Like Wix, GoDaddy Needs To Focus On PaaS

The global pandemic has accelerated the digital transformation movement across all industries. While larger organizations are focusing on transforming their business processes, smaller businesses are accelerating the creation of their online avatars. Internet domain provider GoDaddy (NYSE: GDDY) is helping SMBs make this transition by continuing to add product offerings geared towards their needs.

GoDaddy’s Financials

GoDaddy’s Q4 revenues grew 12% to $874 million, ahead of the market’s forecast by 1.01%. Total bookings improved 13% over the year to $943 million. EPS of $0.41 per share was better than the market’s estimates of an EPS of $0.33. By segment, revenues from the Domain segment grew 14.2% to $402.2 million. Hosting and Presence revenues improved 5% to $308.8 million. Business Applications revenues grew 20% to $162.9 million.

Total revenue for the year 2020 was up 11% to $3.32 billion.

For the first quarter, GoDaddy forecast revenues of $885 million, compared with the market’s estimates of $881 million. For the year 2021, it expects revenues of $3.7 billion, compared with the market’s forecast of $3.67 billion.

GoDaddy’s Acquisition

Recently, GoDaddy announced its acquisition of California-based Poynt for an estimated $320 million. Founded in 2013 by Osama Bedier, Poynt builds POS and commerce hardware and software tools for businesses. Poynt was founded with the mission of creating an open commerce platform that could connect merchants, resellers, and developers with the hardware, software, tools, and services required to grow their business. Its patented Android-based smart POS terminals and PoyntOS-powered third-party terminals deliver advanced in-person capabilities that help drive merchant and consumer engagement. It provides a mobile app and web/desktop software for POS, invoicing, and virtual terminals. It also offers small businesses access to various payment processing models, including integration with 16 different payment processors.

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Disclosure: All investors should make their own assessments based on their own research, informed interpretations and risk appetite. This article expresses my own opinions based on my own ...

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