Demand Media Beats Q2 Expectations, With Revenue Up Strongly; Also Names New President
Santa Monica, Calif.-base Demand Media beat earnings expectations today, with a strong revenue performance up 17 percent in the second quarter and a small profit.
The social content company also said it had added Michael Blend as its new president and COO, noting he would be “expanding his current responsibilities overseeing content and media to include leading the company’s domain registration services.”
Blend — who came to Demand via an acquisition — will continue to report to CEO Richard Rosenblatt. But other major execs will also continue to do so despite the title addition for Blend.
Demand had a profit of $94,000, essentially break even on a diluted share basis, but it is its first quarter of positive net income as a company. That is up from a loss of three cents last year in the same period. But its adjusted earnings per share was nine cents, compared to an expected three cents.
Revenue was $93.1 million, a nice bump from the $89 million that Wall Street analysts had expected Demand to report.
Cash flow from operations was also up 30 percent.
“In addition to accelerating revenue growth, expanding our EBITDA margin and growing our cash flow from operations, we delivered our first quarter of positive net income as a public company in Q2,” said incoming CFO Mel Tang in a statement. “Based on our strong first half performance and outlook for the remainder of 2012, we are increasing guidance for fiscal year 2012.”
Demand’s stock, which has been on an upward swing recently, was up more than 3 percent in after-hours trading, to $12.
Here’s the full press release, and I will be listening in on its call at 2 pm PT to see if there is any more news: