Dipped in Q3, but rest of business humming along — GoDaddy’s aftermarket
Non-recurring aftermarket business fell slightly in Q3.
GoDaddy (NYSE: GDDY) released Q3 earnings this afternoon, reporting a 7% year-over-year revenue increase to $1.15 billion.
The firm’s Applications & Commerce segment grew 16% year over year, totaling $423.1 million. Core Platform, which includes legacy hosting and domains, increased 3% to $724.5 million.
Q3 was hurt by aftermarket revenue, which totaled $106 million in Q3. This was down from $112 million in Q2 of this year and $107 million in Q3 2023.
While the aftermarket performed well in Q2, it could be facing headwinds from losing Huge Domains’ inventory. I’ve also heard anecdotally from some domain investors that they’ve noticed that Huge Domains is not bidding as much in expired domain auctions.
GoDaddy is still forecasting record aftermarket revenue for the full year. It expects Applications & Commerce to continue growing in the mid-teens next quarter, and Core Platform ought to remain in the low single digits.
The firm also stated it’s benefiting from AI. On the revenue side, this comes from its Airo product. On the cost savings side, the firm stated its AI-powered chatbot saved 16 million minutes of client service time, which it states did not sacrifice client satisfaction.
