Demand Media results shed light on revenue sharing, eNom results.
Earlier this week Demand Media reported fourth quarter results. The company eked out a small profit in the quarter, but expects to return to losses going forward.
You can read the complete details here, but here are some interesting numbers:
Revenue Sharing: In Q4 its network of customer web sites (which would include parked pages) generated 3.866 million billion page views with an RPM of $3.11. But the company reported that its RPM excluding traffic acquisition costs (ex-TAC) was $2.25.
The company says “Revenue ex-TAC is defined by the Company as GAAP revenue less traffic acquisition costs (TAC). TAC comprises the portion of Content & Media GAAP revenue shared with the Company’s network customers.”
So according to this definition, of the $3.11 generated per thousand page views, only $.86 was shared with publishers. This seems very low, but I’ve contacted Demand Media for an explanation and will update accordingly.
Changes in RPM: The gross RPM on customer web sites was down 22% compared to Q4 2009. The RPM on Demand Media’s owned and operated network was up 36%. Of course, a lot of Demand’s owned and operated revenue comes from actual web sites such as eHow.
eNom Growing: Registrar revenue for 2010 was $100M, up 10% compared to 2009. Including all of Demand Media’s registrars (eNom is the biggest), it had 11 million domains under management a the end of 2010. That’s up from 9.1 million at the end of 2009.
Tim says
From what I have both heard and seen Demand Media have always been greedy money-grubbers over the years.
George Kirikos says
That should be 3.866 billion (not million) page views.
Andrew Allemann says
Thanks George, fixed
Josh says
@Tim, you mean in the business of making money.
KMD says
Demand Media = pump and dump
Lucky they own enom to make them some money.