Rightside Group, the operator of 40 new gTLDs today with 627,000 registrations, has reported a yearly revenue increase of 20% and total company gross margin of 41% improved 470 basis points. The company also reported it had successfully completed the divesture of eNom as they focussed on growing and driving margin expansion in their new gTLD registry business and retail registrar, Name.com.
Rightside registrar services revenue increased to $7.3 million compared to $7.0 million in the previous quarter and registry services revenue increased 20% to $3.2 million compared to $2.6 million.
Aftermarket and other revenue was $4.3 million compared to $7.3 million as a result of challenges in the lower margin third party syndication business and total revenue decreased to $14.4 million compared to $16.6 million. Their net income was $69.8 million inclusive of a $75.6 million gain from the sale of eNom.
Rightside has significant cash reserves of $47 million currently available, and in the previous year have repurchased approximately 320,000 shares of its common stock for approximately $3.0 million.
At the end of the first quarter the registry had approximately 590,000 domain names under management, up 26% year-over-year. The final registry renewal rate for the fourth quarter of 2016 was 59% compared to 53% for the same quarter in 2015. Registry renewal rates are not fully measurable until 45 days after the end of the quarter.