Domain revenue slips compared to Q4.
GoDaddy (NASDAQ:GDDY) reported Q1 2017 earnings after the bell today.
Topline revenue was $489.7 million, up 12.9% year over year. Bookings hit $624.8 million, up 12.0% year over year.
The domain name business pulled in $240.8 million of revenue in Q1. This is up 10% year over year but is down from $242.5 in Q4 2016.
This is a bit surprising for three reasons.
First, Verisign reported a strong Q1.
Second, GoDaddy returned to the Super Bowl in February this year after taking last year off.
Third, the first quarter is usually a strong one for domain name registrations.
I can think of a handful of reasons why GoDaddy’s revenue from domains may have dipped sequentially.
Keep in mind that this is revenue, not bookings. If GoDaddy sold a lot of domains after the Super Bowl, they would only get a couple months of revenue from them in the quarter. I’ll dig into the 10-Q when it’s released to see how booking did.
Also, its commercial was focused on its site builder GoCentral instead of driving domain sales. Domain registrations should have increased as a result of the ad, but not by as much as if it was a commercial pushing domains.
Finally, the difference in revenue can be impacted by just one or two large domain names sales from the NameFind portfolio.