Three-year revenue growth tops 59,000%.
New top level domain name company Donuts ranked #1 on this year’s 2017 Technology Fast 500 from Deloitte.
Rankings were based on three-year revenue growth from 2013-2016. The timing worked out great for Donuts. It launched its first new top level domain names in early access and general availability in early 2014, but sunrise and some brand protection offerings began in 2013. It had a small base of revenue to work off of.
Still, its 59,000% growth rate is impressive. The minimum revenue required in 2013 to qualify for this year’s Fast 500 was $50,000. Even at the minimum, that means Donuts’ 2016 revenue was about $30 million. But the number is certainly much higher than that.
In May of 2016, the company disclosed to me that its premium domain sales were generating $9 million in annual revenue and represented 15% of sales. Assuming sales is in line with revenue, this suggests about $60 million in annual run rate near the beginning of 2016. Given the growth in sales during the remainder of 2016, I suspect the number is much higher than $60 million.
The margins on this revenue are substantial, too. The company had about 40 employees at the beginning of the year and other expenses are minimal.
Nick says
What in the world is a Deloitte. I heard they got awards from ChityChityBangBang too. But congrats I guess
Andrew Allemann says
You don’t know what Deloitte is?
Nick says
No, never heard of it
Andrew Allemann says
One of the biggest consulting and accounting firms in the world.
Nick says
oooookay, Never heard anyone mention them before. I have business news on all day in the background when I work and the only accounting firms ever mentioned are H&R Block and TurboTax.
Colin Campbell says
Very impressive. Congrats to the team at Donuts
MoGreen says
I wonder if the win is a sign of great things or a sign of doom?
Is the winner of the Deloitte 500 a signal of a market top ?
Wonder how the winners of the last 5 years have fared
Eric Lyon says
Great job Donuts! 🙂