Demand Media, Inc. (NYSE: DMD), a leading content and social media company, today reported financial results for the quarter and fiscal year ended December 31, 2011.
"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."
|In millions, except per share amounts|
|Three months ended December 31,||Year ended December 31,|
|Content & Media Revenue ex-TAC (1)||$||43.5||$||49.9||15||%||$||140.7||$||193.0||37||%|
|Total Revenue ex-TAC (1)||$||70.3||$||81.3||16||%||$||240.7||$||312.4||30||%|
|Income (loss) from Operations (2)||$||2.8||$||(4.8||)||NA||$||(0.5||)||$||(13.1||)||NA|
|Adjusted OIBDA (1)||$||20.1||$||23.7||18||%||$||62.0||$||86.0||39||%|
|Net income (loss) (2)||$||1.0||$||(6.4||)||NA||$||(5.3||)||$||(18.5||)||NA|
|Adjusted net income (1)||$||5.6||$||6.8||21||%||$||15.9||$||21.9||38||%|
|Adjusted EPS (1)||$||0.06||$||0.08||33||%||$||0.18||$||0.25||39||%|
|Cash Flow from Operations||$||20.9||$||27.2||30||%||$||61.6||$||85.3||38||%|
|Free Cash Flow (1)||$||3.3||$||18.3||455||%||$||(7.0||)||$||19.5||NA|
(1) Non-GAAP measures are described below and are reconciled to the corresponding GAAP measures in the accompanying tables.
(2) Q4 2011 and full-year 2011 loss from operations and net loss includes $5.9 million of accelerated non-cash amortization expense associated with content intangible assets removed from service in conjunction with the Company's previously announced plan to improve its content creation and distribution platform.
- Q4 2011 Content & Media revenue ex-TAC grew 15% year-over-year and increased 5% compared to the third quarter of 2011. The 5% sequential improvement represented the second consecutive quarter of accelerating sequential growth and included the return to sequential growth for eHow for the first time since the first quarter of 2011.
- Q4 2011 Registrar revenue grew 17% year-over-year and 2% compared to the third quarter of 2011. During the fourth quarter of 2011, the number of registered domains grew by a net 482,000 compared to 404,000 in the fourth quarter of 2010, due to growth from new partners and organic growth from resellers.
- Q4 2011 and year ended December 31, 2011 loss from operations and net loss include $5.9 million of accelerated non-cash amortization expense associated with content intangible assets removed from service in conjunction with the Company's previously announced plan to improve its content creation and distribution platform.
- Q4 2011 free cash flow grew more than fivefold year-over-year to $18.3 million. The increase was driven by a 30% increase in cash flow from operations, combined with a 13% decrease in capital expenditures and a 59% reduction of investment in intangible assets. The intangible assets investment decline was a result of decreased content spend on eHow as the Company changes its content and distribution platform.
- At December 31, 2011, cash & cash equivalents balance was $86.0 million.
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