NameFind Auction and one-off sale help aftermarket revenue jump 14%.
GoDaddy (NYSE: GDDY) reported Q4 2023 and full-year 2023 earnings after the market closed today.
For Q4 2023, revenue came in at $1.100 billion, up 6% from the same quarter a year ago. Free cash flow totaled $0.305 billion, up 51% year over year.
For the full year, revenue increased 4% to $4.254 billion. Free cash flow grew 12% to $1.084 billion.
GoDaddy’s Application & Commerce segment posted 13% year-over-year revenue growth in Q4. The Core Platform segment, which includes legacy hosting and the domain name business, returned to growth with a 2% lift year over year.
Core Platform was helped by the domain aftermarket in Q4. Aftermarket revenue jumped 14% from $104 million in Q4 2022 to $118 million in Q4 2023.
Some increase was expected after GoDaddy auctioned domains from its NameFind portfolio and sold some great domains in another transaction. It’s unclear what percentage of the growth was from these two one-off activities, and GoDaddy also noted that Q4 2022 was a soft comparison quarter. That said, this puts GoDaddy on a bit of a hamster wheel next year — it may need to do more sales promotions like these to get the same results.
For the year, the Aftermarket dropped from $438 million in 2022 to $437 million in 2023.
The company also disclosed average aftermarket transaction prices. This number grew from $112 in 2020 to $191 in 2021, then $218 in 2022 and $217 last year. This combines a lot of aftermarket activity, presumably including expired domain auctions.
GoDaddy also discussed how it plans to grow margins, including by “expanding access to global talent,” a euphemism for outsourcing certain activities overseas.
Post link: GoDaddy reports strong Aftermarket growth in Q4
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