Demand Media Updates S-1 Filing, IPO Coming for Christmas?
By Brian Matthews, Demand Studios Review Writer
Posted On 11/1/10:
We told you recently that the Demand Media IPO appears to be
coming sooner than later. That appears to be the case even more so, after
an amended S-1 filing with the Securities and Exchange Commission (SEC) for the third quarter.
You can view the entire filing here.
As
reported by All Things Digital, this appears
to be the final push for the final public offering to go live.
Demand Media must wait for the SEC to review
and approve the filing, at which time Demand will likely hit the road in an attempt to convince potential
investors to come on board.
If all goes well, expect to see the Demand Media IPO to hit stores in time
for Christmas, so to speak.
We learned quite a few things from this amended filing. Here are some of the
highlights:
- Demand Media has generated $179.4 million in revenue in the first nine months
of the year, from their eNom domain business as well as through advertising, but had a net loss of $6.4
million. (Last year, during the same period, they posted a $102.3 million in revenue with a loss of $5.6
million).
- Traffic continues to grow, mostly due to flagship site eHow.com.
- Demand Media has $29.2 million in cash and cash equivalents left, in addition
to an untouched line of credit worth $100 million.
- Demand Media wants DMD for its New York Stock Exchange ticker
symbol.
- Demand Media plans on selling 4.5 million shares, with another three million
sold by current shareholders.
- Demand Media makes most of its money from traffic and advertising, 28
percent of which now comes from Google (up from 26 percent in the second quarter).
- Demand Media Studios now has 13,000 freelance content producers, after adding
3,000 from June 30th to September 30th.
- Demand Media now employees 600 staff members, adding 50 employees since the
second quarter.
As always, we'll keep you updated with Demand Media IPO news as it becomes
available.
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