Demand Media (NYSE: DMD) reported earnings on May 7. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Demand Media met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share grew. GAAP earnings per share expanded.

Gross margins contracted, operating margins grew, net margins increased.

Revenue details
Demand Media tallied revenue of $100.6 million. The 10 analysts polled by S&P Capital IQ foresaw a top line of $99.6 million on the same basis. GAAP reported sales were 17% higher than the prior-year quarter's $86.2 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.09. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.08 per share. Non-GAAP EPS of $0.09 for Q1 were 29% higher than the prior-year quarter's $0.07 per share. GAAP EPS were $0.01 for Q1 compared to -$0.02 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 52.1%, 10 basis points worse than the prior-year quarter. Operating margin was 1.3%, 260 basis points better than the prior-year quarter. Net margin was 0.7%, 280 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $105.3 million. On the bottom line, the average EPS estimate is $0.10.

Next year's average estimate for revenue is $429.5 million. The average EPS estimate is $0.41.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 34 members out of 70 rating the stock outperform, and 36 members rating it underperform. Among 31 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 10 give Demand Media a green thumbs-up, and 21 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Demand Media is hold, with an average price target of $11.26.

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