Rightside announced today financial results for the third quarter ended September 30, 2016 reporting a net loss of $4.4 million for the 3rd quarter.
- 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.
“In the third quarter, we executed on our strategy to deliver revenue growth in our higher margin businesses while optimizing for margin expansion across all areas of our business,” said Chief Executive Officer Taryn Naidu.
“Our registry services business continues to be core to the Company’s strategy and its revenue grew 26% year over year driven by strong premium name sales. Name.com, our flagship retail registrar grew 14% year over year. This quarter, we also reported Adjusted EBITDA of $2.3 million, over two times higher than the prior year period as we’ve continued to drive cost efficiencies throughout the business and capitalize on the opportunity provided by new gTLDs.”
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.
Liquidity and Capital Resources
- As of September 30, 2016, cash and cash equivalents was $47.3 million, compared to $47.8 million as of June 30, 2016.
- At the end of the third quarter, the Company had letters of credit totaling $11 million outstanding and approximately $19 million of available borrowing capacity under its revolving credit facility with Silicon Valley Bank. Subsequent to quarter end, the Company has drawn $12.8 million on its revolving credit facility.
- On November 7, 2016, the Company fully repaid the aggregate outstanding principal of $27.4 million of its term loan credit facility with Tennenbaum Capital Partners LLC.