GoDaddy Introduces Lending In Partnership With Kabbage

The global internet domain name provider GoDaddy (NYSE: GDDY) recently reported its third-quarter results that surpassed market expectations. The market was pleased with its performance, and the stock climbed 10% in the after-hours trading session.

GoDaddy’s Financials

For the quarter, GoDaddy’s revenues grew 12% over the year to $761 million, in line with the market’s forecast. Bookings for the quarter grew 15% over the year to $851 million. Net income was $76.2 million, significantly ahead of the $13.2 million it had reported a year ago. On an adjusted basis, net income was $0.42 per share compared with the Street’s estimate of $0.22.

By segment, revenues from the Domain segment grew 12% to $345.3 million. Hosting and Presence revenues grew 8% to $285 million driven by the improvement in engagements, bookings, and appointments within this segment. Business Applications revenues grew 22% over the year to $130.2 million.

Among other operating metrics, its customer base grew 5% over the year to 19.1 million at the end of the quarter. Average revenue per user grew 7% to $155 driven by growth in its international markets. International revenues grew 8% over the year to $254.3 million.

The company also announced a $500 million share buy-back program for the year. This was its biggest buy-back program ever.

For the current year, GoDaddy expects to end with revenues of $2.98-$2.99 billion, compared with the Street’s estimate of $2.99 billion.

GoDaddy’s Partner Expansion

In the recent quarter, GoDaddy has entered into several partnerships that are helping its customers drive their businesses. Recently, it announced one such agreement with Kabbage, a data and technology company that offers small businesses cash flow solutions. As part of the agreement, Kabbage’s online lending platform will be available to GoDaddy’s US customers so that they can easily access a line of credit to grow their businesses. Kabbage has put together a simple application process that allows SMBs to access lines of credit up to $250,000 in minutes if approved.

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Sramana Mitra is the founder of One Million by One Million (1M/1M), a global virtual incubator that aims to help one million entrepreneurs ...

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