Internet top level domains company Minds + Machines (LON:MMX) finished 2015 with a flourish, enjoying significant growth in billings.
For the final quarter, standard name billings were up 184% at US$2.66mln from the preceding quarter's (Q3) figure of US$0.94mln while premium name billings were up 215% at US$1.52mln (Q3 2015: $0.48mln).
Total billings for the year rose 57% to US$7.92mln from US$5.03mln, as the company continued to evolve from “land grab” mode to commercialising the assets it has acquired.
During 2015, standard name billings accounted for US$4.86mln of Total billings, while higher margin premium name billings came in at US$2.94mln, leaving “other billings” at US$0.12mln.
Additional gross receipts for the year from failing to win one-off private generic top level domain (gTLD) auctions amounted to US$9.15mln, down from US$37.5mln in 2014.
At the year end, Total domains under management within the company's registry had increased 28% to 278,523 (Q3 2015: 216,820) and 158% on the year (2014: 108,000).
Minds + Machines reckons it has a 2.5% share of the new gTLD market, which grew from 3,710,349 registered domains at 1 January 2015 to 11,191,542 at the year end, fuelled by significant growth in China in the second half of the year.
Average revenue per standard domain name during 2015 was US$16.64, up from UD$12.41 at the end of September, and bringing the metric in to the group's targeted range of US$15-22.
Average revenue per premium name of US$241.73 was up from $125.85 at the end of September and significantly ahead of the key performance indicator (KPI) range for the year of $200-$225 per premium name.
"We have seen exceptional growth in the new gTLD market in 2015 and we are pleased that our emphasis on sales and commercial partnerships has allowed us to significantly grow our domains under management while delivering on a range of key revenue metrics as we drive towards crossing over into operational profitability in 2016,” said Antony Van Couvering, chief executive officer of Minds + Machines.
“Looking forward, we anticipate setting up a range of sales and marketing initiatives that will allow us to significantly increase domains under management, while protecting our long-term revenue streams in each of our top-level domains. In particular, our forthcoming entry into the Chinese market, which has been one of the key drivers of growth for the industry, has the potential to produce a step-change in our market penetration," he added.
The company, which has been buying back shares in the market, ended the year with cash of US$34.7mln.
“The combination of improving the efficiency of our operations and emphasising sales and marketing means that as a board we can look confidently forward into 2016. We have an exceptional portfolio and we look forward to strengthening it as relevant opportunities present themselves," said Michael Salazar, chief operating officer of Minds + Machines.