Domain name aftermarket is accounting for more of GoDaddy’s revenue.
GoDaddy’s (NYSE:GDDY) domain name marketplace business now accounts for about 10% of the company’s revenue, up from the mid-single digits in 2018. The company disclosed this number on its investor conference call yesterday.
With Q1 revenue of about $900 million, this suggests that GoDaddy’s aftermarket generated roughly $90 million or so in the first quarter. Domains revenue overall was $423 million, so the aftermarket is 20% of the domains business from a revenue standpoint. The gross margin is likely much higher since GoDaddy doesn’t have to pay a registry when it makes a sale.
GoDaddy’s aftermarket revenue includes expired domains, commissions on third-party sales, as well as revenue from selling domains from its owned-and-operated domain portfolio.
GoDaddy said the aftermarket drove much of the 5% sequential increase in the growth rate of the domain name business.