Aftermarket sinks quarter in Core Platform: GoDaddy earnings
Fewer sizable aftermarket transactions hurt Q1 results.
GoDaddy (NYSE: GDDY) noted Q1 2023 earnings this afternoon.
The firm’s revenue was up 3.3% year over year, but revenue for the Core Platform segment that includes domains was down by 0.2% compared to Q2 2022.
GoDaddy blames a lack of sizable aftermarket domain name transactions for part of the decrease.
In prepared statements, GoDaddy CEO Aman Bhutani noted:
One area we continue to watch carefully is our Aftermarket business. We faced tough compares last quarter and continued unevenness in flow of sizable deals that we believe is impacted by broader macro headwinds.
In other words, Q1 2022 was really good, and there were fewer sizable transactions in Q1 2023.
In its 10-Q filing, the firm disclosed that aftermarket revenue declined 8% year over year.
Unlike most of its business, Aftermarket domain sales count as current revenue when the transactions occur. These sales juice revenues but are not recurring like hosting and domain registration purchases.
The firm also disclosed that it has rolled out its “list for sale” technology to other registrars. This allows those registrars’ clients to list domains for sale on Afternic through their preferred registrar rather than Afternic.
