Enom 2013 Annual Report Download - page 13

Employees
As of December 31, 2013, we had over 7
50 employees. None of our employees is represented by a labor union or is subject to a collective
bargaining agreement. We believe that relations with our employees are good.
Available Information
We file reports with the SEC, including annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and
any other filings required by the SEC. We make available free of charge in the investor relations section of our corporate website
(http://ir.demandmedia .com) our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and all
amendments to those reports as soon as reasonably practicable after such material is electronically filed with or furnished to the SEC. The public
may also read and copy any materials we file with the SEC at the SEC's Public Reference Room at 100 F Street, NE, Washington, DC 20549.
The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. The SEC maintains
an Internet site (http://www.sec.gov) that contains reports, proxy and information statements, and other information regarding issuers that file
electronically with the SEC.
We webcast our earnings calls and certain events we participate in or host with members of the investment community on the investor
relations section of our corporate website. Additionally, we provide notifications of news or announcements regarding our financial
performance, including SEC filings, investor events, and pr ess and earnings releases, on the investor relations section of our corporate website.
Investors and others can receive notifications of new press releases and SEC filings by signing up for email alerts. Investors and others should
note that we also use social media to communicate with the public about our company, our services and other issues. It is possible that the
information we post on social media could be deemed to be material information. Therefore, we encourage investors, the media, and others
interested in our company to review the information we post on the social media channels listed on the investor relations section of our corporate
website. Further corporate governance information, including our corporate governance guidelines, board committee charters and code of
business conduct and ethics, is also available on the investor relations section of our corporate website under the heading “Corporate
Governance.”
Any references to our corporate website address in this Annual Report on Form 10-K are intended to be inactive textual references only.
None of the information contained on our website is part of this Annual Report on Form 10
-
K or incorporated by reference into this report or any
other report or document we file with the SEC.
In addition to the other information set forth in this Annual Report on Form 10-K, you should consider carefully the risks and
uncertainties described below, which could materially adversely affect our business, financial condition and results of operations.
Risks Relating to our Content & Media Service Offering
We are dependent upon certain material agreements with Google for a significant portion of our revenue. A termination of these agreements,
a failure to renew these agreements on favorable terms or a loss of revenue generated from these agreements would have a material adverse
effect on our business, financial condition and results of operations.
We have an extensive relationship with Google and a significant portion of our revenue is derived from cost-per-click performance-based
advertising provided by Google. For the years ended December 31, 2013 and 2012, we derived approximately
34% and 38%, respectively, of our
total revenue from our various advertising and content arrangements with Google. Google provides cost-per-click advertising and cost-per-
impression advertising on our owned and operated websites and on our network of customer websites, and we receive a portion of the revenue
generated by such advertisements. We currently have agreements with Google related to (i) providing advertisements for our developed
websites, such as eHow, and the developed websites of our customers; (ii) providing advertisements for undeveloped websites owned by us and
our customers; and (iii) our use of Google’s DoubleClick Ad Exchange platform to deliver advertisements to our and our customers’ developed
websites. We also have a revenue-sharing arrangement with Google with respect to revenue generated by our content posted on Google’s
YouTube. Each agreement to provide advertisements expires in September 2014. Google also has the right to terminate these agreements prior to
their expiration upon the occurrence of certain events, including if our content violates the rights of third parties and other breaches of
contractual provisions, a number of which are broadly defined. There can be no assurance that our agreements with Google will be extended or
renewed after their respective expirations or that we will be able to extend or renew our agreements with Google on terms and conditions
favorable to us. If our agreements with Google are terminated, we may not be able to enter into agreements with alternative third-party
advertisement providers or for alternative ad-serving platforms on acceptable terms or on a timely basis or both. Any termination of our
relationships with Google, in particular the agreement to provide cost-per-click advertisements for our developed websites, or any extension or
renewal of such agreements on terms and conditions less favorable to us, would have a material adverse effect on our business, financial
condition and results of operations.
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Item 1A.
Risk Factors