GoDaddy Q3 revenue beats expectations on surge in business apps, stock jumps
Shares of domain hosting and e-commerce specialists GoDaddy jumped 5% in late trading after the company reported Q3 revenue that topped expectations and beat with its Q4 revenue outlook.
CEO Aman Bhutani, in prepared remarks, trumpeted “record net new customers, and acceleration in all three product categories,” referring to the company’s three revenue line items, Domains, Hosting and presence, and Business applications.
The company also announced its COO, Andrew Low Ah Kee, is leaving to take a role at another company. Bhutani thanked Kee for having made “amazing contributions.”
GoDaddy has added over a million customers this year, net of churn, which is its highest nine-month rate of additions in its history, the company noted.
Revenue in the three months ended in September rose 11%, year over year, to $844.4 million, higher than the average estimate for $835 million. Earnings per share of 38 cents, however, missed the consensus forecast of $1.07.
CFO Ray Winborne said the company “delivered accelerated growth in bookings and revenue this quarter along with 17% year over year growth in unlevered free cash flow.” Winborne also noted the company’s successful integration of four acquired companies this year.
Revenue in GoDaddy’s Domains category rose 12.2%, year over year, to $387.4 million, while revenue in Hosting and presence was up 6.1% at $302.4 million. The Business applications revenue was the big gainer, up almost 19% at $154.6 million.
For the current quarter, the company sees another revenue increase of 11%, to approximately $865 million, which is higher than the average estimate for $856 million.
The outlook by product is similar this quarter, with GoDaddy projecting revenue for Domains to rise by single digits on a percent basis, revenue for Hosting to be mid-single-digits, and Business applications to be up by a high-teens percentage.