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.
Nick says
their forecasts $58 million to $62 million revenue, sounded good, but now that I see their expenses are much more than that, how the hell didn’t more people pull their money out yet.
Pierre says
Nick, that’s a great question!
Snoopy says
Overall a lot of people are pulling out, looks like around 20% of the stock being bought is stock repurchases by the company. In my view they will blow all the cash on keeping the stock price up, much like Minds + Machines has been doing.
Snoopy says
They made a terrible decision to sell Enom (the cash cow) and focus on ntlds instead.
garywilson016 says
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