Revenue and earnings slip year-over-year, but that was expected.
Rightside today released its first quarterly earnings report after being spun off from Demand Media.
The company, which started trading as NAME on the NASDAQ this Monday, posted total revenue of $46.7 million and a net loss of ($3.5) million.
Both revenue and earnings were lower than what the group grossed in the second quarter of 2013, due to a sharp drop in its “Aftermarket” revenue. Aftermarket was hit by a decrease in domain names it sold out of its own inventory and the company cutting off lower quality advertising traffic late last year.
The company was hit with a $1.6 million domain name parking clawback in Q3 2013, which forced the company to take action by cutting off lower quality domain traffic.
Aftermarket revenue came in at $7.1 million last quarter, compared to $13.3 million in Q2 2013. This number should not be a big surprise; the company grossed about $7.0 million from Aftermarket in Q1 2014.
The company’s Domain Services segment eked out a small gain compared to last year.