The reason why I like looking at Rightside is because they are a publicly listed company with the three aspects of the domain industry; registry, registrar and aftermarket. Since my last article on the company have things improved or deteriorated and how does this reflect on the overall domain industry.
Let me say from the outset that Rightside is a nice steady business underpinned by a recurring revenue stream. In fact, they are at pains to highlight the recurring revenue model in their quarterly financial presentations. The problem with the business is they are listed on the Nasdaq and as a tech company investors expect more than the current 4% year on year revenue growth rate.
The charts below highlights where the revenue is being generated by the business. The registrar is clearly the driver with over $44m or 80% of the revenue coming from that business unit. The aftermarket has clearly come off the Chinese fuelled peak of $9.3m in Q4 last year and is now settling down at $7.8m for the quarter.