Shares of Internet content firm Demand Media rose 7 percent early Tuesday after the company reported improved results for the third quarter.

After the markets closed Monday, the Santa Monica company reported a loss of $4.1 million or 5 cents a share, compared to a loss of $8.7 million or 64 cents a share for the same quarter last year. However, the company received $7.8 million in stock-based compensation, giving the company an adjusted profit of 6 cents a share, beating the consensus expectations of Wall Street analysts for a profit of 4 cents per share, according to Bloomberg.

Looking forward, the company plans to participate in a new original channel program with YouTube. Demand Media will provide content for three channels on home improvement, pets and health.

The company also reported that it has integrated the operations of recent acquisitions IndieClick, an online ad agency that targets a young audience, and RSS Graffiti, a social media application for sharing files online.

By late morning Tuesday, shares of Demand Media were up 50 cents or 7 percent to $7.58 on the New York Stock Exchange.