GoDaddy tops Q2 targets, revenue up 22 percent

GoDaddy said domains revenue came in at $263.3 million, up 14.6 percent year over year.
Written by Natalie Gagliordi, Contributor

Small business domain host GoDaddy reported second quarter earnings and revenue Tuesday after the bell.

The Scottsdale, Ariz.-based company reported a net income of $20.8 million, or 10 cents per share, compared to a year-ago loss of $71.3 million. Revenue came in at $557.8 million, up 22 percent year over year. Wall Street was looking for earnings of a penny per share with $551.3 million in revenue.

Overall, the report shows that the company is expanding its customer base and earning more money per user. GoDaddy's average revenue per user was $129, up 2.8 percent. In terms of bookings, GoDaddy saw growth of 22 percent year-over-year to $667.5 million during the three-month period ending June 30.

Elsewhere, domains revenue came in at $263.3 million, up 14.6 percent year over year. Hosting and presence revenue was $214.9 million, up 28.3 percent year over year. GoDaddy said its customer count at the end of the quarter was nearly 17 million, including more than 1.6 million gained from its billion-dollar acquisition of Host Europe Group.

"We are making great progress on our 2017 product and strategic initiatives including growing the adoption of our new mobile-optimized website builder GoCentral, new security offerings and integration of HEG," said GoDaddy CEO Blake Irving. "We remain focused on leveraging our brand and scale to extend our global competitive advantages."

As for the current quarter, GoDaddy expects total revenue in the range of $577 to $582 million. For the full year, GoDaddy raised its revenue guidance to a range of $2.215 to $2.225 billion, representing approximately 20 percent growth.

GoDaddy revealed last month that it will be shuttering its Cloud Servers and Applications business by the end of the year. Launched in March 2016, the cloud portfolio was billed as a suite of Amazon-style cloud computing services to help small businesses build, test and scale cloud solutions on GoDaddy's infrastructure. GoDaddy sold the business for $456 million.

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