CentralNic notes Q1, discloses Microsoft deal and board changes

Firm diversifies revenue stream with Microsoft deal.

Picture of stock chart with the words "earnings note"

Domain name and online advertising firm rollup CentralNic (London AIM: CNIC) released news this morning.

First, on the earnings front, the firm expects to note $194.9 revenue for Q1 when the official tally is complete. That’s up 24% year over year. It states gross profit was $45.8 million, and its Adjusted EBITDA number will be $21.3 million. Those are each increases of 15% year over year.

Second, the firm has inked an ad deal with Microsoft Bing that will help diversify its revenue. Last year, Google ads were responsible for a substantial part of the firm’s monetization. It accounted for 68% of total revenue, up from regarding 50% in 2021, and nearly all of that was ad revenue (only a tiny portion was from Google Domains for the domain business). This dependency seems like a significant risk factor for the firm, so adding Bing will help.

Finally, the firm disclosed board changes. Marie Holive, formerly CFO of NBC Universal Media, will join the board. She will be the firm’s second female board member. Thomas Rickert has decided to step down following his term. He has been on the board since 2013.

Also on the wire