News Source: indiatimes.com
GoDaddy's Q2 web hosting revenues rise 14% to $244.6M; Total revenue at $651.6M
News Source/Courtesy: indiatimes.com

Courtesy/News Source: tech.economictimes.indiatimes.com

Internet domain provider GoDaddy missed Wall Street estimates for sales from its highly profitable web hosting business, pushing its shares down 4% on Thursday.

GoDaddy is the world's largest domain name registrar and manages about a fifth of all global web domains, but its web hosting business that serves consumers and small businesses has driven the bulk of its profits in recent quarters.

Analysts have said the Scottsdale, Arizona-based company's web hosting division generates profit margins well above 70%, compared with roughly half that amount at the domain business.

GoDaddy's revenue from web hosting rose about 14% to $244.6 million in the second quarter ended June 30. The figure missed analysts' average expectation of $247.3 million, according to FactSet.

Total revenue rose to $651.6 million while a roughly 10% increase in overall expenses, largely to fund investments in new products, dragged GoDaddy's net income lower by 13% to $18.1 million.

The result overshadowed stronger-than-expected revenue and profit for the second quarter and a higher revenue forecast for the year as GoDaddy signed up more customers and earned more from each user.

The company had some 18 million customers overall at the end of the quarter, up 6.5% from a year earlier, thanks in part to its acquisition of European peer HEG last year.

Average revenue per user rose 10.2% to $142. The company says small businesses which start by choosing one GoDaddy service gradually sign up for others and help boost average revenue per user.

GoDaddy now expects annual revenue of between $2.65 billion and $2.66 billion, compared with $2.62 billion to $2.64 billion earlier.

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News Source: indiatimes.com

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