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One Seeking Alpha Author Believes The Market Doesn’t Realize How Useful GLTDs Are And How Adoption Affects Earnings

Posted on the 17 October 2014 by Worldwide @thedomains

One investor long Rightside Group Ltd (NAME) wrote a piece on Seeking Alpha that the market does not recognize how the new gtlds will affect the bottom line. The author points out how the margins are much bigger on a new gtld as opposed to something like a .com or .net registration. He also highlights the benefit of the being the house (registry).

The author did put some decent work in on the article (Caveat: He is long the stock) which is 7 pages long. If you are interested in the stock yay or nay, it is worth a read imo.

Here is the summary:

Summary

  • After quitting low quality ad service the company is bleeding cash with razor thin margins on its current business.
  • GTLDs represent a major shift in the way domains are used on the Internet.
  • The company bought the right to function as a registry for 33 unique gTLDs which is a major difference from its registrar business.
  • Revenue per gLTD domain sold is between $20-$30 instead of $1 for a traditional TLD.
  • Because of the tremendous operating leverage within the business model a major % of gross margin expand falls to the bottom line.

Read the full article on Seeking Alpha

Author Disclosure : I do not have a position in NAME, Name.com the registrar was an advertiser on TLDinvestors.com of which I am the owner, that advertising relationship ended at the end of August.

 


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