Demand Media Surprises Many With Earnings Reports
Demand Media has been a company that has had troubling times as of late, and its latest earnings call was going to be one that investors had worried about. As it turns out, their earnings call actually surprised investors, with great results and a new CFO joining them soon.
The earnings call for the company were done late in the week, and the diversified Internet company announced its fourth quarter and fiscal year ending results for 2014. Many insiders worried about these results, and its future, but their results actually showed growth for the company.
Highlights Of Earnings Call
The earnings call of Demand Media had five major highlights and are worth talking about. First, 2014 revenue for the company came in at $172.4 million, and adjusted EBITDa of $37.5 million. The Q4 and 2014 Marketplace Revenue saw an increase of 70% and 148% year over year respectively.
As these numbers show, they are making money, but the content and media revenue saw a decrease of 33% and 30% for each division in 2014. Demand Media saw a cash balance of $47.8 million for the period, but importantly noted with no debt outstanding. Rachel Glaser is also joining Demand Media as CFO.
Demand Media’s Future
Clearly, with no debt outstanding the company has room to grow, and with $47.8 million in cash on hand, they can grow however they wish. They saw lower ad monetization from their cost per click advertising, but saw increased traffic growth, increased conversion rates, and new products with the company.
Demand Media is looking to integrate the Society6 and acquisition of Saatchi Art to grow revenue for the company in new ways. It’s the #38 US digital media property, and has 61 million unique visitors and 31 million mobile users. It’s future is good, and it’s seeing how to grow more in the future.
These results were positive for Demand Media. Now, it needs to grow stronger to get more cash in the bank.