Demand Media Inc. Earnings: Topped Estimates Despite Swinging to a Loss

Demand Media Inc. (NYSE:DMD) dropped to a fourth quarter loss, but results topped expectations. Demand Media, together with its subsidiaries, operates as a content and social media company in the United States. It identifies, creates, distributes, and monetizes in-demand, long-lived content.

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Demand Media Earnings Cheat Sheet for the Fourth Quarter

Results: Reported a loss of $6.4 million (8 cents per diluted share) in the quarter. The internet software and services company had net income of $1 million or 54 cents per share in the year earlier quarter.

Revenue: Rose 14.7% to $84.4 million from the year earlier quarter.

Actual vs. Wall St. Expectations: Demand Media Inc. reported adjusted net income of 8 cents per share. By that measure, the company beat the mean analyst estimate of a loss of one cent per share. It beat the average revenue estimate of $81.7 million.

Quoting Management: “2011 finished strong and was led by record revenue from both our Content & Media and Registrar business lines,” said Richard Rosenblatt, Chairman and CEO of Demand Media. “We enter 2012 positioned to expand our existing business lines while investing in areas where we see significant future growth. We plan to leverage our data, studio and extensive distribution in new ways to solidify our leadership in the rapidly growing digital content marketplace.”

Key Stats:

The company has now beaten estimates the last two quarters. In the third quarter, it topped expectations with a loss of -2 cents versus a mean estimate of a loss of 4 cents per share.

For the fiscal year, the average estimate has moved from a loss of 9 cents a share to a loss of 10 cents over the last thirty days.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at

To contact the editor responsible for this story: Damien Hoffman at