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Tucows Reports: Revenue Increases 11%; Sells Over $1 Million In Domain Names

August 8th, 2013 Comments off

tucowsLogo

Tucows.com reported its financial results for the 2nd Quarter ending June 30, 2013.

Net revenue for the second quarter of 2013 increased 11% to a record $31.2 million from $28.2 million for the second quarter of 2012.

Net income for the second quarter of 2013 was $0.6 million, or $0.01 per share, compared with $0.7 million, or $0.02 per share, for the second quarter of 2012.

Cash and cash equivalents at the end of the second quarter of 2013 were $6.5 million compared with $4.3 million at the end of the first quarter of 2013 and $4.5 million from the end of the second quarter of 2012.

Tucows is reporting they sold $1,079,000 in domain name in the quarter compared to $1.6 in the same quarter in 2012

The company will be holding an earnings call and we will be listening in.

A lot of the growth of Tucows.com seems to have come from their Ting cell unit.…

RBC: Demand Media New gTLD Initiative Could Be Worth More Than Its Registrar Business: enom.com, name.com

August 8th, 2013 Comments off

RBC issued an Equity Research Report  today on Demand Media, Inc., the day after Demand Media, Inc, reported its second quarter earnings.

Demand Media announced during the earnings report and the earnings call that followed that Google’s Search algorithm continues to impact Demand’s owned and operated site traffic negatively and to a greater extent than captured in estimates.

Shares of Demand are down over 5% in early trading today at $6.21 as time of publication although they hit as low as $6.08.

The interesting part of the RBC report for me was this statement:

DMD’s registrar/(future) registry business:

We estimate the market is currently assigning a value of just ~$250mm for Demand Media’s Registrar business, when the potential value creation from the new gTLD initiative alone could be worth that much or more.

Hum

Demand Media, Inc. owns Enom the 2nd largest domain name registrar in the world and also owns owns the newly acquired Name.com for which Demand paid $18 Million for the newly acquired Name.com, seems like the $250MM valuation for the registrar business seems low.

The RBC report goes on to cite the 26 new gTLD’s which Demand Media applied for  (22 which have passed ICANN Initial Evaluation)  as the key positive factor for the entire company.

 

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Demand Media Reports: Revenue Up 9%; Registrar Revenue Up 4% Without Name.com + 10% With

August 7th, 2013 Comments off

 

Demand Media, Inc. (DMD),reported financial results for the second quarter ended June 30, 2013.

Q2 2013 Financial Summary:

  • Content & Media revenue ex-TAC grew 9% year-over-year. This was driven primarily by 15% Owned & Operated revenue growth, which slowed sequentially from 26% year-over-year growth in Q1 2013, due primarily to traffic declines from lower search engine referrals. Network revenue ex-TAC declined 15%, due primarily to lower revenue from YouTube Channels.
  • Registrar revenue grew 10% year-over-year, due to growth from existing partners and the Q4 2012 acquisition of Name.com. Excluding the acquisition, registrar revenue would have grown 4% year-over-year.
  • Adjusted EBITDA increased 9% year-over-year, reflecting balanced investment and cost management.

 

Business Highlights:

 

  • June 2013 comScore Rankings:
  • On a consolidated basis, Demand Media ranked as the #17 US web property and Demand Media’s properties reached more than 103 million unique visitors worldwide.
  • eHow.com ranked as the #18 website in the US and had more than 65 million unique users worldwide.
  • Livestrong.com/eHow Health ranked as the #3 Health property in the US.
  • Cracked.com ranked as the #3 Humor website in the US.
  • In June 2013, Demand Media acquired Society6, a rapidly growing e-commerce marketplace that augments and diversifies the Company’s Content & Media platform by connecting a large community of talented artists to consumers via an online marketplace with diversified traffic sources.
  • In June 2013, Demand Media launched Stronger, a digital fitness and nutrition program offered on a monthly subscription basis. The Stronger program marks another key initiative in the Company’s growing paid content portfolio that also includes Creativebug, an online e-learning site offering high-quality arts and craft video workshops.
  • In August 2013, Demand Media launched eHow Now, a new platform where customers chat directly with experts to receive advice and guidance quickly, conveniently and affordably. After a beta period with more than 1.5 million users engaging with the product, eHow Now is available in six categories – auto, tech, health, legal, personal finance and pets.
  • To date, 22 of Demand Media’s new gTLD applications have passed ICANN’s initial evaluation, moving the Company’s Domain Services business closer to executing on its strategy to become one of the largest end-to-end domain services providers.

Q2 2013 Operating Metrics:

 

  • Owned & Operated page views increased 33% year-over-year to 4.4 billion, driven primarily by mobile page view growth on eHow.com and Livestrong.com as well as international page view growth, which more than offset significant declines in search engine referral traffic.

Marchex Up Over 20% to New 52 Week High

August 7th, 2013 Comments off

After reporting earnings last night Marchex (MCHX) is up just over 20% in trading today to a 52 week high of $7.30 a share.

Marchex has now more than doubled off its 52 week low of $3.06 a share.

At $7 a share the company has a Market Cap of $270 Million dollars.

At its lows of the year, Marchex was trading at or below the acquisition cost of Yun Yee’s Portfolio.

The company received an upgrade to outperform by RBC this morning helping the stock.

Marchex is looking to spin off its Domaining business, that is the buying, selling and development of some 200,000 Domain names it owns later this year.…

AOL Buys Adap.tv For $405 Million

August 7th, 2013 Comments off

 

We have agreed to acquire Adap.tv for $405 MM, here is what Adap.tv brings AOL:

 

  • The only complete global programmatic video stack for publishers and advertisers across all screens;
  • A unified yield management platform for advertisers and publishers for planning, targeting, ad-serving and measurement;
  • One of the fastest growing platforms on the internet, with global revenue growth in excess of 100% per year in each of the last three years;
  • Wide adoption by the largest global advertisers and publishers, including 83 out of the Ad Age 100 and 70 of the comScore 100;
  • A talented team which has driven innovation in the automation of global video advertising.

AOL Inc. AOL +2.20% today announced it has entered into an agreement to acquire Adap.tv, Inc., a leading global, programmatic video advertising platform for the world’s largest brands, agencies, and publishers.

Adap.tv brings to AOL:

 

– The only complete global programmatic video technology stack for publishers and advertisers across all screens;

 

– A unified yield management platform for advertisers and publishers for planning, targeting, adserving and measurement;

 

– One of the fastest growing platforms on the internet, having grown global revenue over 100% per year in each of the last three years;

 

– Wide adoption by the largest global advertisers and publishers, including 83 of the Ad Age 100 and 70 of the comScore 100; and

 

– A talented team which has driven innovation in the automation of global video advertising.

 

The combination of AOL On and Adap.tv will give AOL a unique end-to-end solution and video stack for publishers and advertisers – from premium original production, to content aggregation and syndication platforms, robust video CMS technology, and now a leading programmatic video platform.

 

The strength of Adap.tv’s comprehensive platform and team has enabled its rapid expansion, resulting in a large and growing customer base of publishers and advertisers. In 2012, Adap.tv supported more than 26,000 global ad campaigns, which ran on approximately 9,500 websites and was used by many top brand advertisers.

 

AOL has invested heavily in the digital video space by focusing exclusively on premium content and premium publishers. This investment has propelled the AOL On Network to No. 2 in monthly content video views in the U.S. for nine of the last 12 months*.

 

“AOL is a leader in online video and the combination of AOL and Adap.tv will create the leading video platform in the industry,” said Tim Armstrong, Chairman and Chief Executive Officer of AOL.…

Marchex Details Spin Off Archeo Business: Buying & Selling & Developing Domains; 200,000 Of Them

August 7th, 2013 Comments off

The Marchex earnings call yesterday reveal some interesting facts about Archeo the business that Marchex is looking to spin off to a separate public company later this year.

It appears Archeo is set to become the first publicly traded company whose only business is one of  being a domainer:

“I’d like to highlight that we’re narrowing Archeo’s focus on the buying and selling of domains, along with the select development of proprietary websites.”

Pretty much how I would describe a domainer.

As previously communicated, we believe there’s an opportunity to create a leader in the domain marketplace and for us to unlock the value of our more than 200,000 domains.

For the second quarter, including domain sales, Archeo revenue was $6.5 million consistent with the first quarter. Excluding domain sales, revenue from Archeo was $5.1 million.

In our earnings release today, we announced the sale of certain pay-per-click publisher relationships as part of our effort to increasingly focus Archeo’s business on its premium domain marketplace.

In July, we sold some of our pay-per-click third-party distribution relationships that were part of the Archeo business for proceeds of up to $2.6 million in order to provide greater focus and opportunity around creating a premium domain marketplace. Those relationships contributed $1.4 million in revenue and approximately $100,000 in adjusted EBITDA in the second quarter, and we’re on pace to contribute approximately $3 million in revenue and $200,000 in adjusted EBITDA for the remainder of the year.

Matt Lebo with Piper Jaffray asked the Board about the average domain name sale over the quarter which was down to $18,500

“When you look at the domain sales that you had over the quarter, the average amount is about roughly $18,500 per sale. Isn’t that kind of reflects the portfolio that you still have and the value of it?”

Russell C. Horowitz – Founder, Chairman, Chief Executive Officer and Treasurer

“The averages can vary fairly significantly depending on a smaller number of transactions in any given quarter. What I will say is that as we’ve invested in a Archeo, and adding people in systems that allow us to launch a marketplace and scale this business, the yields that we seeing reinforce our belief that we have a lot of asset value to unlock here.”

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Marchex’s Archeo Sells 70 Domains For $1.3 Million & Spinoff Is Set For 4th Q

August 6th, 2013 Comments off

Marchex, Inc. (MCHX), a leader in mobile performance advertising, today announced its financial results for the second quarter ended June 30, 2013.

 

Q2 2013 Financial Highlights:

 

  • Revenue was $39.0 million for the second quarter of 2013, compared to $34.0 million for the same period in 2012.
  •  to $4.6 million for the same period in 2012.

 

Marchex Q2 and Recent Call-Driven Business Highlights:

 

  • Revenue. Call-driven and other related revenue was $33.9 million for the second quarter of 2013 – a 23 percent increase compared to $27.5 million for the second quarter of 2012.
  • Products. For Publishers, we rolled out upgrades to our mobile and call advertising network technology. These enhancements include:
    • Performance-based monetization. This means high-quality publishers – those that deliver outcomes like call conversions – get paid based on measurable, data-driven results. In turn, these publishers yield more through Marchex’s Pay For Call ads than through integrations with other types of advertising, such as display or click.
    • Further integration of our proprietary Call Analytics technology to determine and score publisher quality.
    • Updates to our proprietary Clean Call technology to detect and block spam and prevent fraudulent calls to advertisers.
    • Updated APIs to streamline partner integration.

 

For Advertisers, we launched a new solution designed to optimize campaign performance for businesses with local branches. These advertisers have traditionally run marketing campaigns through separate national and local initiatives, but that has created widespread inefficiencies. Early customer data shows our solution helps drive brand consistency and greater customer conversions at the local level.

 

Archeo Q2 Highlights and Transaction Update:

 

  • Archeo, Inc. (“Archeo”), a division of Marchex, includes non-call driven assets, which consist of domain assets and a pay-per-click advertising marketplace.
  • Archeo revenue was $5.1 million for the second quarter of 2013
  • During the second quarter of 2013, Archeo sold a total of 70 domains that yielded $1.3 million.
  •   In July, certain pay-per-click assets were sold for proceeds totaling up to $2.6 million as part of a transaction to focus Archeo’s business on creating a premium domain marketplace.
  • Those assets contributed $1.4 million in revenue and close to $100,000 in adjusted EBITDA in the second quarter and were on pace to contribute a projected $3 million in revenue and $200,000 in adjusted EBITDA for the remainder of 2013. Marchex estimates the full year impact for 2013 to be $6 million in revenue and $300,000 in EBITDA. Going forward, we anticipate this sale will be presented in our financial results as discontinued operations.

Neustar Reports: Revenue Up 7% Net Income Up 12% and has $381 Million In The Bank

July 30th, 2013 Comments off

Neustar, Inc. (NSR), the backend provider for  the ccTLD’s .US, .CO, the TLD of .biz and hundreds of new gTLD’s today announced results for the quarter ended June 30, 2013 and updated its guidance for 2013.

Results for Second Quarter 2013 Compared to Second Quarter 2012

  • Revenue increased 7% to $220.4 million
  • Non-NPAC revenue increased 7% to $111.0 million
  • Net income increased 12% to $43.4 million
  • Net income per share increased 14% to $0.65

Non-GAAP Results for Second Quarter 2013 Compared to Second Quarter 2012

 

  • Adjusted net income increased 11% to $56.9 million, representing a 26% margin
  • Adjusted net income per share increased 13% to $0.85

Cash, cash equivalents and investments totaled $381.6 million as of June 30, 2013, compared to $378.2 million as of March 31, 2013 and compared to $343.9 million as of December 31, 2012. During the second quarter, the company purchased approximately 1.5 million shares of its common stock at an average price of $47.09 per share, for approximately $69.3 million.

Business Outlook for 2013

The company reaffirmed its full-year guidance for revenue, previously provided on February 5, 2013 and affirmed on May 2, 2013 and increased its guidance for adjusted net income and adjusted earnings per share:

 

  • Revenue range remains unchanged at $895 million to $915 million;
  • Adjusted net income to range from $225 million to $235 million. Prior adjusted net income guidance was between $220 million and $230 million; and
  • Adjusted earnings per share to range from $3.38 to $3.53. Prior adjusted earnings per share was between $3.28 and $3.43.

Demand Media Acquires Society6 For $95 Million & Lowers Revenue Guidance For 2Q

June 24th, 2013 Comments off

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In two announcements today Demand Media (DMD) acquired Society6, an e-commerce marketplace for artwork and related merchandise for $94 Million dollars.

Society6, had 2012 revenue of $15M.

The purchase price will be paid $75M in cash  and  $19M in stock.

As of March 30, the company only had  $109.4M in cash.

Also Demand today lowered its revenue guidance for the second quarter citing “a reduction in search engine referral traffic to its owned and operated sites in May and June.”

The company said it now expects revenue excluding traffic acquisition costs to come in the range of $95.5 million and $96.5 million, compared to its previous forecast for a range of $100.5 million and $107 million.

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It’s Official, You Could Have Doubled Your Money This Year Buying Marchex

May 28th, 2013 Comments off

Share of Marchex have been on a tear of late up over 50% in the last month and over 100% in the past year and have hit a new 52 week high today of $6.30

As of publications shares of Marchex are trading at $6.30 up over 6% on the day.

A month ago on April 29th, shares were trading at $4.08 a share meaning that shares of Marchex are trading more than 50% higher than just one month ago.

The 52 week low for the stock is $2.99 meaning you could have doubled your money had you bought Marchex shares at the low back in June 2012, and sold it today.

Marchex reported earnings on May 2, 2013 beating estimates for revenue and profits.

Marchex’s market cap is back over $220 million dollars.

Last time we covered the stock in June 2012  it was trading at less than the acquisition cost of Yun Ye’s portfolio with a market cap of just $106 million dollars.

Times have changed and for those that grabbed some shares of Marchex the last time we wrote about it, have seen a nice profit, certainly beating the return of Apple in the same time frame.

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