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Windfalls still biggest money-spinner for M+M

Kevin Murphy, February 3, 2016, 13:39:32 (UTC), Domain Registries

Minds + Machines is still pulling in most of its cash from one-time new gTLD auction defeats, according to its latest trading update.

The company yesterday reported billings for 2015 of $7.92 million, up from $5.03 million in 2013.

But the company brought in $9.15 million by pulling out of private new gTLD auctions, where the winning bid is shared among the losers. That’s down from $37.5 million in 2014.

“Billings” is the money make at the point of sale, rather than audited revenue which is recognized over the life of the registration. Revenue numbers will come in April.

For the fourth quarter, sales of both premium and standard-fee names were up.

Premium names were up 215% at $1.52 million, which standard name billings were up 184% at $2.66 million.

The company said its registry business ended the year with 278,523 names under management, a 158% increase on year-ago numbers.

M+M met or beat its “key performance indicator” targets in terms of average revenue per name (both standard and premium) and sales growth.

However, the Chinese market boom caused it to miss its market share KPI.

It blamed missing the low end of its 3% to 5% new gTLD market share target by half a percentage point on the rapid growth of China.

The money being pumped into domain names from China in the second half of last year tends to favor the budget end of the new gTLD market, where names can be picked up for cents, whereas M+M’s TLD mix is skewed a little higher.

M+M said last week that it plans to open an office in China soon.

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Comments (1)

  1. The Chinese market boom should be an advantage for M+M. The company should work more on that this year.

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