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NameSilo says it’s growing too fast to be acquired

Kevin Murphy, August 31, 2021, Domain Registrars

NameSilo Technologies has called off talks to sell its registrar, also called NameSilo, saying the company is growing too fast to exit right now.

The Canadian company grew its domains under management by 578,000 between April 2020 and April this year, when it stood at 3.9 million domains. It says it has since crossed 4.3 million.

The prospective deal, with Dutch acquisition vehicle WGH Holdings was announced last December.

But NameSilo’s CEO Paul Andreola said in a press release:

We believe that the value of Namesilo has grown significantly since the discussions with the prospective buyer began and feel that there is more value to be unlocked over the near to medium term for shareholders.

At the same time, the company reported revenue of $8.4 million for the second quarter, up $900,000 on the same period last year, with adjusted EBITDA of $435,344.

Bookings were up to $9.9 million from $7.6 million.

It was the company’s debt that first spurred acquisition talks. NameSilo says that debt has been reduced from $4.7 million to $3.85 million since March.

.com and NameSilo fingered as “most-abused” after numbers rocket

SpamHaus has revealed the most-abused TLDs and registrars in its second-quarter report on botnets.

The data shows huge growth in abuse at Verisign’s .com and the fast-growing NameSilo, which overtook Namecheap to top the registrar list for the first time.

Botnet command-and-control domains using .com grew by 166%, from 1,549 to 4,113, during the quarter, SpamHaus said.

At number two, .xyz saw 739 C&C domains, up 114%.

In the registrar league table, NameSilo topped the list for the first time, unseating Namecheap for the first time in years.

NameSilo had 1,797 C&C domains on its books, an “enormous” 594% increase. Namecheap’s number was 955 domains, up 52%.

Botnets are one type of “DNS abuse” that even registrars agree should be acted on at the registrar level.

The most-abused lists and lots of other botnet-related data can be found here.

Earnings reports: GoDaddy, Tucows and NameSilo report growth

Three of the industry’s largest registrars announced revenue growth in their latest reporting periods in recent days.

GoDaddy

Market-leading GoDaddy reported a whopping 18.8% year-over-year revenue growth from domains in its first quarter, with $422.7 million.

CEO Aman Bhutani told analysts that much of this growth is being driven by the company’s emerging strategy of acting as a secondary-market intermediary, making it easier for domainers to sell their domains quickly to end-users (what it calls “independent customers”) and vice-versa.

“Independent customers added over 200,000 domain names that had otherwise been passive into the aftermarket, spurring activity for domain investors,” Bhutani said.

It currently has over 20 million domains listed on its aftermarket platform, contributing 10% of total revenue, the first time it’s broken into double-digits, analysts were told.

Domains was the best-performing segment in growth terms by some margin.

Including its other segments, GoDaddy’s overall Q1 revenue was up 13.8% year over year, at $901.1 million. It had a net income of $10.8 million, compared to $43.2 million a year earlier.

Tucows

Tucows reported domain services revenue up 4%, from $59.5 million in Q1 2020 to $61.2 million, with adjusted EBIDTA of $13.8 million versus $11.5 million a year ago.

CEO Elliot Noss said in a statement that new domain registration growth was slowing following the “pandemic surge” it experienced in 2020, when lockdown-hit businesses flew online to keep afloat.

Including its non-domain segments, Tucows reported Q1 revenue of $70.9 million. That was down from $84 million a year earlier largely as a result of the sale of its Ting Mobile business to Dish Network.

Net income for the quarter was $2.1 million, down 24% compared to the year-ago period.

NameSilo

Fast-growing registrar NameSilo reported revenue for its full-year 2020 of $31 million, up 14.3% on 2019. That was primarily driven by domains growth and its newish add-on services, it said, but it does not break down its revenue by segment.

It had net income of $6.5 million in fiscal 2020, compared to a net loss of $4 million in 2019.

It added 235,347 net domains in gTLDs in 2020, according to reports filed with ICANN, ending 2020 with 3,663,090 names under management. NameSilo said that number is now around 3.9 million.

NameSilo in profit as sales rise 11%

Kevin Murphy, December 1, 2020, Domain Registrars

Canadian registrar NameSilo today reported a profit for the third quarter, as bookings increased 11% sequentially over the three months to September 30.

One of the fastest-growing registrars, the company said that as of today it has 3.54 million domains under management, up from the 3.45 million it reported at the start of September.

NameSilo said its revenue for the quarter was $8.07 million, up 2.8% on Q3 2019. Its net income was $2,72 million, compared to a net loss of $753,093 a year earlier.

Much of the net income was attributable to income on investments, the firm said.

Bookings, which represents the number of domains sold but not yet recognized as revenue for accounting purposes, was up 11% compared to Q2 at $8.4 million.

Dark horse NameSilo doubles size in 2018

Kevin Murphy, January 7, 2019, Domain Registrars

Domain name registrar NameSilo says it managed to double its size in terms of cash bookings and domains under management in 2018.

The Vancouver-based company said that in 2018 it added 1.27 net new domains, an increase of 106%.

Bookings were $20.1 million, up from the $11.1 million it reported in 2017, according to the company.

NameSilo now says it has 2.49 million domains under management.

That would be a whopping 500,000 increase on the end of September, judging by the latest gTLD registry transaction reports.

The registrar is now the 17th-largest gTLD registrar by DUM, bigger than old hands such as Register.com and Name.com.

And yet I think it’s fair to say the company is a bit of a dark horse. It’s certainly managed to stay under my radar until now.

You’d be hard pressed from its web site to figure out who runs the company or where to find them, despite what ICANN registrar contracts require.

But press releases show it went public, kinda, when it backed into Canadian investment vehicle Brisio Innovations Inc last year, in a deal worth $9.5 million.

It’s now listed on the Canadian Securities Exchange, an alternative investment market, with the rather catchy ticker “URL”.

Given the rapid DUM growth, one might suspect an over-reliance on bargain-bucket new gTLDs, but that does not appear to be the case. About three quarters of its names in September were in .com.

The company credits word of mouth for its recent growth successes, and there may be some truth in that.

NameSilo performed well each month last year in terms of net transfers, often in the five-figure range. It ranked fifth in those terms in September across all gTLDs, beating the likes of Google, NameCheap and AliBaba, with almost 15% of its 90,000 net new DUM coming from transfers.

Given the much larger number of attempted adds and grace period deletes NameSilo experiences every month compared to its similarly sized peers, I rather suspect a lot of its new business is coming in via drop-catching.

The company offers customers API-only access to its platform for drop-catching deleting domains, among other purposes.