Demand Media ,one of the leading domain name services company reported financial results for the fiscal year and fourth quarter ended December 31,2012 .Moreover,the company announced that they are planning to separate the company into two different companies.

Q4 2012 Financial Summary:

• Content & Media revenue ex-TAC grew 25% year-over-year, driven by 24% page view growth on the Company’s owned & operated properties as well as 37% growth in network RPMs ex-TAC, reflecting higher revenue from network content partners.
• Registrar revenue grew 10% year-over-year, driven by an increase in the number of domains on our platform, due primarily to growth from new partners.
• Adjusted EBITDA increased 24% year-over-year, resulting in 110 basis points of margin expansion to 30.3% of Revenue ex-TAC. This improvement was driven by the growth in higher margin Content & Media revenue and operating leverage.

“In 2012 we generated over $60 million of free cash flow, which more than funded our acquisition of Name.com and the repurchase of nearly $9 million of our common stock,” said Demand Media’s CFO Mel Tang. “We plan to continue reinvesting our strong cash flows into long-term growth opportunities, such as our gTLD initiative as well as growing and diversifying our content offerings.”

Business Highlights:

• Demand Media ranked as a top 20 US web property throughout 2012, and ranked #13 in January 2013.(1)
• Demand Media reached more than 125 million unique visitors worldwide in January 2013.(1)
• eHow.com ranked as the #12 website in the US, with 62.0 million unique users in January 2013.(1)
• LIVESTRONG.COM/eHow Health ranked as the #3 Health property in the US in January 2013.(1)
• Cracked ranked as the #1 Humor property in the US in January 2013.(1)

On December 31, 2012, Demand Media acquired retail registrar Name.com, expanding its registrar platform as it prepares for the historic release of new gTLDs.

During the fourth quarter of 2012, Demand Media repurchased approximately 572,000 shares of common stock for $4.9 million under its Board-authorized $50.0 million share repurchase program. To date, the Company has repurchased approximately 4.0 million shares of common stock for $30.8 million.

On February 19, 2013, the Company announced that its Board of Directors has authorized a plan to explore the separation of its business into two distinct publicly traded companies.

First Quarter 2013

• Revenue in the range of $100.0 – $102.0 million
• Revenue ex-TAC in the range of $94.0 – $96.0 million
• Adjusted EBITDA in the range of $23.5 – $25.5 million
• Adjusted EPS in the range of $0.07 – $0.08 per share
• Weighted average diluted shares 89.0 – 90.0 million

Full Year 2013

• Revenue in the range of $435.0 – $443.0 million
• Revenue ex-TAC in the range of $410.0 – $418.0 million
• Adjusted EBITDA in the range of $110.0 – $115.0 million
• Adjusted EPS in the range of $0.39 – $0.43 per share
• Weighted average diluted shares 89.0 – 91.0 million

More details about the Q4 and Fiscal 2012 results you can find here .

Moreover,the company shocked everybody when it announed that they are considering to separate its business into two independent companies : a pure-play media company “with a powerful outsourced content creation platform that organically grows its audience, leading web properties that reach over 100 million monthly unique visitors, and an integrated monetization platform that incorporates branded, network and mobile revenue streams” and a pure-play domain services company “that would be the only end-to-end provider offering registry services, expansive wholesale and retail distribution, and comprehensive aftermarket services.”

More information about the separation you can find here .