NameSilo Technologies Corp. — Earnings Release 2020

Sep 1, 2020

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NAMESILO TECHNOLOGIES CORP.

FOR IMMEDIATE RELEASE CSE: URL / OTC: URLOF

NameSilo Technologies Corp. Announces 2020 Q2 Results

NameSilo revenues up 9.1% from Q2 2019

VANCOUVER, BRITISH COLUMBIA – (September 1, 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 June 30, 2020. The financial statements and related management’s discussion and analysis (“MD&A”) can be viewed on SEDAR at www.sedar.com.

Q2 2020 Operation Highlights of NameSilo Technologies:

• Q2 Revenue. NameSilo recorded revenues of $7,593,173 in Q2 2020 compared to $6,957,544 in Q2 2020, up 9.1%.

• 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 3.45 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.

• Strong Portfolio Growth . The company’s portfolio value grew by approximately $2,570,000 in Q2

• Positive Net Income : Net income $2,006,807 in Q2

Financial Highlights of NameSilo Technologies Corp.:

	Q2 2020	Q2 2019	6 Months 2020	6 Months 2019
Revenue	$7,593,173	$6,957,544	$15,161,977	$13,444,587
Gross Margin$	$424,301	$1,102,820	$1,316,688	$1,866,743
Gross Margin %	5.6%	15.8%	8.7%	13.9%
Adjusted EBITDA*	$150,766	$663,183	$641,339	$905,714
Adjusted EBITDA margin*	2.0%	3.7%	4.2%	6.7%
Net Income	$2,006,807	($307,987)	$1,359,635	($1,242,496)
Total Bookings*	$7,574,306	$7,992,821	$16,314,558	$14,350,992
Net Earningsper Share	$0.03	($0.00)	$0.02	($0.02)

• Q2 gross margins were impacted by $300,000 in accrued ICANN domain fees which was a catch-

up accrual for Q1 and Q2 domain fees.

• $744,712 of net cash provided by operating activities in Q2 2020

The Company had a net income during the three months ended June 30, 2020 of $2,006,807 compared to a net loss of $307,987 for the same period in 2019. The net income is primarily the result of realized and unrealized investment gains of $2,570,534 (2019 – loss of $22,397) offset somewhat by non-cash costs, such as interest and loan accretion expense of $280,188 (2019 – $492,689), amortization of equipment and intangible assets of $639,393 (2019 – $617,438), and the share-based payment of $31,821 (2019 – $20,855).

NameSilo Technologies CEO Paul Andreola stated: “It’s undeniable that COVID-19 and the pandemicrelated lockdown mandates around the world have had a significant impact on industry, as bricks-andmortar businesses refocus to online commerce to provide their customers with new and more robust engagement options. Its more imperative now than ever before that businesses and people around the world be connected and we at NameSilo are working to provide them with the flexible tools they need to ensure that both their businesses and daily lives can continue to grow and thrive. Our business reflects this with Q2 providing another quarter of NameSilo LLC revenue growth and our investment portfolio seeing substantial gains and has grown to record levels.

Kristaps Ronka, NameSilo LLC CEO comments: We had another strong quarter of growth and have now added our new NameLot Brokerage and Catch.club drop catching product in beta. We continue to improve our back end to allow us to add more services to better serve our SMB and Domain Investor customer base.

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

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 3.37 million active domains under management, and over 170,000 active customers from approximately 160 countries.

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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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