2017-02-28

Rightside $NAME Q4 2016 Results, LIVE Webcast Feb 28, 4:30pm ET

NASDAQ: NAME
Rightside $NAME shares up 0.35% Feb 29, 2016 - Feb 27, 2017
Rightside Group, Ltd. [NASDAQ: NAME | domain: rightside.co] domain name registry and registrar services provider, Q4 2016 financial results release after market close on February 28, 2017.

A conference call and audio webcast with investors and analysts will follow on February 28, 2017, at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time):
Q4 2016 results: Q4 EPS of -$1.35 but SeekingAlpha.com reports that may not be comparable to consensus of -$0.41. Revenue of $14.9M beat consensus estimate by $0.84M. Net Loss $21.3 million.

Financial summary (in thousands)
Press release: 
  • Fourth Quarter Registry Revenue Grows 27% Over the Prior Year Period
  • Full Year Registry Revenue Grows 40% Over the Prior Year Period
  • Company Announces $50 Million Share Repurchase Program
  • Business Outlook for the full year ending December 31, 2017, Rightside expects the following: Total revenue of $58 to $62 million inclusive of 10 to 15% growth in our core registry and registrar business. Cash bookings in our registry business of around $16 to $18 million. Adjusted EBITDA of around break-even for the full year with a return to positive adjusted EBITDA in the fourth quarter after implementing cost savings initiatives and restructuring our network infrastructure to support the remaining business lines.
Rightside brands:
Of Rightside's 40 new gTLDs, .LIVE and .NEWS have the most domain name registrations, but .LIVE and .NEWS registrations are less than 100,000 each and four of Rightside's new gTLDs have not even achieved 1000 domain name registrations (as of Feb 26, 2017). The overall weak registration numbers have given Rightside a total "new gTLDs market share" of only slightly more than 2% among all new gTLD registry operators.

The Internet Corporation for Assigned Names and Numbers, known as ICANN, mismanaged the global DNS and damaged the competitive global market for domain names by grossly over-expanding the number of new generic top-level domains (new gTLDs), beginning in 2014. As a result, many new gTLD registry operators are financially struggling, and after more than three years, many are still unprofitable.
Note: Schedule 13D dated Feb 14, 2017, filed by J. Carlo Cannell, Cannell Capital LLC [representing 1,704,805 $NAME Shares / 8.78%] excerpt (emphasis added)--"Mr. Cannell, on behalf of the Investment Vehicles, identified the Company as an entity satisfying each of the Investment Vehicle's investment criteria. The Investment Vehicles acquired and continue to hold the Shares as a long-term investment.  Cannell Capital files this Schedule 13D amendment in order to announce the formation of the SAVE NAME GROUP (“SNG”) on February 14, 2017. This announcement is attached as Exhibit 99 [embedded below]. Mr. Cannell reserves the right to discuss various views and opinions with respect to the Company and its business plans with the Company or the members of its senior management. The discussion of such views and opinions may extend from ordinary day-to-day business operations to matters such as nominees for representation on the Company’s board of directors, senior management decisions and extraordinary business transactions. Mr. Cannell reserves the right to take such action as he may deem necessary from time to time to seek to maximize the value of the Shares. Such actions may include, but may not necessarily be limited to, pursuit of strategic initiatives to enhance shareholder value ..." 

More information: http://www.concernedrightsidegroupshareholders.com/

Exhibit 99 (4 pages total, embedded below, highlighting added):


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