GoDaddy Slips 2.9% After Reporting Q1 Revenue of $376.3M, Strong Q2 Top-Line Projection

GoDaddy reported its first quarter financial performance today, including a loss of $0.34 per share on revenue of $376.3 million. The street had expected GoDaddy to earn $0.35 per share on revenue of $374.52 million. The firm’s revenue grew 17.5 percent compared to the year-ago period.

(I’m sorting out the difference between the earnings per share figures, but I presume that the former figure which is calculated using normal accounting methods — GAAP — is derived quite differently from the latter figure, which I presume is an adjusted, non-GAAP metric.)

After rising nearly 4 percent in a difficult day’s trading, GoDaddy is currently down a few points in after-hours trading.

During the first quarter of 2015, GoDaddy lost $43.4 million on a GAAP basis, although the firm generated net cash of $72.1 million during the same period. That net loss is down around $8 million from the year-ago quarter.

The firm also noted that its average revenue per user grew 9.6 percent to $115, while its total bookings picked up 13.7 percent to $498.7 million. The company expects revenue between $390 and $395 million in the current quarter. The street had expected a figure of $390.66 million, putting GoDaddy’s guidance mostly above street dreams.

GoDaddy remains a heavily indebted company, though its current cash position and debt load were helped by its public offering, it seems. From the company’s earnings report:

At March 31, 2015, total cash and cash equivalents and short-term investments were $197.9 million, total long-term debt, including current portion, was $1,418.0 million, gross debt was $1,466.8 million and net debt was $1,268.9 million. Assuming the completion of our initial public offering and the use of proceeds from such offering occurred on March 31, 2015, total cash and cash equivalents and short-term investments would have been $234.3 million and net debt would have been $850.5 million.

GoDaddy is worth just under $1.7 billion. That figure should help put its debt into perspective.

I’m yammering with the company’s execs in a few hours, and will update this post after I drill them on costs, debt reduction, dividends, and product strategy.

Featured Image: Antonio Morales García/Flickr UNDER A CC BY-SA 2.0 LICENSE

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