Enom 2010 Annual Report Download - page 51

Table of Contents
Item 6. Selected Financial Data
Demand Media was incorporated on March 23, 2006 and had no substantive business activities prior to the acquisition of eNom, Inc in April 2006. The
consolidated statements of operations data for the years ended December 31, 2008, 2009 and 2010, as well as the consolidated balance sheet data as of
December 31, 2009 and 2010, are derived from our audited consolidated financial statements that are included elsewhere in this Annual Report on Form 10-
K. The consolidated statements of operations data for the year ended March 31, 2007 and the nine months ended December 31, 2007, as well as the
consolidated balance sheet data as of March 31, 2007, December 31, 2007 and December 31, 2008 are derived from audited consolidated financial statements
not included in this Annual Report on Form 10-K. The historical results presented below are not necessarily indicative of financial results to be achieved in
future periods.
The following selected consolidated financial data should be read in conjunction with "Item 7. Management's Discussion and Analysis of Financial
Condition and Results of Operations" and our consolidated financial statements and the related notes included elsewhere in this Annual Report on Form 10-K.
Year
ended
March 31,
2007(2)
Nine Months
ended
December 31,
2007(2)
Year ended December 31,
2008(2) 2009 2010
Consolidated Statements of Operations:
Revenue $ 58,978 $ 102,295 $ 170,250 $ 198,452 $ 252,936
Operating expenses
Service costs (exclusive of amortization of intangible assets) 26,723 57,833 98,184 114,536 131,332
Sales and marketing 3,016 3,601 15,310 20,044 24,424
Product development 9,338 10,965 14,252 21,657 26,538
General and administrative 8,826 19,584 28,070 28,479 37,371
Amortization of intangible assets 15,074 17,393 33,204 32,152 33,750
Total operating expenses 62,977 109,376 189,020 216,868 253,415
Loss from operations (3,999) (7,081) (18,770) (18,416) (479)
Other income (expense)
Interest income 1,772 1,415 1,636 494 25
Interest expense (3,206) (1,245) (2,131) (1,759) (688)
Other income (expense), net 54 (999) (250) (19) (286)
Total other income (expense) (1,380) (829) (745) (1,284) (949)
Loss before income taxes (5,379) (7,910) (19,515) (19,700) (1,428)
Income tax (expense) benefit 1,448 2,293 4,612 (2,771) (3,897)
Net loss (3,931) (5,617) (14,903) (22,471) (5,325)
Cumulative preferred stock dividends (10,199) (14,059) (28,209) (30,848) (33,251)
Net loss attributable to common stockholders $ (14,130) $ (19,676) $ (43,112) $ (53,319) $ (38,576)
Net loss per share:(1)
Basic and diluted $ (7.13) $ (4.25) $ (5.27) $ (4.78) $ (2.86)
Weighted average number of shares(1)(3)
Basic and diluted 1,981 4,631 8,184 11,159 13,508
Basic loss per share is computed by dividing the net loss attributable to common stockholders by the weighted average number of common shares outstanding
during the period. Net loss attributable to common stockholders is increased for cumulative preferred stock dividends earned during the period. For the periods
where we presented losses, all potentially dilutive common shares comprising of stock options, restricted stock purchase rights, or RSPRs, restricted stock units,
warrants and convertible preferred stock are antidilutive.
RSPRs and restricted stock units are considered outstanding common shares and included in the computation of basic earnings per share as of the date that all
necessary conditions of vesting are satisfied. RSPRs and restricted stock units are excluded from the dilutive earnings per share calculation when their impact is
antidilutive. Prior to satisfaction of all
(1)
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