Go Daddy Marches Toward $1 Billion
Tuesday, August 17th, 2010
Domain name registrar will get close to $1 billion in cash flow this year.
The juggernaut continues its onward march.
The world’s largest domain name registrar, which manages four times as many domains as the second largest registrar, is quickly narrowing in on a billion dollars in annual cash flow.
This year Go Daddy’s forecast is a whopping $950 million in gross cash receipts, Domain Name Wire has confirmed with the company. This differs from revenue, as much of the company’s sales are amortized over 12 or more months. For example, if a registrar collects $12 for a domain registration, it will typically recognize $1 in revenue a month.
Last year the company had revenues of about $750 million. Given that the company continues to grow, pushing out amortization, you can figure it will do somewhere between $750M-$950M this year. In 2008 Go Daddy pulled in $500 million in revenue.
With 40 million to 50 million registrations, quick math shows that much of the companies revenue comes from non-domain products, such as web hosting and SSL certificates.
Will Go Daddy again test the IPO waters? That’s a tough question. It doesn’t need to go public to pay off its one investor (Bob Parsons), who may be happy watching the cash flow in as he bikes around the country and vacations at Cher’s old house. But I suspect some of the employees would like to see a public offering.