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WIKI ANALYSIS
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This company completed an initial public offering (IPO) of its stock in 2010. View articles that reference this company. Recent IPOs: Globe Specialty Metals • LogMeIn • Invesco Mortgage Capital • Medidata • Chemspec |
Demand Media (NYSE:DMD) is an internet based company which creates and monetizes on web content. The company focuses on entering subject areas with existing interest and generating high quality content to fulfill the interest. It then sells advertisement space and helps the advertisers to distribute and optimize their campaigns.[1] Demand Media provides advertisers access to the growing online advertising market in the United States by taking advantage of existing areas of interest and providing unified, high quality, and search-engine optimized content.[2]
The company operates two distinct services: Content & Media and Registrar. The Content & Media segment identifies existing areas of interest in internet content. It then creates and distributes this content with a focus on search-engine optimization. It also builds social media applications which can be purchased as features by third party websites. Finally, it delivers and optimizes advertisements targeted to customers. The Content & Media segment owns a collection of sites which make up the 17th largest web property in the US and attracts approximately 105M unique views per month.The Registrar segment manages internet domain names and is the world's largest wholesale registrar. This segment offers customers the ability to register a domain name as well as subscribe to extra value-added services.[3]
The company's initial public offering of stock on the NYSE occurred on January 25, 2011. The company offered 8.9M shares each for $17. This was above the initial price range of $14-$16, and the initial offer size of 7.5M. This brought the total deal size to $151M, while the deal was originally expected at $112.5M at the center of the price range. The lead underwriters of the IPO were Goldman and Morgan Stanley (MS).[4]
In 2009, Demand Media reported a total annual revenue of $198M. This was a 16% increase over the 2008 figure of $170M. During the first 9 months of 2010, the company reported a total revenue of $179M. This corresponds to a 25% increase over the $143M reported for the same period in 2009. However, in 2009, the company's net loss increase to $22M from a loss of $15M in 2008. During the first 9 months of 2010, the company's net loss was $6M, compared to $19M during the same period of 2009.[5]
References
- ↑ Demand Media S-1/A 2011 PROSPECTUS SUMMARY "Our Company" pg1
- ↑ Demand Media S-1/A 2011 PROSPECTUS SUMMARY "Industry Background" pg2
- ↑ Demand Media S-1/A 2011 PROSPECTUS SUMMARY "Our Company" pg1-2
- ↑ Renaissance Capital - IPO Home "Demand Media prices IPO at $17, above the range; largest Internet IPO since Google" 25 Jan 2010
- ↑ Demand Media S-1/A 2011 PROSPECTUS SUMMARY "Our Company" pg1-2
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