Q3 growth rates fell as expected, but Wall Street seems impressed.
Revenue growth at GoDaddy (NYSE: GDDY) slowed in the third quarter, the company announced today. It was expecting the slowdown in the face of the Covid resurgence and tough comps from the banner second half of the year in 2020.
Company-wide, bookings were up 10% year over year, and revenue increased 14%. Revenue in the domains segment was up 17% year over year to $453 million. That’s also up nicely from Q2 when Domains revenue came in at $437 million.
The earnings presentation gives credit to GoDaddy Registry for turning around after GoDaddy acquired Neustar’s registry business. The report states, “Neustar’s new cohort turnaround from declining 4% Y/Y pre-acquisition, to increasing nearly 20% Y/Y on year post acquisition.” This will require some clarification on today’s investor call. GoDaddy acquired top level domain registries during Q3, so it’s unclear how much of this is organic growth. [Update: on the conference call, GoDaddy CEO Aman Bhutani said the growth was organic.]
GoDaddy’s shares are up sharply in after-market trading.