Domain deals are on the rise, though results are flattening so far this year.
Escrow.com’s parent company, Freelancer.com (ASX:FLN), today released domain name transaction data for the first half of 2022.
The escrow service processed $407.2 million in transactions in the first half of this year, up 11.1% from the same period a year ago. (Freelancer.com is an Australian company that reports its earnings in Australian dollars. The strength of the US dollar hurt its results, but since the majority of its transactions are in US dollars, I am using US dollar figures here. )
Domain names accounted for $256 million of the total. The company previously reported $130 million in domain deals in the first quarter, so second quarter deals fell slightly to around $126 million.
However, the pandemic was definitely supportive of domain sales. The company said domain transactions in the 12 months ending June 2022 were up 85% compared to the same period two years ago.
While Escrow.com facilitates hundreds of millions of dollars in transactions each year, it takes only a small portion of it for its role in transactions. Escrow.com’s first-half revenue was US$4.1 million, up 4.2% year-on-year. And it’s expensive to run a licensed escrow company; its EBITDA margin was 12% in the first half.