GoDaddy Eyes Asia Expansion as International Revenue Grows in Q1 2017

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GoDaddy continued its run of positive financial results on Tuesday, reporting a 13 percent increase in revenue for its latest quarter to $489.7 million, compared to a year ago, on combined growth in customers and ARPU.

GoDaddy’s net loss shrank from over 18 percent in Q1 2016 to just over 3 percent for the first quarter of 2017, and the company has a clear strategy for increasing revenue further by expanding its presence in Asia.

Its Business Applications revenue jumped nearly 30 percent year over year to $70.6 million, and its unlevered free cash flow also grew by 13 percent.

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In February, GoDaddy reported increases in revenue and gross margin for Q4 2016, and the company has consistently provided reasons for market optimism since going public in 2015.

GoDaddy’s international revenue was up 17 percent, or nearly 20 percent on a constant currency basis, and it also completed its acquisition of Host Group Europe in April, strengthening its position in the European SMB market.

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This week GoDaddy launched its new, localized Website Builder in Singapore, and the company’s chief product officer, Steven Aldrich told CNBC that the combination of mobile and Asia represents its short-term strategy.

“You can do everything on your mobile phone. There is not a feature that is on the next generation website that you need to go to your desktop for,”Aldrich said.

“When I think about our expansion, Asia is a key piece of that…Bring us ideas. We are happy to look at ways to help small businesses grow their footprint online, help to manage their business as they grow. We’ll look at any company that’s got an interesting business that’s having traction in this segment,” he said. Aldrich also told CNBC that GoDaddy is looking for the right approach to entering the massive Chinese market.

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There are roughly 500 million small businesses globally, and only 30 million of those are in the U.S., so there are many opportunities for international growth, Aldrich said.

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