Taryn Naidu, CEO of Rightside.
Taryn Naidu, CEO of Rightside.

Kirkland-based Rightside Group, a domain name service company that completed a spin off from Demand Media Inc. earlier this week, posted revenue of $46.7 million in its first earnings report today. Rightside, which is trading as NAME on the NASDAQ, also reported a net loss of $3.5 million.

Revenue was down about $1.6 million from Q2 2013, while losses increased by $2.6 million. The company did, however, see its domain name services revenue grow by $4.7 million from last year.

“There is a significant long-term opportunity for growth and expansion in this industry being driven by businesses and consumers who desire specific, relevant and memorable domain names that best represent their online endeavors,” Rightside CEO Taryn Naidu said in a statement.

rightside111Rightside is expecting revenue in 2014 between $185 million and $195 million. Shares of Rightside have fallen by more than 10 percent this week.

Demand Media, meanwhile, saw revenue decrease by $11 million and losses grow by nearly $10 million in its second quarter earnings report that posted today.

As part of the spin off, Demand Media shareholders received one share of Rightside for every five shares of Demand Media they own. Demand Media will continue as a public company, trading on the New York Stock Exchange under the ticker DMD. It now has a market value of $185 million.

Here’s a closer look at Rightside’s Q2 financials:

rightsideearnings21

Comments

  • anon

    the end of the article isn’t correct. demand media has a market cap of 193.49 million, not 1 billion.

    • Taylor Soper

      Thanks for noting this. Just corrected that number.

  • Dave

    You have the market cap of Demand Media wrong again. It is $193 million not $1 billion. You initially picked up the wrong number in an earlier article when Yahoo had failed to adjust for the reverse split. You should correct this. It is kind of a big difference.

    • Taylor Soper

      Thanks for noting, we just fixed that number.

  • Dave

    Rightside has a slightly bigger market cap than its former parent, although both are basically the same market cap. Hopefully Rightside can prosper and separating from the junk business that Demand Media became can only be a positive. They have some good people and Seattle could use another decent sized public company. The domain registrar space seems super-competitive though with a variety of companies starting to enter to bolster other business which will lead to even more price pressure.

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