Share of Demand Media rockets up over 17% in after hours trading to $10.51 after reporting earnings that beat street expectations.
Revenue rose 32 percent to $79.5 million in the quarter ending June 30th.
Less advertising commissions, Demand Media’s revenue for the second quarter totaled $76.6 million; analysts were expecting $73.9 million.
The company reported a net loss of $2.4 million, or 3 cents per share, compares with a loss of $1.9 million in the year-ago quarter, or 75 cents per share.
Excluding one-time items, Demand Media earned 6 cents per share, which is a $.01 more than what analysts t were expecting.
Search engines generate more than 45% of the traffic to Demand Media’s websites, and 2/3rd of these came from Google.
Demand Media also signed a new three-year advertising agreement with Google.
Demand Media’s websites generated 2.6 billion page views, up 29% percent from the same quarter last year.
Company: We have good news and bad news…
Investor: What’s the good news?
Company: We beat expectations.
Investor: What’s the bad news?
Company: No one expects anything from us…
I know the first thing I look for when investing is finding a company that’s slowly but consistently losing my money.
Seriously- what’s supposed to turn this ship around again?
Because they went public and generated some cash by selling shares in a company that’s been losing money?
“Revenue rose 32 percent to $79.5 million in the quarter ending June 30th.
Less advertising commissions, Demand Media’s revenue for the second quarter totaled $76.6 million; analysts were expecting $73.9 million.”
This sounds really really good considering what people were thinking just a few weeks ago.
Buy
Hurry up and buy
this puppy is as solid as a sheet of ice in june
….and now down 20%…market isn’t buying it. Look for this to drift lower in my view, horribly overpriced.
Demand Media’s recent purchase of technology company RSS Graffiti is good news for Michael Blend, who owned 40 percent of the start-up. But the deal doesn’t mean Blend will quit his day job — working as a Demand Media executive.
http://allthingsd.com/20110812/demand-medias-graffiti-buy-is-good-news-for-a-demand-media-executive/