Domain name registrar sees strong domain registration revenue.
Tucows (AMEX: TCX) has posted a profit of close to $1M for the quarter ended March 31. This compares to a loss of about $1M in the same quarter in 2008. The company cites both sales of its domain portfolio through Yummy Names and improved domain registration and renewal numbers for the improved results.
On the company’s investor conference call last night, CEO Elliot Noss said new domain registrations at Tucows in Q1 were the best since the second quarter of 2000. New registrations were up 21% year-over-year and the company now has 7.9M domain names under management. Noss noted that Tucows’ growth in new registrations was double that of what VeriSign (NASDAQ: VRSN), the .com and .net registry, reported overall.
The company completed a bulk sale of 2,500 domain names for $1M in the first quarter. It entered into an agreement with the same buyer for transactions over the next 12-18 months. It also reported that it is earning “mid-to-high five figures” a month from its deal to sell expired domain names on NameJet.
Domain parking revenue from its portfolio of domains continues to drop. It was down 18% in this quarter alone. Of course, some of this drop is due to the sale of domains from its portfolio.
Cash on the balance sheet decreased to $4M, mostly due to the company’s share buyback that took place during the first quarter.