Demand Media Turns Profit, Raises Forecast

Citing increased traffic at its websites, Demand Media (NYSE:DMD) announced that it swung to a small profit in the second quarter and boosted its guidance for the year.

The company reported earnings of $100,000, compared to a $2.4 million loss in the same period last year, marking its first profitable quarter since going public in January 2011.

The website publisher recorded adjusted revenue of $88.7 million, up 16% from last year. That topped the $85.9 million that analysts had expected, Reuters noted.

For the quarter, Demand Media posted non-GAAP EPS of 9 cents, which beat the 8 cents Wall Street was looking for.

Company officials raised their revenue outlook to between $355.5 million and $359.5 million for the year. That compares to previously issued guidance of between $347 million and $353 million.

Shares of Demand Media rose more than 1% in Wednesday mid-day trading.

The company said that its websites, which use freelance material to generate search results and ad revenue, saw a 30% increase in page views compared to last year.

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