GoDaddy Q2 Profits Surge, Crush Analyst Estimates

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On the strength of growth in both the number of customers and revenue per customer, GoDaddy easily beat analysts estimates with its second quarter financial results, the company announced after stock markets closed on Tuesday.

GoDaddy earned ten cents per share in the quarter, with profit of $20.8 million on revenue of $557.8 million, the latter a 22 percent increase from Q2 2016. Continuing operations earned 13 cents per share, as the company closed its public cloud offering during the quarter.

“GoDaddy successfully delivered another solid quarter with continued organic customer, revenue and cash flow growth,” GoDaddy CEO Blake Irving said in a statement. “We are making great progress on our 2017 product and strategic initiatives including growing the adoption of our new mobile-optimized website builder GoCentral, new security offerings and integration of HEG. We remain focused on leveraging our brand and scale to extend our global competitive advantages.”

The company added over 2.5 million customers from Q2 2016 to Q2 2017, including 1.6 million from the acquisition of Host Group Europe, and average revenue per user (ARPU) increased 2.8 percent to $129, though if HEG is factored out, ARPU increased by 5.9 percent on the year to $132. Growth in customers and ARPU was also strong in Q1, but international revenue was up 56.7 percent year over year, compared to 17 percent in Q1.

Domains revenue was up 14.6 percent, hosting and presence revenue grew by 28.3 percent, and business applications revenue increased in the quarter by 35.1 percent, year over year.

Among the highlights of a busy quarter for GoDaddy were its sale of PlusServer, which it acquired as part of HEG, to BC Partners for €400 million, and the launch of premium support for WordPress.

GoDaddy shares were trading at roughly $44.30, up over 4 percent in trading at mid-day on Wednesday.

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