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GoDaddy Reports Q3 Earnings Beat On Revenue of $411M, Stock Jumps 7%

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GoDaddy just released its Q3 2015 earnings report, showing GAAP revenue of $411 million and a loss of $.04 per share. The street expected the company to report a loss of $.09 per share on revenue of $408 million, while the company itself expected third quarter revenue to be between $405-410 million.

After trading flat all day, GDDY is up 7.47 percent after-hours to $29.50.

This quarter’s $411.1 million in revenue is up 15.2 percent year-over-year, compared to $356.9 million in revenue recorded in Q3 2014.

In terms of net loss, the company lost $5.2 million in the third quarter, compared to a loss of $27.5 million in the year-ago quarter. Blake Irving, CEO of GoDaddy, explained that while this loss is getting smaller and smaller each quarter, the company is still primarily focused on measuring the business using top-line growth metrics, not profit.

Irving noted that he is specifically interested in the Web Presence segment of the business, which is GoDaddy’s product designed at getting small businesses online for the first time. The company reported revenues of $150.8 million in this division which is up 14.7 percent year-over-year.

Interestingly, Irving noted that almost 50 percent of small businesses still have no online presence, which should help the company’s growth in this segment going forward.

Another division of the company Irving specifically mentioned was Business Applications, which reported revenues of $45.3 million, up almost 50 percent year-over-year. Irving said custom email domains were a big driver of revenue in this division, as more and more small businesses are realizing the importance of ditching generic domains (like @gmail and @yahoo), in favor of a custom one just for their business.

International revenue, a growing segment of the business, totaled $105.3 million, up 17.4 percent year-over-year. Irving said that the company was happy with last quarter’s international growth despite a strong dollar, and noted that GoDaddy is preparing to enter the Asian market in the first quarter of 2016.

While still a growing company, GoDaddy has a large amount of debt on hand. Specifically, they ended the quarter with long-term debt of $1.048 billion, which is slightly down from the $1.05 billion in debt reported last quarter. However, this debt load is only about 2.5 times EBIDA, a ratio that Irving said the company feels comfortable with.

GoDaddy’s balance sheet at the end of the third quarter showed total cash, cash equivalents, and short-term investments of $333.1 million, up from the $294.8 million recorded at the end of last quarter.

Finally, the company reported that the GoDaddy platform had 13.6 million customers at the end of the third quarter, which is up 8.8 percent year-over-year.

Looking forward, the company expects Q4 revenue between $421-$424 million, and full-year revenue between $1.603 billion and $1.606 billion.