Minds + Machines has made its first six-figure new gTLD domain sale.
The domain net.work was sold in a private deal to business consultancy BearingPoint for $100,000, the company said today.
It added that a “significant annual renewal fee” applies.
It’s one of 430 premium domains to have been sold in .work, M+M said, since it went to general availability in February.
The gTLD had just shy of 55,000 domains in its zone file yesterday, recent growth partly attributable to a deep discounting program.
M+M’s registrar currently sells .work domains for less than $2.
Minds + Machines co-founder Fred Krueger has been kicked out of his job as executive chairman of the company.
The news came as the new gTLD registry reported its first full year of results as a proper, revenue-generating company.
The company reported revenue of $1.9 million for 2014, compared to $56,000 in 2013.
Its report includes a “cash revenue” line of $5 million, to show off revenues that it has deferred to future periods due to standard domain industry accounting.
For accounting purposes, M+M was profitable to the tune of $22 million for the year, but almost none of that is from actually selling domains — $33.7 million of profit came from losing new gTLD auctions.
That’s not a sustainable or predictable part of the business — nobody knows exactly when or if ICANN will launch the next round of new gTLDs — but it did help M+M grow its cash pile to $45.7 million.
That pile may grow or shrink depending on how aggressive the company is in its 11 remaining new gTLD contention set auctions.
CEO Antony Van Couvering said that M+M is also eyeing acquisition opportunities as the new gTLD industry enters an early consolidation phase.
He said that M+M’s early priorities include a focus on selling premium domains that have higher than usual annual renewal fees.
At the same time as announcing its results, the company said Krueger, who founded M+M with Van Couvering in 2009 in anticipation of the new gTLD program, has quit.
While he’s technically resigned, he left no doubt in his unusually frank resignation letter that he’s actually been forced out by the M+M board of directors.
He wrote that the decision was “initiated by the board” and that his “decision” to leave “was unexpected – for me at least”.
He added that he was “OK with it, indeed supportive of it” and that he has no intention to sell off his substantial stake in the company.
Krueger will now focus on Mozart, a web site building software maker that he’s been leading for the last couple of years. M+M has a deal to offer Mozart to its registrants.
He’s been replaced, albeit in a non-executive capacity, by Keith Teare, an existing director.
Teare is a tech veteran perhaps best known in the domain industry for launching and running RealNames, which attempted to replicate AOL Keywords for the Internet Explorer browser at the turn of the century.
.london accounts for over 37% of sales in Minds + Machines’ portfolio of live gTLDs, according to company data released this morning.
M+M published registration figures for its 19 generally available TLDs as part of a trading update ahead of its full-year financials.
The data shows that four of its top five strings are geographic in nature.
|TLD||Domains||% of Portfolio|
The TLDs have launch dates ranging from April 2014 to April 2015.
It should be noted that .kiwi and .gop are run by M+M clients, with M+M providing the back-end only.
There’s a delta of up to 5% between these reg numbers and the numbers of domains appearing in the zone files of some of these gTLDs.
For example, we count 59,162 domains in .london’s zone file and 27,955 in .bayern today, suggesting that on any given day a couple thousand domains are not configured in the DNS.
In other TLDs, such as .kiwi and .work, the zone file numbers and the reg numbers have almost no difference at all.
The company also disclosed that in its registrar business “Premium Names”, which command a higher fee, account for 3% of its registrations and 25% of revenue.
M+M recently headhunted Trent Tucker from Rightside to manage premium name sales.
A sport-related new gTLD is going to an official sporting body.
FIBA, the Fédération Internationale de Basketball, won the right to .basketball after an auction shoot-out with Donuts and Famous Four Media.
While FIBA is the official world organizing body for the sport, there’s no plan to place strict restrictions on the gTLD — the application states that .basketball will be open to all.
FIBA had filed Community Objections to its two rival bids, arguing that they would allow gambling web sites that would harm the reputation of the sport, but the objection panels rejected both complaints in January this year.
FIBA’s bid is supported by Minds + Machines, its registry back-end provider.
Continuing its strategy of getting well-known anchor tenants involved in its new gTLD launches, Minds + Machines has recruited the Brewers Association to back its just-launched .beer.
The BA represents over 2,300 independent breweries in the US, according to its web site.
.beer hit general availability yesterday. Due to delays with ICANN’s zone file publishing system this morning I can’t yet bring you the first-day figures for the TLD.
The launch was timed to coincide with the Great American Beer Festival in Denver, Colorado.
Two weeks ago, M+M launched .country with backing from music legend Dolly Parton, who claimed dolly.country, dollyparton.country, queenof.country, dollywood.country and 9to5.country.
If nothing else, the endorsement reminded non-Americans that .country is supposed to relate to music, not geography.