GoDaddy beats on revenue, misses on profit
GoDaddy, the market-leading internet domain company, reported earnings last week that beat the Street’s predictions on revenue but missed on profitability. Despite this miss, it’s hard to argue that GoDaddy’s wider financials were anything other than robust, and the company raised its guidance accordingly. GoDaddy has had a busy quarter that has seen it complete acquisitions, wave goodbye to its founder, and undertake significant work on diversity. All of this, however, played second fiddle to lower than expected earnings – and investors sent the company’s share price down.
Even after an earnings miss dented the company’s share price, GoDaddy is up by 28% so far this year
Source: Yahoo Finance
Last Tuesday GoDaddy said that revenue for its third quarter came in at $679.5 million, beating consensus estimates of $673.9 million, and rising 16.7% year on year. The company increased its full-year guidance on revenue as a result, to a range between $2.55 billion and $2.66 billion. This revenue came as a result of more people using GoDaddy’s platform. By the end of the September quarter, it had over 18 million customers – a 6.7% increase from the year-ago quarter.
Earnings, however, failed to meet analysts’ expectations. The company said net income dropped to $13.2 million – or 8 cents per share. Wall Street had hoped it would remain mostly flat against the third quarter in the previous year, when GoDaddy reported net income of $22.4 million, or earnings per share of 17 cents.
The September quarter was a busy one for GoDaddy. During it, the company completed its $127 million acquisition of Main Street Hub – a social network and review platform engagement consultant – and lined up a new spokesperson in Ayesha Curry, the food entrepreneur. It also waved goodbye to Bob Parsons, GoDaddy’s founder who resigned his seat on the board of directors as the quarter ended.
Speaking to the strength of GoDaddy’s underlying business, CEO Scott Wagner said: "GoDaddy is in an environment where it's never been more important to take an idea, get it online and, through an integrated toolset and experience, enable that idea to grow and thrive. Our third quarter results reflect consistent financial and operational execution against this strategy as we continue to launch new products and services for a robust online presence."
Dominion holds GoDaddy in its Global Trends Ecommerce Fund.
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