Company has better-than-expected results in aftermarket segment but registry revenue isn’t budging.
Domain name company Rightside (NASDAQ:NAME) reported $14.4 million revenue for Q1 2017 after divesting eNom.
Registry services revenue–that covers new top level domain names–increased 20% year over year. However, it was down slightly from Q4 2016 ($3.18 million vs. $3.20 million). This is not a good sign for the part of the business that Rightside is banking on. The company has forecast registry revenue of $50-$75 million per year within a few years.
This may have been impacted by the lack of new TLD launches, which tend to boost short-term revenue.
The company got some uplift from its aftermarket business. It pulled in $4.3 million from this segment, which is about what it got in Q4 2016 and 40% less than Q1 2016. However, the company had predicted only $2.5 million to $3.5 million from the aftermarket in Q1 thanks to poor domain name parking results.
Rightside forecasts $58 million to $62 million revenue for the year. This will require a slight improvement for the remainder of the year.