Summary:

Traffic to some of Demand Media (NYSE: DMD) sites may have fallen because of updates Google (NSDQ: GOOG) has made to its search algorithm, b…

Demand Media
photo: Flickr / magerleagues

Traffic to some of Demand Media (NYSE: DMD) sites may have fallen because of updates Google (NSDQ: GOOG) has made to its search algorithm, but that does not seem to have impacted the company’s earnings results very much — if at all. The company reported better-than-expected sales for the quarter, posting revenue of $79.5 million, up 48 percent compared to the same period a year ago and well above the $69.49 million analysts had expected.

The company also reported a 32 percent jump in page views on its owned and operated sites. That’s especially notable considering that some had said traffic from Google to Demand Media’s eHow site had fallen as much as 50 percent in the wake of Google’s changes, which were designed to penalize sites with low-quality content. The company is however taking steps to change the content mix on its sites, unveiling three initiatives to improve the quality of the content it showcases. Read about those updates here.

Despite the better-than-expected jump in sales, Demand Media did report a larger loss for the quarter. The company posted a net loss of $5.6 million, up from a net loss of $4.1 million during the same period a year ago. That appeared to have been largely driven by a sharp increase in general and administrative costs, likely because the company went public earlier this year and now has to incur associated costs.

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