Rightside $NAME Q4 2015 Financial Results, LIVE Webcast Replay

Rightside 1 year chart (NASDAQ:NAME) (source google.com)
$NAME is DOWN 21% from its 12 month high (as of market close on February 12, 2016)

Rightside Group, Ltd. (NASDAQ:NAME), a leading provider of domain name registry and registrar services, will release Q4 and full year 2015 financial results after market close on February 16, 2016.

Conference call and audio webcast with investors and analysts on February 16, 2016, at 4:30 p.m. ET (1:30 p.m. PT):
Live conference call: (844) 413-1777 (domestic) or (716) 247-5761 (international)
Conference call replay available through February 21, 2016: (855) 859-2056 (domestic) or (404) 537-3406 (international)
Conference ID: 38641522

Live and archived webcast: Listen to webcast

UPDATE: Rightside Group's (NAME) CEO Taryn Naidu on Q4 2015 Results - Earnings Call Transcript | Seeking Alpha: Sameet Sinha of B. Riley:"...  looking at your guidance, I mean, you're kind of implying basically mid-point of next year's guidance will be half of what you grew in '15. So what do you think is causing that slowdown, I mean obviously seeing the registrar, the wholesale business is slowing down, registry is at least below our expectations, anything, any specific trend that you wanted to call out or anything that we should be cognizant of?"
Taryn Naidu, Rightside CEO: "Well, we're going to continue to drive and invest in our strategic initiatives. I think the retail and registry business continue to grow for us and we're happy with that. We're going to drive double EBITDA at the mid-point of the guidance. And, yes, the wholesale business and the wholesale industry as a whole has been challenged on the growth perspective which is why we are going to go to the price optimizations and the cost efficiency there." (emphasis added)

UPDATE: Earnings Press Release: Rightside Q4 EPS of -$0.22 beats by $0.08. Revenue of $55.66M (+7.6% Y/Y) misses by $0.32M. For the full year, Rightside had a 2015 Net Loss of  $11.3 million compared with a Net Loss of $1.9 million for 2014--see below--

Note: see accompanying notes in the Earnings Release.

Fourth Quarter 2015 Financial Highlights
(Unless otherwise noted, all comparisons are relative to the fiscal fourth quarter 2014.)

• Registrar services revenue increased 6% to $44.7 million compared to $42.3 million.
• Registry services revenue increased to $2.5 million compared to $1.1 million.
• Aftermarket and other revenue was $9.3 million compared to $8.6 million. 
• Total revenue increased 8% to a record $55.7 million compared to $51.7 million.
• Net loss was $4.1 million, compared to net income of $1.5 million.
• Adjusted EBITDA was $2.6 million, compared to $0.6 million. 
• Gain on other assets, net was $0.7 million representing fewer withdrawals of its interest in gTLD applications during the period compared to a gain of $7.8 million.

Full Year 2015 Financial Highlights
(Unless otherwise noted, all comparisons are relative to the fiscal full year 2014.)

• Registrar services revenue increased 9% to $174.0 million compared to $160.2 million.
• Registry services revenue increased to $8.4 million compared to $1.9 million.
• Aftermarket and other revenue was $32.7 million compared to $30.2 million. 
• Total revenue increased 11% to a record $212.5 million compared to $191.7 million.
• Net loss was $11.3 million, compared to $1.9 million.
• Adjusted EBITDA was $4.8 million, compared to Adjusted EBITDA of ($3.1 million). 
• Gain on other assets, net was $9.4 million representing fewer withdrawals of its interest in gTLD applications during the period compared to a gain of $22.1 million.

Business Highlights

• Rightside's 39 owned and operated gTLDs in general availability ended 2015 with over 400,000 registered domains, up 14% over Q3 2015.
• Rightside's retail registrar, Name.com, grew revenue over 25% year over year with over half of that growth driven by higher margin new gTLDs.
• With over 16.5 million total domains under management as of December 31, 2015, including over 2.8 million domain names registered through its retail outlets, Rightside remains one of the world's largest registrars.
• Strong momentum behind Rightside's most recent launches - with the fourth quarter's .LIVE and .STUDIO topping 25,000 combined registrations and .NEWS, which launched in the third quarter of 2015, now has over 60,000 registrations and is in the top spot in Rightside's portfolio.

Liquidity and Capital Resources
As of December 31, 2015, Rightside had cash and cash equivalents of $45.1 million, compared to $45.9 million as of September 30, 2015.
At the end of the fourth quarter, the Company had letters of credit totaling $11 million outstanding with approximately $19 million of available borrowing capacity under its revolving credit facility with Silicon Valley Bank.

Business Outlook
For the full year ending December 31, 2016, Rightside currently expects the following:
Total revenue of $218 million to $228 million, inclusive of $12 million to $15 million of GAAP revenue from our Registry Services Business.
Total Adjusted EBITDA of $8 million to $11 million, inclusive of approximately $2 million of incremental discretionary marketing spend for the year.

Investor Relations: investors.rightside.co

New gTLD Porfolio at Rightside: (currently available) .ACTOR .AIRFORCE .ARMY .ATTORNEY .AUCTION .BAND .CONSULTING .DANCE .DEGREE .DEMOCRAT .DENTIST .ENGINEER .FAMILY .FORSALE .FUTBOL .GIVES .HAUS .IMMOBILIEN .KAUFEN .LAWYER .LIVE .MARKET .MODA .MORTGAGE .NAVY .NEWS .NINJA .PUB .REHAB .REPUBLICAN .REVIEWS .RIP .ROCKS .SALE .SOCIAL .SOFTWARE .STUDIO .VET .VIDEO

According to ntldstats.com, Rightside is the 9th largest new gTLD registry operator with 3.45% market share although it operates 4.39% (40) of all new gTLDs. For details of Rightside's new gTLDs, including number of domain name registrations per new gTLD, go here.

In addition to being a new gTLD registry operator (Rightside Registry), Rightside operates other brands in the domain name industry, including eNom, Name.com, and NameJet. Headquartered in Kirkland, WA, Rightside has offices in North America, Europe, and Australia. For more information: www.rightside.co.

See on Domain Mondo:

• Rightside, $NAME, Needham Conference, LIVE Webcast Replay (Jan 14, 2016)
• Rightside $NAME Q3 2015 Increases LOSS $3.4 Million, Webcast Replay (Nov 9, 2015)

See also: NAME Stock News - Rightside Group, Ltd. Stock | Seeking Alpha


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DISCLAIMER

New gTLD Registry Rightside, Rename It Wrongside?

Rightside "NAME" Stock 

When a stock chart looks like this [at left; source: SeekingAlpha], it's usually not good. A trend as shown on the chart may indicate something is wrong--fundamentals, business model, projections, perceptions, performance? I'm not sure. But Thunder Capital Management, a financial blogger who also posts on Seeking Alpha, isn't mincing his words:

Thunder Capital Management: "My recommendation: stay away from the stock or even short the stock."

You can find his full analysis on Seeking Alpha, here's the summary:

• On 8/1/14, Rightside (NAME) spun-off from Demand Media (DMD). The Company is relying on gTLD growth initiative that might not pan-out.
• Based on recent purchase multiples, Rightside's gTLDs are worth around $60mm.
• Rightside has reported two straight quarters of negative EBITDA. Aftermarket services revenue will continue to decline. The existing registrar business has no shareholder value.
• There is at least 30% down-side in this stock as the Aftermarket services revenue erode.

Thunder Capital Management [TCM] is a former technology investment banker who graduated from the Wharton School according to his posted bio.

Rightside Group, Ltd. [stock symbol "NAME"] is a new gTLD registry as well as a domain name registrar and aftermarket reseller utilizing the following brands according to its website:
eNom, Name.com, NameJet, Rightside Registry.

According to TCM, Rightside has invested in new "gTLDs such as .Rocks, .Immobilien, .Attorney, and .Ninja. Rightside will operate around 30 of them...  Rightside has been growing its revenue base, but EBITDA has been falling quickly. Something must be wrong, right? Should we call this company the Wrong Side because clearly it has become unprofitable. Therefore, Rightside had to spin-off from Demand Media because it was unprofitable and find ways to raise capital to fund this unprofitable business...  If Rightside and its gTLD initiative has big success potential, I question the fact that it withdrew its applications. Why would Rightside withdraw gTLDs and get its cash back if this was such a successful initiative?... There is absolutely no shareholder value in the registrar business... I'll give Rightside credit of $60mm for the gTLDs it owns. If we assume no value for the registrar, $60mm (gTLDs) + $77mm cash = $137mm equity value, implying $7.44 per share. Therefore, there is 37% downside in this stock... There may be further downside if the valuation of the gTLDs is lower. "(source: Seeking Alpha, emphasis added)

You can download TCM's historical financials on Rightside at the TCM website.

As a counter to the conclusions and opinions of TCM, I would remind readers that Rightside has the backend registry infrastructure business of Donuts and the new gTLDs are just rolling out--it's early in the game! Depending on the terms of the deal with Donuts, that business and Rightside Registry's own new gTLDs could be very profitable. In addition, you might want to follow the comments to TCM's post at Seeking Alpha.

Update 16 Sep 2014--there's also a thread discussion here: Rightside Group (NAME) – A Quote And A Chart | Buyside Notes

Domain Names referenced:
rightside.co
enom.com
name.com
namejet.com

Notice: Domain Mondo has no interest or position in Rightside nor relationship with Thunder Capital Management. Note our Disclaimer which appears at the bottom of the web version of this page.

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