Company appears to be navigating Google changes well.
Team Internet just laid off a quarter of its employees as it struggles with changes to Google’s ad business.
You might expect similar struggles at Sedo, which has long relied on search arbitrage monetization with Google for a larger portion of its revenue. But you’d be wrong.
Parent company IONOS Group (Frankfurt: IOS) recently reported earnings for the first half of this year. The AdTech segment, which is essentially Sedo’s aftermarket and monetization business, grew revenues by 73% to €239 million. EBITDA for the segment grew 46% to €31.8 million.
While the company said it had an easy compare looking back to the first half of 2024, it also credited a “better-than-expected impact of a successful product transition.”
That transition is moving from AdSense for Domains to Related Search for Content (RSOC). It’s the same transition that Team Internet is making, but it seems to be working more favorably for Sedo thus far.
To be fair, the company stated that the margin for RSOC is lower than what it was earning from AdSense, at least so far. I also believe the domain aftermarket is performing well for Sedo.
But it’s good news that a major domain business is doing well despite the Google advertising transition.
Source: https://domainnamewire.com/
