International Push Pays Off for GoDaddy in Q3 Results

Add Your Comments

Double-digit growth in every business section drove GoDaddy to better third-quarter financial results than expected, CEO Blake Irving told CNBC on Thursday. Irving appeared on “Squawk Alley” following the company’s report of results above the high end of its guidance ranges on Wednesday.

GoDaddy’s revenue increased by almost 15 percent year over year to $472.1 million, giving the company a quarterly net income of $8.3 million in the quarter ending September 30, up from a loss of $5.2 million a year earlier. That resulted in earnings of 7 cents per share, besting 5 cent per share expectations.

Irving pointed out GoDaddy’s recent success with new product introductions and global markets. On a constant currency basis, the company’s international revenue grew by 27 percent for the quarter.

“We talked about a lot of new products that we’re announcing and some things that we’ve recently announced that are starting to really lift. The technology capability is starting to prove that this platform we’ve built is a global platform providing us the ability to expand our product line around the world,” Irving told Squawk Alley, via TheStreet.

Average revenue per user (ARPU) increased by 6.5 percent, in one of the report’s more modest gains.  Domains business grew by 10 percent, “hosting and presence” increased by 15.5 percent, and business applications revenue grew 35.5 percent for GoDaddy in Q3.

Reaching 1 million .uk domain registrations demonstrates the company’s recent growth outside of the US, and it is reportedly considering a bid to acquire Host Group Europe.

GoDaddy rolled out a WordPress site builder in October, after acquiring ManageWP in September.  It also recently joined a “consortium” of businesses seeking to address the gender pay gap, putting renewed emphasis on the evolution of the company’s brand to cater to SMB owners, an increasing number of whom are women.

For 2016, GoDaddy expects total revenue over $1.84 billion.  It was trading slightly below $34 per share on the NYSE late in Thursday trading.

Newsletters

Subscribe Now and Get Our Exclusive Report on "The Hosting Infrastructure Ecosystem"

Enter your email to receive messages about offerings by Penton, its brands, affiliates and/or third-party partners, consistent with Penton's Privacy Policy.

Related Forum Threads

Add Your Comments

  • (will not be published)