Take a look at GoDaddy’s aftermarket growth rates.
The domain aftermarket exploded at the onset of the pandemic. Now, it’s coming back to earth.
GoDaddy (NASDAQ: GDDY) is one of the biggest players in the aftermarket. Consider this data about its aftermarket business according to its recently published annual report:
- From 2020 to 2021, its aftermarket revenue grew 69.2%
- From 2021 to 2022, its aftermarket revenue grew just 5.8% despite the acquisition of Dan.com.
That’s quite the slowdown. Look, growth is still growth. But without Dan.com broken out, it’s difficult to tell how much of it was organic.
GoDaddy’s aftermarket has a few segments. There’s the sale of its own domain names (now 1.2 million according to the annual report), sales of third-party domains through its Afternic network, and expired domains.
Tucows, which sells its expired domains through GoDaddy, reported a drop in expired domain revenue in Q4 2022 compared to the prior year.
Perfectname.com Sales says
I finally just got switched over to sending my sales traffic to Sedo.
Wow, a revenue decrease of 63% YoY.
No wonder they continue to layoff employees in batches.
Still, I’m expecting the recession ends around June-July 2023. Domainers simply need to stay disciplined and solvent during this slowdown.
Andrew Allemann says
To be clear revenue didn’t decrease. It just barely grew
Andrew is correct. The rate at which velocity of revenue growth changes is acceleration (positive rate) or deceleration (negative rate). Here, the velocity of growth remained positive in both time periods (+69.2%, +5.8%); however, the rate at which the velocity of growth changed was negative. Thus, it was not a revenue decrease; it was a revenue growth deceleration. You’re welcome.