Image via George Socka/Flickr CC
GoDaddy’s revenues rose 5.1% to $633.2 million on the quarter, up 29.3% year over year. Management’s guidance had the company’s revenue coming in between $620 million and $625 million, beating the consensus by as much as $8.2 million.
Customer figures rose 17.4% from the same quarter a year prior to 17.7 million users. Average revenue per user was up 5.8% from the same period a year prior to $138, as customers are spending more on GoDaddy services.
The company’s adjusted earnings per share rose 100% from a year ago to $0.02 a share.
The company’s GoCentral product has increased its userbase, as the mobile-optimized website builder remains a focus of GoDaddy. The product is undergoing feature advancements in an attempt to attract more users.
Hosting and presence segments had revenues of $239.8 million, or 37.9% of GoDaddy’s total revenues. The segment increased by 34.5% year over year, or 4.8% sequential gains. Business Applications also experienced a 44.1% gain from a year prior, rising to $101.7 million in revenue, or 16.1% of the company’s total revenue.
Domain revenues still remain the company’s strongest product, with $291.7 million in revenue derived from domain services. The figure is up 21.1% year over year, and it accounts for 46.1% of GoDaddy’s total revenue.
Operating expenses at GoDaddy rose 21% year over year to $252.9 million, with gross margins hitting 66%. Net income rose from $0.6 million a year prior to $3.3 million. The company’s balance sheet improved, with total cash and cash equivalents coming out to $729.5 million.
The figure is up from $595 million in the fourth quarter.
Long-term debt hit $2.48 billion. Net cash from operating activities is up from $104.3 million last quarter to $148.4 million in the first quarter of 2018.
Investor confidence waned earlier in the week, as GoDaddy was forced to appear in the Ninth Circuit U.S. Court of Appeals over allegations of robocalls. The company is alleged to have called mobile devices without user consent using 3Seventy Inc., a third-party marketing provider.
The dispute claims that 3Seventy received customer information without consent from GoDaddy. An aggregator was then used to send text messages to the customers. The lawsuit alleges that the actions were unlawful due to 3Seventy not receiving consent from customers.
The U.S. District Court for the District of Arizona ruled in GoDaddy’s favor, tossing out claims against in the company on May 14. The plaintiff is appealing the decision to the Ninth Circuit.
GoDaddy also announced that the company is considering the proposed sale of 11,625,000 Class A common stock shares. The company will not receive proceeds from the sale. The sale is being processed by bookrunners Citigroup and UBS Investment Bank. The proposal is for the shares to be offered on the New York Stock Exchange from time to time or through negotiated transactions.