Record Quarterly Revenue and EBITDA*
NameSilo LLC revenues up 125.5% from Q2 2018
CSE: URL / OTC: URLOF
VANCOUVER, Aug. 29, 2019 /CNW/ - NameSilo Technologies Corp. (CSE: URL) (PINKSHEETS: URLOF) (the "Company"), one of the fastest growing domain registrars in the world, is pleased to announce the financial results for the Quarter ending June 30, 2019. The financial statements and related management's discussion and analysis ("MD&A") can be viewed on SEDAR at www.sedar.com.
Q2 2019 Operation Highlights of NameSilo LLC (Operating subsidiary):
- Record Revenue. NameSilo LLC recorded revenues of $6,957,544 in Q2 2019 compared to $3,085,242 in Q2 2018, up 125.5%. Year-to-date ending June 30, 2019 revenues totaling $13,444,587 are up 138% over the six-month period ended June 30, 2018.
- Strong Recurring Revenue. 87% of revenues were driven by existing customers.
- Robust Customer Growth. NameSilo continues to be one of the fastest growing domain registrars in the world. The company added approximately 400,000 net new domains and 40,000 new customers in Q2
- Strong Customer Base. NameSilo is one of the 15 Largest Domain Registrars in the world. As of the date of this news release, NameSilo has approximately 3.18 million active domains under management with customers in approximately 160 countries.
- Loyal Customer Base. NameSilo maintains a customer retention rate of approximately 87%. Customer loyalty is driven by excellent customer service, array of services and affordable and consistent pricing.
- New Value-Added Services. Successfully launched Web hosting, e-mail and SSL certification as value-add offerings.
- Debt Restructuring. NameSilo Technologies completed the restructuring of its outstanding loans. The purpose of the restructuring was to repay approximately $1.28 million of the principal and to extend the maturity date of the loans to December 17, 2020
Q2 2019 Financial Highlights of the Company:
- 3rd consecutive quarter of record revenues since completing acquisition August 2018
- Revenues of $6,957,544 for fiscal Q2 2019 up 7.3% from Q1 2019
- Gross Margin of $1,102,820, being 15.8% up from 11.8% in Q1 2019
- Adjusted EBITDA* of $663,183 up 173% from Q1 2019
- Adjusted EBITDA* margin of 9.5% up from 3.7% in Q1 2019
- Net Loss of $307,987 down from $934,509 in Q1 2019
- Total deferred revenue $15,308,027 up from $14,272,750 in Q1 2019
- Total Bookings* of $7,992,821 up 25.7% from Q1 2019
The Company had a net loss during the three months ended June 30, 2019 of $307,987 compared to a net income of $530,307 for the same period in 2018. The loss is primarily due to non-cash costs, such as interest and loan accretion expense of $492,689 (2018 - $nil), amortization of equipment and intangible assets of $617,438 (2018 - $nil), non-realized loss on investments of $22,397 (2018 – gain of $873,444), and the share-based payment of $20,855 (2018 - $nil).
NameSilo Technologies CEO Paul Andreola stated: "We are very pleased with the company's performance in Q2 as not only do we continue to be one of the fastest growing domain registrars in the world, but we achieved record financial results on several fronts. The continued strong growth in customers, domains under management and the introduction of new complementary services generated record numbers in quarterly revenues, adjusted EBITDA and bookings. NameSilo LLC continues to build a track record of strong growth, both in domains under management (now over 3.17 Million), as well as demonstrating an over 125% growth in revenue (Q2 2018 over Q2 2019). This growth is attributed to the excellent team at NameSIlo LLC, headed by Kristaps Ronka, providing best in class support and services while expanding the core offerings to the client base of over 310,000 customers."
The Company's focus in 2019 will be to offer an extensive set of new easy-to-use cloud-based technology products that will enable NameSilo customers to establish a digital presence and connect with their customers. The Company believes that these new products will further increase core revenues and margin growth for NameSilo, improve customer retention and improve the value proposition to the customer base.
About NameSilo Technologies Corp. and NameSilo LLC
NameSilo Technologies Corp. invests its capital in companies and opportunities which management believes are undervalued and have potential for significant appreciation. The company makes investments in both public and private markets and focuses on opportunities in a wide variety of industries excluding the resource and resource service sectors. Brisio does not invest on behalf of any third party and it does not offer investment advice.
NameSilo LLC is a low-cost provider of domain name registration and management services. As an accredited ICANN registrar, NameSilo is one of the fastest growing domain registrars in the world with approximately 3.18 million active domains under management, and over 310,000 customers from approximately 160 countries.
Disclaimer for Forward-Looking Information
Certain statements in this news release are forward-looking statements, which reflect the expectations of management regarding potential future investments by the Company. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. These forward-looking statements reflect management's current views and are based on certain expectations, estimates and assumptions which may prove to be incorrect. A number of risks and uncertainties could cause the Company's actual results to differ materially from those expressed or implied by the forward-looking statements.
*Non-IFRS Financial Measure
Readers are cautioned that "Adjusted EBITDA" and "total bookings" are measures not recognized under IFRS. Adjusted EBITDA is defined as earnings before interest income, taxes, depreciation and amortization, share-based compensation, restructuring costs, impairment charges and other non-recurring gains or losses. Management believes Adjusted EBITDA is a useful measure that facilitates period-to-period operating comparisons. Total bookings includes the full amount of cash received from new domain bookings, renewals and other related services. Whereas, under IFRS, the Company records revenue from domain booking and renewal fees on a straight-line basis over the life of the contract term. However, the Company's management believes that "total bookings" provides investors with insight into management's decision-making process because management uses this measure to run the business and make financial, strategic and operating decisions. Further, "total bookings" also provides useful insight into the Company's operating performance on a yearly basis. "Total bookings" do not have standardized meanings prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers. Readers are cautioned that "Adjusted EBITDA" and "total bookings" are not an alternative to measures determined in accordance with IFRS and should not, on their own, be construed as indicators of performance, cash flow or profitability.
NEITHER THE CSE NOR ITS REGULATION SERVICES PROVIDERS (AS THAT TERM IS DEFINED IN THE POLICIES OF THE CSE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
SOURCE NameSilo Technologies Corp.
For further information: NameSilo Technologies Corp., Paul Andreola, President, CEO and Director, (604) 644-0072, www.brisio.com; NameSilo LLC, Kristaps Ronka, CEO, [email protected], www.namesilo.com