Rightside Announces First Quarter 2015 Financial Results

Kirkland, WA. - Rightside Group, Ltd. (Nasdaq: NAME), a leading provider of domain name services that advance the way businesses and consumers define and present themselves online, today announced financial results for the first quarter ended March 31, 2015.

"We had a strong start to the year with double digit revenue growth, over half of which was driven by new gTLD registrations. Additionally, we now have 35 gTLDs in 'general availability' and anticipate at least 4 more to launch in 2015," said Chief Executive Officer Taryn Naidu.

Naidu continued, "We continue to see the power of the new gTLDs driving improvement across all of our metrics - including revenue, margins, average selling prices and domain counts. The market is still in the early stages of development, and we will be making targeted investments throughout 2015 to drive awareness and preference for new gTLDs by consumers and businesses. Additionally, we plan to grow our strategic partnerships and increase distribution of our existing and yet to be launched gTLDs."

First Quarter 2015 Financial Highlights

(Unless otherwise noted, all comparisons are relative to the fiscal first quarter 2014.)

• Registrar services revenue increased 12% to $42.0 million compared to $37.5 million primarily due to new gTLD registrations, improved performance by existing resellers and the continued onboarding of eNom wholesale partners.
• Registry services revenue increased to $1.6 million compared to $42 thousand.
• Aftermarket and other revenue was $7.3 million compared to $7.0 million.
• Total revenue increased 13% to $50.5 million compared to $44.6 million.
• Gain on other assets, net was $7.2 million representing the gain on withdrawals of its interest in gTLD applications during the period compared to $4.9 million.
• Net income was $1.9 million compared to a net loss of $3.9 million. Adjusted EBITDA was $0.6 million, compared to adjusted EBITDA of ($2.3 million).

Business Highlights

• Rightside has signed 4 new registry operator agreements so far in 2015, with 39 gTLDs secured to date, and has an interest in 17 additional gTLD applications that have yet to be awarded to their ultimate registry operator.
• As of March 31, 2015, 33 of Rightside's owned and operated gTLDs were in "general availability" for an average of 189 days each. These have generated over 235,000 registrations to date.
• Over half of registrar service revenue growth during the first quarter came from new gTLD registrations.
• Name.com revenue grew over 30% during the period. Year-to-date, approximately 15% of Name.com new registrations came from new gTLDs with an average selling price of the new gTLDs over three times that of legacy gTLDs.

Business Outlook

For the full year ending December 31, 2015, Rightside reaffirms its guidance :

• Total revenue of $210 million to $220 million, inclusive of $6 million to $9 million of GAAP revenue from the registry services business; and
• Total Adjusted EBITDA to break-even as Rightside invests margin generated by the business back into driving market development efforts.

About Rightside

Rightside™ inspires and delivers new possibilities for consumers and businesses to define and present themselves online. The company, with its affiliates, is a leading provider of domain name services, offering one of the industry's most comprehensive platforms for the discovery, registration, usage, and monetization of domain names. In addition to being a new gTLD registry operator, Rightside is home to some of the most admired brands in the industry, including eNom and Name.com. Headquartered in Kirkland, WA, Rightside has offices in North America, Europe and Australia. For more information please visit www.rightside.co.

Cautionary Information Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended, including, among others, Rightside's anticipated gTLD registration launches, impact of new gTLDs on Rightside's metrics, targeted investments, plans to grow Rightside's strategic partnerships and increase distribution of its existing and yet to be launched gTLDs,expected total revenue, Adjusted EBITDA, and registry services revenue. Statements containing words such as may, believe, anticipate, expect, intend, plan, project, and estimate or similar expressions constitute forward-looking statements. Statements regarding Rightside's future performance are based on current expectations, estimates and projections about our industry, financial condition, operating performance and results of operations, including certain assumptions related thereto. Actual results may differ materially from the results predicted, and reported results should not be considered an indication of future performance. Forward-looking statements involve risks and uncertainties including, among others: revenue and growth expectations for Rightside following its separation from Demand Media, Inc.; Rightside's ability to successfully pursue, acquire and operate new gTLD registries; the impact of any delays or limitations in the launch of new gTLDs; Rightside's ability to successfully market and sell its gTLDs; and the difficulty in predicting and developing consumer demand for new gTLDs. More information about potential risk factors that could affect Rightside's operating and financial results are contained in Rightside's filings with the Securities and Exchange Commission. All forward-looking statements are expressly qualified in their entirety by this cautionary statement. Rightside does not intend to revise or update the information set forth in this press release, except as required by law, and may not provide this type of information in the future.