Share buyback and strong numbers send GoDaddy shares surging
Internet domains host reports revenue up by a third in Q3
Internet domains and hosting company GoDaddy Inc announced its biggest share buyback programme, worth $500m (£390m), and reported a 12 per cent rise in third-quarter revenue, causing stock to shoot up by 10 per cent in extended trading on the NYSE.
The company posted earnings per share of 42 cents on revenue of $760.5m, up 11.9 per cent year-on-year. The figures were slightly below analysts’ expectations of 21 cents per share on revenue of $761.39 million, but strong average revenue growth per user, which rose 7.1% to $155 in the third quarter, impressed traders.
At the end of the quarter, GoDaddy boasted 19.1 million customers, up 4.6 per cent from a year earlier.
The company announced repurchase authorisation to acquire an incremental $500m of its Class A common stock, bringing its total repurchase capacity to $541 million.
ICEO Aman Bhutani said: "GoDaddy sits in a privileged position relative to a massive opportunity, strengthened by our differentiation in guidance, seamlessly intuitive experiences, and the potential in activating our community.
"Our execution focus is on strengthening our platform, increasing our experimentation, and continually accelerating our product, which lays the foundation to increase value to customers and returns to shareholders for years to come."
Domains revenue in the third quarter was $345.3 million, up 11.6 per cent year-on-year. Hosting and Presence revenue totalled $285m, while Business Applications revenue was $130.2m, up 21.9 per cent.
The Scottsdale, Arizona-based company, which manages about a fifth of all global web domains, has recently begun to offer customers tools to help expand their reach on social media platforms.