Demand Media reports Q4 2012

Demand Media reports Q4 2012 Earnings

Q4 2012 Financial Summary:

  • Content & Media revenue ex-TAC grew 25% year-over-year, driven by 24% page view growth on the Company’s owned & operated properties as well as 37% growth in network RPMs ex-TAC, reflecting higher revenue from network content partners.
  • Registrar revenue grew 10% year-over-year, driven by an increase in the number of domains on our platform, due primarily to growth from new partners.
  • Adjusted EBITDA increased 24% year-over-year, resulting in 110 basis points of margin expansion to 30.3% of Revenue ex-TAC. This improvement was driven by the growth in higher margin Content & Media revenue and operating leverage.

“In 2012 we generated over $60 million of free cash flow, which more than funded our acquisition of and the repurchase of nearly $9 million of our common stock,” said Demand Media’s CFO Mel Tang. “We plan to continue reinvesting our strong cash flows into long-term growth opportunities, such as our gTLD initiative as well as growing and diversifying our content offerings.”

Business Highlights:

  • Demand Media ranked as a top 20 US web propertythroughout 2012, and ranked #13 in January 2013.(1)
  • Demand Media reached more than 125 million unique visitors worldwide in January 2013.(1)
  • ranked as the #12 website in the US, with 62.0 million unique users in January 2013.(1)
  • LIVESTRONG.COM/eHow Health ranked as the #3 Health property in the US in January 2013.(1)
  • Cracked ranked as the #1 Humor property in the US in January 2013.(1)
  • On December 31, 2012, Demand Media acquired retail registrar, expanding its registrar platform as it prepares for the historic release of new gTLDs.
  • During the fourth quarter of 2012, Demand Media repurchased approximately 572,000 shares of common stock for $4.9 million under its Board-authorized $50.0 million share repurchase program. To date, the Company has repurchased approximately 4.0 million shares of common stock for $30.8 million.
  • On February 19, 2013, the Company announced that its Board of Directors has authorized a plan to explore the separation of its business into two distinct publicly traded companies.

(1) Source: comScore.

Read full press release here

Raymond Hackney

Raymond Hackney

Raymond Hackney is a writer and domain investor/consultant from Philadelphia. Raymond is the founder of and