Company diversifies revenue stream with Microsoft deal.
Domain name and online advertising company rollup CentralNic (London AIM: CNIC) released news this morning.
First, on the earnings front, the company expects to report $194.9 revenue for Q1 when the official tally is complete. That’s up 24% year over year. It says gross profit was $45.8 million, and its Adjusted EBITDA number will be $21.3 million. Those are each increases of 15% year over year.
Second, the company has inked an ad deal with Microsoft Bing that will help diversify its revenue. Last year, Google ads were responsible for a substantial part of the company’s monetization. It accounted for 68% of total revenue, up from about 50% in 2021, and nearly all of that was ad revenue (only a tiny portion was from Google Domains for the domain business). This dependency seems like a significant risk factor for the company, so adding Bing will help.
Finally, the company announced board changes. Marie Holive, formerly CFO of NBC Universal Media, will join the board. She will be the company’s second female board member. Thomas Rickert has decided to step down following his term. He has been on the board since 2013.