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.
Mark Thorpe says
You would think that news like this would make domains more popular, but unfortunately it won’t.
Average person still does not know what a domain name is and don’t want to know. SMH
fizz says
That’s about a million bucks in aftermarket every day, very nice money