Shares of domain hosting and e-commerce specialists GoDaddy jumped 5% in late trading after the company reported third-quarter revenue that beat expectations and beat its fourth-quarter revenue outlook. .
CEO Aman Bhutani, in prepared remarks, trumpeted “a record number of net new customers and acceleration across all three product categories”, referring to the three elements of the company’s revenue line, domains, l hosting and presence, and business applications.
The company also announced that its chief operating officer, Andrew Low Ah Kee, is leaving to take up a role at another company. Bhutani thanked Kee for making “incredible contributions”.
GoDaddy added more than one million customers this year, net of churn, which is its highest nine-month rate of additions in its history, the company noted.
Revenue for the three months ended September rose 11%, year over year, to $844.4 million, above the average estimate of $835 million. Earnings per share of 38 cents, however, missed the consensus forecast of $1.07.
Chief Financial Officer Ray Winborne said the company “delivered accelerated growth in bookings and revenue this quarter, as well as 17% year-over-year growth in unleveraged free cash flow.” . Winborne also noted the company’s successful integration of four companies acquired this year.
Revenue from GoDaddy’s Domains category increased 12.2%, year-over-year, to $387.4 million, while Hosting and Presence revenue increased 6. 1%, to $302.4 million. Enterprise applications revenue was the big winner, up nearly 19% to $154.6 million.
For the current quarter, the company sees another 11% increase in revenue to around $865 million, which is above the average estimate of $856 million.
The outlook by product is similar this quarter, with GoDaddy expecting domain revenue to grow by single digits on a percentage basis, hosting revenue to be in the mid-single digit, and commercial applications to grow by a high percentage.
GoDaddy stock is up 4% at $83.01 late in the session. The stock had risen 8% during the regular session.
