NameSilo Technologies Corp. — Earnings Release 2020

Jul 15, 2020

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NAMESILO TECHNOLOGIES CORP.

FOR IMMEDIATE RELEASE CSE: URL / OTC: URLOF

NameSilo Technologies Corp. Announces 2020 Q1 Results

Record Q1 Revenue and EBITDA*

NameSilo revenues up 16.7% from Q1 2019

VANCOUVER, BRITISH COLUMBIA – (July 15, 2020) – NameSilo Technologies Corp. (CSE: URL) (PINKSHEETS: URLOF) (the “ Company ”), one of the fastest growing domain registrars in the world, is pleased to announce the financial results for the quarter ending March 31, 2020. The financial statements and related management’s discussion and analysis (“MD&A”) can be viewed on SEDAR at www.sedar.com.

Q1 2020 Operation Highlights of NameSilo Technologies:

• Record Q1 Revenue. NameSilo recorded revenues of $7,568,804 in Q1 2020 compared to $6,487,043 in Q1 2019, up 16.7%.

• Robust Customer Growth. NameSilo continues to be one of the fastest growing domain registrars in the world. The company added approximately 385,000 new domains and 36,585 new active customers in Q1.

• Strong Customer Base. NameSilo is one of the 15 largest domain registrars in the world. As of the date of this news release, NameSilo has approximately 3.5 million active domains under management with over 170,000 active customers in approximately 160 countries.

• Loyal Customer Base. NameSilo maintains a customer retention rate of approximately 87%. Customer loyalty is driven by excellent customer service, array of services and affordable and consistent pricing.

• New Value-Added Services. Successfully launched Web hosting, e-mail and SSL certification as value-add offerings

Q1 2020 Financial Highlights of NameSilo Technologies Corp.:

	Q1 2020	Q1 2019
Revenue	$7,568,804	$6,487,043
Gross Margin$	$892,387	$763,923
Gross Margin %	11.8%	11.8%
Adjusted EBITDA*	$495,093	$242,531

Adjusted EBITDA margin*	6.5%	3.7%
Net Loss	($647,172)	($934,509)
Total deferred revenue	$17,685,040	$14,272,750
Total Bookings*	$8,740,252	$6,358,171

• Q1 2020 revenues up 28.9% over Q4 2019

• Q1 2020 EBITDA* up 104.1% over Q1 2019

• $652,388 of net cash provided by operating activities in Q1 2020

The Company had a net loss during the three months ended March 31, 2020 of $647,172 compared to a net loss of $934,509 for the same period in 2019. The loss is primarily due to non-cash costs, such as amortization of equipment and intangible assets of $620,759 (2019 - $613,656), non-realized foreign exchange loss of $505,344 (2019 – gain of $137,385), and the share-based payment of $43,699 (2019 - $57,357).

NameSilo Technologies CEO Paul Andreola stated: “Namesilo’s emphasis on excellent customer service and providing user-friendly tools to our growing client-base has demonstrated itself with another strong quarter. With significant milestones achieved already in 2020 and more to come in the following quarters we continue to work tirelessly to provide our clients with both a best-in-class experience, and with the support they need to successfully grow their businesses.”

Kristaps Ronka, NameSilo LLC CEO comments: “We launched a set of our add-on services for our SMB customers and have seen a steady growth of revenue generated from these services. We are working on better ways of presenting the options to our customers to increase uptake in our add-on services. We continue to upgrade our systems and infrastructure as well as update our front-end and back-end pages.”

Mr. Ronka continues: “To our Domain Investor customers – we have been hard at work developing two new products aimed to make your lives easier - NameLot.com and Catch.Club. NameLot.com, our domain brokerage service will be launching publicly shortly after being in BETA for most of the part quarter. Catch.Club, our domain back-ordering product will be entering BETA in the upcoming week. These new products, along with updates to our existing marketplace services will hopefully enable you to do more with your domains at NameSilo.”

NameSilo Technologies Corp. Paul Andreola President, CEO and Director (604) 644-0072 www.namesilotech.com

NameSilo LLC Kristaps Ronka CEO pr@namesilo.com www.namesilo.com

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About NameSilo Technologies Corp. and NameSilo LLC

NameSilo Technologies Corp. invests its capital in companies and opportunities which management believes are undervalued and have potential for significant appreciation. The company makes investments in both public and private markets and focuses on opportunities in a wide variety of industries excluding the resource and resource service sectors. NameSilo does not invest on behalf of any third party and it does not offer investment advice.

NameSilo LLC is a low-cost provider of domain name registration and management services. As an accredited ICANN registrar, NameSilo is one of the fastest growing domain registrars in the world with approximately 3.494 million active domains under management, and over 170,000 active customers from approximately 160 countries.

Disclaimer for Forward-Looking Information

Certain statements in this news release are forward-looking statements, which reflect the expectations of management regarding potential future investments by the Company. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. These forward-looking statements reflect management’s current views and are based on certain expectations, estimates and assumptions which may prove to be incorrect. A number of risks and uncertainties could cause the Company’s actual results to differ materially from those expressed or implied by the forwardlooking statements.

*Non-IFRS Financial Measure

Readers are cautioned that “Adjusted EBITDA” and “total bookings” are measures not recognized under IFRS. Adjusted EBITDA is defined as earnings before interest income, taxes, depreciation and amortization, share-based compensation, restructuring costs, impairment charges and other non-recurring gains or losses. Management believes Adjusted EBITDA is a useful measure that facilitates period-to-period operating comparisons. Total bookings include the full amount of cash received from new domain bookings, renewals and other related services. Whereas, under IFRS, the Company records revenue from domain booking and renewal fees on a straight-line basis over the life of the contract term. However, the Company’s management believes that “total bookings” provides investors with insight into management’s decision-making process because management uses this measure to run the business and make financial, strategic and operating decisions. Further, “total bookings” also provides useful insight into the Company’s operating performance on a yearly basis. “Total bookings” do not have standardized meanings prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers. Readers are cautioned that “Adjusted EBITDA” and “total bookings” are not an alternative to measures determined in accordance with IFRS and should not, on their own, be construed as indicators of performance, cash flow or profitability.

NEITHER THE CSE NOR ITS REGULATION SERVICES PROVIDERS (AS THAT TERM IS DEFINED IN THE POLICIES OF THE CSE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

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