Demand Media Revenues Beat Expectations – But Panda Looms*

Angry Panda Girl

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Demand Media just reported Q1 numbers above expectations.PaidContent:

The company said sales were $79.5 million, up 48 per cent compared to the same period a year ago and above the $69.49 million analysts had expected. Notably, the company also reported a 32 per cent jump in page views on its owned and operated sites.

Here’s the thing, though. It wasn’t until April (Q2), that Google finally adjusted its search algoritm in such a way that actually deflated Demand Media traffic. So the jury is most definitely still out.

Meanwhile, Demand is working on improving the quality of its content, in hopes of winning some of that Google traffic back. It’s relying less on user-submitted content, publishing more features, and asking for more user feedback.

Correction: An earlier version of this story said Demand Media weathered Google Panda this quarter. Panda wasn’t rolled out until Q2.