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Endurance domain revenue dips

Kevin Murphy, February 7, 2019, Domain Registrars

Endurance International put in a poor show when it came to domains name sales in 2018.

Revenue and average revenue per registrant were both down in the fourth quarter and full-year results, which were announced this morning.

Endurance’s registrar business includes BigRock, Domain.com, FastDomain, PublicDomainRegistry.com and others.

Combined, those four brands account for almost 10 million gTLD domains under management, but that number has also been heading south recently.

The company said today that its fourth-quarter domain revenue was $31.3 million, down from $33 million a year earlier. It had 666,000 domain subscribers at the end of the quarter, down from 683,000.

Average revenue per subscriber for the quarter was also down, from $16.63 to $15.63.

For the full year, revenue was down from $133.6 million to $129.9 million and average revenue per subscriber was down from $16.98 to $16.05.

The shrinkage is reflected in the latest transaction reports filed with ICANN, too.

In October, the most recently reported month, all four of Endurance’s biggest registrar brands shrunk in terms of DUM.

PDR was the biggest loser — actually topping the list of shrinking registrars — shedding over 76,000 gTLD domains, over 10,000 of which was from net transfers.

More consolidation? Endurance said to be up for sale

Kevin Murphy, August 27, 2018, Domain Registrars

Endurance International Group is reportedly up for sale, perhaps the next piece of consolidation or privatization in a rapidly changing domain name market.

Bloomberg, citing unnamed sources, reports today that EIG is “is considering strategic options, including a possible sale”.

EIG owns domain brands Domain.com, BigRock, BuyDomains and ResellerClub, along with a bunch of hosting properties such as HostGator.

Bloomberg’s sources stressed that no final decision has been made, and that the company could remain public.

It’s currently listed on Nasdaq where it has a market cap today of almost $1.38 billion .

The company would be far from the first to change ownership in the last couple of years.

Most recently, Web.com (Network Solutions et al) announced a plan to go private in a $2 billion deal.

A year ago, Neustar went private in a $2.9 billion deal.

In terms of industry consolidation, we’ve more recently seen KeyDrive reverse into CentralNic and MMX buy ICM Registry.

Endurance losing founder-CEO next week

Kevin Murphy, August 16, 2017, Domain Registrars

Endurance International, the parent company of registrar brands including Public Domain Registry, BuyDomains, Domain.com and BigRock, will see its founding CEO resign next week.

The company said this week that Hari Ravichandran will be replaced by Jeff Fox, most recently chair of customer relationship management software vendor Convergys, on August 22.

Endurance, which makes about 12% of its revenue from domain registrations, had disclosed Ravichandran’s plan to move on back in April, when it was characterized as an effort to move the company to the next stage of growth.

But it comes in the context, as the company has acknowledged, of an ongoing Securities and Exchange Commission investigation into its 2015 acquisition of Constant Contact.

The SEC probe has been going on since at least December 2015.

Endurance is also facing flattening top-line growth — revenue of $292.3 million, up 1% on last year, in the second quarter — and deepening losses.

Fox was CEO of Convergys from 2010 to 2012. He is also principal of The Circumference Group, his own investment/advisory firm.

Endurance splashes out $1.1 billion on Constant Contact

Kevin Murphy, November 2, 2015, Domain Registrars

Endurance International is to acquire email marketing company Constant Contact for $1.1 billion.

The $32-a-share cash offer, a 23% premium on Constant Contact’s Friday closing price, has been approved by both boards.

Endurance counts registrars BigRock, Domain.com and ResellerClub among its portfolio of brands, which also includes hosting companies HostGator and BlueHost.

The company said the deal will push its annual revenue to over $1 billion for the first time.

Endurance has acquired over 40 companies in its history, according to CEO Havi Ravichandran, who described M&A activity as a “core competency”.

The deal, which is subject to regulatory and shareholder approval, will be funded with debt.

The company today reported a third-quarter loss of $15.4 million, about double its year-ago loss, on revenue that was up 18% to $188.5 million.

Directi joins Domain.com family in $100m deal

Kevin Murphy, January 29, 2014, Domain Registrars

Endurance International, the holding company behind brands such as Domain.com and HostGator has closed the acquisition of top ten registrar Directi and some related companies.

The acquisition, which was announced last September is worth between $100 million and $110 million — $25.5 million in cash and the rest in shares and a promissory note.

The deal includes Directi properties BigRock (a registrar), ResellerClub (the reseller-focused registrar), LogicBoxes (the registrar management service) and webhosting.info.

It does not include Radix Registry, the company that applied for 31 new gTLDs, 28 of which applications are still active.

Directi CEO Bhavin Turakhia “has agreed to be closely involved in the integration of the two companies”, but it doesn’t sound like he’s taking on a permanent role at Endurance.

Endurance may not be a familiar brand in and of itself, but its businesses include Bluehost, HostGator, Domain.com, FatCow, iPage and Mojo Marketplace.

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