Author: Andrew Allemann Comments: 2 October 30, 2024

The non-recurring aftermarket sector experienced a slight decline in the third quarter.

GoDaddy (NYSE: GDDY) shared its third-quarter earnings today, highlighting a 7% increase in year-over-year revenue, reaching $1.15 billion.

The Applications & Commerce division saw robust growth, up 16% compared to last year, totaling $423.1 million. In contrast, the Core Platform segment, which encompasses traditional hosting services and domain registrations, grew by 3%, amounting to $724.5 million.

In the third quarter, aftermarket revenue reached $106 million, a decline from $112 million in the previous quarter and $107 million in the same period last year.

The aftermarket had a strong showing in the second quarter; however, it may be facing challenges due to losing inventory from a prominent source. Reports from domain investors suggest that this source has been less active in bidding on expired domain auctions.

Despite these setbacks, GoDaddy continues to project record aftermarket revenue for the entire year. The company anticipates growth in Applications & Commerce to be in the mid-teens for the next quarter, while the Core Platform is expected to show low single-digit growth.

Additionally, the company indicated that it is gaining advantages from artificial intelligence. Revenue-wise, this is attributed to their Airo product. On the cost-saving front, the AI-driven chatbot reportedly saved 16 million minutes of customer service time without compromising customer satisfaction.

Categories: Domain Registrars Tags: earnings reports, GoDaddy, godaddy earnings

October 30, 2024 at 6:43 pm

A 7% increase year over year in the wholesale registry fee for .com could be a contributing factor.

October 31, 2024 at 12:17 am

“which it claims did not compromise on customer satisfaction.”

Hahahahaha. They really seem to believe their own narrative.

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