Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from Daniel Meron with RBC Capital Markets.
Daniel Meron - RBC Capital Markets
Congrats to ongoing execution. Can you provide us with more color and the dynamics in the Ultra business and also in a Common Short Codes and Domain Names? If you can just spend a minute there on how are the prospects shaping up into year ending to 2010. Thank you.
Paul S. Lalljie
In the Ultra Services business in the third quarter, we generated revenue of approximately $13.7 million. That represented roughly around 22% on a year-over-year basis. Incremental revenue was approximately $2.5 million. On a sequential basis, that resulted in a 6% sequential growth. Now, let us keep in mind that the customers that we serve in the Ultra Services business are somewhat customer-based that is correlated with the economy and that is correlated with the market place that is somewhat reduced.
What we have seen in the first half of the year were more to the lengthening of the sales cycle, a lot of deals are going to higher level sign offs within the organization. In the third quarter, I think we have seen somewhat of a reversal of that trend. We have seen the pipelines, the funnels, the sales funnels increasing. We have seen the renewal rates and customer churn levels stabilizing in that business. Today, we have over 3,000 customers in the Ultra Services business.
On the Common Short Code business, we still to continue to see somewhat of a correlation with the economy. It is not rebounding as quickly as the Ultra Services business has been rebounding in the third quarter. We still see somewhat of a lagging there as advertising spend and mobile marketing spend has been somewhat slower to adapt to the recovering of the economy.
Jeff, is there anything else you would like to add to that?
Jeffrey E. Ganek
Sure. A couple of high level points to consider. First of all, after some moderated growth earlier in the year, we saw a resurgent plus 20% growth in Ultra this past quarter. Let us put that in the perspective of the overall economy. We believe that we have maintained and perhaps, improved our competitive position that while slower growth earlier in the year gave cause for concern. We think we are stronger relative to alternatives than we were a year ago.
In the Common Short Code business, our customers there are in the media and advertising business while we have seen results better than might have been expected. We think there are still some difficulties in the economy that we are facing. We think when the economy turns around; we are likely to see improved growth in Common Short Codes.
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