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After tumbling in the later part of October on news a glitch had impeded traffic significantly, stock in Demand Media was revealed to have slightly better than expected Q3 earnings on a call Monday.
Losses were more than halved in Q3 in 2001 over the same period last year, at $4.1 million compared with $8.7 million in 2010. In a statement, CEO of Demand Media Richard Rosenblatt said that diversifying the company’s focus as well as bolstering the company’s content arm is the plan going forward to offset the continuing impact of changes to Google’s algorithm that initially choked Demand’s traffic and led to two quarters of losses:
“We reported another strong quarter as we continue to build Demand Media’s foundation for long-term growth. The Company is uniquely positioned to deliver data-driven professional content through its robust content publishing platform. We are now in the process of optimizing that platform while increasing our investment in video content and enhancing the quality, engagement and user experience of our sites.”
Demand Media indicated expected revenues of $78.5 million to $82.5 million, compared with analyst expectations of $83.7 million.
