Leaf Group (formerly Demand Media)

Entertainment & Publishing Technology consumer web marketplace media

Leaf Group Ltd. is a diversified Internet company that builds platforms across its marketplace (Society6, Saatchi Art, The Other Art Fair, Deny Designs) and media (Livestrong.com, eHow, Hunker, Sapling, Techwalla, LeafTV) properties to enable communities of creators to reach passionate audiences in large and growing lifestyle categories. In addition, Leaf Group’s content studio and diverse advertising offerings help brands and publishers find innovative ways to engage with their customers.

Revenue(Q1, 2017)

$27.2 M

Market capitalization(2016-11-08)

$129.5 M

Unique Visitors(FY, 2016)

46 M

Company Growth (employees)

Type

Public

Santa Monica, US

Founded

2006

Size (employees)

265 (est)

Website

leafgroup.com

Leaf Group (formerly Demand Media) was founded in 2006 and is headquartered in Santa Monica, US

Key People at Leaf Group (formerly Demand Media)

Sean Moriarty

CEO

Jess Barron

VP of Editorial, Livestrong.com

Leaf Group (formerly Demand Media) Office Locations

Leaf Group (formerly Demand Media) has offices in Santa Monica and New York

New York, US (HQ)

315 W 36th St

Santa Monica, US (HQ)

1655 26th St

Leaf Group (formerly Demand Media) Data and Metrics

Leaf Group (formerly Demand Media) Financial Metrics

Leaf Group (formerly Demand Media)'s revenue was reported to be $27.2 m in Q1, 2017

Summary

USD

Leaf Group (formerly Demand Media)'s current market capitalization is $129.5 m.

Source: SEC Filings

Income Statement

Annual

USD	FY, 2013	FY, 2014	FY, 2015	FY, 2016
Revenue	394.6 m	172.4 m	126 m	113.5 m
Revenue growth, %		(56%)	(27%)	(10%)
Sales and marketing expense	46.4 m	20 m	20.3 m	26.7 m
R&D expense	44.2 m	29.4 m	24.3 m	20 m
General and administrative expense	73.3 m	50.2 m	38.3 m	30.7 m
Operating expense total	413.1 m	439.6 m	172.7 m	155.7 m
EBIT	(18.5 m)	(267.2 m)	(46.8 m)	(42.3 m)
EBIT margin, %	(5%)	(155%)	(37%)	(37%)
Interest expense	(1.6 m)	(4.7 m)	(143 k)	(4 k)
Interest income	21 k	328 k	361 k	96 k
Pre tax profit	(15.9 m)	(270.9 m)	(43.4 m)	(2 m)
Income tax expense	(4.2 m)	14.7 m	(55 k)	10 k
Net Income	(20.2 m)	(267.4 m)	(43.5 m)	(2 m)

Quarterly

USD	Q2, 2014	Q3, 2014	Q1, 2015	Q2, 2015	Q3, 2015	Q1, 2016	Q2, 2016	Q3, 2016	Q1, 2017
Revenue	89.8 m	41.3 m	33.2 m	29.8 m	28.5 m	27 m	24.4 m	28.1 m	27.2 m
Sales and marketing expense	6.8 m	4.7 m	4.6 m	4.8 m	5.4 m	6 m	7.3 m	6 m	6.7 m
R&D expense	10.1 m	7.1 m	6.4 m	6 m	6.5 m	5.6 m	5.3 m	4.7 m	4.8 m
General and administrative expense	18.7 m	12.5 m	10.4 m	10 m	9.9 m	8.5 m	7.4 m	7.5 m	7.7 m
Operating expense total	35.6 m	24.2 m	21.3 m	20.8 m	21.8 m	20.1 m	20 m	18.2 m	19.1 m
EBIT		(239.3 m)	(9.7 m)	(14.5 m)	(14 m)	(12.9 m)	(13.7 m)	(8.4 m)	(10.1 m)
EBIT margin, %		(579%)	(29%)	(49%)	(49%)	(48%)	(56%)	(30%)	(37%)
Interest expense		(627 k)	109 k	110 k	(3 k)	(71 k)	(71 k)	(2 k)	(2 k)
Interest income			109 k	110 k	(3 k)	2 k	23 k	35 k	43 k
Pre tax profit	(12 m)	(239.2 m)	(6.7 m)	(14.4 m)	(13.8 m)		24.5 m	(8.4 m)	(10 m)
Income tax expense	(2.3 m)	16.6 m	(22 k)	(10 k)	(13 k)	(11 k)	(69 k)	32 k	(12 k)
Net Income	(14.3 m)	(223.8 m)	(6.7 m)	(21.2 m)	(35 m)	(11.9 m)	12.6 m	4.2 m	(10 m)

Source: SEC Filings

Balance Sheet

Annual

USD	FY, 2013	FY, 2014	FY, 2015	FY, 2016
Cash	153.5 m	47.8 m	38.6 m	50.9 m
Accounts Receivable	33.3 m	14.5 m	10.5 m	6.8 m
Inventories	7.8 m	7.4 m	5 m	8.1 m
Current Assets	260.9 m	69.8 m	54 m	65.9 m
PP&E	42.2 m	22.8 m	14.6 m	11.5 m
Goodwill	347.4 m	10.4 m	10.4 m	11.2 m
Total Assets	777.1 m	149.6 m	101.5 m	101.3 m
Accounts Payable	12.8 m	4.8 m	2 m	2.5 m
Total Debt	96.3 m
Current Liabilities	169.9 m	32.6 m	20.1 m	19.6 m
Total Liabilities				21.5 m
Additional Paid-in Capital	611 m	497.8 m	505.6 m	513.1 m
Retained Earnings	(84.8 m)	(352.1 m)	(395.6 m)	(397.6 m)
Total Equity	496 m	114.8 m	79.1 m	79.8 m
Debt to Equity Ratio	0.2 x
Debt to Assets Ratio	0.1 x
Financial Leverage	1.6 x	1.3 x	1.3 x	1.3 x

Quarterly

USD	Q2, 2014	Q3, 2014	Q1, 2015	Q2, 2015	Q3, 2015	Q1, 2016	Q2, 2016	Q3, 2016	Q1, 2017
Cash	131.6 m	113.2 m	47.3 m	42.3 m	37.9 m	30.5 m	60.9 m	51.7 m	41.5 m
Accounts Receivable	27.6 m	17.7 m	11.4 m	10.6 m	9.6 m	8.6 m	7.2 m	7.2 m	6.7 m
Current Assets	259 m	140.6 m	66.3 m	60.7 m	52.5 m	43.7 m	71.6 m	67.1 m	54.5 m
PP&E	37.1 m	24.3 m	20.1 m	18.8 m	15.5 m	12.6 m	12 m	11.9 m	11.2 m
Goodwill	334.9 m	10.4 m	10.4 m	10.4 m	10.4 m	10.4 m	10.4 m	11.2 m	11.2 m
Total Assets	748.7 m	234.6 m	138.5 m	124.3 m	104.5 m	86 m	114.1 m	104.2 m	87.6 m
Accounts Payable	9.8 m	1.8 m	2.1 m	824 k	1.1 m	1.8 m	1.8 m	1.5 m	2.4 m
Current Liabilities	166.1 m	34.3 m	26.2 m	24.4 m	16.9 m	15.5 m	16.9 m	16.9 m	15.6 m
Additional Paid-in Capital	621 m	492.5 m	499.9 m	502 m	503.5 m	507.1 m	509.4 m	511.2 m	513.8 m
Retained Earnings	(110.1 m)	(333.9 m)	(358.9 m)	(373.3 m)	(387.1 m)	(407.5 m)	(383.1 m)	(391.4 m)	(407.7 m)
Total Equity				97.9 m	85.6 m	68.8 m	95.5 m	85.4 m	70.4 m
Financial Leverage				1.3 x	1.2 x	1.3 x	1.2 x	1.2 x	1.2 x

Cash Flow

Annual

USD	FY, 2013	FY, 2014	FY, 2015	FY, 2016
Net Income	(20.2 m)	(267.4 m)	(43.5 m)	(2 b)
Depreciation and Amortization	64.9 m	59.5 m	18.7 m	10.9 b
Accounts Receivable	12.4 m	10.8 m	3.8 m	3.5 m
Inventories	(375 k)	(145 k)	917 k	238 k
Accounts Payable	3 m	(2.2 m)	(2.8 m)	529 k
Cash From Operating Activities	76.2 m	34.7 m	(9.3 m)	(13.1 m)
Purchases of PP&E	(26.7 m)	(8.9 m)	(4.7 m)	(4.6 m)
Cash From Investing Activities	(114.5 m)	(14.9 m)	7.1 m	30.9 m
Cash From Financing Activities	89 m	(125.4 m)	(7.9 m)	(5.6 m)
Interest Paid	849 k	2.3 m	143 k	4 k
Income Taxes Paid	99 k	104 k	116 k	99 k

Quarterly

USD	Q2, 2014	Q3, 2014	Q1, 2015	Q2, 2015	Q3, 2015	Q1, 2016	Q2, 2016	Q3, 2016	Q1, 2017
Net Income	(14.3 m)	(223.8 m)	(6.7 m)	(21.2 m)	(35 m)	(11.9 m)	12.6 m	4.2 m	(10 m)
Depreciation and Amortization	9.8 m	7.4 m	7.6 m	17.2 m	24.4 m	5.7 m	10.6 m	15 m	3.3 m
Accounts Receivable	27.6 m	17.7 m	2.9 m	4.4 m	4.7 m	1.9 m	3.1 m	3.2 m	134 k
Accounts Payable	9.8 m	1.8 m	(2.6 m)	(3.9 m)	(3.6 m)	(53 k)	(20 k)	(372 k)	40 k
Cash From Operating Activities			(2.4 m)	(6.6 m)	(9.7 m)	(6.9 m)	(10.3 m)	(13.5 m)	(7.7 m)
Purchases of PP&E			(1.8 m)	(2.6 m)	(3.6 m)	(1.5 m)	(2.5 m)	(3.7 m)	(1.1 m)
Cash From Investing Activities			2.2 m	1.4 m	7.9 m	(667 k)	33.5 m	31 m	24 k
Cash From Financing Activities			(283 k)	(304 k)	(8 m)	(491 k)	(903 k)	(4.4 m)	(1.7 m)

Ratios

USD	Y, 2017
Revenue/Employee	102.8 k
Financial Leverage	1.2 x

Leaf Group (formerly Demand Media) Operating Metrics

Leaf Group (formerly Demand Media)'s Active Users was reported to be 305.1 k in FY, 2016, which is a 27% increase from the previous period. Leaf Group (formerly Demand Media)'s Unique Visitors was reported to be 46 m in FY, 2016. Leaf Group (formerly Demand Media)'s Patent Applications was reported to be 15 in FY, 2015, which is a 21% decrease from the previous period

	Q1, 2014	Q2, 2014	Q3, 2014	FY, 2014	Q1, 2015	Q2, 2015	Q3, 2015	FY, 2015	Q1, 2016	Q2, 2016	Q3, 2016	FY, 2016	Q1, 2017
Revenue per Visit	$38.77	$36	$31.91	$34.22	$23.87	$21.48	$20.33	$21.87	$17.18	$17.09	$17.51	$17.33	$16.34
Average Revenue per Transaction	$48.46	$52.37	$54.18	$49.47	€58.65	$57.14	$61.95	$56.38	$59.25	$61.31	$58.61	$55.37	$59.28
Accesses	988.54 m	1.01 b	1.05 b	4 b	943.44 m	896.85 m	780.99 m	3.37 b	785.98 m	645.14 m	651.55 m	2.73 b	695.54 m
Transactions	138.89 k	126.34 k	143.02 k	715.34 k	182.18 k	183.87 k	203.77 k	925.11 k	227.2 k	218.7 k	282.39 k	1.18 m	267.77 k
Patents (US)				12				15
Unique Artworks				500 k				500 k				650 k
Patents (foreign)				5				6
Active Users				180 k				240 k				305.12 k
Patent Applications				19				15
Designs				2 m				2.7 m				3.6 m
Countries				100				100				100
Trademarks (US)				41				30
Unique Visitors (eHow)				40 m				24 m
Video Views							121.87 m		156.52 m		176.45 m	638.28 m	205.65 m
Events Held												15
Unique Visitors												46 m
Brands												22

Source: SEC Filings

Leaf Group (formerly Demand Media) Revenue Breakdown

Leaf Group (formerly Demand Media) Median Salaries

Source: 68 public H-1B filings from Leaf Group (formerly Demand Media)

Market Position of Leaf Group (formerly Demand Media)

Competitors

Revenue (Q1, 2017)	27.2 m
Net income (Q1, 2017)	(10 m)
EBIT (Q1, 2017)	(10.1 m)
Market capitalization (08-Nov-2016)	129.5 m
Closing share price (08-Nov-2016)	5.8
Cash (31-Mar-2017)	41.5 m

Leaf Group (formerly Demand Media)

Company Growth (employees)

Key People at Leaf Group (formerly Demand Media)

Sean Moriarty

Jess Barron

Leaf Group (formerly Demand Media) Office Locations

Leaf Group (formerly Demand Media) Data and Metrics

Leaf Group (formerly Demand Media) Financial Metrics

Summary

Revenue (Q1, 2017)

Net income (Q1, 2017)

EBIT (Q1, 2017)

Market capitalization (08-Nov-2016)

Closing share price (08-Nov-2016)

Cash (31-Mar-2017)

Income Statement

Revenue

Revenue growth, %

Sales and marketing expense

R&D expense

General and administrative expense

Operating expense total

EBIT

EBIT margin, %

Interest expense

Interest income

Pre tax profit

Income tax expense

Net Income

Revenue

Sales and marketing expense

R&D expense

General and administrative expense

Operating expense total

EBIT

EBIT margin, %

Interest expense

Interest income

Pre tax profit

Income tax expense

Net Income

Balance Sheet

Cash

Accounts Receivable

Inventories

Current Assets

PP&E

Goodwill

Total Assets

Accounts Payable

Total Debt

Current Liabilities

Total Liabilities

Additional Paid-in Capital

Retained Earnings

Total Equity

Debt to Equity Ratio

Debt to Assets Ratio

Financial Leverage

Cash

Accounts Receivable

Current Assets

PP&E

Goodwill

Total Assets

Accounts Payable

Current Liabilities

Additional Paid-in Capital

Retained Earnings

Total Equity

Financial Leverage

Cash Flow

Net Income

Depreciation and Amortization

Accounts Receivable

Inventories

Accounts Payable

Cash From Operating Activities

Purchases of PP&E

Cash From Investing Activities