It’s only been one month since GoDaddy’s massively successful IPO, and now that the “new car smell” has worn off a bit, some skeptics were anxious to see if the web host could keep such a rapid pace. With an 18 percent revenue hike since the IPO, it seems that GoDaddy has solidified their claim as one of the biggest (and now public) web hosting services around the globe. According to GoDaddy’s financial report, more new customers were added in the past month (more than their average monthly gains), which put them at a 17.5 percent growth rate. The first quarter of 2015, the web host’s revenue was $376 million, which was 18 percent higher than 2014’s Q1 earnings—and three million above the Wall Street $373 million expectation.
GoDaddy has been going above and beyond estimates and expectations for years, even with the few stumbles—like with their allegedly sexist ad campaigns during the Super Bowl. However, ask any Luddite to name a web host, and there’s a good chance they’ll at least have heard of GoDaddy. The company’s FactSet also reported a loss of $43.4 million in the first quarter, which equals about 34 cents per share, which is a hit that comes on the heels of a $52.5 million loss of last year’s first quarter. These are all big numbers, but when it comes down to a year by year comparison, it’s clear the company is coming out ahead.
The Snowball Effect
The mega web host enjoyed a $460 million IPO revenue spike last month, and they are still reeling from such a positive injection. In the early days, GoDaddy was a simple name registrar site, specializing in offering domains. Now it’s one of the most well-known comprehensive web hosting providers in the world, and at the start of the IPO rumors GoDaddy appraised itself at $20 per share. However, in less than 24 hours after the IPO, the shares were going for $27. Many people have underestimated this host since day one, including themselves. Even with the two percent drop in share prices in the first after-hours session, that small hit wasn’t enough to make an impact on what was a very successful IPO.
However, where GoDaddy is really focused is in growth and expansion. They’ve been wanting to do more than “just” web hosting and domain registration. Niches they’re looking into include bookkeeping and marketing, like in the purely digital realm. As for their bookkeeping prowess, that’s the biggest growing niche of the quarter. “Business application” aspects of GoDaddy have been increasing 53 percent each year, and now worth about $37 million of their business.
Sticking with What You Know
Still, their bread and butter remains the same. Domain registration rose 10.4 percent this year to reach $199 million, and their web hosting revenue is up 21 percent to reach $140 million. According to Blake Irving, the company’s CEO, “Our investment 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.” Right now, GoDaddy has just over 13.1 million customers, which is 9.3 percent more than Q1 in 2014. The company’s annual revenue average is also up almost 10 percent to reach $115 million. However, GoDaddy is forecasting revenue of $390 to $395 million this year, with analysts estimating $391 million. It seems GoDaddy is finally giving themselves the reach for the star number they’ve earned.