Demand Media Beats Wall Street Expectations for Q2, Acquires Two Start-Ups and Re-Ups with Google
Demand Media, the Santa Monica, Calif., online content company, said its revenue increased 32 percent in the second quarter, as it reduced its net loss significantly.
Demand also said it had acquired Los Angeles-based IndieClick, a premium online advertising company and RSS Graffiti, a social media company.
The company also said that it struck a three-year “renewal and expansion of its ongoing advertising partnership with Google to monetize Demand Media’s owned and operated properties and premium content inventory.”
Revenues rose to $79.5 million in the quarter compared to $60.4 million a year ago. Analysts had expected $73.9 million.
Net loss per share on a GAAP basis was three cents, or $2.4 million, compared with a 75 cent loss, or $1.9 million, in the same period last year.
On a non-GAAP basis, which Demand’s investors also take into consideration, revenue minus traffic acquisition costs increased 34 percent to $76.6 million from $57.3 million last year.
Adjusted net income per share, diluted of six cents, grew 50 percent, compared with four cents a year ago.
About IndieClick, which Demand said would help monetize its audience on the Cracked humor site, the company noted in a press release:
“IndieClick represents a curated portfolio of important online destinations in the comedy/humor, entertainment, film, music, lifestyle, and fashion categories that are especially relevant to enthusiasts, with a focus on the 18-34 year-old demographic.”
As for re-upping its longtime advertising deal with Google, Demand said that it would extend its display advertising and premium ad serving arrangements and that its properties “will be included in premium, brand-safe channels within Google Display Network Reserve.”
I will be liveblogging Demand’s earnings at 2 pm PT.
Until then, please peruse all the various press releases from Demand: