This morning NameSilo Technologies Corp. (CSE: URL) announced earnings showing a 4th consecutive quarter of both record revenue and EBITDA. From Q2’19 to Q3’19 revenues increased 12.8%, with a 10.1% increase in gross margins, and an 11.20% Adjusted EBITDA Margin.
Key metrics from the last three quarters include:
|Q3 2019||Q2 2019||Q1 2019|
|Gross Margin $||$1,364,512||$1,102,820||$763,923|
|Gross Margin %||17.40%||15.80%||11.80%|
|Adjusted EBITDA margin*||11.20%||9.50%||3.70%|
|Total deferred revenue||$16,345,339||$15,308,027||$14,272,750|
|Avg Revenue Per User||$47.51||$47.26|
The Canadian based microcap is one of the top 15 largest domain registars in the world with 3.37 million active domains under management and over 170,000 active customers. The company showed strong growth in the quarter adding approximately 220,000 net new domains and 20,000 net new active customers. Also, NameSilo successfully launched Web hosting, e-mail and SSL certification as value-add offerings. The company’s core strategy is to take their massive list of domain registrars and sell them value added services. We can see the strategy is working as adjusted EBITDA margins have grown from 3.70% to 11.20% over the last two quarters.
The continued strong growth in customers, domains under management (now over 3.37 million) and the introduction of new complementary services generated record numbers in quarterly revenues, adjusted EBITDA* and bookings*. The Company’s focus in 2020 will be offering customers new integrated products to enhance user experience, increase brand loyalty, and continue to drive strong revenue growth, margin improvement and average revenue per user.”Paul Andreola, CEO, NameSilo
Of course, the Dive normally focuses on cannabis, so today is like finding a leprechaun: positive operating cashflow!
Using the most recent quarter for annualized run rates, NameSilo is now trading at approximately 8.6x EBITDA and less than 1x sales. Given the top-line growth profile and margin expansion, these multiples should be very attractive to value investors.
NameSilo last traded at $0.49 on the Canadian Securities Exchange.
Information for this briefing was found via Sedar and Name Silo Technologies. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
SmallCapSteve started blogging in the Winter of 2009. During that time, he was able to spot many take over candidates and pick a variety of stocks that generated returns in excess of 200%. Today he consults with microcap companies helping them with capital markets strategy and focuses on industries including cannabis, tech, and junior mining.