Shortly after the stock market closed today, Rightside issued its first-ever earnings report as an independent company. The earnings report covered the second quarter of 2014.
I will let the financial gurus discuss some of the numbers and how the results compared to what was expected, but here are a few highlights of Rightside’s results for the most recent quarter, as published by the company:
- Domain name services revenue for the three months ended June 30, 2014 increased 13% to $39.6 million compared to $34.9 million for the same period in 2013. Organic growth of 7%, which excludes the acquisition related benefit from Name.com, was primarily due to an increase in domain name registrations.
- Aftermarket and other revenue for the three months ended June 30, 2014 decreased to $7.1 million compared to $13.3 million for the same period in 2013, primarily due to a decrease in the sales of domain names owned by Rightside and our decision to eliminate low quality advertising traffic in the second half of 2013. On a sequential quarterly basis, the Aftermarket business began to stabilize at $7 million for the first two quarters of this year. Adjusted EBITDA for the three months ended June 30, 2014 was ($0.8 million), compared to Adjusted EBITDA of $4.4 million for the same period in 2013, primarily due to the decrease in Aftermarket and other revenue described above.
Business Highlights
- Rightside has signed registry operator agreements with ICANN for 32 gTLDs, including three gTLDs added during the second quarter of 2014, and has an interest in over 60 additional gTLD applications that have yet to be awarded to their ultimate registry operator.
- Rightside Registry launched seven new gTLDs into “general availability” during the second quarter of 2014 and has signed agreements with over 80 leading registrars to distribute its gTLDs.
- Rightside’s registrars, eNom and Name.com, are among the largest distributors of new gTLDs. With over 200 new gTLDs supported, Rightside’s registrars offer one of the broadest selections.
- New products were launched on eNom and Name.com to better enable usage of domain names, including new website creator tools and branded email services.
Rightside will be holding an earnings call this afternoon at 5:30pm Eastern. You don’t need to be a financial analyst or even a shareholder to listen to the live call. I am going to try and jump on the call to see what the company has to say. I am most interested to hear things about the new gTLD program performance and any projections the company may have.
To listen to the Rightside earnings call, dial 844-413-1777 and use conference ID 79731901. You should also be able to follow the call live online. More information about that can be found on the investor section of Rightside’s website.
