Despite 17.5% Revenue Gain, GoDaddy Loses Over $43 Million

By Chris Lange Updated Apr 27, 8:07PM EDT · Published May 12, 4:42PM EDT

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GoDaddy Inc. (NYSE: GDDY) released its first-quarter earnings Tuesday after the markets closed. The Internet registrar, Web designer and developer had a net loss of $0.34 in earnings per share (EPS) on $376.3 million in revenue. That compared to Thomson Reuters consensus estimates of $0.35 in EPS on $374.52 million in revenue.

The company gave guidance for the second quarter. GoDaddy expects revenues to be in the range of $390 million to $395 million and adjusted EBITDA to be in the range of $75 million to $78 million. There are consensus estimates of $0.24 in EPS on $390.66 million in revenue. For the full year, GoDaddy expects revenues to be in the range of $1.595 billion to $1.605 billion.

After looking through the press release, the loss of $43.4 million might not be comparable to consensus estimates. The operating loss was $20.5 million, not including interest expense.

Total bookings by GoDaddy reached $498.7 million in the first quarter, up 13.7% year over year. At the same time, customers numbered 13.1 million at the end of the first quarter, which was an increase of 9.3%. First-quarter annual average revenue per user (ARPU) was $115, up 9.6% from the same period last year.

GoDaddy’s segments reported:

Domains revenue of $199.2 million, up 10.4% year over year
Hosting and Presence revenue of $140.2 million, up 21.2% year over year
Business Applications revenue of $36.9 million, up 53.3% year over year
International revenue of $95.9 million, up 23.4% year over year

Blake Irving, CEO of GoDaddy, said:

Our investments in products, technology platform, and customer care are making a real difference for our customers around the world, and our first quarter results demonstrate the benefits of focusing on their needs. Continued strong growth in customers and ARPU drove both our first quarter revenue and EBITDA up nearly 18%.

On April 7, GoDaddy closed its initial public offering (IPO) and issued 26 million shares of its class A common stock at a public offering price of $20 per share. The company received $491.8 million in proceeds net.

The company had cash and cash equivalents and short-term investments totaling $197.9 million.

Shares of GoDaddy closed Tuesday up 4.2% at $26.77. Following the release of the earnings report, shares were down 2.5% at $26.10 in after-hours trading. The stock has a consensus analyst price target of $31.29 and a post-IPO trading range of $20.00 to $27.73.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.