Displaying posts tagged under "marchex"
Marchex’s Archeo division continues to sell domains at fairly high prices.
Marchex reported its fourth quarter earnings after the bell today. It included sales results from Archeo, its domain name division.
Archeo sold 262 domain names for a total of $1.6 million last quarter. That’s about double how much it sold last year in the same quarter.
It’s also a high average selling price of $6,100 per domain name.
Averages can be misleading, but I suspect Archeo’s median is also higher than what you see at Afternic and Sedo.
While the company is coming down a bit on its minimum pricing, Archeo still seems to be focused on higher average selling prices rather than volume.
There are some domains priced below $1,000 in its fixed price inventory. But only relative few.
Higher prices means more margin when a domain sells, but lumpier sales. It will be interesting to watch Archeo’s domain sales going forward.
Domain portfolio owner and large registrar group report earnings.
Two domain name companies released third quarter earnings results after the bell yesterday.
Marchex reported GAAP revenue of $40.6 million, compared to $33.7 million in the same quarter of 2012. Its adjusted EBITDA fell to $3.4 million from $4.8 million in Q3 2012.
The company is primarily a pay-per-call business, but it also owns the Archeo domain name business. Archeo sold 81 domain names last quarter for a total of $1.9 million.
Web.com, which owns domain registrars Network Solutions and Register.com, reported GAAP revenue of $125.2 million, up from from $105.8 million for the third quarter of 2012. Its non-GAAP measure increased 9% from a year ago. Its GAAP net loss shrunk from $21.5 million to $6.0 million and its adjusted EBITDA was $38.9 million, essentially flat from last year.
Archeo will remain a division of Marchex instead of becoming its own publicly traded company.
Marchex has canceled its plan to spin off its domain name business into a separate public company, at least for now.
The company announced plans last November to spin off its domain business into a new company called Archeo. Marchex had long neglected its portfolio of over 200,000 domain names, and making it part of a separate company would allow it to better monetize the asset.
Since then, the group sold some of its pay-per-click assets, which ultimately made the business too small (at this time) to justify the costs of being a public company.
It also seems that Marchex was going to miss the cashflow that the domain business throws off. The company also announced that it is going to use a portion of Archeo’s cashflow to fund an ongoing quarterly dividend.
Despite canceling the plans, Archeo will operate as a separate division of Marchex.
Company officials told Domain Name Wire that it is not changing its business model from what its plans were for the public company. In other words: Archeo will still sell its domains, buy new ones, and look for partnerships to develop its best domains.
Archeo runs month long auction on SnapNames platform.
Marchex’s soon-to-be spin-off Archeo just started an auction on SnapNames that will run for a month.
The auction includes 71 domain names and shows both the breadth and quality of Archeo’s portfolio. That said, I think most of these domains names will sell better through negotiation than through an auction.
Three domains have seven figure reserves: Decals.com, Locksmiths.com, and Peliculas (movies in Spanish, although in Spanish there’s an accent over the ‘i’).
Other valuable domain names include Lasers.com, CustomLabels.com, and HomeInspections.com.
Some of the inventory with reserves under $5,000 might lend itself well to the online auction format. Domains in this range include JerseyCityStorage.com, MiamiCarService.com, and SacramentoCarInsurance.com.
Although I doubt many of the domains will sell in this auction, I think it’s a good advertisement about the type of domains Archeo has and that it’s open for business.
BMW among companies that bought domain names from Marchex last quarter.
Marchex, which is spinning off its domain name business Archeo sometime later this year or early next year, today released a partial list of the domain names it sold last quarter.
Along with its second quarter earnings release earlier this month, the company reported that it sold 70 domains for approximately $1.3 million. Last quarter it listed the top sales for the quarter, but this time it is just a sample list.
(Marchex only furnished the domain names; buyer information is from whois)
CHARGENOW.COM – sold to BMW
CONNECTNOW.COM – sold to ServiceWorks Management
SUPERTICKET.COM – sold to Cineplex Entertainment
WONDERKIDS.COM – sold to owner of wonderkids.com.tr