Shares of Demand Media, Inc. (DMD: Quote) were up more than 3 percent in extended trade on Tuesday after the online social media company reported its first quarterly profit since it went public in January 2011, and topped analysts' expectations, so did quarterly revenues. The profit was attributable to double-digit revenue growth.
The company also provided a rosy guidance for the third quarter, and raised its outlook for the full-year 2012, citing strong first-half performance and outlook for the remainder of the year.
Separately, the company also announced the promotion of Michael Blend to president and Chief Operating Officer, effective August 16. Blend continue to report to chairman and CEO Richard Rosenblatt. He was promoted in late 2011 to lead the company's content and media group.
"We are pleased to report another strong quarter reflecting solid company performance. We intend to continue to execute on our long-term growth initiatives, which include expanding our content platform and large audiences into mobile, video and international channels," Rosenblatt said in a statement.
The Santa Monica, California-based company reported net income of $0.09 million or breakeven per share for the second quarter, compared to a net loss of $2.37 million or $0.03 per share in the prior-year quarter.
Excluding items, adjusted net income for the quarter increased to $7.76 million or $0.09 per share from $5.03 million or $0.06 per share in the year-ago quarter.
On average, 11 analysts polled by Thomson Reuters expected the company to report earnings of $0.08 per share for the second quarter. Analysts' estimates typically exclude special items.
Revenue for the quarter increased 17 percent to $93.06 million from $79.46 million in the same quarter last year. Revenue ex-TAC, was $88.7 million, up 16 percent from $76.64 million a year ago. Eight Wall Street analysts had a consensus revenue estimate of $85.95 million for the quarter.
Content & media ex-TAC revenue grew 18 percent from last year, and registrar revenue increased 13 percent from last year.
Looking ahead to the third quarter, the company expects adjusted earnings in a range of $0.09 to $0.10 per share, on projected revenues between $94.5 million and $96.5 million. Analysts expect the company to report earnings of $0.09 per share on quarterly revenues of $88.33 million.
For fiscal 2012, the company raised its adjusted earnings guidance to a range of $0.35 to $0.37 per share from the prior guidance of $0.33 to $0.35 per share. The company also now anticipates revenues in the range of $373 million to $377 million, up from the previous outlook between $361 million and $367 million.
Street is currently looking for full-year 2012 earnings of $0.34 per share, on annual revenues of $349.99 million.
DMD closed Tuesday's regular trade at $11.63, up $0.14 or 1.22% on a volume of 0.46 million shares. The stock gained a further $0.37 or 3.18% in after-hours trading.
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by RTT Staff Writer
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