Godaddy notes Q1 earnings under fresh segmentation

Results divided into only two segments now, providing less visibility into the domains business.

GoDaddy noted Q1 results following the market closed today.

For the quarter, GoDaddy generated $1.003 billion in revenue, up 11% from the same quarter last year. This slightly topped guidance.

Net income was up from $10.8 million a year ago to $68.6 million. The firm’s normalized EBITDA number increased 17.5% to $225.9 million. Bookings increased only 6% year over year.

This is the first quarter that GoDaddy provided results under its fresh segmentation. Previously, it provided results for Domains, Hosting & Presence, and Business Applications.

Now, it provides results in just two segments: Applications & Commerce and Core Platform. Domains and the aftermarket are under Core Platform, along with security and hosting. But not all hosting. Managed WordPress is bundled under Applications & Commerce. That’s a bit confusing.

As I mentioned when GoDaddy disclosed this change, it concerns me when firms reduce or change their segments since it makes me think they are trying to obfuscate a decline in part of their business.

The net-net is we will get reduced visibility into the domains business from now on.

The Core Platform segment delivered $700 million of Q1 revenue, up 9% year over year. Applications & Commerce grew 16% to $303 million.