Demand Media Revenue Falls Despite E-Commerce Gains

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Internet publisher Demand Media’s revenue fell 27 percent last year to $126 million, the company reported Tuesday – a decrease of 27 percent compared to 2014 when it generated $172 million.

However, its negative earnings of $2.18 per share slightly beat analysts’ consensus opinion of -$2.21 a share. As a result, the company’s stock price saw a slight 1 percent gain, closing at $5.50 a share Tuesday on the New York Stock Exchange.

The Santa Monica firm’s media revenue, which stems from Internet advertising, tumbled by 46 percent. However, its e-commerce business cushioned the fall, growing by 47 percent.

Demand Media’s content brands include eHow, Livestrong and Cracked. The company has been trying to reverse its declining Web traffic by focusing on its e-commerce business, which includes art e-retailer Saatchi Art and consumer goods website Society 6. E-commerce has been touted as the company’s lifeline as older media divisions continue to shrink.

“As my first full year at Demand concludes, I am encouraged by the progress we have made in stabilizing our content and media businesses and growing our marketplace businesses,” Demand Media Chief Executive Sean Moriarty said in a statement. Moriarty stepped into the role in August 2014. “We head into 2016 focused on driving audience and revenue growth by building great products across our properties that consumers love, share and visit often.”

Technology reporter Garrett Reim can be reached at [email protected]. Follow him on Twitter @garrettreim for the latest in L.A. tech news.

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