Enom 2014 Annual Report Download - page 6

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Item 1. Business
As used herein, “Demand Media,” the “Company,” “our,” “we,” “us” and similar terms include Demand Media, Inc. and its
subsidiaries, unless the context indicates otherwise.
“Demand Media” and other trademarks of ours appearing in this report are our property. This report contains additional trade
names and trademarks of other companies. We do not intend our use or display of other companies' trade names or trademarks to
imply an endorsement or sponsorship of us or our business by such companies, or any relationship with any of these companies.
Overview
Demand Media is a diversified Internet company with leading online media properties and marketplace platforms that enable
communities of creators to reach passionate audiences in large and growing lifestyle categories. We operate an online studio platform
for the professional creation and distribution of high-quality content, as well as two online artist marketplaces. In addition, our Content
Solutions and programmatic offerings help advertisers find innovative ways to engage with their customers.
Our business is comprised of two service offerings: Content & Media and Marketplaces.
• Content & Media: Our Content & Media service offering includes a leading online content creation platform that
publishes content to our owned and operated online properties as well as to online properties operated by our
customers. Through our innovative content creation platform, DemandStudios.com, a large community of qualified
freelance professionals utilizes proprietary technology and automated workflow processes to identify valuable topics
and then create high-quality content in text, video, photography and designed visual formats. This content is published
to our leading owned and operated online properties across several key categories, including eHow.com, a how-to
reference destination, and Livestrong.com, a health and healthy living destination. We also own and operate
Cracked.com, a humor site offering original and engaging comedy-driven text articles, video series and blogs created
by our in-house editorial staff, comedians and website enthusiasts. Our content studio also creates and publishes
content for third-party brands, publishers and advertisers as part of our Content Solutions service.
• Marketplaces: Through our Marketplaces service offering, we operate two leading artist marketplaces where large
communities of artists can market and sell original artwork or original designs printed on a wide variety of products.
Society6.com (“Society6”) provides artists with an online commerce platform to feature and sell their original designs
on art prints, phone and tablet cases, t-shirts and other consumer products. SaatchiArt.com (“Saatchi Art”) is an online
art gallery featuring a wide selection of paintings, drawings, sculpture and photography that provides a global
community of artists a curated environment in which to exhibit and sell their work directly to consumers around the
world.
Our Content & Media service offering derives the majority of its revenue from the sale of advertising on our owned and
operated online properties. We also generate revenue from the sale or license of content that we create for our customers. Our
Marketplaces service offering generates revenue from the sale of products and services through our online artist
marketplaces. Information about our revenue by service offering is set forth in Note 16 of our Notes to Consolidated Financial
Statements included in Part III, Item 15, “Exhibits, Financial Statement Schedules” of this Annual Report on Form 10-K.
On August 1, 2014, we completed the separation of Rightside Group, Ltd. (“Rightside”) from Demand Media, resulting in two
independent, publicly traded companies (hereinafter referred to as the “Separation”). Following the Separation, Rightside operates our
former domain name services business, while we continue to own and operate our Content & Media and Marketplaces businesses. The
Separation was structured as a pro rata tax-free dividend involving the distribution of all outstanding shares of Rightside common
stock to holders of Demand Media common stock as of the August 1, 2014 record date (the “Distribution”). Immediately following the
Distribution, we completed a 1-for-5 reverse stock split of our outstanding and treasury shares of common stock. The financial results
of Rightside are presented as discontinued operations in our consolidated statements of operations for all periods presented in this
Annual Report on Form 10-K. Unless it is disclosed, all financial results represent continuing operations.
Demand Media was incorporated in Delaware in March 2006. Our headquarters are located in Santa Monica, California. We
completed our initial public offering in January 2011 and our common stock is listed on the New York Stock Exchange under the
symbol “DMD.”