Demand Media reports drop in revenue, profit on search changes

November 7, 2013

Nov 7 (Reuters) - Demand Media said on Thursday that a drop in search engine referrals and weak advertising sales sent revenue down 2 percent in the third quarter to $96.3 million.

The company, which owns the websites eHow, LiveStrong and Cracked, mainly makes its money from articles and videos that surface high in search results.

Its other line of business which maintains top level generic web domain names like ".actor" and ".social" increased revenue 11 percent to $37.7 million.

Demand Media has hit some hurdles in recent quarters and saw the abrupt exit of its co-founder, CEO and chairman Richard Rosenblatt in October.

The company reported a net loss of $10.4 million or 12 cents a share compared with a gain of $3.2 million or 4 cents a share in the same period a year ago.