Capacity of the generator content online to earn traffic Internet can damaged in SANTA MONICA, California - Demand Media Inc. has performed better than expected in the first quarter, easing investor analysts problems recent changes that Google Inc. to how he slaughter of the search results.
Results released Thursday showed people are still flocking to eHow.com and Livestrong.com Web sites demand media, and their clicking ad helped boost revenue in the first quarter of the company to 48 per cent to 79.5 million at the same time last year. The performance lifted demand media shares $1.22, or 7.5% at $17.53 commercial range. The shares had plunged almost 30% since late February, Google announced that it has rewritten his form of research to demote the contents of the "quality" in its ranking of influential research.
Search engines generate more than 40% of traffic to demand media Web sites. Most of these references come from Google, what processes about two of all three research changes the United States Google applications have been widely interpreted as a threat to services like demand Media, which encourages editors freelancers specifically produce articles based on frequently searched topics. The practice has led some critics mock request media as online content "firm", to the consternation of the company.
In its efforts to the label of derision and respond to Google emphasis on highlighting the more detailed information, request media said Thursday that he intends to hire more experienced writers to deliver substantive articles of the words up to 850. The application of media plans to pay up to $350 per feature article, which underlines the willingness of the company to be considered as something more than an outlet for extracts of lean.
Demand media said that its losses decreased to 8.1 million, or 13 cents per share, in the three months which is completed in March of a loss of $ 12.1 million, or 94 cents per share, at the time of last year. Excluding the accounting costs associated with its offers initial public in January and other non-recurring items, said demand media that he would have earned 6 cents per share in the last quarter. On this basis, the company beat the average estimate of 4 cents per share expected by analysts surveyed by FactSet.
After subtraction of the committees of advertising, income for first quarter demand Media amounted to 76.3 million - 7 million $ over the analyst projections.
The pages on the company sites stable Web attracted views about 2.6 billion in the first quarter, an increase of 32% from the same period last year.
Demand Media, which is based in Santa Monica, California, also feeds documents to hundreds of other websites owned by its partners, which include the Gannett Co. USA today and the National Football League. The content on the sites of media partners request registered 3.8 billion page views, an increase of 42% since last year.
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