Market Recap 11-6-14 Web.com new low down 27% – Marchex hits $3.15 and then bounces back to $3.85

Market Recap 11-6-14

Web.com reported earnings and they were not good, the company closed one penny off the 52 week low at $14.72. The stock was down 27.31 % on the day.

Bidness reported,

Web.com Group Inc. (WWWW) shares plunged today after the company reported third-quarter earnings results for fiscal’14. Despite beating analysts’ estimates for both revenues and profit, the share decline came on the back of weak outlook for sales. The company’s board of directors also authorized a buyback of common shares worth $100 million.

With a rise in subscriptions, the Florida-based company posted a net loss of $33.9 million and adjusted earnings per share (EPS) of $0.63. It was an increase of 15% year-over-year, beating analysts’ estimates of a $33 million loss and EPS of $0.61. Operating income for the quarter was $38.1 million, which folds into a 27% operating margin; the Street’s estimates for operating profit were $38.2 million.

Marchex hit a new low of $3.15 and then bounced back and finished up on the day at $3.85.

Rightside was up 3% on the day. Reported earnings after the close

• Domain name services revenue for the three months ended September 30, 2014 increased 15% to $41.3 million compared to $36.0 million for the same period in 2013.  Organic growth of 10.5%, which excludes the acquisition related benefit from Name.com, was primarily due to an increase in domain name registrations associated with the continued onboarding of eNom wholesale partners.
• Aftermarket and other revenue for the three months ended September 30, 2014 decreased to $7.4 million compared to $9.5 million for the same period in 2013, primarily due to a decrease in the sales of domain names owned by Rightside.  On a sequential quarterly basis, the Aftermarket business was consistent with and performed favorably as compared to the stabilized level of $7 million for each of the first two quarters of 2014.
• Total revenue for the three months ended September 30, 2014 increased 7% to $48.8 million compared to $45.5 million for the same period in 2013.
• During the third quarter of 2014, Rightside recorded a gain on other assets, net of $8.6 million representing the gain on withdrawals of its interest in seven gTLD applications during the period.
• During the third quarter of 2014, Rightside recorded an income tax benefit of $1.6 million resulting from taxable losses in the U.S. during the period.
• Net income for the three months ended September 30, 2014 was $4.1 million compared to a net loss of $2.6 million for the same period in 2013.
• Adjusted EBITDA for the three months ended September 30, 2014 was ($0.6 million), compared to Adjusted EBITDA of $0.8 million for the same period in 2013. The change was primarily due to the decrease in Aftermarket and other revenue described above.

Business Highlights

• Rightside has signed registry operator agreements with ICANN for 33 gTLDs to date, including four gTLDs added during the third quarter of 2014, and has an interest in approximately 40 additional gTLD applications that have yet to be awarded to their ultimate registry operator.
• Rightside Registry launched eight new gTLDs into “general availability” during the third quarter of 2014 and now has distribution agreements with over 90 leading registrars to distribute its gTLDs.
• As of September 30, 2014, 15 of Rightside’s owned and operated gTLDs were in “general availability” for an average of just 89 days each, but had generated over 80,000 registrations with almost $2.5 million in total cash sales.
• Rightside expects to have 28 gTLDs in “general availability” by year-end 2014.
• With 16 million total domains under management as of September 30, 2014, including over 2 million domain names registered through its own retail outlets, Rightside remains one of the world’s largest registrars.
• Rightside signed agreements with vertical industry partners to integrate its technology and distribute its gTLDs, expanding its reach in key markets like legal and music.

Minds + Machines	unchanged	MMX	London	Close 10.00p
Marchex	up 1.58%	MCHX	Nasdaq	Close $3.85
Google	down 0.71%	GOOG	Nasdaq	Close $542.04
Web.com	down 27.31%	WWWW	Nasdaq	Close $14.72
Rightside	up 3.07%	Name	Nasdaq	Close $9.41
CentralNic	No Trades	CNIC	London	Close 46.60p
Tucows	down 2.95%	TCX	Nasdaq	Close $15.47
Verisign	up 0.96%	VRSN	Nasdaq	Close $59.81
Neustar	down 0.31%	NSR	NYSE	Close $26.09
United Internet	up 0.65%	UTDI	German XETRA	Close 32.40 €

Disclaimer – Any stock price and market data provided on our website is for informational purposes only, and should not be relied upon for trading purposes. Historical and current stock price performance data is not necessarily indicative of future performance.