Demand Media (stock symbol DMD) reported its quarterly earnings today, and despite reporting a loss, the company beat the street predictions. Demand Media owns and operates domain registrar Enom and domain auction service NameJet.
The stock ended the trading day down almost 9% to $7.08/share, but the price surged after hours. DMD stock is currently trading at $8.30/share, up close to 20%.
Some information that may be of interest to you from the Q3 report:
- 25% increase in revenue to $81.5 million
- eHow.com saw 71.5 million unique users in September
- Domain registration margins at Enom increased 2% YTD over last year through Q3 (perhaps attributed to higher .CO registration fees?)
- Average revenue per domain in Q3: $10.20 and YTD: $10.12
- Enom saw a 15% increase in the number of registered domain names in Q3 as well as YTD
“Beat the street” is meaningless – the way the game works is that companies always beat the street, regardless of how well or how poorly they do.
@ Jeff
I don’t know about that… there have been plenty of companies come up short.
Not all Jeff, only those that can fudge the books in time like GE through GE capital, Google by scamming with /adding more ads etc.
If you have a low enough bar, it is easy to beat expectations.
The bottom line is they still lost money.
When is the last time they actually turned a profit?
Brad
Closed the AH session up just 1.89% Only a matter of time before this co. shuts down. It’s built on a flawed business mode in my opinion.
Not to mention that Enom is the most un-competitively priced big registrar. The only time I end up using them is when I win a domain at a namejet auction. I always move it out well before the domain expires. I suspect that that is the case with most others as well.
Just for full disclosure, I do not own any DMD stock.