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NameSilo Technologies Corp. announces its results for the second quarter of 2022

VANCOUVER, BC, August 23, 2022 /PRNewswire/ – NameSilo Technologies Corp. (CSE: URL) (PINKSHEETS: URLOF) (the “Company“), one of the fastest growing domain registrars in the world, is pleased to announce financial results for the quarter ending June 30, 2022. The financial statements and related MD&A (“MD&A”) are available on SEDAR at www.sedar.com.

Company Financial Highlights:

The Company recorded financial results during the second quarter of fiscal 2022 as shown below (all figures are in Canadian dollars):

  • Record turnover of $11,248,570 for Q2 2022 compared to $8,411,202 in Q2 2021, an increase of 33.7%. The increase in revenue in Q2 2022 is due to an increase in domains under management, marketplace revenue and the sale of ancillary services.
  • Gross profit of $2,196,621 i.e. 19.5.% of its revenue in Q2 2022 vs. $1,447,846 i.e. 17.2% in Q2 2021, up 51.7%
  • Operating result of $561,751 for Q2 2022 compared to $154,365 in Q2 2021 up 264%.
  • Net loss $683,040 in Q2 2022 against a loss of $2,897,994 in Q2 2021
  • Adjusted EBITDA* of $840,188 for Q2 2022 compared to $435,344 in Q2 2021 up 93%
  • Total bookings* of $12,084,361 in Q2 2022 up 22.0% compared to $9,907,069 in Q2 2021.
  • Total deferred revenue of $25,317,610 like a June 30th 2022 against $24,481,819 at March, 31st 2022.

SELECTED FINANCIAL RESULTS

Three months completed

Semester completed

June 2022

June 2021

June 2022

June 2021

Revenue

$11,248,570

$8,411,202

$22,008,394

$16,400,796

Cost of sales

$9,051,949

$6,963,356

$17,587,807

$13,993,841

Gross profit

$2,196,621

$1,447,846

$4,420,587

$2,406,955

Gross margin %

19.5%

17.2%

20.1%

14.7%

Functionnary costs

$1,634,870

$1,293,481

$3,100,186

$2,219,940

Operating result

$561,751

$154,365

$1,320,401

$187,015

Investment loss

($1,049,675)

($3,024,368)

($1,279,226)

($6,725,684)

Other items

($195,116)

$4,026

($393,602)

($106,871)

Loss before income tax

($683,040)

($2,865,977)

($352,427)

($6,645,540)

income tax expense

$32,017

$85,322

Net loss

($683,040)

($2,897,994)

($352,427)

($6,730,862)

Other comprehensive income (loss)

$155,439

($168,521)

$22,348

($289,777)

Total comprehensive loss

($527,601)

($3,066,515)

($330,079)

($7,020,639)

Comprehensive income (loss) attributable to:





Company shareholders

($684,555)

($3,112,344)

($643,249)

($7,073,273)

Non-controlling interest

$156,954

$45,829

$313,170

$52,634

Weighted average number of shares outstanding

92,464,648

92,464,648

92,464,648

92,464,648

Loss per share, basic ($ per share)

(0.01)

(0.03)

(0.00)

(0.07)

Adjusted EBITDA*

$840,188

$435,344

$1,874,967

$741,985

Adjusted EBITDA per share*

0.009

0.005

0.02

0.008

NameSilo LLC (“NameSilo”) became the 11e The largest domain registrar in the world (according to RegistrarOwl.com) with over 4.61 million active domains under management and customers in approximately 160 countries. Since acquiring NameSilo in August 2018 the new management team increased its revenues compared to the revenues of the year 2017 by approximately $10.6 million to end $36.4 million in 2021. Domains under management have grown from 1.85 million to over 4.61 million today. The Company has also invested significant resources to offer new products and services that have helped increase revenues and improve gross margins. The company offers hosting services, email products, a free logo maker, security products, several new domain services, and more, while maintaining some of the lowest prices in the industry. NameSilo now accepts over 150 payment methods including most major credit cards, online payments such as Apple Pay, Venmo, Alipay and more. The company was also one of the first companies in the industry to accept bitcoin.

NameSilo LLC CEO Kristaps Ronka states, “We continue to see strong revenue growth momentum and positive earnings trends. Our second quarter was the third consecutive quarter of revenue exceeding $10 million and was another record quarter for the company. We continue to bring our customers new, top-notch products and services at the best possible prices, while maintaining world-class customer service.”

NameSilo LLC will focus on adding value-added products to provide customers with a single source for essential services related to their domains. The Company believes that these new products will further increase NameSilo’s base revenue and margin growth, improve customer retention and enhance the customer value proposition.

Normal Course Issuer Bid (“NCIB”) Update:

Since the beginning of the OPNA on February 23, 2022, the Company acquired 360,000 shares for cancellation. After all of the canceled shares that have vested, the number of shares outstanding would be 92,104,648. The NCIB is ongoing until February 23, 2023 and the Company may purchase up to 4,500,000 common shares of the Company. All purchases of common shares will be made in the open market through the Canadian Securities Exchange and will be purchased for cancellation.

Namesilo’s board of directors continues to believe that the current market price of the company’s common stock does not currently reflect the underlying value of the company. Therefore, based on future price movements and other factors, the Board of Directors of Namesilo believes that the purchase of the shares is an appropriate use of Namesilo’s funds and in the best interest of Namesilo’s shareholders.

About NameSilo Technologies Corp. and NameSilo LLC

NameSilo Technologies Corp. invests its capital in companies and opportunities that management believes are undervalued and have significant upside potential. The company invests in public and private markets and focuses on opportunities in a wide variety of industries, excluding the resource and resource services sectors. NameSilo does not invest on behalf of a third party and does not offer investment advice.

NameSilo LLC is a low-cost provider of domain name registration and management services. As an ICANN-accredited registrar, NameSilo is one of the fastest growing domain registrars in the world with approximately 4.61 million active domains under management in approximately 160 countries.

Disclaimer for forward-looking information

Certain statements contained in this press release are forward-looking statements, which reflect management’s expectations regarding the Company’s potential future investments. Forward-looking statements consist of statements that are not purely historical, including statements regarding beliefs, plans, expectations or intentions regarding the future. These statements are subject to risks and uncertainties that could cause actual results, performance or developments to differ materially from those contained in the statements. There can be no assurance that any of the events anticipated by the forward-looking statements will occur or, if they occur, what benefits the Company will derive therefrom. These forward-looking statements reflect management’s current beliefs 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 Reservations” are non-IFRS measures. Adjusted EBITDA is defined as earnings before interest income, taxes, depreciation and amortization, stock-based compensation, restructuring costs, impairment charges and other non-recurring gains or losses. Management believes that Adjusted EBITDA is a useful measure that facilitates operating comparisons from period to period. Total reservations include the total amount of cash received from new domain reservations, renewals, and other related services. Whereas, under IFRS, the Company recognizes revenue from domain reservation and renewal fees on a straight-line basis over the term of the contract. However, the Company’s management believes that “total bookings” provides investors with insight into management’s decision-making process, as management uses this measure to manage the business and make financial, strategic and operational decisions. In addition, “total bookings” also provides a useful overview of the company’s operational performance on an annual basis. “Total counts” does not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers. Readers are cautioned that “Adjusted EBITDA” and “Total Reserves” 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 REGULATORY SERVICE PROVIDERS (AS THAT TERM IS DEFINED IN THE CSE POLICIES) ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS COMMUNICATION.

SOURCE NameSilo Technologies Corp.