Demand Media Posts $6.4 Million Quarterly Loss
The video, news and social media company grows revenue 15 percent to $84.4 million.
Demand Media, which uses 13,000 freelancers to create videos and articles for the Internet and runs websites such as eHow and LiveStrong, said Thursday that it lost $6.4 million in the fourth quarter compared with a profit of $1 million a year earlier.
Revenue grew 15 percent to $84.4 million while revenue excluding traffic-acquisition costs at the company was $81 million, up 16 percent over last year.
Demand Media, which went public at $17 a share 13 months ago, saw its stock fall 5 percent Thursday to $5.94. It was up 1 percent during the after-hours session when it's financial results were released.
"We plan to leverage our data, studio and extensive distribution in new ways to solidify our leadership in the rapidly growing digital content marketplace," said Richard Rosenblatt, CEO of Demand Media, which describes itself as "a leading content and social media company."