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Demand_Media_Q1 Supplemental Data FINAL by karaswisher

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									                                                                                                      Demand Media, Inc.
                                                                                                   Supplemental Financial Data

(In thousands, except per share data)                     Q1 10          Q2 10          Q3 10           Q4 10          Q1 11          Q2 11           Q3 11          Q4 11          Q1 12                   2010         2011
Revenue
Content & Media                                       $     30,198 $       36,093 $       39,818 $        46,802 $       51,852 $       49,822 $        50,744 $       53,032 $       53,963            $ 152,911 $ 205,450
Registrar                                                   23,449         24,262         25,537          26,777         27,671         29,633          30,729         31,384         32,271              100,026   119,417
 Total Revenue                                        $     53,647 $       60,355 $       65,355 $        73,579 $       79,523 $       79,455 $        81,473 $       84,415 $       86,234            $ 252,937 $ 324,866
                                 (1)
TAC (Traffic Acquisition Cost)                        $      2,694 $        3,063 $         3,155 $        3,302 $        3,190 $         2,813 $        3,381 $        3,111 $         3,379           $    12,213 $     12,494
Content & Media ex TAC                                $     27,504 $       33,030 $       36,663 $        43,500 $       48,662 $       47,009 $        47,363 $       49,921 $       50,584            $ 140,698 $ 192,955
Registrar                                                   23,449         24,262         25,537          26,777         27,671         29,633          30,729         31,384         32,271              100,026   119,417
 Total Revenue ex TAC                                 $     50,953 $       57,292 $       62,200 $        70,277 $       76,333 $       76,642 $        78,092 $       81,304 $       82,854            $ 240,724 $ 312,372

YoY Growth
Content & Media                                                37%            45%            39%            46%             72%            38%            27%             13%             4%                   42%          34%
Registrar                                                       7%             9%            11%            14%             18%            22%            20%             17%            17%                   10%          19%
 Total Revenue                                                 22%            28%            26%            33%             48%            32%            25%             15%             8%                   27%          28%
Content & Media ex TAC                                         34%            46%            44%            53%             77%            42%            29%             15%             4%                   45%          37%
Registrar                                                       7%             9%            11%            14%             18%            22%            20%             17%            17%                   10%          19%
 Total Revenue ex TAC                                          20%            27%            28%            35%             50%            34%            26%             16%             9%                   28%          30%

Revenue Mix
Content & Media                                               56%            60%             61%            64%            65%             63%            62%            63%             63%                   60%          63%
Registrar                                                     44%            40%             39%            36%            35%             37%            38%            37%             37%                   40%          37%
 Total Revenue                                               100%           100%            100%           100%           100%            100%           100%           100%            100%                  100%         100%

Content & Media ex TAC                                        54%            58%             59%            62%            64%             61%            61%            61%             61%                   58%          62%
Registrar                                                     46%            42%             41%            38%            36%             39%            39%            39%             39%                   42%          38%
 Total Revenue ex TAC                                        100%           100%            100%           100%           100%            100%           100%           100%            100%                  100%         100%

Key Operational Metrics
Adjusted EBITDA (2)                                   $     11,310 $       14,291 $       16,293 $        20,112 $       20,080 $       20,507 $        21,653 $       23,718 $       21,905            $    62,006 $     85,958
Adjusted EBITDA margin (ex TAC)                              22.2%          24.9%          26.2%          28.6%           26.3%          26.8%          27.7%           29.2%          26.4%                 25.8%        27.5%
                       (3)
Adjusted Net Income                                   $      2,308 $        3,528 $         4,460 $        5,587 $        5,099 $         5,031 $        4,979 $        6,763 $         5,946           $    15,883 $     21,872
Adjusted Net Income per share diluted                 $       0.03 $          0.04 $         0.05 $         0.06 $          0.06 $         0.06 $         0.06 $          0.08 $         0.07           $      0.18 $       0.25
Investment in Intangibles                             $     10,168 $       10,973 $       13,260 $        12,791 $       14,204 $       15,859 $        13,927 $        5,294 $         2,703           $    47,192 $     49,284
Discretionary Free Cash Flow (4)                      $     10,431 $        4,489 $         9,232 $       16,068 $       14,136 $       11,102 $        19,931 $       23,605 $       14,471            $    40,220 $     68,773
Free Cash Flow (5)                                    $        263 $        (6,484) $      (4,028) $       3,277 $           (68) $      (4,757) $       6,004 $       18,310 $       11,767            $    (6,972) $    19,489

Notes:
Some figures in this presentation may not foot due to rounding.
(1) Traffic acquisition costs comprise the portion of Content & Media GAAP revenue shared with the Company's network customers.
(2) Net income (loss) before income tax expense, other income (expense), interest expense (income), depreciation, amortization, stock based compensation, as well as the financial impact
of acquisitions and realignment costs, the formation expenses directly related to the generic Top Level Domain initiative, and any gains or losses on certain asset sales or dispositions.
Effective Q1 2012, the Company is reporting Adjusted EBITDA instead of Adjusted OIBDA.
(3) Net income (loss) before the effect of stock based compensation, amortization of intangible assets acquired via business combinations, acquisition and realignment costs, formation expenses directly
related to the generic Top Level Domain initiative, and any gains or losses on certain asset sales or dispositions and is calculated using the application of a normalized effective tax rate.
(4) Net cash provided by operating activities excluding cash outflows from acquisition and realignment activities, and formation expenses directly related to the generic Top Level Domain initiative,
less capital expenditures to acquire property and equipment.
(5) Net cash provided by operating activities excluding cash outflows from acquisition and realignment activities, and formation expenses directly related to the generic Top Level Domain initiative,
less capital expenditures to acquire property and equipment and less investments in intangible assets.
                                                                                 Demand Media, Inc.
                                                                           Supplemental Non Financial Metrics

                                                          Q1 10         Q2 10          Q3 10          Q4 10           Q1 11          Q2 11          Q3 11          Q4 11          Q1 12                 2010          2011
Content & Media Metrics
Owned & Operated
 Page views (in mm) (1)                                     1,954           1,994          2,085          2,201          2,582          2,573          2,527          2,696           3,142               8,233        10,378
 YoY Growth                                                   25%             21%            17%            19%            32%            29%            21%            22%             22%                20%           26%
 RPM (2)                                                   $10.71         $12.89         $14.08         $15.81          $15.69         $15.20         $15.16         $14.53         $12.52               $13.45        $15.14
 YoY Growth                                                       9%          26%            29%            36%            46%            18%               8%           (8%)          (20%)               26%           13%

Network
 Page views (in mm) (1)                                     2,646           3,153          3,490          3,866          3,766          3,688          5,046          4,935           4,722              13,155        17,435
 YoY Growth                                                   21%             28%            29%            47%            42%            17%            45%            28%             25%                31%           33%
       (2)
 RPM                                                        $3.50           $3.30          $3.00          $3.11          $3.01          $2.91          $2.47          $2.81           $3.10               $3.20         $2.77
 YoY Growth                                                   14%               0%          (11%)          (22%)          (14%)           (12%)          (18%)          (10%)             3%                   (7%)      (14%)
 RPM (ex TAC) (3)                                           $2.48           $2.32          $2.10          $2.25          $2.16          $2.14          $1.80          $2.18           $2.38               $2.28         $2.05
 YoY Growth                                                       7%          (2%)           (6%)          (14%)          (13%)            (8%)          (14%)           (3%)           10%                    (5%)      (10%)

Registrar Metrics
 End of Period # of Domains (in mm) (4)                        9.4           10.1           10.6           11.0           11.4           11.9            12.2           12.7           13.3                11.0          12.7
 YoY Growth                                                       5%          13%            17%            21%            22%            18%            15%            16%             16%                21%           16%
                                 (5)
 Average Revenue per Domain                           $     10.16 $         10.00 $         9.90 $         9.94 $         9.88 $        10.17 $        10.21 $        10.09 $          9.94         $      9.96 $       10.09
 YoY Growth                                                       3%          (0%)           (4%)           (4%)           (3%)              2%             3%             1%             1%                   (1%)          1%


Notes:
Some figures in this presentation may not foot due to rounding.
Refer to the Company's press releases and associated SEC filings for the relevant period for further information on the definition of terms used and the basis of presentation adopted.
(1) Page views represent the total number of web pages viewed across: (1) our owned and operated websites and/or (2) our network of customer websites, to the extent that the viewed
customer web pages host the Company's monetization, social media and/or content services.
(2) Content & Media revenue per one thousand page views.
(3) Content & Media revenue ex TAC per one thousand page views.
(4) Individual domain name paid for by a third party customer where the domain name is managed through our Registrar service offering. Beginning July 1, 2011, the number of new domains has been
adjusted to include only new registered domains added to our platform for which the Company has recognized revenue.
(5) Annualized Registrar revenue for a period divided by the average number of domains registered during that period.
                                                                                                                              Demand Media, Inc.
                                                                                                                              Metric Reconciliation

                                                                         Q1 10           Q2 10           Q3 10           Q4 10            Q1 11           Q2 11           Q3 11           Q4 11            Q1 12           2010         2011
Adjusted EBITDA (In thousands)
Net income (loss)                                                    $      (4,122) $       (1,927) $         (306) $         1,029 $       (5,582) $        (2,371) $       (4,145) $         (6,427) $     (1,842)   $    (5,325) $    (18,525)
Tax Provision                                                                  717             610           1,056            1,515          1,013            1,333             394             1,438        (1,195)         3,897         4,178
Interest & Other Expenses                                                      193             273             196              287            377              160             460               222           141            948         1,219
Depreciation                                                                 4,130           4,358           4,475            5,303          5,009            5,579           5,303             5,066         4,964         18,266        20,958
Amortization of intangible assets (1)                                        7,935           8,238           8,309            9,268         10,203            9,750          10,828            16,393        11,956         33,751        47,174
Stock based compensation (2)                                                 2,242           2,529           2,372            2,546          8,927            5,419           7,755             6,754         7,391          9,689        28,855
gTLD expense (3)                                                                                                                                                                                                429
Acquisition and realignment costs (4)                                          216             209             191             164              133             637           1,059              271             61               779     2,100
 Adjusted EBITDA                                                     $     11,310 $         14,291 $        16,293 $        20,112 $        20,080 $         20,507 $        21,653 $          23,718 $      21,905    $    62,005 $     85,958

Adjusted OIBDA (In thousands)
Income (loss) from operations                                        $      (3,213) $       (1,043) $          946 $          2,831 $       (4,192) $          (878) $       (3,292) $         (4,766) $     (2,896)   $      (479) $    (13,128)
Depreciation                                                                 4,130           4,358           4,475            5,303          5,009            5,579           5,303             5,066         4,964         18,266        20,958
Amortization of intangible assets (1)                                        7,935           8,238           8,309            9,268         10,203            9,750          10,828            16,393        11,956         33,751        47,174
Stock based compensation (2)                                                 2,242           2,529           2,372            2,546          8,927            5,419           7,755             6,754         7,391          9,689        28,855
gTLD expense (3)                                                                                                                                                                                                429
Acquisition and realignment costs (4)                                          216             209             191             164              133             637           1,059              271             61               779     2,100
 Adjusted OIBDA                                                      $     11,310 $         14,291 $        16,293 $        20,112 $        20,080 $         20,507 $        21,653 $          23,718 $      21,905    $    62,005 $     85,958

Adjusted Net Income (In thousands except per share amounts)
GAAP net income (loss)                                      $               (4,122) $       (1,927) $         (305) $         1,029 $        (5,582) $       (2,371) $       (4,145) $         (6,427) $     (1,842)   $    (5,324) $    (18,525)
(a) Stock based compensation (2)                                             2,242           2,529           2,372            2,546           8,927           5,419           7,755             6,754         7,391          9,689        28,855
(b) Amortization of intangible assets M&A                                    4,669           4,269           3,880            3,758           3,733           3,097           2,969             2,974         2,929         16,576        12,773
(c) Content intangible assets removed from service                                                                                                                                              5,898         1,818                        5,898
(d) gTLD expense (3)                                                                                                                                                                                            429
(e) Acquisition and realignment costs (4)                                      216             209             191             164              133             637           1,059              271             61               779     2,100
Income tax effect of items (a) (e) and application of 38%
statutory tax rate to pre tax income                                          (697)         (1,552)         (1,678)          (1,910)         (2,112)         (1,751)         (2,658)           (2,707)       (4,840)         (5,837)      (9,228)
 Adjusted Net Income                                                 $       2,308 $         3,528 $         4,460 $         5,587 $          5,099 $         5,031 $         4,979 $           6,763 $       5,946    $    15,883 $     21,872
Shares used to calculate non GAAP Adjusted Net Income
per share –– diluted(5)                                                    84,723           85,676          87,224          87,885          89,861           88,691          87,973            86,758        85,540         86,422       88,541
 Adjusted Net Income per share diluted                               $        0.03 $          0.04 $          0.05 $           0.06 $          0.06 $          0.06 $          0.06 $            0.08 $        0.07    $      0.18 $       0.25

Discretionary and Total Free Cash Flow (In thousands)
Net cash provided by operating activities                            $     14,867 $          9,555 $        16,270 $        20,932 $        19,220 $         16,848 $        22,057 $          27,224 $      18,478    $     61,624 $     85,349
Purchase of property and equipment                                         (4,436)          (5,066)         (7,038)         (4,864)         (5,084)          (5,746)         (3,194)           (4,222)       (4,320)        (21,404)     (18,246)
gTLD cash flows (3)                                                                                                                                                                                             313
Acqusitions and realignment cash flows (4)                                                                                                                                    1,068              602                                      1,670
 Discretionary Free Cash Flow                                               10,431           4,489           9,232          16,068           14,136          11,102          19,931            23,604        14,471          40,220       68,773
 Purchases of intangible assets                                            (10,168)        (10,973)        (13,260)        (12,791)         (14,204)        (15,859)        (13,927)           (5,294)       (2,704)        (47,192)     (49,284)
   Free Cash Flow                                                              263          (6,484)         (4,028)          3,277              (68)         (4,757)          6,004            18,310        11,767          (6,972)     19,489


Notes:
Some figures in this presentation may not foot due to rounding.
(1) Represents the amortization expense of our finite lived intangible assets, including that related to our investment in media content assets, included in our GAAP results of operations.
(2) Represents the fair value of stock based awards and certain warrants to purchase our stock included in our GAAP results of operations.
(3) Comprises formation expenses directly related to the Company's gTLDs initiative that is not expected to generate associated revenue in 2012.
(4) Acquisition and realignment costs include such items, when applicable, as (1) non cash GAAP purchase accounting adjustments for certain deferred revenues and costs, (2) legal,
accounting and other professional fees directly attributable to acquisition activity, and (3) employee severance payments attributable to acquisition or corporate realignment activities.
Management does not consider these expenses as indicative of the Company's ongoing operating results or future outlook.
(5) Shares used to calculate Non GAAP Adjusted Net Income per share diluted include the weighted average common stock and restricted stock for the periods presented and all
dilutive common stock equivalents at each period. Amounts have been adjusted in all periods to reflect the revised capital structure following the Company's initial public offering which
was completed on January 31, 2011, whereby the Company issued 5,175 shares of common stock and converted certain warrants and all of the convertible preferred stock into 62,155 shares
of common stock as if those transactions were consummated on January 1, 2009.
Demand Media, Inc.
Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)

                                                            Three Months    Three Months   Three Months    Three Months   Three Months   Three Months   Three Months    Three Months Three Months
                                                               Ended           Ended          Ended           Ended          Ended          Ended          Ended           Ended        Ended         Year Ended     Year Ended
                                                              March 31,       June 30,     September 30,   December 31,     March 31,      June 30,     September 30,   December 31,   March 31,     December 31,   December 31,
                                                                2010            2010           2010            2010           2011           2011           2011            2011         2012            2010           2011

Revenue                                                     $    53,647     $    60,355    $    65,355     $    73,579    $    79,523    $    79,455    $    81,473     $    84,415    $   86,234    $   252,936    $   324,866

Operating Expenses
 Service costs (exclusive of amortization of
   intangible assets shown separately below) (1), (2)            30,164          31,571         33,474          36,123         37,654         37,869         40,109          40,198        41,262        131,332        155,830
 Sales and marketing (1), (2)                                     4,751           5,645          6,409           7,619          9,583          9,286          9,200           9,325        10,393         24,424         37,394
                       (1), (2)
 Product development                                              6,032           6,482          6,622           7,402          9,251          9,642          9,791           9,462        10,124         26,538         38,146
 General and administrative (1), (2)                              7,978           9,462          9,595          10,336         17,024         13,787         14,837          13,803        15,395         37,371         59,451
 Amortization of intangible assets                                7,935           8,238          8,309           9,268         10,203          9,750         10,828          16,393        11,956         33,750         47,174
      Total operating expenses                                   56,860          61,398         64,409          70,748         83,715         80,334         84,765          89,181        89,130        253,415        337,995

Income (loss) from operations                                     (3,213)        (1,043)           946           2,831         (4,192)          (879)         (3,292)        (4,766)       (2,896)          (479)       (13,129)
Other income (expense)
 Interest income                                                      8               3               8              6             42              5               5              4            15             25             56
 Interest expense                                                  (181)           (168)           (168)          (171)          (162)          (163)           (385)          (151)         (137)          (688)          (861)
 Other income (expense), net                                        (19)           (109)            (36)          (122)          (257)            (2)            (79)           (75)          (19)          (286)          (413)
      Total other expense                                           (192)          (274)           (196)          (287)          (377)          (160)           (459)          (222)         (141)          (949)        (1,218)

Income (loss) before income taxes                                 (3,405)        (1,317)           750           2,544         (4,569)        (1,039)         (3,751)        (4,988)       (3,037)        (1,428)       (14,347)

Income tax provision                                                717             610          1,055           1,515          1,013          1,332            394           1,438        (1,195)         3,897          4,177
      Net loss                                                    (4,122)        (1,927)           (305)         1,029         (5,582)        (2,371)         (4,145)        (6,426)       (1,842)        (5,325)       (18,524)
      Cumulative preferred stock dividends                        (7,963)        (8,243)         (8,443)        (8,602)        (2,477)           -               -              -             -          (33,251)        (2,477)

      Net loss attributable to common stockholders          $    (12,085)   $   (10,170)   $     (8,748)   $    (7,573)   $    (8,059)   $    (2,371)   $     (4,145)   $    (6,426) $     (1,842)   $   (38,576)   $   (21,001)

      Net loss per common share
           Basic and diluted                                $      (0.94)   $     (0.75)   $      (0.64)   $     (0.54)   $     (0.13)   $     (0.03)   $      (0.05)   $     (0.08) $      (0.02)   $     (2.86)   $     (0.27)

      Weighted average number of shares                          12,875          13,482         13,698          13,966         63,759         83,088         83,934          83,592        83,099         13,508         78,646


(1) Stock-Based Compensation included in the line items above:
Service costs                                               $       207     $       221    $       235     $       205    $       237    $       347    $       757     $       711    $      708    $       868    $     2,052
Sales and marketing                                                 464             504            653             758            900          1,136          1,405           1,416         1,536          2,379          4,857
Product development                                                 338             437            441             476          1,116          1,130          1,403           1,364         1,688          1,692          5,013
General and administrative                                        1,233           1,367          1,043           1,107          6,674          2,807          4,190           3,263         3,459          4,750         16,934
   Total stock-based compensation expense                   $     2,242     $     2,529    $     2,372     $     2,546    $     8,927    $     5,420    $     7,755     $     6,754    $    7,391    $     9,689    $    28,856

(2) Depreciation included in the line items above:
Service costs                                               $     3,343     $     3,483    $     3,598     $     4,359    $     4,044    $     4,149    $     4,112     $     3,770    $    3,650    $    14,783    $    16,075
Sales and marketing                                                  41              41             46              59             72            115            109             127           134            187            423
Product development                                                 341             318            337             350            321            438            399             308           282          1,346          1,466
General and administrative                                          405             516            494             535            572            878            683             861           898          1,950          2,994
    Total depreciation expense                              $     4,130     $     4,358    $     4,475     $     5,303    $     5,009    $     5,580    $     5,303     $     5,066    $    4,964    $    18,266    $    20,958
Demand Media, Inc.
Consolidated Balance Sheets
(In thousands, except per share amounts)
(Unaudited)
                                                                                              March 31,                June 30,      September 30,   December 31,         March 31,        June 30,         September 30,         December 31,         March 31,
Assets                                                                                          2010                    2010             2010            2010               2011            2011                2011                 2011                2012
Current assets
                                                                                                             (1)
   Cash and cash equivalents                                                              $       40,509           $       33,561    $     29,230    $    32,338    # $     108,056    $     103,602    $           79,154    $          86,035    $         95,568
   Accounts receivable                                                                            17,840                   21,495          24,395         26,843    #        31,412           30,456                32,972               32,665              32,323
   Prepaid expenses and other current assets                                                       6,256                    7,232           7,417          7,360              7,918            7,008                 9,548                8,656               7,995
   Deferred registration costs                                                                    38,949                   40,683          43,366         44,213    #        47,104           47,504                48,816               50,636              56,540
                                                                                                                                                                    #
      Total current assets                                                                       103,554                  102,971        104,408         110,754    #       194,490          188,570               170,490              177,992             192,426
                                                                                                                                                                    #
Property and equipment, net                                                                       31,379                   33,317         35,107          34,975    #        35,923           35,134                34,044               32,626              34,481
Intangible assets, net                                                                            91,111                   94,170         99,043         102,114    #       108,143          114,848               122,920              111,304             101,864
Goodwill                                                                                         224,920                  224,920        224,920         224,920    #       227,849          227,849               256,151              256,060             256,060
Deferred registration costs and other long-term assets                                            12,037                   13,750         15,569          15,704             12,581           12,647                12,616               12,121              15,488
                                                                                                                                                                    #
      Total assets                                                                        $      463,001           $      469,128    $   479,047     $   488,467    # $     578,986    $     579,048    $          596,221    $         590,103    $        600,319
                                                                                                                                                                    #
                                                                                                                                                                    #
Liabilities, Convertible Preferred Stock and Stockholders’ Deficit                                                                                                  #
Current liabilities                                                                                                                                                 #
   Accounts payable, accrued expenses and other                                           $       43,695           $       43,889    $     48,014    $    53,148    # $      58,180    $      52,702    $           61,481    $          62,266    $         60,240
   Deferred revenue                                                                               55,200                   58,402          61,415         61,832    #        65,420           67,125                67,723               71,109              76,844
   Notes payable                                                                                     -                        -               -              -      #           -                -                     -                    -                   -
                                                                                                                                                                    #
      Total current liabilities                                                                   98,895                  102,291        109,429         114,980    #       123,600          119,827               129,204              133,375             137,084
                                                                                                                                                                    #
Revolving line of credit                                                                             -                        -               -              -      #           -                -                     -                    -                   -
Deferred revenue and other long-term liabilities                                                  14,861                   14,920          15,360         15,149    #        15,198           15,282                16,205               16,462              19,700

      Total liabilities                                                                          113,756                  117,211        124,789         130,129    #       138,798          135,109               145,409              149,837             156,784
                                                                                                                                                                    #
Commitments and contingencies                                                                                                                                       #
                                                                                                                                                                    #
Convertible preferred stock                                                                                                                                         #
     Total convertible preferred stock                                                           373,754                  373,754        373,754         373,754    #              -               -                   -                     -                     -
                                                                                                                                                                    #
Stockholders’ equity (deficit)                                                                                                                                      #
   Common Stock and additional paid-in capital                                                     26,410                  31,024          33,673         36,723            497,901          504,039               515,079              510,978             516,095
   Accumulated other comprehensive income                                                             125                     110             107            108 #              116              100                    78                   59                  53
   Accumulated deficit                                                                            (51,044)                (52,971)        (53,276)       (52,247) 0         (57,829)         (60,200)              (64,345)             (70,771)            (72,613)
                                                                                                                                                                  #
      Total stockholders’ equity (deficit)                                                        (24,509)                (21,837)        (19,496)       (15,416) 0         440,188          443,939               450,812              440,266             443,535
                                                                                                                                                                   0
      Total liabilities, convertible preferred stock and stockholders’ equity (deficit)   $      463,001           $      469,128    $   479,047     $   488,467 # $        578,986    $     579,048    $          596,221    $         590,103    $        600,319

      Note: (1) Includes $1.475MM of marketable securities
Demand Media, Inc.
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
                                                                                            Three Months    Three Months       Three Months       Three Months       Three Months     Three Months       Three Months          Three Months         Three Months
                                                                                               Ended           Ended              Ended              Ended              Ended            Ended              Ended                 Ended                Ended              Year Ended           Year Ended
                                                                                              March 31,       June 30,         September 30,      December 31,         March 31,        June 30,         September 30,         December 31,           March 31,           December 31,         December 31,
                                                                                                2010            2010               2010               2010               2011             2011               2011                 2011                 2012                  2010                 2011


Cash flows from operating activities
Net income (loss)                                                                      $    $     (4,122)   $     (1,927)      $          (305)   $      1,029       $      (5,582)   $      (2,371)     $       (4,145)   $          (6,426)   $          (1,842)    $          (5,325)   $         (18,524)
Adjustments to reconcile net loss to net cash provided by
      operating activities:
      Depreciation and amortization                                                              12,065          12,596               12,784            14,571             15,212           15,330              16,131                21,459               16,920                52,016               68,132
      Stock-based compensation                                                        380         2,144           2,434                2,281             2,470              8,836            5,426               7,727                 6,741                7,391                 9,329               28,730
      Other                                                                                         562             719                  978             3,230                855            1,214                 294                 1,128               (1,420)                5,489                3,491
      Net change in operating assets and liabilities, net of effect of acquisitions               4,218          (4,267)                 532              (368)              (101)          (2,751)              2,050                 4,322               (2,571)                  115                3,520

                  Net cash provided by operating activities                                      14,867            9,555              16,270            20,932             19,220           16,848              22,057                27,224               18,478                61,624               85,349

Cash flows from investing activities
Purchases of property and equipment                                                               (4,436)         (5,066)             (7,038)            (4,864)            (5,084)          (5,746)            (3,194)               (4,222)              (4,321)              (21,404)             (18,246)
Purchases of intangible assets                                                                   (10,168)        (10,973)            (13,260)           (12,791)           (14,204)         (15,859)           (13,927)               (5,294)              (2,703)              (47,192)             (49,284)
Proceeds form maturities and sales of marketable securities, net                                     825           1,475                 -                  -                  -                -                  -                     -                    -                   2,300                  -
Cash paid for acquisitions and other                                                                   -                -                  -                  -             (3,839)               -            (27,133)                  (38)                 (243)                 -                (31,010)
                  Net cash provided by (used in) investing activities                            (13,779)        (14,564)            (20,298)           (17,655)           (23,127)         (21,604)           (44,254)               (9,554)              (7,267)              (66,296)             (98,539)

Cash flows from financing activities
Proceeds (payment) of debt, net                                                                  (10,000)               -                  -                  -                 -                 -                 -                    -                    -                 (10,000)                 -
Repurchases of common stock                                                                                                                                                                                      (3,728)             (13,336)              (2,990)                  -                (17,064)
Proceeds from issuance of stock and exercise of stock options                                        525                189                314                524          79,725                 425             2,832                3,097                2,115                 1,552               86,079
Other                                                                                               (143)              (638)              (614)              (694)           (108)               (107)           (1,332)                (532)                (796)               (2,089)              (2,079)
                Net cash (used in) provided by financing activities                               (9,618)              (449)              (300)              (170)         79,617                 318            (2,228)             (10,771)              (1,671)              (10,537)              66,936

Effect of foreign currency on cash and cash equivalents                                             (44)            (15)                  (3)                1                  8              (16)                (23)                  (18)                  (7)                  (61)                 (49)
                   Change in cash and cash equivalents                                           (8,574)         (5,473)              (4,331)            3,108             75,718           (4,454)            (24,448)                6,881                9,533               (15,270)              53,697
Cash and cash equivalents, beginning of period                                                   47,608          39,034               33,561            29,230             32,338          108,056             103,602                79,154               86,035                47,608               32,338
Cash and cash equivalents, end of period                                               $    $    39,034     $    33,561        $      29,230      $     32,338       $    108,056     $    103,602       $      79,154     $          86,035    $          95,568     $          32,338    $          86,035

								
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