Based on a strong pipeline, we expect this momentum to continue in 2011. There is a one customer win during the quarter, but although small is worth noting for its strategic relevance. A European hosting vendor, who is building a global wholesale business in hosting shows our OpenSRS email and platform because the breadth of languages supported in our Web Mail interface and the breadth of our country code domain coverage, exactly the kind of healthy relationship we like.
Our retail offering Hover was the strongest performing business unit. In fact, by some measures, this was the best quarter for our retail business ever. New transactions which include new domains, transfers in, domain email accounts and personal name email accounts increased 30% over Q4 last year and 52% over Q3 last year. Last quarter I noted that the number of transfers in was up 85% sequentially. And the transfers in now outpace transfers out 2 to 1. In Q1 transfers in grew another 75% sequentially and the ratio climbed to 3 to 1.
Customer growth remained strong, with new additions in Q1 more than doubling the already very good numbers in Q4 last year. I will note that renewal rates for both domain names and email, already above the industry norm also increased a few points from Q4 2010 levels. Year-over-year growth has been solid, please note, the deferral of revenue is actually hiding some of the underlying momentum in this business. We expect that momentum to continue throughout the remainder of the year with the year-over-year comparisons starting to look even better in Q2 as we start to see some increases in renewals which is 80% of the retail business.
In short, the results this quarter again confirm the strength of the Hover value proposition as a simple, no hassle domain registration management tool and email service and we expect the momentum to continue. Q2 has started off just as strong. It will see the launch of the new Hover control panel and with the control panel work behind us we’ll also see a renewed attention paid through our personal name services, which as many of you know is one I believe holds much latent value.Read the rest of this transcript for free on seekingalpha.com
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