NameSilo Technologies Corp. Announces 2020 Q3 Results
Record Quarterly Revenue
VANCOUVER, BRITISH COLUMBIA – TheNewswire – NameSilo Technologies Corp. (CSE:URL) (OTC:URLOF) (the “Company“), one of the fastest growing domain registrars in the world, is pleased to announce the financial results for the Quarter ending September 30, 2020. The financial statements and related management’s discussion and analysis (“MD&A”) can be viewed on SEDAR at www.sedar.com.
Financial Highlights of the Company:
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-Record Revenue. NameSilo LLC recorded revenues of $8,070,601 in Q3 2020 compared to $7,849,498 in Q3 2019, up 2.8%. Year-to-date ending September 30, 2020 revenues totaling $23,232,578 are up 9.1% over the nine-month period ended September 30, 2019.
-Robust Customer Growth. NameSilo continues to be one of the fastest growing domain registrars in the world.
-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 3.54 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.
-Strong Portfolio Growth. The company’s portfolio value grew by approximately $3,160,000 in Q3
-Positive Net Income. Net income $2,723,317
-New Value-Added Services. Successfully launched new domain brokerage service, NameLot.com and domain backorder service Catch.Club.
-Debt Payment. NameSilo Technologies reduced its outstanding debt from $10,510,034 Q2 to $7,593,769 in Q3 2020
Q3 2020 Financial Highlights of the Company:
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-Revenues of $8,070,601 for fiscal Q3 2020 up 6.3% from Q2 2020
-Gross Margin of $1,132,556, being 14.0% up from 5.6% in Q2 2020
-Adjusted EBITDA* of $362,478 up 140% from Q2 2020
-Adjusted EBITDA* margin of 4.5% up from 2.0% in Q2 2020
-Net Income of $2,723,317 up from $2,006,807 in Q2 2020
-Total deferred revenue $18,004,242 up from $17,666,173 in Q2 2020
– Bookings* of $8,408,670 up 11.0% from $7,574,306 in Q 2020
The Company had a net income during the three months ended September 30, 2020 of $2,723,317 compared to a net loss of $753,093 for the same period in 2019. The net income is primarily due to non-realized gain on investments of $3,163,614 (2019 – $152,455), offset by non-cash costs, such as interest and loan accretion expense of $284,814 (2019 – $285,246), amortization of equipment and intangible assets of $614,856 (2019 – $609,458), and the share-based payment of $11,133 (2019 – $3,863).
Subsequent to the quarter ending September 30, 2020 the company made further payments towards the debt outstanding. The current principal amounts outstanding, as of November 27, 2020 are Cdn$2,436,539 and US$2,321,055.
NameSilo Technologies CEO Paul Andreola stated: “Despite the challenges felt by businesses on a global basis, the company achieved another quarter of record revenue in Q3. We were able to grow our gross margin and ebitda margin after several quarters of decline, and our recent rapid growth in net new domains bodes well for the coming quarter. The continued strong growth in customers, domains under management and the introduction of new complementary services generated improved quarterly revenues, adjusted EBITDA and bookings. NameSilo LLC continues to build a track record of strong growth, both in domains under management (now over 3.5 Million) and customers. 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.” Mr. Andreola continues, “In addition to the growth in NameSilo LLC our investment portfolio had another strong quarter of growth and ended the quarter at $8,508,348 up approximately 259% from the same period last year.”
The Company will continue to deliver industry best pricing, great customer service and new easy-to-use cloud-based technology products that will enable NameSilo customers to establish their 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.
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
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. Namesilo 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 3.50 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.
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