Minds + Machines (LON:MMX) reported its audited results for the year ended 31 December 2014.
Minds + Machines reported a profit before in 2014 of $22.06 million against a profit of $1.14 million in 2013, largely as a result of receiving $33.72 Million for withdrawing applications for new gTLD’s that were in private auctions.
The company made $6.44 million in 2013 for withdrawing applications
Revenue from registry and registrar services, and this totaled $1.92 Million in 2014, up from $56,000 the year before.
In 2014 Minds + Machines acquired six TLDs in 2014, launched nine TLDs for itself and three for clients in which Minds + Machines operate as a back end for other registries .London, .Kiwi and .GOP.
Minds + Machines finished 2014 with $45.80 Million in the bank up from $14.88mln at the end of 2013.
The company said as of the end of April they have more than $48 Million in the bank.
2014 Operational Highlights
Registry
· Gross receipts of $37.5 million from private auctions;
· Acquired 6 TLDs;
· Built main distribution channel for its portfolio of TLDs with all major registrars;
· Launched 9 TLDs into General Availability beginning September 2014;
· Generated premium domain name portfolio for each TLD.
Registry Service Provider
· Launched 3 TLDs -.london, .kiwi, and .gop;
· Enhanced infrastructure to secure future registry clients.
In total, 108,000 domain registrations were recorded across MMX’s portfolio primarily from those top-level domains launched in the final four months of 2014.
Post Period Highlights
· MMX uncontested portfolio increased to 34 of which:
o 20 wholly/majority owned,
o 5 owned or operated with the relevant city governing body on a revenue share basis,
o 4 in partnership with third parties, and
o 5 where the Company acts as the Registry Service Provider on behalf of clients;
· 8 portfolio top-level domains launched since year-end – 20 of the Group’s portfolio having now been launched;
· Cash reserves increased to over $48m (as of 30 April 2015);
· Domain registrations increased to over 177,000 (as of 15 May 2015);
· Sales team appointed to drive Premium Name revenues forward.
Earlier today we reported that Fred Krueger a co-founder of the company was leaving and will be succeeded as chairman by Keith Teare.
Shares of the company fell more than 12% today in trading to 9.00P
The company has a 52-week High of 13.75p and a 52-week Low of 6.80p
The market cap of the company is 75.24M or just about 50% higher than cash on hand.
“Minds + Machines reported a profit before in 2014 of $22.06 million against a profit of $1.14 million in 2013, largely as a result of receiving $33.72 Million for withdrawing applications for new gTLD’s that were in private auctions.
Revenue from registry and registrar services, and this totaled $1.92 Million in 2014, up from $56,000 the year before.”
Being paid to not run new gTLD is the business to be in. Look at the gap between the income generated from being paid to lose auctions vs. the income generated via registry/registrar services.
It is really the only business model that has proven to be profitable so far with new extensions.
Brad
Withdrawing applications for new gTLDs is the only way how to make profit when it comes to new gTLDs.
Saying that, once all extensions are settled, most of CEOs and founders will go after new business.
This is a company going nowhere in my view, without the profit from those auctions they would have lost $11million for the year. With 177,000 domains registered the company is way too small to be viable. Lucky for them they have a lot of cash in the bank to pay those salaries.
Astute enough to see it was all going nowhere and cashing out.
Business plan going forward is broken, but with $48Million, the CEO at least should get a decent sized yacht.
A good financial report from Minds + Machines. They should consolidate on their strengths to move the business forward.