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GoDaddy sees 12% growth in domains revenue
Kevin Murphy,
November 5, 2020, 12:59:49 (UTC),
Domain Registrars
GoDaddy delivered another quarter of impressive growth in the third quarter, showing again the resilience of the domain name market to the coronavirus pandemic.
The company reported total revenue up 11% on the same period last year at $844.4 million, with net income sliding from $76.8 million to $65.1 million.
GoDaddy spent more on marketing during the quarter, saying that as demand for its services increases it needs to make sure it captures as many customers as possible.
Revenue from domains slightly outperformed overall growth, coming in at $387.4 million, up 12.2% year over year.
The domains segment was also a bit more profitable because GoDaddy no longer has to pay Neustar for domains in TLDs managed by what is now GoDaddy Registry.
The business applications segment, which includes email and third-party apps such as shopping carts, was the standout growth segment, coming in at $154.6 million, up 18.7%.
GoDaddy expects to see a similar pattern in Q4, with domains growth coming in at low double figures and business apps growth coming in at high double figures.
Both Q3 growth and Q4 outlook were better than analysts expected, and GoDaddy stock was rewarded accordingly.
The company also announced the departure of COO Andrew Low Ah Kee after 10 years with the company. His position will not be immediately refilled, and he is said to be taking a presidential role at a company outside of the domain industry.
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