GoDaddy Inc came up beating expectations of Wall Street analysts by announcing better than expected quarterly results on Thursday that came on the heels of generating more per-user revenue.
The news sent the web hosting company’s share 5% higher in after hour trading on the day, causing the stock to start trading on Friday at a share price of $75 with a closing price of $70.87 on Thursday.
GoDaddy is the largest registrar of domain names in the world, which manages about 20% of the all web domains globally.
In the fourth quarter, GoDaddy’s per-user revenue of $158 beat the analysts’ average estimates of $157.8 for the same, according to data tracked by Refinitiv.
GoDaddy also topped Wall Street expectations by forecasting full-year revenue of $3.32 billion which came a bit higher than $3.31 billion, as was expecting the analysts.
In the quarter ended Dec 31, the Scottsdale, Arizona-based company’s total revenue saw an increase of 12% to post $780.4 million from that of $695.8 million in a year ago quarter and that also came more than the average estimates of $777.2 million by the Wall Street analysts, according to IBES data compiled by Refinitiv.
GoDaddy’s net income attributable to the company increased to $60.5 million or 34 cents per share in the reported quarter. Company’s earnings in the year-ago quarter was $42.5 million or 24 cents per share whereas analysts on average were expecting it to be at 31 cents per share for the quarter.
These were the first results for an entire quarter under the leadership of newly appointed chief executive officer Aman Bhutani who took the charge in September 2019.
The results are improving but the all that are coming at the cost of rising expenses as company spent 8.1% more in the reported quarter which took its costs to $706.9 million.