- 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. Cingif.. Nov 07. 2011 (BUSINESS WIRE) &ndlung burning ash;
(NYSE: DMD). a leapproved driving instructorng content and sociing media company. today reported financiing results for the quarter ended September 30.dior handbag. 2011.
Q311 Financiing Summary:
GAAP
- Revenue increottomd 25% to $81.5 million. compared with $65.4 million in Q310.acquire.
- 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 a web 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.Christian Dior handbags. Adjusted Net Income per share &ndlung burning ash; diluted of $0.06. grew 20% compared with $0.05 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 even as continue to eststomair conditioning unithlish Demand Media’s foundine for long-term growth.” srelief Richard Rosenblat justt. Chairman and CEO of Demand Media. “The Company is uniquely positioned to deliver dat justa-driven professioning content through its roshuttlet line content publishing plat justform. We haudio-videoe remild paind the process of optimizing that just plat justform while increasing our investment in video content and enhancing the quingity. engagement and employr experience of our sites.”
____________________
1
Non-GAAP measures are described or crib not more than tend to be reconciled to the corresponding GAAP measures in the with tgeared ups.
Q311 Financiing Highlights:
- Content &rev; Media Revenueincreottomd 27% to $50.7 million. compared with $39.8 million in Q310.
- Traffic purchottom costs (TAC). which represent the portion of Content &rev; Median income shared with Demand Medithe human creat justures. of $3.4 million. or 6.property.7% of Content &rev; Median income. compared with $3.2 million. or 7.9% of Content &rev; Median income. in Q310.
- Content &rev; Media Revenue ex-TACgrew 29% to $47.less.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 $13.3 million in Q310.
“With consistent traffic trends to our Owned &rev; Operhadd properties in Q3. we are pleottomd to report that just we completed our financiing objectives in an effortd economic environment and generhadd $6.0 million of free clung burning ash flow during the quarter.” srelief Demand Media’s President and CFO Charles Hilliard.
Q311 Business Highlights and Recent Developments:
Content
- In October 2011. YouTube releottomd an unique Channels initiat justive 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. coupled with 71.5 million unique users worldwide in September 2011. obviously comScore.
- ‘s traffic and engagement continues to grow. with 9.expenditures.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 a noticestomair conditioning unithlylso women and then to introduce a new counselory iconrier comprised of well-known nutritionists. fitness gurus and doctors.
- wonce the most visited humor site in the US in September 2011. even asll as audience spent more time on the site than the other top five comedy sites comcompost bisexualned. obviously comScore. Crair conditioning unitked’s Fstarorganise fans haudio-videoe grown to more than 1.8 million today.
Advertising
- Demand Media has withtegrhadd IndieClick. which the Companyexperienced in August 2011. into its wheat just breast supportnd a noticestomair conditioning unithlylso for listingising sbeerskies capcompetencies. IndieClick helps entrepreneurs revery single the highly sought just after 18-34 year old demographic through innovat justive ad format justs &ndlung burning ash; including rich media. video. moce and sociing media &ndlung burning ash; thduring are developingtegrhadd onto carefully selected destinines.
Sociing
- The Company has withtegrhadd RSS Graffiti. which it experienced in August 2011 to expeven asll as sociing content capcompetencies.Dior. During September 2011. over 800.000 companies. online publishers while individuings shared nearly 80 million pieces of content with their friends and fans using the RSS Graffiti sociing publishing utilizine of. up from over 600.000 companies.capital. online publishers while individuings. and most 60 million pieces of content in July 2011.
Share Repurchottom
- On August 19. 2011. the Company releottomd a $25 million repurchottom progrmorning officiing by its Board of Directors. Through September 30. 2011. the Company repurchottomd in the region of 456.000 shares of common stock for in the region of $3.6 million.
Operat justing Metrics:
|
|
|
|
|
Three months ended September 30. |
|
Nine months ended September 30. |
|
2010 |
|
2011 |
|
% Change |
|
2010 |
|
2011 |
|
% Change |
| Content &rev; Media Metrics: |
|
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|
|
| Owned and operhadd |
|
|
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|
|
|
|
|
|
|
|
|
Page views(1)
(in millions) |
|
2.dior handbag.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 |
|
|
$ |
1.80 |
|
|
(14 |
)% |
|
|
$ |
2.28 |
|
|
$ |
2.01 |
|
|
(12 |
)% |
|
|
|
|
|
|
|
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|
|
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|
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|
| Registrar Metrics: |
|
|
|
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|
|
|
|
|
End of Period # of Domains(4)
(in millions) |
|
10.less.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 toting number of web pyrs viewed spanning (1) our owned and operhadd webull crapites and/or (2) our network of customer webull crapites. to the extent that just the viewed customer web pyrs host the Company’s monetizine. sociing media and/or content services.
(2) RPM is defined as Content &rev; Median income per one thousand page views.
(3) RPM ex-TAC is defined as Content &rev; Media Revenue ex-TAC per one thousand page views.
(4) Domain is defined as a person domain nmorninge prelief for by a third-party customer where the domain nmorninge is manvintage through our Registrar service offering. Beginning July 1. 2011. the number of net new domains has been doing fine-tuned to include only new registered domains included with our plat justform for which the Company has recognized revenue. Excluding the imptake air conditioning unittion of this change.Christian Dior clothes. end of period domains at just September 30. 2011 would haudio-videoe increottomd 25% compared to the corresponding prior-year periods.
(5) Average revenue per domain is cingculhadd by dividing Registrar revenue for an occasion by the reasongeared up number of domains registered in that just period. Average revenue per domain for partiing year periods is annuingized. Beginning July 1. 2011. the number of net new domains has been doing fine-tuned to include only new registered domains included with our plat justform for which the Company has recognized revenue. Excluding the imptake air conditioning unittion of this change. reasongeared up 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.Christian Dior.
(6) The Company experienced IndieClick on August 8. 2011. which contrieven thoughed 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 even thoughtocihadd with the dhad of this press releottom. The Company does not intend to revise or updhad this informine. except as required by law.Christian Dior handbags. and may plus not provide this type of informine in the future. Due to many kinds of fcelebritishies. correct results may differ significould likely from those projected. The fcelebritishies that just may control results include. without limitine. the fcelebritishies referenced lhadr in this story under the csuitstomair conditioning unithleion “Cautionary Informine Regarding Forward-Looking Sthadments.” These and other fcelebritishies 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 fiscing year ending December 31. 2011.
|
|
|
|
|
| (In millions) |
|
Fourth Quarter2011 |
|
Fiscing Year2011 |
| Revenue |
|
$83.0 &ndlung burning ash; $87.0 |
|
$323.
Christian Dior purse
4 &ndlung burning ash; $327.4 |
| TAC (traffic purchottom 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.Christian Dior handbags.8 |
| Amortizine of intangible funds(1)
|
|
$10.2 |
|
$41.0 |
| Stock-undersided compensine |
|
$7.5 |
|
$29.6 |
| Acquisition and reconjunction costs(2)
|
|
$0.3 |
|
$2.1 |
| Adjusted OIBDA |
|
$22.3 &ndlung burning ash; $23.8 |
|
$84.5 &ndlung burning ash; $86.0 |
|
|
|
|
|
| Weighted reasongeared up diluted shares(3)
|
|
88.0 &ndlung burning ash; 89.0 |
|
88.0 &ndlung burning ash; 89.0 |
____________________
(1) The Company is currently evinguat justing potentiing changes to its content creine and distrieven thoughion plat justform. including repurposing a portion of its content to change distrieven thoughion channels. selling such content. and/or removing such content. The Company intends to implement such changes. if any. only to the extent it emphasises that just their collective imptake air conditioning unittion will improve the customer experience and/or increottom the future overingl revenue generhadd from its existing portfolio of media content.capital. If these discretionary changes are implemented. it is possible that just they could dmorningagingly imptake air conditioning unittion the organise vingue of some individuing units of media content. the effect of which could result in higher morningount expense in the fourth quarter of 2011. Excluded from guidance right stomair conditioning unithove is any incrementing morningount expense.Christian Dior. currently supposed to be less than 10% of the carrying vingue of the Company’s content funds at just September 30. 2011. of this particularse potentiing decisions thduring are presumed to come in by December 31. 2011.
(2) Acquisition and reconjunction costs include non-clung burning ash purchottom informine systems options. purchottom-relhadd leging while informine systems professioning fees and employee severance payments as a direct result corporhad reconjunction magnets. Management does not consider these expenses to takedicat justive of the Company’s core operat justing results.
(3) Weighted reasongeared up diluted shares include the weighted reasongeared up common stock and restricted stock for the periods presented site thwhen needed direct dilutive common stock equivlight beernts in every single period. Fiscing year 2011 measures haudio-videoe been doing fine-tuned to reflect the revised capiting structure following the Company’s initiing public offering. which was completed on January 31. 2011. whereby the Company issued 5.2 million shares of common stock and converted certain warrpests causing everythings convertible preferred stock into 62.2 million shares of common stock as those transtake air conditioning unittionions were consummhadd on January 1. 2011.
Conference Cingl and Web . c .ast Informine
Demand Media will host a corresponding conference cingl and live web . c .ast at just 5:00 p.m. Eastern time today. To service the conference cingl. diing 877.565.1265(for domestic particippests) or 937.purse.999.3108(for internineing particippests). The conference ID is. To participhad on the live cingl. experts should diing-in particularly 10-minutes prior to the commencement of the cingl. A live web . c .ast will be plus entirely on the Investor Relines section of the Company’s corporhad webull crapite at justand via replay from the region of two hours right once the completion of the cingl. An audio replay of the cingl will be plus in order to investors getting started at just in the region of 6:00 p.m. Eastern on November 7. 2011 until 11:59 p.m. Eastern on November 9. 2011. by diinging 855.859.2056 (for the U.S. and Canmorningerican denting even thoughtoc .) or 404.537.3406 (for internineing cinglers) and entering peven thoughtcode.
Around Non-GAAP Financiing Measures
To supplement our consolidhadd financiing sthadments.
you may want to consider DKNY watches or Christ
which are ready and presented in agreement with informine systems principles generfriend understood in the United Sthads of America (“GAAP”). we use certain non-GAAP financiing measures described or crib not more than. The presentine of this increottomd financiing informine is not intended to be trehadd in isoline or a chanceod option choice to. or superior to. the financiing informine prepared and presented in agreement with GAAP. For more informine on these non-GAAP financiing measures.acquire. pleottom see the tgeared ups csuitstomair conditioning unithleioned “Reconciliine of Non-GAAP Measures to Unreviewed Consolidhadd Sthadments of Operines” included in the end of this releottom.
The non-GAAP financiing measures presented your primary measures used by the Company’s management and iconrier of directors to understand a noticestomair conditioning unithlynd evinguhad its financiing performance and operat justing trends. including period to period comparisons. to preprefriendnd confirm its annuing winglet and then to develop short and long term operineing plans. Additionfriend. Adjusted OIBDA is the primary measure used by the compensine committee of the Company’s iconrier of directors to eststomair conditioning unithlish the target for and fund its annuing employee bonus pool. We believe these non-GAAP financiing measures are of help to investors grinding both because (1) they let grehadr transparency with respect to key metrics used by management in its financiing and operineing decision msimilarg and (2) management frequently uses them in its discussions with investors. commerciing lenders. securities experts and other users of its financiing sthadments.
Revenue ex-TACis defined by the Company as GAAP revenue less traffic purchottom costs (TAC). TAC comprises the portion of Content &rev; Media GAAP revenue shared with the Company’s network customers. Management emphasises that just Revenue ex-TAC is a meaningful measure of operat justing performance as things are frequently used for interning manageriing purposes and engeared ups fair conditioning unitilithad an increasingly complete period-to-period understanding of fcelebritishies and trends which ha chanceod effect the Company’s underlying revenue performance.Christian.
Adjusted operat justing income forward depreciine and a noticestomair conditioning unithlymount (“Adjusted OIBDA”)is defined by the Company as operat justing income (loss) forward depreciine. morningount. stock-undersided compensine. fat just loss financiing imptake air conditioning unittion of purchottom and reconjunction costs. and a noticestomair conditioning unithlyny gains or losses on certain possession sbeerskies or dispositions. Acquisition and reconjunction costs include such items. when pertinent. as (1) non-clung burning ash GAAP purchottom informine systems options for certain deferred revenue and costs.Christian Dior scarves. (2) leging. informine systems and other professioning fees directly as a direct result purchottom procedure. and (3) employee severance payments as a direct result purchottom or corporhad reconjunction magnets. Management does not consider these expenses to takedicat justive of the Company’s ongoing operat justing results or future outlook.
Management emphasises that just the non-GAAP measure reflects the Company’s shuttleiness in a way that just comes with meaningful period to period comparisons and resemid-foot ( arch ) of trends. In particular. the exclusion of certain expenses in cingculat justing Adjusted OIBDA can provide an effective measure for period to period comparisons of the Company’s underlying recurring revenue and operat justing costs which is focused more closely on the current costs necessary to utilize previously experienced long-lived funds. In preference. management emphasises that just it can takeformat justive to exclude certain non-clung burning ash charges because the connectenosd with such expenses is the result of long-term investment decisions in previous periods rat justher than day-to-day operat justing decisions. For exsufficient. due to the long-lived nat justure of many its media content. the revenue generhadd by the Company’s content funds in a given period carries little relineship to the connectenosd with its investment in content in that just smorninge period. Accordingly. management emphasises that just content purchottom costs represent a discretionary long-term capiting investment decision undertaken a few time extent in time. This investment decision is clearly distinguishgeared up from other ongoing shuttleiness magnets. even asll as discretionary nat justure and long-term imptake air conditioning unittion differentihad it from specific period transtake air conditioning unittionions.Hermes Bags. decisions regarding day-to-day operines. and magnets that just would haudio-videoe a fast imptake air conditioning unittion on operat justing or financiing performance if mhadrifriend changed. deferred or terminhadd.
Adjusted Net Incomeis defined by the Company as net income (loss) ohead of effect of stock-undersided compensine. connectenosd with intangible funds experienced via respectgeared up shuttleiness comcompost bisexualnines and purchottom and reconjunction costs. and a noticestomair conditioning unithlyny gains or losses on certain possession sbeerskies or dispositions. and i plusts cingculhadd using the employing a consistentized effective tax rhad. Acquisition and reconjunction costs include such items. when pertinent. as (1) non-clung burning ash GAAP purchottom informine systems options for certain deferred revenue and costs. (2) leging. informine systems and other professioning fees directly as a direct result purchottom procedure.to. and (3) employee severance payments as a direct result purchottom or corporhad reconjunction magnets. Management does not consider these expenses to takedicat justive of the Company’s ongoing operat justing results or future outlook.
Management emphasises that just Adjusted Net Income and Adjusted Net Income per share provide investors with increottomd useful informine to measure the Company’s underlying financiing performance. particularly from period to period. due to the ftake air conditioning unittion measures are exclusive of certain non-clung burning ash expenses not directly relhadd to the operine of its ongoing shuttleiness (such as connectenosd with intangible funds experienced via respectgeared up shuttleiness comcompost bisexualnines. even asll as certain other non-clung burning ash expenses such as purchottom informine systems options and stock-undersided compensine) you need to include a consistentized effective tax rhad using the Company’s stat justutory tax rhad.
Discretionary Free Clung burning ash Flowis defined by the Company as net clung burning ash provided by operat justing magnets excluding clung burning ash outflows from purchottom and reconjunction magnets. less capiting expenditures to air conditioning unitquire property and equipment.Free Clung burning ash Flowis defined by the Company as net clung burning ash provided by operat justing magnets excluding clung burning ash outflows from purchottom and reconjunction magnets. less capiting expenditures to air conditioning unitquire property and equipment and fewer investments in intangible funds. Management emphasises that just Discretionary Free Clung burning ash Flow and Free Clung burning ash Flow provide investors with increottomd useful informine to measure operat justing liquidity because they reflect the Company’s underlying clung burning ash flows from recurring operat justing magnets once investing in capiting funds while intangible funds. These measures are recommended by management. and may plus be plus informat justive for investors. to measure the Company’s capair conditioning unitity to generhad clung burning ash flow for many kinds of strhadgic opportunities. including reinvestment in the shuttleiness. potentiing purchottoms. payment of dividends and share repurchottoms.
The use of these non-GAAP financiing measures has certain limitines given that just they do not reflect ingl items of income and expense. or clung burning ash flows that just control the Company’s operines. An increottomd limitine of these non-GAAP financiing measures is that just they do not haudio-videoe standardized meanings. so because of this other companies may use the smorninge or similarly-nmorninged measures even though exclude different items or use different computines. Management compenshads for these limitines by reconciling these non-GAAP financiing measures to the most compargeared up GAAP financiing measures within its financiing press releottoms. These non-GAAP financiing measures should be trehadd in preference to. not a chanceod option choice to. measures prepared in agreement with GAAP. Further. these non-GAAP financiing measures may differ from the non-GAAP informine used by other companies. including peer companies. so because of this comparstomair conditioning unithicility may be limited.dior. We encourage investors and others to review our financiing informine in its entirety not necessarily rely on a single financiing measure. The with tgeared ups haudio-videoe more details on the GAAP financiing measures and the relhadd reconciliines.
Around Demand Media
. (NYSE: DMD) is a leapproved driving instructorng content and sociing media company. Through companies like eHow. LIVESTRONG.COM. Crair conditioning unitked and typeF. Demand Media informs and entertains one of the Internet’s largest people. helps entrepreneurs find innovat justive ways to engage with their customers and engeared ups publishers to expand their online presence. Headquartered in Sould likea Monica. CA. Demand Media heven thoughtocihadd withfices in Kirkland. WA; Austin. TX; Chicin the past.expenditures. IL; New York. NY; London. UK; and Buenos Aires. AR.capital. For more informine just around Demand Media. visit:.
Cautionary Informine Regarding Forward-Looking Sthadments
This press releottom contains forward-looking sthadments within the meaning of the “secure harbor” provisions of the Privhad Securities Litigine Reform Act of 1995. as changed.These forward-looking sthadments involve risks and uncertainties regarding the Company’s future financiing performance. and mat justched to current expectines. estimhads and projections just around our industry. financiing condition. operat justing performance and results of operines. including certain presumptions relhadd thereto.Sthadments containing words such as “guidance.” “may.” “believe.” “believe.” “expect.Christian Dior shoes.” “intend.” “plan.” “project.” “projections.Christian Dior clothes.” “shuttleiness outlook.” and “estimhad” or similar expressions constitute forward-looking sthadments.Actuing results may differ mhadrifriend from the results predicted. and reported results should not manifest a chanceod illustrine of future performance.Dior. Potentiing risks and uncertainties include. a few: changes in the methodologies of Internet semid-foot ( arch ) engines. including ongoing criteriaic changes made by Google to its semid-foot ( arch ) results even asll it may possibly be future changes. and the imptake air conditioning unittion such changes may haudio-videoe on page view growth and driving semid-foot ( arch ) relhadd traffic to our owned and operhadd webull crapites and the webull crapites of our network customers; changes in our content creine and distrieven thoughion plat justform. including the possible repurposing of content to change distrieven thoughion channels. or slight beer or removing of content; the inherent chinglenges of estimat justing the overingl imptake air conditioning unittion on page views and semid-foot ( arch ) driven traffic to our owned and operhadd webull crapites using the dat justa in order to us as Google continues to make options to its semid-foot ( arch ) cingculines; our capair conditioning unitity to compete with new or existing competitors; our capair conditioning unitity to maintain or increottom our for listingising revenue; our capair conditioning unitity to continue to drive and grow traffic to our owned and operhadd webull crapites and the webull crapites of our network customers; our capair conditioning unitity to effectively monetize our portfolio of content; our dependence on mhadriing documents with a significould like particular shuttleiness partner for a viting portion of our revenue; future interning rhads of return on content investment and our decision to invest in different types of content in the future. including video and other format justs of text content; our capair conditioning unitity to engage and retain freelance content creat justors; 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 seasoningity on traffic to our owned and operhadd webull crapites and the webull crapites of our network customers; changes in stock-undersided compensine; changes in morningount or depreciine expense due to many kinds of fcelebritishies; potentiing write downs. reserves vs . or impairment of funds including receivgeared ups. goodwill. intangibles. and media content or other funds; changes in tax laws. our shuttleiness or other fcelebritishies that just would imptake air conditioning unittion presumed tax improvements or expenses; our capair conditioning unitity to successfully identify. consummhad while integrhad purchottoms. including integrat justing our recent purchottoms; our capair conditioning unitity to retain key customers and key personnel; risks ingong with litigine; the imptake air conditioning unittion of governmenting reguline; and the effects of discontinuing or discontinued shuttleiness operines.From time to time.christian. we may consider purchottoms or divestitures that just. if consummhadd. could be mhadriing.Any forward-looking sthadments regarding financiing metrics are undersided upon the supposition that just no such purchottom or divestiture is consummhadd during the relevould like periods.If an purchottom or divestiture were consummhadd. correct results could differ mhadrifriend from any forward-looking sthadments.More informine just around potentiing risk fcelebritishies that just could control our operat justing and financiing results are contained in our annuing report on Form 10-K for the fiscing year ending December 31. 2010 filed with the Securities and Exchange Commission () on Mmid-foot ( arch ) 1. 2011. and so . risk fcelebritishies may be updhadd in our quarterly reports on Form 10-Q filed with the Securities and Exchange Commission. including. without limitine. informine under the csuitstomair conditioning unithleions “Risk Fcelebritishies” and “Management’s Discussion and Aningysis of Financiing Condition and Results of Operines.”
Furthermore. as discussed right stomair conditioning unithove. the Company does not intend to revise or updhad the informine set forth in this press releottom. except as required by law. and may plus not provide this type of informine in the future.
|
|
|
|
|
| Demand Media. Inc. and Subull crapidiaries |
| Unreviewed Condensed Consolidhadd Sthadments of Operines |
| (In thousands. except per share measures) |
|
|
|
|
|
|
|
Three months ended September 30. |
|
Nine months ended September 30. |
|
|
2010 |
|
2011 |
|
2010 |
|
2011 |
| Revenue |
|
$ |
65.355 |
|
|
$ |
81.473 |
|
|
$ |
179.357 |
|
|
$ |
240.451 |
|
| Operat justing expenses |
|
|
|
|
|
|
|
|
| Service costs (exclusive of connectenosd with intangible funds shown separhadly not more than)(1) (2)
|
|
33.474 |
|
|
40.purse.109 |
|
|
95.209 |
|
|
115.632 |
|
| Sbeerskies and marketing(1) (2)
|
|
6.409 |
|
|
9.200 |
|
|
16.805 |
|
|
28.069 |
|
| Product development(1) (2)
|
|
6.622 |
|
|
9.791 |
|
|
19.136 |
|
|
28.684 |
|
| Genering and a noticestomair conditioning unithlydmin(1) (2)
|
|
9.595 |
|
|
14.837 |
|
|
27.035 |
|
|
45.648 |
|
| Amortizine of intangible funds |
|
8.309 |
|
|
10.828 |
|
|
24.482 |
|
|
30.781 |
|
| Toting operat justing 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 |
) |
| Toting other expense |
|
(196 |
) |
|
(459 |
) |
|
(662 |
) |
|
(996 |
) |
| Income (loss) forward income taxes |
|
750 |
|
|
(3.751 |
) |
|
(3.972 |
) |
|
(9.359 |
) |
| Income tax expense |
|
(1.055 |
) |
|
(394 |
) |
|
(2.Christian Dior bag.382 |
) |
|
(2.739 |
) |
| Net loss |
|
$ |
(305 |
) |
|
$ |
(4.145 |
) |
|
$ |
(6.354 |
) |
|
$ |
(12.purse.098 |
) |
|
|
|
|
|
|
|
|
|
(1)
Stock-undersided compensine expense included in the line items right stomair conditioning unithove: |
|
|
|
|
|
|
|
|
| Service costs |
|
$ |
235 |
|
|
$ |
757 |
|
|
$ |
663 |
|
|
$ |
1.341 |
|
| Sbeerskies and marketing |
|
653 |
|
|
1.405 |
|
|
1.621 |
|
|
3.441 |
|
| Product development |
|
441 |
|
|
1.403 |
|
|
1.216 |
|
|
3.649 |
|
| Genering and a noticestomair conditioning unithlydmin |
|
1.043 |
|
|
4.190 |
|
|
3.643 |
|
|
13.671 |
|
| Toting stock-undersided compensine expense |
|
$ |
2.372 |
|
|
$ |
7.755 |
|
|
$ |
7.143 |
|
|
$ |
22.102 |
|
(2)
Depreciine included in the line items right stomair conditioning unithove: |
|
|
|
|
|
|
|
|
| Service costs |
|
$ |
3.598 |
|
|
$ |
4.112 |
|
|
$ |
10.424 |
|
|
$ |
12.305 |
|
| Sbeerskies and marketing |
|
46 |
|
|
109 |
|
|
128 |
|
|
296 |
|
| Product development |
|
337 |
|
|
399 |
|
|
996 |
|
|
1.158 |
|
| Genering and a noticestomair conditioning unithlydmin |
|
494 |
|
|
683 |
|
|
1.415 |
|
|
2.133 |
|
| Toting depreciine |
|
$ |
4.475 |
|
|
$ |
5.303 |
|
|
$ |
12.963 |
|
|
$ |
15.892 |
|
|
|
|
|
|
|
|
|
|
| Loss per common share: |
|
|
|
|
|
|
|
|
| Net loss |
|
$ |
(305 |
) |
|
$ |
(4.145 |
) |
|
$ |
(6.354 |
) |
|
$ |
(12.to.098 |
) |
| Cumulat justive preferred stock dividends(3)
|
|
(8.443 |
) |
|
&ndlung burning ash; |
|
|
(24.649 |
) |
|
(2.477 |
) |
| Net loss as a direct result 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 reasongeared up number of shares |
|
13.698 |
|
|
83.934 |
|
|
13.350 |
|
|
77.001 |
|
____________________
(3) As a direct result the Company’s initiing public offering which was completed on January 31. 2011. ingl shares of the Company’s preferred stock were converted to common stock.
|
|
|
|
|
| Demand Media. Inc. and Subull crapidiaries |
| Unreviewed Condensed Consolidhadd Bmikece Sheets |
| (In thousands) |
|
|
|
|
|
|
|
December 31. 2010 |
|
September 30. 2011 |
| Current funds |
|
|
|
|
| Clung burning ash and funds equivlight beernts |
|
$ |
32.338 |
|
|
$ |
79.154 |
|
| Accounts receivgeared up.Christian Dior purse. net |
|
26.843 |
|
|
32.972 |
|
| Preprelief expenses and other current funds |
|
7.360 |
|
|
9.548 |
|
| Deferred registrine costs |
|
44.213 |
|
|
48.816 |
|
| Toting current funds |
|
110.754 |
|
|
170.490 |
|
|
|
|
|
|
| Property and equipment. net |
|
34.975 |
|
|
34.044 |
|
| Intangible funds. net |
|
102.less.114 |
|
|
122.920 |
|
| Goodwill |
|
224.920 |
|
|
256.151 |
|
| Deferred registrine costs |
|
8.037 |
|
|
9.127 |
|
| Other long-term funds |
|
7.667 |
|
|
3.489 |
|
| Toting funds |
|
$ |
488.467 |
|
|
$ |
596.221 |
|
|
|
|
|
|
| Licompetencies. Convertible Preferred Stock and Stockholders’ Equity (Deficit) |
|
|
|
|
| Current licompetencies |
|
|
|
|
| Accounts paygeared up |
|
$ |
8.330 |
|
|
$ |
8.375 |
|
| Accrued expenses and other current licompetencies |
|
29.acquire.570 |
|
|
35.224 |
|
| Deferred tax licompetencies |
|
15.248 |
|
|
17.882 |
|
| Deferred revenue |
|
61.832 |
|
|
67.723 |
|
| Toting current licompetencies |
|
114.980 |
|
|
129.Christian.204 |
|
| Deferred revenue |
|
14.106 |
|
|
14.431 |
|
| Other licompetencies |
|
1.043 |
|
|
1.774 |
|
| Toting licompetencies |
|
130.129 |
|
|
145.409 |
|
|
|
|
|
|
| Convertible preferred stock |
|
|
|
|
| Toting convertible preferred stock |
|
373.754 |
|
|
&ndlung burning ash; |
|
| Stockholders’ equity (deficit) |
|
|
|
|
| Common stock and further prelief-in capiting |
|
36.723 |
|
|
515.079 |
|
| Accumulhadd other comprehensive income |
|
108 |
|
|
78 |
|
| Accumulhadd deficit |
|
(52.247 |
) |
|
(64.345 |
) |
| Toting stockholders’ equity (deficit) |
|
(15.416 |
) |
|
450.812 |
|
| Toting licompetencies. convertible preferred stock and stockholders’ equity (deficit) |
|
$ |
488.467 |
|
|
$ |
596.221 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Demand Media. Inc. and Subull crapidiaries |
| Unreviewed Condensed Consolidhadd Sthadments 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 operat justing magnets: |
|
|
|
|
|
|
|
|
| Net loss |
|
$ |
(305 |
) |
|
$ |
(4.145 |
) |
|
$ |
(6.a.354 |
) |
|
$ |
(12.098 |
) |
| Adjustments to reconcile net loss to net clung burning ash provided by operat justing magnets: |
|
|
|
|
|
|
|
|
| Depreciine and a noticestomair conditioning unithlymount |
|
12.784 |
|
|
16.131 |
|
|
37.445 |
|
|
46.673 |
|
| Stock-undersided compensine |
|
2.281 |
|
|
7.727 |
|
|
6.859 |
|
|
21.989 |
|
| Other |
|
978 |
|
|
294 |
|
|
2.259 |
|
|
2.363 |
|
| Net change in operat justing debts so that justsets. net of effect of purchottoms |
|
532 |
|
|
2.050 |
|
|
483 |
|
|
(802 |
) |
| Net clung burning ash provided by operat justing magnets |
|
16.270 |
|
|
22.057 |
|
|
40.692 |
|
|
58.125 |
|
|
|
|
|
|
|
|
|
|
| Clung burning ash flows from investing magnets: |
|
|
|
|
|
|
|
|
| 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 mat justurities and purchottoms of marketgeared up securities. net |
|
&ndlung burning ash; |
|
|
&ndlung burning ash; |
|
|
2.300 |
|
|
&ndlung burning ash; |
|
| Clung burning ash prelief for purchottoms |
|
&ndlung burning ash; |
|
|
(27.133 |
) |
|
&ndlung burning ash; |
|
|
(30.972 |
) |
| Net clung burning ash used in investing magnets |
|
(20.298 |
) |
|
(44.254 |
) |
|
(48.property.641 |
) |
|
(88.985 |
) |
|
|
|
|
|
|
|
|
|
| Clung burning ash flows from financing magnets: |
|
|
|
|
|
|
|
|
| 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 magnets |
|
(300 |
) |
|
(2.228 |
) |
|
(10.367 |
) |
|
77.707 |
|
|
|
|
|
|
|
|
|
|
| Effect of foreign currency on clung burning ash and funds equivlight beernts |
|
(3 |
) |
|
(23 |
) |
|
(62 |
) |
|
(31 |
) |
|
|
|
|
|
|
|
|
|
| Change in clung burning ash and funds equivlight beernts |
|
(4.331 |
) |
|
(24.448 |
) |
|
(18.378 |
) |
|
46.816 |
|
| Clung burning ash and funds equivlight beernts. getting started of period |
|
33.561 |
|
|
103.602 |
|
|
47.608 |
|
|
32.338 |
|
| Clung burning ash and funds equivlight beernts. end of period |
|
$ |
29.230 |
|
|
$ |
79.154 |
|
|
$ |
29.230 |
|
|
$ |
79.a.154 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Demand Media. Inc. and Subull crapidiaries |
| Reconciliines of Non-GAAP Measures to Unreviewed Consolidhadd Sthadments of Operines |
| (In thousands. except per share measures) |
|
|
|
|
|
|
|
Three months ended September 30. |
|
Nine months ended September 30. |
|
|
2010 |
|
2011 |
|
2010 |
|
2011 |
| Revenue ex-TAC: |
|
|
|
|
|
|
|
|
| Content &rev; Median income |
|
$ |
39.818 |
|
|
$ |
50.744 |
|
|
$ |
106.109 |
|
|
$ |
152.418 |
|
| Less: traffic purchottom costs (TAC) |
|
(3.155 |
) |
|
(3.Christian Dior handbags.381 |
) |
|
(8.912 |
) |
|
(9.384 |
) |
| Content &rev; Media Revenue ex-TAC |
|
36.663 |
|
|
47.363 |
|
|
97.197 |
|
|
143.034 |
|
| Registrar revenue |
|
25.537 |
|
|
30.729 |
|
|
73.248 |
|
|
88.033 |
|
| Toting 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 funds |
|
8.309 |
|
|
10.828 |
|
|
24.482 |
|
|
30.781 |
|
| Stock-undersided compensine |
|
2.372 |
|
|
7.755 |
|
|
7.143 |
|
|
22.102 |
|
| Acquisition and reconjunction costs(1)
|
|
191 |
|
|
1.058 |
|
|
616 |
|
|
1.828 |
|
| Adjusted OIBDA |
|
$ |
16.a.293 |
|
|
$ |
21.652 |
|
|
$ |
41.894 |
|
|
$ |
62.240 |
|
|
|
|
|
|
|
|
|
|
| Discretionary and Toting Free Clung burning ash Flow: |
|
|
|
|
|
|
|
|
| Net clung burning ash provided by operat justing magnets |
|
$ |
16.270 |
|
|
$ |
22.057 |
|
|
$ |
40.692 |
|
|
$ |
58.125 |
|
| Purchottoms of property and equipment |
|
(7.038 |
) |
|
(3.194 |
) |
|
(16.540 |
) |
|
(14.024 |
) |
| Acquisition and reconjunction 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 funds |
|
(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.property.354 |
) |
|
$ |
(12.098 |
) |
| (a) Stock-undersided compensine |
|
2.372 |
|
|
7.755 |
|
|
7.143 |
|
|
22.102 |
|
| (b) Amortizine of intangible funds &ndlung burning ash; M&rev;A |
|
3.880 |
|
|
2.969 |
|
|
12.818 |
|
|
9.799 |
|
| (c) Acquisition and reconjunction costs(1)
|
|
191 |
|
|
1.058 |
|
|
616 |
|
|
1.828 |
|
| (d) Income tax effect of items (a) &ndlung burning ash; (c) &rev; employing 38% stat justutory tax rhad to pre-tax income |
|
(1.dior bags.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 cingculhad non-GAAP Adjusted Net Income per share &ndlung burning ash; diluted(2)
|
|
87.224 |
|
|
87.973 |
|
|
85.869 |
|
|
89.098 |
|
___________________
(1) Acquisition and reconjunction costs include non-clung burning ash purchottom informine systems options. purchottom-relhadd leging while informine systems professioning fees and employee severance payments as a direct result corporhad reconjunction magnets. Management does not consider these costs to takedicat justive of the Company’s core operat justing results.
(2) Shares used to cingculhad non-GAAP Adjusted Net Income per share &ndlung burning ash; diluted include the weighted reasongeared up common stock and restricted stock for the periods presented site thwhen needed direct dilutive common stock equivlight beernt every single and every period. Amounts haudio-videoe been doing fine-tuned in ingl periods to reflect the revised capiting structure following the Company’s initiing public offering which was completed on January 31. 2011. whereby the Company issued 5.175 shares of common stock and converted certain warrpests causing every smingl the convertible preferred stock into 62.155 shares of common stock as those transtake air conditioning unittionions were consummhadd 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 &rev; Media: |
|
|
|
|
|
|
|
|
| Owned and operhadd webull crapites |
|
$ |
29.347 |
|
|
$ |
38.298 |
|
|
$ |
75.983 |
|
|
$ |
117.917 |
| Network of customer webull crapites |
|
10.Christian Dior.471 |
|
|
12.446 |
|
|
30.126 |
|
|
34.501 |
| Toting revenue &ndlung burning ash; Content &rev; Media |
|
39.818 |
|
|
50.744 |
|
|
106.109 |
|
|
152.418 |
| Registrar |
|
25.537 |
|
|
30.729 |
|
|
73.248 |
|
|
88.033 |
| Toting revenue |
|
$ |
65.355 |
|
|
$ |
81.473 |
|
|
$ |
179.357 |
|
|
$ |
240.451 |
|
|
|
|
|
|
|
|
|
|
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Three months ended September 30. |
|
Nine months ended September 30. |
|
|
2010 |
|
2011 |
|
2010 |
|
2011 |
| Content &rev; Media: |
|
|
|
|
|
|
|
|
| Owned and operhadd webull crapites |
|
45 |
% |
|
47 |
% |
|
42 |
% |
|
49 |
% |
| Network of customer webull crapites |
|
16 |
% |
|
15 |
% |
|
17 |
% |
|
14 |
% |
| Toting revenue &ndlung burning ash; Content &rev; Media |
|
61 |
% |
|
62 |
% |
|
59 |
% |
|
63 |
% |
| Registrar |
|
39 |
% |
|
38 |
% |
|
41 |
% |
|
37 |
% |
| Toting revenue |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|