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

The 10-second takeaway
For the quarter ended June 30 (Q2), Demand Media beat expectations on revenues and earnings per share.

Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share expanded to zero.

Gross margins were steady, operating margins grew, and net margins improved.

Revenue details
Demand Media reported revenue of $93.1 million. The six analysts polled by S&P Capital IQ foresaw a top line of $89.0 million on the same basis. GAAP reported sales were 17% higher than the prior-year quarter's $79.5 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 forecast $0.07 per share. GAAP EPS shrank to zero from the prior-year quarter's -$0.03.

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 52.3%, about the same as the prior-year quarter. Operating margin was 1.0%, 190 basis points better than the prior-year quarter. Net margin was 0.1%, 310 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $92.6 million. On the bottom line, the average EPS estimate is $0.09.

Next year's average estimate for revenue is $364.5 million. The average EPS estimate is $0.36.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 37 members out of 75 rating the stock outperform, and 38 members rating it underperform. Among 33 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 10 give Demand Media a green thumbs-up, and 23 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Demand Media is outperform, with an average price target of $10.65.

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