Company’s aftermarket revenue up just slightly, blames lack of big transactions it had a year ago.
GoDaddy (NYSE: GDDY) reported first-quarter results on Thursday afternoon, showing modest top-line growth and mixed performance across its business segments.
Total revenue for the quarter reached $1.3 billion, a 6% increase compared with the same period a year earlier. Bookings, a key indicator of future revenue, rose 3% year over year to $1.5 billion.
The company divides its operations into two main units. Applications and Commerce delivered the stronger pace of growth, with revenue climbing 12% year over year to $498.2 million. The Core Platform segment, which includes domain registration and related services, expanded 3% year over year to $768.7 million.
Within the domains business, primary domain sales increased 5% year over year to $456 million. Aftermarket revenue was essentially flat, increasing 1% to $130 million compared with the prior year period; this was up slightly from $127 million in the fourth quarter. GoDaddy noted the average transaction value edged down and attributed the slower aftermarket performance to the absence of several large deals that had boosted results in the same quarter last year.
Customer growth remained subdued. GoDaddy added a net 13,000 customers during the quarter, bringing the total to 20.4 million customers at quarter-end. The company’s modest customer additions reflect continued competition in domains and web services as well as a focus on monetizing existing users through expanded product offerings.
Shares initially rallied in after-hours trading following the announcement but later relinquished those gains.