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| Rightside shares (NASDAQ: NAME) are DOWN 49.59% since August 1, 2014 |
Stock Market: Symbol | NASDAQ: NAME
Principal domain: rightside.co
Investor relations: investors.rightside.co
Domain name registrar and new gTLDs registry services provider, Rightside Group, Ltd. (NASDAQ:NAME), third quarter 2016 financial results press release:*
Rightside Group's (NAME) CEO Taryn Naidu on Q3 2016 Results - Earnings Call Transcript | SeekingAlpha.com
Third Quarter 2016 Financial Highlights
(Unless otherwise noted, all comparisons are relative to the fiscal third quarter 2015.)
- Registrar services revenue increased to $44.8 million compared to $44.0 million.
- Registry services revenue increased 26% to $3.0 million compared to $2.4 million.
- Aftermarket and other revenue was $6.3 million compared to $8.5 million and was impacted by a decline in traffic from lower margin third party syndication partners.
- Total revenue was $53.3 million compared to $54.1 million.
- Net loss was $4.4 million, compared to $3.4 million which included a $1.7 million gain on other assets.
- Adjusted EBITDA increased to $2.3 million, compared to $897,000.
- Rightside has 40 gTLDs in its portfolio and ended the quarter with approximately 546,000 registered domains.
- Rightside's retail registrar, Name.com, grew revenue approximately 14% year-over-year.
- With approximately 16.4 million total domains under management as of September 30, 2016, including over 2.9 million domain names registered through its retail outlets, Rightside remains one of the world's largest registrars.
- In Q3, the Company successfully launched its new gTLD .GAMES, which has already generated more than 7,000 registrations and over $300,000 in cash revenue for premium domain related sales, including high-value names like free.games, math.games and racing.games.
Conference call and LIVE audio webcast with investors and analysts will be held the same day, November 8, 2016, at 4:30 p.m. ET. Listen to webcast.
Live conference call: (844) 413-1777 (domestic) or (716) 247-5761 (international). Conference call replay available through November 13, 2016: (855) 859-2056 (domestic) or (404) 537-3406 (international). Conference ID: 1010126. Archive of webcast at investor relations link above.
Form 10-Q: Rightside (NAME) Q3 2016
Rightside's brands include eNom.com and Name.com in registrar services. Rightside's headquarters is in Kirkland, WA (USA). Rightside's 40 new gTLDs (new generic top-level domains) have a grand total of less than 600,000 domain name registrations which equals a new gTLDs' domain name registrations market share of about 2%. More info on Rightside's new gTLDs at ntldstats.com.
Tweet from ICANN57 meeting in Hyderabad, India:
#ICANN57 @mneylon: barely any demand 4 #newgTLD in developed countries. So why expect developing countries w more pressing problems 2 care?— Samantha Dickinson (@sgdickinson) November 7, 2016
Analysis and opinion: Rightside Group ($NAME) is a $153 million market cap stock on the NASDAQ. It faces increasing headwinds from competitors in an overly-competitive domain name industry which has been flooded with hundreds of new gTLDs authorized by global DNS coordinator ICANN. ICANN and new gTLD applicants, such as Rightside, grossly overestimated end-user (domain name registrants) market demand for new gTLDs in the global domain name marketplace (see ICANN57 tweet above). Competitors have been willing to give away for free, or sell for as little as US$0.01 each, first-year new gTLD domain name registrations.
- Outlook: continued pressure on margins based on market conditions.
- Question: Going forward, when will Rightside be (GAAP) profitable?
- 52 Week High/Low: $12.85 / $7.16 (as of Nov 7, 2016)
- Q2 2016 net loss US$(2,471,000) on revenues of $54,037,000 of which registry services (new gTLDs) only provided US$2,932,000.
- previous $NAME posts on DomainMondo.com
- Donuts Seeks to Acquire Entirety of Rightside Group, Ltd.'s "entire registry of generic top-level domains (gTLDs, also known as domain extensions) and related assets for $70 million in an all-cash deal"--June 24, 2016
- Is Rightside's Strategy Showing Results? | whizzbangsblog.com: "... Donuts, offered $70m for the suite of Rightside domain extensions [new gTLDs] back in June. In my opinion it’s a gutsy move to say no to such an offer in light of the slow growth numbers ..."
- J. Carlo Cannell Letter to Rightside Board Chairman, February 19, 2016:
"While I am a believer in new gTLDs, it is going to be many years before their revenue in any way materially approaches the revenue potential of our registrar operations. In my view, NAME’s registrar has become like a crazy aunt kept in the basement, one that you refuse to adequately clothe or feed, but who steadfastly spins straw into gold used to subsidize a stable of largely substandard new gTLDs such as .democrat, .dance, .army, .navy, and .airforce. Most of these new gTLDs are irrelevant and will never be sold in material volumes. NAME [Rightside] is holding back the growth potential of your registrar by pushing garbage extensions to a user base that quietly knows better."--J. Carlo Cannell, Rightside shareholder letter, infra, Feb 19, 2016 (emphasis added)See also: Cannell Capital Urges $NAME Shareholders To Vote No at Annual Meeting: May 16, 2016 press release.
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