GoDaddy Posts Q2 Profit Miss On Modestly Strong Revenue Of $394.5M, Falls 2%

Update: The company is currently down around 9 percent in after-hours trading.  

GoDaddy reported its second quarter financial performance today, including revenue of $394.5 million and negative earnings per share of $0.46. The market had expected GoDaddy to report a $0.17 per-share loss, on revenue of $392.94 for the period.

The well-known hosting company had predicted in its prior earnings report that it would generate revenue of between $390 million and $395 million.

On a net loss basis, GoDaddy lost $71.3 million in the period, up from its year-ago loss of $37.6 million. That increase tots to a higher percentage of year-over-year growth than its revenue itself managed. It’s worth noting that in the period, GoDaddy did take a “$29.7 million [charge] of additional general administrative expenses related to certain termination payments made in connection with the completion of the initial public offering,” in the most recent period, according to its filing.

The company’s stock was mostly flat during the day before a closing spike. After hours GoDaddy has so far recorded a modest 2.27 percent decline. More shortly. It’s worth noting that the company’s profit miss is of a far greater magnitude than its revenue beat.

On a year-over-year basis, GoDaddy’s revenue advanced 16.5 percent. Its domain business grew 10.3 percent to $208.5 million, while its hosting business grew 18.5 percent during the period to $145.5 million. GoDaddy picked up $100.2 million in international revenue, or around 25.39 percent, up from its sequentially-preceding quarter’s tally of 23.4 percent.

GoDaddy ended its reporting period with cash and equivalents of $294.8 million. The company has long-term debt of $1.05 billion, and net debt — less cash, etc. — of $794.2 million. The company emerged a growing firm with a heavy debt load.

All told, this was a decidedly mixed quarter for the firm. While its revenue came in above street expectations, and at the upper end of the firm’s own estimate, the firm’s inability to reduce its net loss is troubling.

Looking ahead, GoDaddy expects revenue of between $405 million and $410 million, up 2.7 percent, and 3.9 percent, on a sequential basis, each.