EmailStory Stocks®
Archive
Last Update: 20-Feb-13 07:46 ET
Demand Media shares soar 16% following beat on earnings
Demand Media (DMD $9.15 +1.31) reported fourth quarter earnings of $0.12 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $0.11, while revenues rose 22.2% year/year to $103.1 million versus the $102.27 mln consensus. 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. "As a result of these two different growth opportunities, we also announced today that our Board of Directors has authorized a plan to explore the separation of our business into two independent publicly-traded companies via a tax-free spin-off. If approved, the separation will facilitate better operational and strategic flexibility, enabling each business to focus on its distinct priorities and growth opportunities." Co issues mixed guidance for Q1, sees EPS of $0.07-0.08, excluding non-recurring items, vs. $0.10 Capital IQ Consensus Estimate; sees Q1 revs of $100-102 mln vs. $98.63 mln Capital IQ Consensus Estimate. Co issues mixed guidance for FY13, sees EPS of $0.39-0.43, excluding non-recurring items, vs. $0.47 Capital IQ Consensus Estimate; sees FY13 revs of $435-443 mln vs. $433.09 mln Capital IQ Consensus Estimate.
