GoDaddy revenue tops estimates as customer base expands

FAN Editor
FILE PHOTO: The logo for internet company GoDaddy inc is shown on a computer screen in this illustration photo in Encinitas California
FILE PHOTO: The logo for internet company GoDaddy inc is shown on a computer screen in this illustration photo in Encinitas, California May 3, 2016. REUTERS/Mike Blake/File Photo

February 22, 2018

By Munsif Vengattil

(Reuters) – GoDaddy Inc’s quarterly revenue topped Wall Street estimates on Thursday, as the web-hosting company earned more from each user and expanded customer base with its acquisition of Host Europe Group.

Shares of GoDaddy, which also forecast current-quarter revenue above estimates, rose 4.5 percent to $57.95 in extended trading.

The company’s average revenue per user rose 6.9 percent to $139 in the fourth quarter. Its total paying customers were 17.3 million, marking 17.6 percent growth from last year.

GoDaddy, which completed its $1.82 billion acquisition of Host Europe in April last year, reported a 53 percent jump in international revenue to $207.3 million.

Chief Executive Officer Scott Wagner on a post-earnings call said the company intends to continue its international expansion.

Chief Financial Officer Ray Winborne also said in an interview with Reuters that “we are always looking (at acquisitions).”

The company forecast current-quarter revenue of $620 million to $625 million, above analysts’ estimate of $598.6 million, according to Thomson Reuters I/B/E/S.

Net income attributable to the company was $92.6 million, or 54 cents per share, in the quarter ended Dec. 31, compared with a net loss of $1.9 million, or 2 cents per share, a year earlier.

The company booked a tax benefit of $86 million in the latest quarter related to changes in the U.S. tax code.

Total revenue rose 24 percent to $602.2 million, topping analysts’ estimate of $594.6 million.

(Reporting by Munsif Vengattil and Uday Sampath Kumar in Bengaluru; Editing by Maju Samuel)

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