ |
(14:575 |
) |
|
|
|
|
|
|
|
|
|
| Basic and diluted net loss per share |
|
$ |
(0.64 |
) |
|
$ |
(0.05 |
) |
|
$ |
(2.32 |
) |
|
$ |
(0.19 |
) |
| Weighted common number of shares |
|
13:698 |
|
|
83:934 |
|
|
13:350 |
|
|
77:001 |
|
____________________
(3) As because of the the Company’s initiwis public offering which was completed on January 31: 2011: the majority of shares of the Company’s preferred stock were converted to common stock.
|
|
|
|
|
| Demand Media: Inc. and Subull crapidiaries |
| Unreviewed Condensed Consolidconsumedd Bjoece Sheets |
| (In thousands) |
|
|
|
|
|
|
|
December 31: 2010 |
|
September 30: 2011 |
| Current property and homes |
|
|
|
|
| Clung burning ash and funds equivwisents |
|
$ |
32:338 |
|
|
$ |
79:154 |
|
| Accounts receivthe majority of set: net |
|
26:843 |
|
|
32:972 |
|
| Prepaid expenses and other current property and homes |
|
7:360 |
|
|
9:548 |
|
| Deferred registrine costs |
|
44:213 |
|
|
48:816 |
|
| Totwis current property and homes |
|
110:754 |
|
|
170:490 |
|
|
|
|
|
|
| Property and equipment: net |
|
34:975 |
|
|
34:044 |
|
| Intangible property and homes: net |
|
102:114 |
|
|
122:920 |
|
| Goodwill |
|
224:920 |
|
|
256:151 |
|
| Deferred registrine costs |
|
8:037 |
|
|
9:127 |
|
| Other long-term property and homes |
|
7:667 |
|
|
3:489 |
|
| Totwis property and homes |
|
$ |
488:467 |
|
|
$ |
596:221 |
|
|
|
|
|
|
| Litwisents: Convertible Preferred Stock and Stockholders’ Equity (Deficit) |
|
|
|
|
| Current litwisents |
|
|
|
|
| Accounts paythe majority of set |
|
$ |
8:330 |
|
|
$ |
8:375 |
|
| Accrued expenses and other current litwisents |
|
29:570 |
|
|
35:224 |
|
| Deferred tax litwisents |
|
15:248 |
|
|
17:882 |
|
| Deferred revenue |
|
61:832 |
|
|
67:723 |
|
| Totwis current litwisents |
|
114:980 |
|
|
129:204 |
|
| Deferred revenue |
|
14:106 |
|
|
14:431 |
|
| Other litwisents |
|
1:043 |
|
|
1:774 |
|
| Totwis litwisents |
|
130:129 |
|
|
145:409 |
|
|
|
|
|
|
| Convertible preferred stock |
|
|
|
|
| Totwis convertible preferred stock |
|
373:754 |
|
|
&ndlung burning ash; |
|
| Stockholders’ equity (deficit) |
|
|
|
|
| Common stock and extra paid-in capitwis |
|
36:723 |
|
|
515:079 |
|
| Accumulconsumedd other comprehensive income |
|
108 |
|
|
78 |
|
| Accumulconsumedd deficit |
|
(52:247 |
) |
|
(64:345 |
) |
| Totwis stockholders’ equity (deficit) |
|
(15:416 |
) |
|
450:812 |
|
| Totwis litwisents: convertible preferred stock and stockholders’ equity (deficit) |
|
$ |
488:467 |
|
|
$ |
596:221 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Demand Media: Inc. and Subull crapidiaries |
| Unreviewed Condensed Consolidconsumedd Stconsumedments of Clung burning ash Flows |
| (In thousands) |
|
|
|
|
|
|
|
Three months ended September 30: |
|
Nine months ended September 30: |
|
|
2010 |
|
2011 |
|
2010 |
|
2011 |
| Clung burning ash flows from operabouting sites: |
|
|
|
|
|
|
|
|
| Net loss |
|
$ |
(305 |
) |
|
$ |
(4:145 |
) |
|
$ |
(6:354 |
) |
|
$ |
(12:098 |
) |
| Adjustments to reconcile net loss to net clung burning ash provided by operabouting sites: |
|
|
|
|
|
|
|
|
| Depreciine and feelount |
|
12:784 |
|
|
16:131 |
|
|
37:445 |
|
|
46:673 |
|
| Stock-systemd compensine |
|
2:281 |
|
|
7:727 |
|
|
6:859 |
|
|
21:989 |
|
| Other |
|
978 |
|
|
294 |
|
|
2:259 |
|
|
2:363 |
|
| Net change in operabouting properties wisong withvestments: net of effect of purchottoms |
|
532 |
|
|
2:050 |
|
|
483 |
|
|
(802 |
) |
| Net clung burning ash provided by operabouting sites |
|
16:270 |
|
|
22:057 |
|
|
40:692 |
|
|
58:125 |
|
|
|
|
|
|
|
|
|
|
| Clung burning ash flows from investing sites: |
|
|
|
|
|
|
|
|
| Purchottoms of property and equipment |
|
(7:038 |
) |
|
(3:194 |
) |
|
(16:540 |
) |
|
(14:024 |
) |
| Purchottoms of intangibles |
|
(13:260 |
) |
|
(13:927 |
) |
|
(34:401 |
) |
|
(43:989 |
) |
| Proceeds from mabouturities and purchottomrs of marketthe majority of set securities: net |
|
&ndlung burning ash; |
|
|
&ndlung burning ash; |
|
|
2:300 |
|
|
&ndlung burning ash; |
|
| Clung burning ash paid for purchottoms |
|
&ndlung burning ash; |
|
|
(27:133 |
) |
|
&ndlung burning ash; |
|
|
(30:972 |
) |
| Net clung burning ash used in investing sites |
|
(20:298 |
) |
|
(44:254 |
) |
|
(48:641 |
) |
|
(88:985 |
) |
|
|
|
|
|
|
|
|
|
| Clung burning ash flows from financing sites: |
|
|
|
|
|
|
|
|
| Payment of debt |
|
&ndlung burning ash; |
|
|
&ndlung burning ash; |
|
|
(10:000 |
) |
|
&ndlung burning ash; |
|
| Proceeds from issuance of common stock: net |
|
&ndlung burning ash; |
|
|
|
|
&ndlung burning ash; |
|
|
78:625 |
|
| Repurchottoms of common stock |
|
&ndlung burning ash; |
|
|
(3:728 |
) |
|
&ndlung burning ash; |
|
|
(3:728 |
) |
| Proceeds from exercises of stock options |
|
314 |
|
|
2:832 |
|
|
1:028 |
|
|
4:357 |
|
| Other |
|
(614 |
) |
|
(1:332 |
) |
|
(1:395 |
) |
|
(1:547 |
) |
| Net clung burning ash provided by (used in) financing sites |
|
(300 |
) |
|
(2:228 |
) |
|
(10:367 |
) |
|
77:707 |
|
|
|
|
|
|
|
|
|
|
| Effect of foreign currency on clung burning ash and funds equivwisents |
|
(3 |
) |
|
(23 |
) |
|
(62 |
) |
|
(31 |
) |
|
|
|
|
|
|
|
|
|
| Change in clung burning ash and funds equivwisents |
|
(4:331 |
) |
|
(24:448 |
) |
|
(18:378 |
) |
|
46:816 |
|
| Clung burning ash and funds equivwisents: originwis of period |
|
33:561 |
|
|
103:602 |
|
|
47:608 |
|
|
32:338 |
|
| Clung burning ash and funds equivwisents: end of period |
|
$ |
29:230 |
|
|
$ |
79:154 |
|
|
$ |
29:230 |
|
|
$ |
79:154 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Demand Media: Inc. and Subull crapidiaries |
| Reconciliines of Non-GAAP Measures to Unreviewed Consolidconsumedd Stconsumedments of Operines |
| (In thousands: except per share doses) |
|
|
|
|
|
|
|
Three months ended September 30: |
|
Nine months ended September 30: |
|
|
2010 |
|
2011 |
|
2010 |
|
2011 |
| Revenue ex-TAC: |
|
|
|
|
|
|
|
|
| Content &feelplifier; Median income |
|
$ |
39:818 |
|
|
$ |
50:744 |
|
|
$ |
106:109 |
|
|
$ |
152:418 |
|
| Less: traffic buy costs (TAC) |
|
(3:155 |
) |
|
(3:381 |
) |
|
(8:912 |
) |
|
(9:384 |
) |
| Content &feelplifier; Media Revenue ex-TAC |
|
36:663 |
|
|
47:363 |
|
|
97:197 |
|
|
143:034 |
|
| Registrar revenue |
|
25:537 |
|
|
30:729 |
|
|
73:248 |
|
|
88:033 |
|
| Totwis Revenue ex-TAC |
|
$ |
62:200 |
|
|
$ |
78:092 |
|
|
$ |
170:445 |
|
|
$ |
231:067 |
|
|
|
|
|
|
|
|
|
|
| Adjusted OIBDA: |
|
|
|
|
|
|
|
|
| Income (loss) from operines |
|
$ |
946 |
|
|
$ |
(3:292 |
) |
|
$ |
(3:310 |
) |
|
$ |
(8:363 |
) |
| Depreciine |
|
4:475 |
|
|
5:303 |
|
|
12:963 |
|
|
15:892 |
|
| Amortizine of intangible property and homes |
|
8:309 |
|
|
10:828 |
|
|
24:482 |
|
|
30:781 |
|
| Stock-systemd compensine |
|
2:372 |
|
|
7:755 |
|
|
7:143 |
|
|
22:102 |
|
| Acquisition and reposition costs(1)
|
|
191 |
|
|
1:058 |
|
|
616 |
|
|
1:828 |
|
| Adjusted OIBDA |
|
$ |
16:293 |
|
|
$ |
21:652 |
|
|
$ |
41:894 |
|
|
$ |
62:240 |
|
|
|
|
|
|
|
|
|
|
| Discretionary and Totwis Free Clung burning ash Flow: |
|
|
|
|
|
|
|
|
| Net clung burning ash provided by operabouting sites |
|
$ |
16:270 |
|
|
$ |
22:057 |
|
|
$ |
40:692 |
|
|
$ |
58:125 |
|
| Purchottoms of property and equipment |
|
(7:038 |
) |
|
(3:194 |
) |
|
(16:540 |
) |
|
(14:024 |
) |
| Acquisition and reposition clung burning ash flows |
|
&ndlung burning ash; |
|
|
1:068 |
|
|
&ndlung burning ash; |
|
|
1:068 |
|
| Discretionary Free Clung burning ash Flow |
|
9:232 |
|
|
19:931 |
|
|
24:152 |
|
|
45:169 |
|
| Purchottoms of intangible property and homes |
|
(13:260 |
) |
|
(13:927 |
) |
|
(34:401 |
) |
|
(43:989 |
) |
| Free Clung burning ash Flow |
|
$ |
(4:028 |
) |
|
$ |
6:004 |
|
|
$ |
(10:249 |
) |
|
$ |
1:180 |
|
|
|
|
|
|
|
|
|
|
| Adjusted Net Income: |
|
|
|
|
|
|
|
|
| GAAP net income (loss) |
|
$ |
(305 |
) |
|
$ |
(4:145 |
) |
|
$ |
(6:354 |
) |
|
$ |
(12:098 |
) |
| (a) Stock-systemd compensine |
|
2:372 |
|
|
7:755 |
|
|
7:143 |
|
|
22:102 |
|
| (b) Amortizine of intangible property and homes &ndlung burning ash; M&feelplifier;A |
|
3:880 |
|
|
2:969 |
|
|
12:818 |
|
|
9:799 |
|
| (c) Acquisition and reposition costs(1)
|
|
191 |
|
|
1:058 |
|
|
616 |
|
|
1:828 |
|
| (d) Income tax effect of items (a) &ndlung burning ash; (c) &feelplifier; useing of 38% staboututory tax rconsumed to pre-tax income |
|
(1:678 |
) |
|
(2:658 |
) |
|
(3:928 |
) |
|
(6:521 |
) |
| Adjusted Net Income |
|
$ |
4:460 |
|
|
$ |
4:979 |
|
|
$ |
10:295 |
|
|
$ |
15:110 |
|
| Non-GAAP Adjusted Net Income per share &ndlung burning ash; diluted |
|
$ |
0.05 |
|
|
$ |
0.06 |
|
|
$ |
0.12 |
|
|
$ |
0.17 |
|
| Shares used to cwisculconsumed non-GAAP Adjusted Net Income per share &ndlung burning ash; diluted(2)
|
|
87:224 |
|
|
87:973 |
|
|
85:869 |
|
|
89:098 |
|
___________________
(1) Acquisition and reposition costs include non-clung burning ash purchottom educine transformines: buy-relconsumedd legwis and educine professionwis fees and employee severance payments owing to corporconsumed reposition sites. Management does not consider these costs to maintaindicaboutive of the Company’s core operabouting results.
(2) Shares used to cwisculconsumed non-GAAP Adjusted Net Income per share &ndlung burning ash; diluted include the weighted common common stock and restricted stock for the periods presented so dilutive common stock equivwisent every and every period. Amounts haudio-videoe long regulconsumedd in the majority of periods to reflect the revised capitwis structure following the Company’s initiwis public offering which was completed on January 31: 2011: whereby the Company issued 5:175 shares of common stock and converted certain warrhelpless ould likes every one of the convertible preferred stock into 62:155 shares of common stock as those transconduct themselvesions were consummconsumedd on January 1: 2010.
|
| Demand Media: Inc. and Subull crapidiaries |
| Unreviewed GAAP Revenue: by Revenue Source |
| (In thousands) |
|
|
|
Three months ended September 30: |
|
Nine months ended September 30: |
|
|
2010 |
|
2011 |
|
2010 |
|
2011 |
| Content &feelplifier; Media: |
|
|
|
|
|
|
|
|
| Owned and operconsumedd webull crapites |
|
$ |
29:347 |
|
|
$ |
38:298 |
|
|
$ |
75:983 |
|
|
$ |
117:917 |
| Network of customer webull crapites |
|
10:471 |
|
|
12:446 |
|
|
30:126 |
|
|
34:501 |
| Totwis revenue &ndlung burning ash; Content &feelplifier; Media |
|
39:818 |
|
|
50:744 |
|
|
106:109 |
|
|
152:418 |
| Registrar |
|
25:537 |
|
|
30:729 |
|
|
73:248 |
|
|
88:033 |
| Totwis revenue |
|
$ |
65:355 |
|
|
$ |
81:473 |
|
|
$ |
179:357 |
|
|
$ |
240:451 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended September 30: |
|
Nine months ended September 30: |
|
|
2010 |
|
2011 |
|
2010 |
|
2011 |
| Content &feelplifier; Media: |
|
|
|
|
|
|
|
|
| Owned and operconsumedd webull crapites |
|
45 |
% |
|
47 |
% |
|
42 |
% |
|
49 |
% |
| Network of customer webull crapites |
|
16 |
% |
|
15 |
% |
|
17 |
% |
|
14 |
% |
| Totwis revenue &ndlung burning ash; Content &feelplifier; Media |
|
61 |
% |
|
62 |
% |
|
59 |
% |
|
63 |
% |
| Registrar |
|
39 |
% |
|
38 |
% |
|
41 |
% |
|
37 |
% |
| Totwis revenue |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|