Domain name firm Donuts tops Deloitte’s 2017 Technology Fast 500

Three-year revenue growth tops 59,000%.

Fresh top level domain name firm Donuts ranked #1 on this year’s 2017 Technology Fast 500 from Deloitte.

Rankings were based on three-year revenue growth from 2013-2016. The timing worked out great for Donuts. It launched its first fresh top level domain names in early access and general availability in early 2014, but sunrise and some brand protection offerings began in 2013. It had a modest base of revenue to work off of.

Still, its 59,000% growth rate is impressive. The minimum revenue required in 2013 to qualify for this year’s Fast 500 was $50,000. Even at the minimum, that means Donuts’ 2016 revenue was regarding $30 million. But the number is certainly much higher than that.

In May of 2016, the firm disclosed to me that its premium domain sales were generating $9 million in annual revenue and represented 15% of sales. Assuming sales is in line with revenue, this suggests regarding $60 million in annual run rate near the beginning of 2016. Given the growth in sales during the remainder of 2016, I suspect the number is much higher than $60 million.

The margins on this revenue are substantial, too. The firm had regarding 40 employees at the beginning of the year and other expenses are minimal.