GoDaddy Q4 solid as revenue climbs 14 percent

Shopify also reported strong earnings, with revenue increasing 86 percent compared to a year ago.
Written by Natalie Gagliordi, Contributor

Small business domain host GoDaddy reported fourth quarter and fiscal 2016 financial results Wednesday.

For Q4, the company delivered a net loss of $800,000, or two cents a share, on revenue of $485.9 million, up 14.2 percent from a year ago. By segment, domains revenue was up 11.2 percent to $242.5 million, hosting was $176.7 million and business applications was $66.7 million.

Wall Street was expecting second quarter sales of $485.9 million and a net loss of 8 cents a share.

For the year, GoDaddy's revenue increased 15 percent to $1.8 billion. Domain revenue alone accounted for $927.8 million in revenue for 2016.

GoDaddy ended the year with 14.7 million customers and an average revenue per user of $130.

"Our ability to serve our growing base of 14.7 million global customers with new tools and services continues to drive steady and sustainable growth now and into the future," said GoDaddy CEO Blake Irving.

For the current quarter, GoDaddy expects revenue in the range of $485 million to $490 million. Full-year revenue should be in the range of $2.18 billion to $2.22 billion, the company said.

Fellow small business technology provider Shopify also reported earnings Wednesday. The Ottowa, Ontario-based company reported a net loss of $8.9 million, or 10 cents per share on revenue of $130.4 million -- up 86 percent from a year ago. Analysts were expecting revenue of $121.7 million.

Shopify further pleased Wall Street with a strong forecast for 2017. The company said it expects 2017 revenue to range between $580 million and $600 million, well above analyst expectations of $562 million.

Shopify ended the year with 377,500 merchants on its platform with the average revenue per customer reaching $1,243, up 15 percent.

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