GoDaddy beats Q4 estimates, reports strong 2020 customer growth
GoDaddy on Thursday reported that it ended the fiscal 2020 year with nearly 1.4 million net new customers, nearly double the number it added in 2019. The domain hosting and e-commerce business also reported fourth quarter results that beat expectations.
Diluted earnings per share in Q4 came to 41 cents. Total revenue for the quarter was $873.9 million, up 12 percent year-over-year.
Wall Street was expecting earnings of 36 cents on revenue of $865.03 million.
For the full year, GoDaddy reported a net loss of $2.94 per share on revenue of $3.316 billion.
"2020 was a really strong year for our business despite the obvious challenges, as our customers proved once again to be resourceful entrepreneurs and successfully pivoted to expand their online presence," CEO Aman Bhutani said in a statement. "We are confident that our 2021 plans to drive innovation and growth will not only bring more everyday entrepreneurs to the GoDaddy ecosystem, but will also help our existing customers achieve new heights of individual success."
By Dec. 31, 2020, GoDaddy had 20.6 million customers, up 7.1 percent year-over-year. Total bookings in Q4 came to $943.1 million, up 13.1 percent year-over-year. Average revenue per user (ARPU) was $166, up 5.1 percent.
Fourth quarter domains revenue was up 14.2 percent year-over-year, reaching $402.2 million. Hosting and Presence revenue came to $308.8 million, up 5.5 percent. Business Applications revenue was $162.9 million, up 20.4 percent.
CFO Ray Winborne attributed business acceleration to "aggressive and disciplined investment." During the quarter, GoDaddy acquired point-of-sale business Poynt. Additionally, GoDaddy launched freemium options for its website and marketing suite, which it says led to millions of sign-ups with strong conversion rates.
Winborne as well as Chief Legal Officer Nima Kelly also announced their intention to retire in 2021.
For the first quarter, GoDaddy expects total revenue of approximately $885 million, or approximately 12 percent year-over-year growth.