Top line continues to shrink at Rightside.
Domain name company Rightside (NASDAQ:NAME) reported earnings after the bell today.
Revenue keeps heading in the wrong direction. For the third quarter in a row, revenue was down quarter-over-quarter. More worryingly, it was down year-over-year.
The company posted revenue of $53.3 million for the third quarter, down from $54.1 million in the same quarter of 2015 and $54.0 million in Q2 of this year.
The drop appears to be due to domain parking. Aftermarket revenue was down from $8.5 million to $6.3 million year-over-year, which the company blames on “a decline in traffic from lower margin third party syndication partners.”
Its registry revenue, which includes the growing new TLD part of its business, grew from $2.4 million in Q3 2015 to $3.0 million this quarter. That’s up slightly from the $2.9 million revenue it generated in Q2. The company expects new TLD revenue to come in at the low end of its expectations for 2016.
Rightside’s net loss was -$4.4 million, but the company reported an adjusted EBITDA of $2.3 million.