Rightside posts profit, gets $7.2 million from withdrawing new TLDs

Rightside posts profit and gets big haul from withdrawing new top level domain name applications.

RightsideRightside released first quarter earnings after the bell today.

The company posted an adjusted EBITDA of $0.6 million and a GAAP profit of $1.9 million.

Revenue from Registrar Services (i.e. eNom and Name.com) was $42.0 million, up from $37.5 million in the same quarter last year. Registry Services (i.e. new top level domains and backend services) revenue was $1.6 million, up from just $42,000 in the same quarter last year.

Rightside previously reported Registrar and Registry services as a combined line item. The combined $43.6 million in Q1 tops the previous quarter’s $43.2 million.

Aftermarket revenue was $7.3 million, up from $7.0 million in Q1 2014 but down from $8.6 million in Q4 2014.

The company pocketed $7.2 million from withdrawing its new top level domain name applications.

Name.com is doing well with revenue growth of 30%. So far this year, 15% of Name.com’s new registrations are from new top level domain names. These have an average selling price of three times what Name.com gets from “legacy” domains. Name.com is proving to be a smart acquisition as it provides a good channel for Rightside’s own top level domain names.

Analyst reiterates new TLD forecast and price target for Rightside

After Rightside investor day, analyst says forecast is on target.

B. RileyB. Riley & Co analyst Sameet Sinha has reiterated his forecast for new top level domain names and his $15 price target for Rightside. Rightside (NASDAQ: NAME) is currently trading for $8.29.

Sinha forecasts that 29.1 million registrations will be made under new to level domain names by the end of 2016. Based on 3.4 million domains registered to date, he believes his forecast of 3.6 million by the end of this year is on target.

As for Rightside, Sinha set the price target by applying a 1.25x multiple on his 2015 revenue forecast. He believes Rightside is well positioned thanks to its vertically-integrated business. Name.com, Rightside’s retail operations, has averaged about 10% of sales so far, he noted.

Sinha is the only analyst I’m aware of covering new TLDs and Rightside.

Demand Media spin-off of Rightside set for August 1

Rightside’s debut as its own publicly-traded company is imminent.

RightsideDemand Media plans to complete the spin-off of its domain name business on August 1.

Rightside will become its own public company on that date. It will trade on the NASDAQ under the symbol “name”.

Demand Media shareholders will receive one Rightside share for each five shares of Demand Media stock they own.

Rightside owns a number of domain name businesses covering the entire spectrum of the domain name business:

Registry Service – Rightside Registry provides domain name registry services to new TLD operators including Donuts and itself.

Registry – the company is an applicant for many of its own new TLDs. It will probably operate around 50 of its own top level domain names, including .ninja and .democrat.

Domain Registration – Rightside owns both the largest reseller registrar (eNom) and a large retail registrar (Name.com).

Domain Parking – the company owns domain parking company Hotkeys. It also parks a number of domains on its registrar platforms.

Expired domains and aftermarket sales – NameJet is a 50/50 partnership between Rightside and Web.com.

Domainer – Rightside is also a domainer investor with over 300,000 owned and operated domain names.

Grumpy the Cat and Rob Corddry give Name.com a High Five

Celebrities give Name.com a high five.

Name.com did a rather clever marketing gimmick during SXSW Interactive in Austin. It sent one of its customer service reps to the city as “High Five Guy”. For every high five he got (10,000) the company donated 5 cents to an Austin charity.

It’s difficult to attract attention during the noise of SXSW, but High Five Guy appears to have done the trick. The charity element certainly didn’t hurt.

High Five guy got high fives from comedian Rob Corddry, Grumpy the Cat, and thousands more.

The video below includes Rob Corddry. You can see High Five Guy give a high five to Grumpy the Cat here.

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Watch Name.com and .xyz battle in bobsled competition

Jared Ewy and Daniel Negari fly around the track in friendly wager.

I see a lot of marketing gimmicks for domain names, but rarely write about them. This bobsledding competition (and sponsorship) involving .xyz is entertaining enough to pass along.

Here’s the background:

In addition to being CEO of .Kiwi, Tim Johnson is also the manager of the New Zealand bobsled team. Name.com pulled together .xyz, .Buzz, .Ninja and .club to help sponsor the New Zealand bobsled team.

On top of that, .xyz CEO Daniel Negari raced Name.com’s Jared Ewy in a bobsled competition. It was a friendly wager, with Negari offering to “sing the praises” of Name.com if he lost and Ewy agreeing to wear .xyz swag from head to toe if he was slower.

Here’s the pre-race set up video:

I’m not going to play spoiler and tell you who won, other than to say it was really close. You can see for yourself; watch Negari’s run here an Ewy’s here.