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INVESTOR PRESENTATION // July 2014

Rightside Investor Presentation – July 2014

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Page 1: Rightside Investor Presentation – July 2014

I N V E S T O R P R E S E N T A T I O N / / J u l y 2 0 1 4

Page 2: Rightside Investor Presentation – July 2014

2

LEGAL DISCLAIMER

This overview is furnished solely for the purpose of providing you information about Rightside Group, Ltd. (the “Company”). The overview is only intended for the use of the

person to whom it is given and it is not to be reproduced or redistributed.

Under no circumstance shall the overview constitute or form part of an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of, securities of the Company in

any jurisdiction in which such offer, solicitation or sale would be unlawful.

You should not construe the contents of the overview as investment, tax, legal, accounting, regulatory, financial or other advice. The overview does not purport to be all inclusive

and does not take into account your investment objectives or taxation, legal, accounting, regulatory or financial situation or particular needs. You are solely responsible for

forming your own opinions and conclusions as to such matters and for making your own independent assessment of the information contained in this overview

Certain statements in the overview are forward-looking statements, based on the Company’s current expectations, assumptions and estimates and that involve risks and

uncertainties. Any statements other than statements of historical facts contained herein, including statements regarding our future results of operations and financial position;

historical results that may suggest ongoing trends for our business; the timing of the spin-off; any expectation of greater revenue, operating efficiencies or strategic benefits from

the spin-off; market opportunities with respect to any general Top Level Domains (gTLDs); any growth or change of the domain name or domain name services markets or our

ability to capitalize on such growth or change; the demand for premium and value-added domain services; the unit economics and demand for gTLDs; the viability of our

technology; our relationships with industry partners; our business strategy and our objectives for future operations (including, without limitation, statements to the effect that the

Company “believes,” “may,” “will,” “estimates,” “continues,” “anticipates,” “intends” or “expects,” and similar expressions) are intended to be identified as forward-looking

statements. Actual results could differ materially and adversely from those projected or anticipated in the forward-looking statements as a result of a number of risks and

uncertainties pertaining to our business including those set forth in our Form 10 filed with the U.S. Securities and Exchange Commission on July 14, 2014. The statements in the

overview speak only as of the date hereof and the Company undertakes no obligation to update them after the date hereof.

Market and competitive position data in this overview has generally been obtained from industry publications and surveys or studies conducted by third-party sources. There are

limitations with respect to the availability, accuracy, completeness and comparability of such data. We have not independently verified such data and can provide no assurance

of its accuracy or completeness. Certain statements in this overview regarding the market and competitive position data are based on our internal analyses, which involve certain

assumptions and estimates. These internal analyses have not been verified by any independent sources and there can be no assurance that the assumptions or estimates are

accurate.

None of the Company, their respective affiliates or any of their respective employees, directors, officers, contractors, advisors, members, successors, representatives or agents

makes any representation or warranty as to the accuracy or completeness of this overview, and shall have no liability for any statements (expressed or implied) contained in, or

for any omissions from, this overview or any other written or oral communications transmitted to you in the course of your evaluation of this overview.

The Company has filed a Form 10 with the SEC in connection with its proposed spin-off from Demand Media. You may access the Form 10 and other documents we file with the

SEC for free by visiting EDGAR on the SEC website at www.sec.gov. The information contained in this presentation is qualified in its entirety by reference to such documents.

Page 3: Rightside Investor Presentation – July 2014

3

INTRODUCTION

TARYN NAIDU

CEO

TRACY KNOX

CFO

Page 4: Rightside Investor Presentation – July 2014

4

OVERVIEW OF RIGHTSIDE SPIN-OFF

o Rightside Group, Ltd. (“Rightside” or the “Company”) currently conducts its business operations as a wholly owned

subsidiary of Demand Media

o Demand Media has announced the planned spin-off of Rightside as a separate public company

o The spin-off is currently expected to be completed on August 1, 2014

o The stock is expected to be in the when-issued market on or shortly prior to the record date for the distribution

o After the spin-off, Rightside will operate as an independent, publicly traded company

Page 5: Rightside Investor Presentation – July 2014

5

SPIN-OFF RATIONALE

o Capitalize on unique positioning as the only major pure play domain name services company with registrar and

registry businesses, each at scale

o Provide a clearer story for investors looking to invest in internet subscription services

o Allow for management to focus exclusively on domain name services goals and objectives, which requires a tailored

strategy given the different growth cycle of the gTLD opportunity

o Facilitate acquisitions / business development deals using dedicated resources and capital allocation – in line with

business / financial needs

Page 6: Rightside Investor Presentation – July 2014

RIGHTSIDE OVERVIEW

Page 7: Rightside Investor Presentation – July 2014

7

UNIQUE END-TO-END, VERTICALLY INTEGRATED

REGISTRAR-REGISTRY PLATFORM OPERATING AT SCALE

REGISTRY

(SUPPLY)

REGISTRAR

(DISTRIBUTION)

COMPLEMENTARY

PRODUCTS &

PREMIUM DOMAIN

SERVICES

Consumers

O&O Retail Registrar O&O Wholesale Registrar

EN

D-T

O-E

ND

DO

MA

IN S

ER

VIC

ES

3rd-Party Registry

+

» In-House Brokerage Team

» Auction Services

» Third-Party Distribution Channels

O&O Registry

3rd-Party Registrar

» Website Builder Tools

» Email Hosting

» Website Security Services

Through

Resellers

Page 8: Rightside Investor Presentation – July 2014

8

RIGHTSIDE BUSINESS OVERVIEW

o Leading provider of domain name services

⟫ Largest wholesale Internet domain name registrar

⟫ Second largest registrar overall

o Major player in the historic expansion of general Top Level

Domains (gTLDs) with 30 gTLDs in the current portfolio and

an interest in 67 additional gTLD applications

o Unique end-to-end, vertically integrated registrar-registry

platform operating at scale

o Recurring revenue financial model

o Opportunity for strong margin expansion as Registry

business continues to scale

o Experienced management team with long history in the

domain name industry

Rightside’s comprehensive domain name services platform touches the entire life cycle of a domain name

10.6 12.3

13.6 14.8 15.2

2010 2011 2012 2013 Q1 2014

Number of Domains Under Management (Millions)

LARGE CUSTOMER BASE

>16 MILLION // domain names under management

>2.5 MILLION // retail domain names registered

>20 THOUSAND // active resellers

>250 THOUSAND // customers

Page 9: Rightside Investor Presentation – July 2014

9

LARGE PORTFOLIO OF OWNED AND OPERATED (O&O) gTLDs

ACTIVE

APPLICATIONS

TO BE

RESOLVED

EXPECTED

Over 40

O&O

gTLDs

61 In partnership

with Donuts

6 Standalone

.Mortgage

.Degree

.Rehab

Pay Per Click Biz. Horizontal

.Gives

.Market

.Kaufen

Horizontal Consumer Small Business Vertical

.Software

.Haus

Professional

.RIP

.Lawyer

.Army

.Engineer

.Dentist

.Vet

.Attorney

.Airforce

.Navy

.Auction

.Forsale

Page 10: Rightside Investor Presentation – July 2014

10

THE NEW gTLD PROGRAM PRESENTS NEW

OPPORTUNITIES FOR REGISTRY OPERATORS

Legacy gTLDs (e.g., .COM) New gTLDs (e.g., .NINJA)

Owned Distribution Third Party Distribution Ability to Variably Price Domains

(Premium Priced) Contractual Pricing Flexibility gTLD Portfolio Diversification

Page 11: Rightside Investor Presentation – July 2014

11

STRONG EARLY ADOPTION VALIDATING THE NEW gTLD

OPPORTUNITY

EARLY GA PERFORMANCE TRENDS ARE STRONG .NINJA

SUNRISE

» Launch Date: 2/19/2014

» Domains Reg.: 68

LANDRUSH / EAP

» Launch Date: 4/30/2014

» Domains Reg.: 198

GENERAL AVAILABILITY (GA)

» Launch Date: 5/28/2014

» Days in GA (1): 44

» Domains Reg. To Date: 11,856

NEW gTLD PROGRAM STATS

» 255 gTLDs launched into Sunrise and / or GA

» Over 150 registrars selling new gTLDs

» Over 1.5 million registrations since first GA launch

» Estimated revenue of over $60 million to date

Source: nTLDstats.com

(1) As of 7/11/14.

(Thousands)

0

200

400

600

800

1,000

1,200

1,400

1,600

2/7 2/21 3/7 3/21 4/4 4/18 5/2 5/16 5/30 6/13 6/27 7/11

Registrations to Date Weekly Registrations

Page 12: Rightside Investor Presentation – July 2014

12

RIGHTSIDE IS UNIQUELY POSITIONED TO CAPITALIZE ON

THE NEW gTLD PROGRAM

Potential to be the only major domain name services company with both registrar and registry businesses each at scale

REGISTRY

RE

GIS

TR

AR

Page 13: Rightside Investor Presentation – July 2014

13

$9.84 $9.85 $9.81 $9.98 $10.00

2010 2011 2012 2013 Q1 2014

RECURRING REVENUE FINANCIAL MODEL (*)

STEADY UNIT ECONOMICS

(1) Average revenue per domain is calculated by

dividing registrar services revenue for a period by

the average number of domain names registered in

that period. The average number of domain names

is the simple average of the number of domain

names at the beginning and end of the period. The

average revenue per domain name for partial year

periods is annualized.

Annual Revenue per Domain (1) Registration Renewal Rates

71% 74% 72% 70%

75%

2010 2011 2012 2013 Q1 2014

(*) These data do not conform to the data reported by Demand Media in its public filings due to differences in company rollups.

LARGE SUBSCRIPTION

REVENUE BASE

68% 69% 73%

76%

83%

2010 2011 2012 2013 Q1 2014

Subscription as % of Total Revenue

RENEWAL DRIVEN REVENUES

Page 14: Rightside Investor Presentation – July 2014

14

ILLUSTRATIVE MARGIN POTENTIAL FROM NEW gTLDs

.COM on Rightside Registrar

.GURU on Rightside Registrar

.SOCIAL on GoDaddy

.SOCIAL on Rightside Registrar

Annual Revenue per Domain $9 ~$30 $20 ~$30

Registration Fees Paid to the Registry

~$8 $20 $0 $0

Registry Verisign Donuts Rightside Rightside

Direct Profit per Domain (1) $1 $10 $20 $30

Direct Margin (2) 11% 33% ~100% ~100%

Fair………....…..…….…..Better………………………Best

(1) Direct profit defined as domain registration revenue less registration fees paid to the registry

(2) Direct margin defined as direct profit divided by revenue

New gTLD program offers potential for strong margin expansion

(For illustrative purposes

only, does not demonstrate

actual revenue potential)

Page 15: Rightside Investor Presentation – July 2014

15

EXPERIENCED MANAGEMENT TEAM

Taryn Naidu CEO

Tracy Knox CFO

Wayne McLaurin CTO

Rick Danis General Counsel

David Ryan GM, Registry

Steve Banfield GM, Registrar

Matt Delgado SVP, Operations

Kelly Johnson SVP, Marketing

Page 16: Rightside Investor Presentation – July 2014

DOMAIN NAME

MARKET OVERVIEW

Page 17: Rightside Investor Presentation – July 2014

17

RIGHTSIDE SERVES A LARGE GLOBAL MARKET

o Over 270MM domain names registered as of

December 31, 2013

» Over 7% increase YoY

» 9% CAGR since 2008

o Nearly 120MM ccTLD domain names

registered

» 12% YoY growth (more than 2x the growth of

.com & .net)

Source: Verisign Domain Name Industry Briefs and management estimates

REGISTERED DOMAIN NAME VOLUME (Millions)

0

50

100

150

200

250

300

2008 2009 2010 2011 2012 2013

.com / .net ccTLDS other TLDs

ESTIMATED OVER 85 MILLION NEW DOMAIN

NAMES REGISTERED IN 2013

Page 18: Rightside Investor Presentation – July 2014

18

INCREASING ADOPTION BY Small Business

FUNDAMENTAL SHIFT IN CONSUMER BEHAVIOR DRIVING

ONLINE DOMAIN GROWTH

Global Unique Internet Buyers (Millions)

Sources:

(1) IDC Worldwide New Media Market Model (May 2014).

(2) Wakefield Research (April 2013).

49% 49% OF SMALL BUSINESSES WITH A

WEB PRESENCE ARE NOT COMPLETELY

SATISFIED WITH THEIR DOMAIN NAME (2)

28.3

80.2

2009 2013

Global Hours Spent Online – Monthly (Billions)

MORE CONSUMERS ARE ONLINE (1) … … AND SPENDING MORE TIME ONLINE (1)

566

1,067

2009 2013

55% 55% SMBs SURVEYED BELIEVE THAT

THEY HAVE LOST CUSTOMERS DUE TO

LOW QUALITY DOMAIN NAMES (2)

Page 19: Rightside Investor Presentation – July 2014

19

EXISTING DOMAINS NEW gTLD

OPPORTUNITIES

NEW gTLDs OFFER MORE HIGH QUALITY & SPECIFIC DOMAINS

ICANN is expanding the universe of available gTLDs

FCBarcelona.com

zephyrsf.com

10bestwebsitehosting.com

kellsirish.com

sfcityattorney.org

newyorkcitylawyerlocator.com

Barcelona.futbol

sanfrancisco.realestate

webhosting.reviews

kellsirish.pub

sfcity.attorney

findNYC.lawyer

New gTLDs provide unprecedented

options and opportunities for

businesses and consumers to brand

their online presence and connect with

their audiences o More descriptive suffixes

o Better convey topic area or purpose

o Better connect with intended audience

o Inventory of high quality domain names

increases dramatically

o Allow registrants to find and register

domain names best suited to their

needs

o Allow domain names in other non-

English languages

o Audiences will be able to navigate

using their native language

o New business models are developed

that capitalize on the capabilities

presented by new gTLDs for enhanced

online identity and navigation

DOMAIN NAMES IN NEW LANGUAGES NEW WAVE OF CREATIVITY

MORE NATURAL

CATEGORIZATION SCHEME

INCREASED HIGH QUALITY

DOMAIN INVENTORY

Page 20: Rightside Investor Presentation – July 2014

RIGHTSIDE AND THE NEW

gTLD PROGRAM

Page 21: Rightside Investor Presentation – July 2014

21

RIGHTSIDE IS UNIQUELY POSITIONED TO CAPITALIZE ON

THE NEW gTLD OPPORTUNITY

» End-to-end domain name services platform enables Rightside to market, distribute and offer services

at every stage of a gTLD’s life cycle

» Large owned and operated portfolio of new gTLDs drives new opportunities

» Existing platform enables easy distribution of O&O and other gTLDs (more than 150 gTLDs)

» Complementary product offerings drive usage of new gTLDs

» Expertise in the identification and distribution of premium priced domain names

» Long operating history and industry expertise has enabled strong relationships with ICANN and other

industry partners

Page 22: Rightside Investor Presentation – July 2014

22

COMPREHENSIVE SUITE OF PRODUCTS & SERVICES

REGISTRY

» Plans to offer one of the largest

portfolios of new gTLDs

» 30 new gTLDs currently in portfolio

» 67 other active applications to be

resolved

REGISTRAR

» #1 Wholesale Registrar

» #2 Registrar Overall

» 20k+ resellers & 250k+ customers

» 16M+ domains under management

» Registrant domain privacy protection

» Email hosting

» Website builder tools

» Website hosting plans

» Marketing / promotional services

» Third-party website security services

» Experienced brokerage team

driving sales and distribution of

owned and third party premium

domain names

» Premium domain name expertise

to identify and price premium

domain names for new gTLDs

OFFERINGS

» Premium domain names

» Auction services

» Monetization services

DOMAIN NAME REGISTRATIONS PREMIUM DOMAIN SERVICES VALUE ADDED SERVICES

Page 23: Rightside Investor Presentation – July 2014

23

RIGHTSIDE – REGISTRAR DISTRIBUTION AT SCALE

WHOLESALE SOLUTIONS DIRECT TO CONSUMER PLATFORM

o Direct customer relationships

o Ability to control purchase path

» E.g.: Feature O&O gTLDs at renewal

o Incentivize through pricing and packaging

o Ability to influence offerings through API

» Feature O&O gTLDs in purchase path

o Incentivize through pricing and packaging

CUSTOMERS SERVED >250K

>2M NAMES REGISTERED

ACTIVE RESELLERS >20K

>14M DOMAINS UNDER MANAGEMENT

Page 24: Rightside Investor Presentation – July 2014

24

RIGHTSIDE REGISTRY PLATFORM MAKES IT EASY FOR

REGISTRARS TO DISTRIBUTE RIGHTSIDE gTLDs

» DPML

» Extended claims

» Tiered pricing

» Others

» SRS Module

» DNS Module

~200 gTLDs

» Built for Registrars

» Single technical certification

» 24/7 OT&E test scheduling

o Proven Platform:

» Over 150 gTLDs

launched on Rightside

back-end to date, across

Sunrise, Landrush/EAP

and GA

» All major registrars

distributing Rightside

gTLDs

o Distribution Efficiencies:

Registrars already plugged

in are fast tracked through

the onboarding process for

all registries leveraging

Rightside back-end

» 1 Bank Account for all gTLDs

» Pooled Registry connections

» Master Service Agreement

CORE CUSTOMIZABLE ADD-ONS

SCALABLE REGISTRY PLATFORM

Page 25: Rightside Investor Presentation – July 2014

25

DATA-DRIVEN APPROACH TO IDENTIFY gTLD INVESTMENTS

o .ATTORNEY

o .ENGINEER

o .ACTOR

o .DENTIST

o Over 400K ABA members

o Over 400K IEEE Members

o Over 2.4M actors listed on IMDB

o Over 150K dentists in the ADA

OPPORTUNITIES ADDRESSABLE MARKETS

o .IMMOBILIEN

o .KAUFEN

o 1.5MM houses available for sale or rent in Germany

o Nearly 500K retail stores in Germany and Austria

o ~285k domain names containing 'consulting'

o ~225k domain names containing ‘reviews'

o ~120k domain names containing ‘software'

o .CONSULTING

o .REVIEWS

o .SOFTWARE

o Consultants

o Review Sites

o Software Professionals

o .DEMOCRAT

o .REPUBLICAN

o Over 40MM Registered Democrats

o Over 30MM Registered Republicans

o Over 500K elected officials

RIGHTSIDE gTLDs

o 4.5MM Army veterans

o 650K active Air Force personnel

o 580K active Navy personnel

o .ARMY

o .AIRFORCE

o .NAVY

Page 26: Rightside Investor Presentation – July 2014

26

RIGHTSIDE: A LEADER IN THE NEW gTLD PROGRAM (1)

(1) Registration volume and revenue estimates as of July 11.

(2) Rightside revenue includes estimates for Rightside gTLD sales, new gTLD sales at eNom and Name.com and fees in connection with our registry back-end platform.

(3) Registrar channel distribution defined as the .COM market share (by registrar) that is distributing new gTLDs. For example, if eNom is ~10% of the .COM market and because eNom is distributing new

gTLDs, that 10% is part of the 90%+.

New TLD

Program

Rightside

Registry

Platform (2)

Rightside

Registrar

Rightside

Registry

Rightside

Total

TLDs in

Sunrise / GA: 255 / 161 152 / 108 207 / 156 15 / 9 207 / 156

Registrar

Channel

Distribution (3): 90%+ 90%+ N/A 90%+ 90%+

Domain

Registrations: 1.5m 758k 153k 36k 181k

Page 27: Rightside Investor Presentation – July 2014

27

THE NEW gTLD PROGRAM HAS CREATED REVENUE

GROWTH OPPORTUNITIES FOR RIGHTSIDE

1. Domain name registrations in Rightside O&O gTLDs

o Registration revenue driven by O&O and third party registrars

2. Domain name registrations on Rightside O&O Registrar

o Growth in registrations driven by O&O and third party gTLDs

o Average price of a domain name in a new gTLD is approximately 2x that of .com

3. Additional opportunities that take advantage of Rightside registry and

registrar platforms

o Infrastructure

o Value-added Services

o Premium domain names

Page 28: Rightside Investor Presentation – July 2014

28

ILLUSTRATIVE POTENTIAL UNIT ECONOMICS

Strong direct margin (1) potential on Rightside’s exclusively owned & operated gTLDs

RIGHTSIDE REGISTRAR

SELLS VERISIGN gTLDs

RIGHTSIDE REGISTRAR

SELLS RIGHTSIDE

REGISTRY NEW gTLDs

RIGHTSIDE REGISTRAR

SELLS THIRD-PARTY

REGISTRY NEW gTLDs

* For illustrative purposes only, does not demonstrate actual revenue

~10 - 15%+ ~30%+

~100%

.COM .PHOTOGRAPHY .NINJA

(1) Direct margin defined as Registration revenue less fees paid to the Registry or ICANN.

Page 29: Rightside Investor Presentation – July 2014

EXAMPLES OF TLD USAGE

Page 30: Rightside Investor Presentation – July 2014

30

FULLY DEVELOPED WEBSITES

PERFORMLY.SOCIAL – A SOCIAL MEDIA ROI

SOFTWARE SITE FROM MEDIABRANDS VIVA.SOCIAL – SOCIAL CONTENT CREATORS

TORINOFC.FUTBOL – OFFICIAL WEBSITE FOR TORINO FC BRITISH.REVIEWS – REVIEWS ON ANYTHING

BY BRITISH REVIEWERS

Page 31: Rightside Investor Presentation – July 2014

31

FULLY DEVELOPED WEBSITES (CONT’D)

WASH.NINJA (AND CARWASH.NINJA WHICH REDIRECTS

TO WASH.NINJA) – STARTUP CAR CLEANING BUSINESS SOAP.NINJA – MALAYSIAN SOAP MAKING COMPANY

ANALYZER.NINJA – ANALYZES WEBSITES FOR SEO

STATS, PAGE RANK, SOCIAL MEDIA STATS AND MORE FINDMY.NINJA – TALENT SEARCH BUSINESS

Page 32: Rightside Investor Presentation – July 2014

32

SOCIAL MEDIA AGGREGATION

ANALYSIS.NINJA – A DATA AGGREGATION SITE BY

AVINASH KAUSHIK, DIGITAL MARKETING EVANGELIST AT

GOOGLE

SWIFT.SOCIAL – A SOCIAL NETWORK FOR SWIFT

PROGRAMMING LANGUAGE

MIXTAPE.NINJA – A HIP-HOP ORIENTED SOCIAL NETWORK CRAFTS.SOCIAL – A WORDPRESS SITE THAT AGGREGRATES

CRAFT TRENDS FROM DIFFERENT SOCIAL NETWORKS

Page 33: Rightside Investor Presentation – July 2014

33

WORDPRESS / TUMBLR

THERECIPE.NINJA – A RECIPE SITE USING WORDPRESS MOBILEGAMES.NINJA – APP REVIEWS FOR MOBILE

DEVICES USING WORDPRESS

PLAYPEN.NINJA – PERSONAL BLOG USING BLOGGER GOTH.NINJA – A GOTH NINJA FASHION BLOG USING TUMBLR

Page 34: Rightside Investor Presentation – July 2014

34

TLD REDIRECTS (1)

REDIRECTS TO AN ALTERNATIVE WEBSITE

o firephone.reviews – redirects to Amazon's fire phone page

o premierleague.futbol – redirects to the English Premier League website

o welshliberal.democrat – redirects to Welsh Liberal Democrats website

o manoloblahnik.social – redirects to Manolo Blahnik website

o tax.social – redirects to taxblog.com a wordpress tax blogging site with more than 60,000 members

o cubicle.ninja – redirects to cubicleninjas.com, a web development and creative design company

o michaelflatley.dance and flatley.dance – redirect to michaelflatley.com, the official website of Michael Flatley

o millerlite.pub and lite.pub – redirects to millerlite.com

o selfies.ninja – redirects to wikipedia page for Ninja

REDIRECTS TO SOCIAL MEDIA PAGES

o grainger.social – redirects to Grainger's facebook page

o gateprotect.social – redirects to Gateprotect's facebook page

o internetx.social – redirects to InternetX's (a German ISP) facebook page

o zumbafit.dance – redirects to an instructors page on zumba.com

o pics.ninja – redirects to a personal Google+ page

o trombone.ninja – redirects to a personal twitter page

OTHER REDIRECTS

o Microsoft registered sites (e.g. excel.ninja, msn.dance and xbox.reviews) redirect to a Bing search for the sld (excel, msn, xbox)

(1) TLD redirects offer a better name for a registrant to use in cases where the URL cannot be completely changed. TLDs offer the first point of entry for using / renaming existing sites: registrants have the

opportunity to change their name, but there's a process to go through before a full renaming due to SEO considerations, existing referrals, etc.

Page 35: Rightside Investor Presentation – July 2014

35

TLDs REGISTERED BY BRANDS

EXAMPLES OF BRANDS THAT HAVE REGISTERED DOMAINS BUT ARE NOT BEING USED YET

o amazon.consulting – Amazon

o wal-mart.reviews – Walmart

o yahoo.ninja – Yahoo

o foxmovies.reviews – 20th Century Fox

o nike.social – Nike

o hurley.moda – Hurley

o canon.reviews – Canon

o citibank.social – Citibank

o tylenol.reviews – Johnson & Johnson

Page 36: Rightside Investor Presentation – July 2014

FINANCIAL OVERVIEW

Page 37: Rightside Investor Presentation – July 2014

37

FINANCIAL HIGHLIGHTS

o Consistent, steady historical growth in the core registrar business

o Registry business expected to accelerate growth

o Recurring revenue financial model

o O&O gTLDs create margin expansion opportunity

o Strategic investments to capitalize on the new gTLD opportunity

o Attractive long-term business model

Page 38: Rightside Investor Presentation – July 2014

38

CONSISTENT, STEADY GROWTH IN THE CORE REGISTRAR BUSINESS

» Stable and consistent revenue

growth in the core registrar

business continued through 2013

» Overall growth historically impacted

by volatility in the aftermarket

segment

» Overall growth expected to

accelerate as the registry business

continues to scale

($ Millions)

Registry business expected to accelerate growth

$96 $113 $127 $142

$33 $38

11% 17%

13% 12%

12%

2010 2011 2012 2013 Q1 2013 Q1 2014

($ Millions)

$96 $113 $127 $142

$33 $38

$43 $48

$46 $44

$12 $7

$139 $160 $173 $185

$46 $45

8% 15%

8% 7%

(3%)

2010 2011 2012 2013 Q1 2013 Q1 2014

Domain Name Aftermarket

DOMAIN NAME REVENUE & GROWTH

TOTAL REVENUE & GROWTH

Page 39: Rightside Investor Presentation – July 2014

39

RECURRING REVENUE FINANCIAL MODEL

Strong recurring revenue with subscription accounting

for 70%+ of total revenue

$96 $113

$127 $142

$43

$48 $46

$44 $139

$160 $173

$185

2010 2011 2012 2013

Subscription Revenue Non-Subscription Revenue

69% 70%

73% 76%

Page 40: Rightside Investor Presentation – July 2014

40

STRATEGIC INVESTMENTS TO CAPITALIZE ON THE NEW

gTLD OPPORTUNITY

o Invested ~$18 million in application fees for new gTLDs

o Early onboarding of strategic resellers at lower margin to secure distribution of new O&O gTLDs

o Investment in gTLDs and distribution infrastructure ahead of the new gTLD program

o Investment in infrastructure required for being a standalone public company

o Acquisition of Name.com in Q4 2012 for $18 million

o Hired 33 FTEs to drive the new gTLD program and operations

o Operating expense investment for new registry business of $8.4 million in 2013 and $2.3 million in

Q1 2014

Page 41: Rightside Investor Presentation – July 2014

41

FINANCIAL SUMMARY

68% 69%

73%

Note: Please refer to the GAAP to Non-GAAP Reconciliation in the appendix for Adjusted EBITDA reconciliation.

($ Millions) Historical

CY2011A CY2012A CY2013A Q1 2013A Q1 2014A

Domain services $112.6 $126.9 $141.6 $33.5 $37.5

Aftermarket & Other 47.8 46.1 43.6 12.4 7.0

Total Revenue $160.5 $173.0 $185.2 $45.9 $44.6

Service costs $111.3 $127.5 $145.3 $35.6 $38.3

Sales and marketing 6.2 8.8 10.3 2.5 2.8

Product development 9.2 9.7 11.9 2.6 3.9

General and administrative 18.0 19.9 25.6 5.5 6.7

Amortization of intangible assets 9.4 8.3 7.9 2.0 1.7

Gain on other assets, net - - (4.2) - (4.9)

Other (income) expense, net 0.0 0.1 0.1 (0.0) (1.3)

Income (loss) before income taxes $6.4 ($1.2) ($11.6) ($2.3) ($2.6)

Income tax benefit (expense) (2.6) 0.2 0.9 0.6 (1.4)

Net income (loss) $3.8 ($1.0) ($10.7) ($1.7) ($3.9)

Adjusted EBITDA $31.4 $22.8 $8.0 $3.6 ($2.3)

Page 42: Rightside Investor Presentation – July 2014

42

INVESTMENT HIGHLIGHTS

ESTABLISHED INDUSTRY LEADER

o Largest wholesale registrar and second largest gTLD registrar in the world

o Over 16 million domain names under management including 2.5 million names registered directly through the retail channel

o More than 20,000 active resellers in the wholesale network and over 250,000 consumers and small businesses served through retail outlets

FAVORABLE MARKET DYNAMICS AND A MULTI-BILLION DOLLAR OPPORTUNITY

o 271 million domain names registered worldwide as of 2013 (1)

o Estimated over 85 million customer registrations of new domain names in 2013 (2)

o Strong expansion opportunity in developed market with a large untapped opportunity in several developing markets globally

LEADING PROPRIETARY TECHNOLOGY PLATFORM

o Comprehensive registrar offering provides resellers with flexible integration options via Application Programming Interface

("API") or a turnkey white-label solution

o Turnkey reseller solution allows a reseller to quickly and easily integrate Rightside’s entire suite of products into its own website

o Additional value-added services include website hosting, email hosting, website building tools and domain privacy protection

o Aftermarket services to help customers buy, sell and monetize high value domain names

WELL POSITIONED TO CAPITALIZE ON ICANN’S NEW gTLD PROGRAM

o 30 signed operator agreements with an additional interest in applications or registry operator agreements for 67 new gTLDs

o Proprietary editorial and algorithmic processes to identify high-value domain names associated with Rightside’s gTLD initiative to sell at a premium

o Large and diverse distribution network provides channel to efficiently promote the emerging portfolio of exclusive gTLDs

o Registry operator status will provide differentiated position as the sole supplier of particular gTLDs allowing control of pricing, branding

and availability of such gTLDs

(1) Source: “The Domain Name Industry Brief”, Verisign (April 2014).

(2) Source: “The Domain Name Industry Brief”, Verisign (April 2014) and Management estimates.

Page 43: Rightside Investor Presentation – July 2014

43

INVESTMENT HIGHLIGHTS (CONTINUED)

RECURRING REVENUE FINANCIAL MODEL

o Strong subscription base accounting for ~70% of total revenue

o Stable unit economics of approximately $10 annual revenue per domain name

o Renewal-driven subscription revenue contributes to positive operating cash flow

MULTIPLE VECTORS TO DRIVE SIGNIFICANT GROWTH

o Expand the large and diversified distribution network

o Launch large offering of new gTLDs and establish the highly strategic registry business

o Significant upsell opportunities through value-added services and extensive aftermarket services

o International gTLD expansion opportunity via third-party registrars and resellers

EXPERIENCED MANAGEMENT TEAM WITH LONG HISTORY IN THE DOMAIN NAME INDUSTRY

o Long and successful track record in leadership positions across virtually every aspect of the domain name services business

o Diversified operating expertise spanning many of the largest and most successful registries, registrars, premium name service companies and hosting

companies

Page 44: Rightside Investor Presentation – July 2014

APPENDIX

Page 45: Rightside Investor Presentation – July 2014

45

OVERVIEW OF THE DOMAIN NAME ECOSYSTEM

o Maintain the system of record for the registration of domain names associated with a given

gTLD (e.g., .com, .org)

o Set wholesale pricing and establish key policies for the eligibility for registering a domain name

for the applicable gTLD

REGISTRIES

REGISTRARS

PREMIUM DOMAIN

SERVICES PROVIDERS

WHOLESALE

CUSTOMERS

o Register domain names on behalf of customers with the relevant registry

o Set wholesale and retail prices and maintain the ongoing business relationships with resellers

and registrants, but pay fees to the relevant registry, as well as to ICANN for the gTLDs

administered by ICANN, for each domain name registered

o Specialize in the sale or ongoing monetization of higher-value domain names through auctions,

domain name brokerage networks and advertising services

DOMAIN TECHNOLOGY

SERVICES PROVIDERS

o Provide specialized solutions to registrars and registries that enable them to deliver the complex

and high-availability services required to satisfy the requirements of registrants, ICANN and the

ecosystem of industry participants

o Not-for-profit corporation that manages the domain name registration system and the system for

routing Internet users to the correct domain name or website ICANN

RETAIL CUSTOMERS

o Resellers including large e-commerce websites, Internet service providers, and web-hosting

companies

o Consumers and businesses that register domain names for personal or business use

Page 46: Rightside Investor Presentation – July 2014

46

INTERNET PERSONALIZATION CONTINUES TO EVOLVE

Category

Domain

Range Examples

Year

Introduced

# of

Domains

(000s)

Est.

Wholesale

Cost

Est. Annual

Registry Revenue

($M)

Legacy TLDs 1M+

o .com 1985 113,957 $7.85 $810 – $980

o .net 1985 15,278 6.93 100 – 120

o .biz 2001 2,674 8.63 20 – 25

o .info 2001 5,814 8.16 40 – 50

ccTLDs 100K –

1M+

o .uk 1985 8,544 5.86 45 – 55

o .de 1986 13,714 4.37 55 – 65

o .cn 1990 4,785 4.86 20 – 25

Existing gTLDs 100K – 1M

o .name 2000 193 5.77 0.8 – 1.2

o .mobi 2005 970 7.25 6 – 8

o .asia 2007 287 10.00 2.5 – 3.5

o .xxx 2011 109 62.00 6 – 7

New gTLDs < 100K

o .guru 2014 60 20.00 1 – 1.4

o .bike 2014 11 20.00 0.1 – 0.3

o .club 2014 61 8.05 0.4 – 0.6

Pre

sen

t

2

00

0s

1

98

0-9

0s

Source: ICANNWiki, DomainTools, Company estimates.

-All backups found here: J:\Technology US\Deals\DEM14400IB -

Raven\Management Presentation\Rider Reference

-” tld data for new slide_DM RIDER v2”

Page 47: Rightside Investor Presentation – July 2014

47

NEW gTLD MARKET OPPORTUNITY

1,300 // Applied for new gTLDs (50% Generic / 50% Brand)

1,900 // Applications for new gTLDs

>$350 million // Total initial investment in application fees for new gTLDs

~$18 million // Rightside’s initial investment in application fees for new gTLDs

255 // New gTLDs currently available online

~1.4 million // Domain names registered to date

Participation from a wide range of applicants including Rightside

Diversified Internet players such as Google and Amazon

Consumer brands such as Nike and Walmart

A Top Level Domain, or TLD, are the characters to the right of the last dot in a domain address (e.g., “.com”). In 2011, the Internet

Corporation for Assigned Names and Numbers (ICANN) unveiled the new generic TLD (gTLD) program to significantly expand the

universe of gTLDs available for businesses and consumers to register as part of a domain name.

Page 48: Rightside Investor Presentation – July 2014

48

gTLD LAUNCH PHASES

.Futbol, .Reviews,

.Social, .Dance,

.Democrat, .Immobilien,

.Ninja, .Pub, .Moda

.Consulting,

.Kaufen, .Rocks, .Actor

.Haus, .Republican

RIGHTSIDE’S REPRESENTATIVE gTLDs

Sunrise TRADEMARK HOLDERS

(65-70 days)

o Trademark holders may register their trademarked

domain names during this phase

o Only rights holders who have registered with the

Trademark Clearing House (TMCH) may

purchase domain names during this time

o Both the TMCH and the registrar may require fees

for registration during this phase

o Pre-registration is also available during this time

Landrush EARLY APPLICATION

(30 days)

o The general public including individuals and

companies may register for a domain name during

this phase

o A small application fee will apply during this early

registration opportunity

o If more than one party applies for the same

domain name during this phase, a private auction

will be held with the domain name going to the

highest bidder

o This phase is especially important for those

without a trademark looking to build a strong

online presence

o Pre-registration is also available during this time

General Availability FIRST-COME, FIRST-SERVED

o Anyone may register for a domain name during

this period of open registration

o Domain names will be assigned on a first-come,

first-served basis

o Premium domain names which constitute popular

terms will also be available during this time

o They will be sold through “buy now” options and

periodic auctions

Page 49: Rightside Investor Presentation – July 2014

49

Non-GAAP FINANCIAL MEASURES

To provide investors, analysts and others with additional information regarding the Company’s financial results, this presentation includes adjusted earnings before interest, income taxes, depreciation and

amortization, or “Adjusted EBITDA”, a non-GAAP financial measure. A reconciliation of this non-GAAP financial measure to the most directly comparable GAAP financial measure has been included in the

Appendix to this presentation. The Company’s non-GAAP Adjusted EBITDA financial measure differs from GAAP net income (loss) in that it excludes certain expenses such as taxes, gain on other assets,

net, depreciation, amortization, stock-based compensation, and the financial impact of acquisition costs.

The Company uses this non-GAAP financial measure to understand and evaluate it financial performance and operating trends, including period to period comparisons, to prepare and approve its annual

budget and to develop short and long term operational plans. The exclusion of certain expenses in calculating Adjusted EBITDA can provide a useful measure for period to period comparisons of the

Company’s underlying recurring revenue and operating costs which is focused more closely on the current costs necessary to utilize previously acquired long-lived assets. In addition, management believes

that it can be useful to exclude certain non-cash charges because the amount of such expenses is the result of long-term investment decisions in previous periods rather than day-to-day operating

decisions.

Accordingly, the Company believes that this non-GAAP financial measure provides useful information to investors and others in understanding and evaluating the Company’s operating results in the same

manner as the Company’s management and in comparing financial results across accounting periods and to those of peer companies.

The use of this non-GAAP financial measure has certain limitations because it does not reflect all items of income and expense that affect the Company’s operations. The Company compensates for these

limitations by reconciling the non-GAAP financial measure to the most comparable GAAP financial measure as set forth in the Appendix to this presentation. This non-GAAP financial measure should be

considered in addition to, not as a substitute for, measures prepared in accordance with GAAP. Further, this non-GAAP measure may differ from the non-GAAP information used by other companies,

including peer companies, and therefore financial comparability may be limited. The Company encourages investors and others to review the Company’s financial information in its entirety and not rely on

a single financial measure.

Page 50: Rightside Investor Presentation – July 2014

50

GAAP TO Non-GAAP RECONCILIATION

(1) Net gains on sales and withdrawals of interest in gTLD applications included in gain on other assets, net.

(2) Represents the depreciation expense of our long-lived tangible assets.

(3) Represents the amortization expense of our finite lived intangible assets, including that related to our investment in media content assets, included in our GAAP results of operations.

(4) Represents the fair value of stock-based awards and certain warrants to purchase our stock included in our GAAP results of operations.

(5) Acquisition and realignment costs include such items, when applicable, as (a) legal, accounting and other professional fees directly attributable to acquisition activity and (b) employee severance and other payments attributable to

acquisition or corporate realignment activities.

($ Millions) Historical

CY2011A CY2012A CY2013A Q1 2013A Q1 2014A

Net income (loss) $3.8 ($1.0) ($10.7) ($1.7) ($3.9)

Add (deduct)

Income tax expense (benefit) 2.6 (0.2) (0.9) (0.6) 1.4

Interest & other expense, net 0.0 0.1 0.1 - (1.4)

Gain on gTLD application withdrawals, net (1)

- - (4.2) - (4.9)

Depreciation (2)

5.8 5.2 6.5 1.6 2.5

Amortization of intangible assets (3)

9.4 8.3 7.9 2.0 1.7

Stock-based compensation (4)

9.7 10.1 9.5 2.3 2.0

Acquisition and realignment costs (5)

- 0.3 0.0 0.0 0.3

Adjusted EBITDA $31.4 $22.8 $8.0 $3.6 ($2.3)

(1) Net gains on sales and withdrawals of interest in gTLD applications included in gain on other assets, net.

(2) Represents the depreciation expense of our long-lived tangible assets.

(3) Represents the amortization expense of our finite lived intangible assets, including that related to our investment in media content assets, included in our GAAP results of operations.

(4) Represents the fair value of stock-based awards and certain warrants to purchase our stock included in our GAAP results of operations.

(5) Acquisition and realignment costs include such items, when applicable, as (a) non-cash GAAP purchase accounting adjustments for certain deferred revenues and costs, (b) legal, accounting and other professional fees directly attributable

to acquisition activity, & (c) employee severance and other payments attributable to acquisition or corporate realignment activities.