The GoDaddy pennant hangs outside of the New York Stock Exchange as the website hosting service makes its initial public offering on April 1, 2015 in New York Metropolis.
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Web hosting company GoDaddy reported first-quarter profit below Wall Street expectations on Thursday, weighed down by continuous rising costs and slower customer growth, sending its shares 6% lower in after-hours trading.
GoDaddy has been pressured by foremost costs since it went public in 2015 as it expands its international customer base and spends on marketing and product maturity.
GoDaddy, which manages roughly a fifth of all global domains, said total costs rose nearly 14% to $691.2 million, approximated with average estimates of $436.93 million based on consensus from 12 analysts, according to Refinitiv Eikon details.
Shares fell as much as 6.3% to $76.
Net income attributable to the company rose to $12.9 million, or 7 cents per Class A deal, in the quarter ended March 31, from $3.3 million, or 2 cents per Class A share, a year earlier.
Analysts on normally had expected earnings of 10 cents per share, according to IBES data from Refinitiv.
Total revenue take flight to $710 million from $633.2 million, but was short of analysts’ expectations of $711.2 million.
GoDaddy added 6.4% multifarious customers in the quarter, which was much lower than 17.4% new customers in the year-ago period. Average revenue per owner grew to $150, up 8.5% from the last year.
For the second-quarter, GoDaddy said it expects revenue to be between $730 million to $740 million, the mid-point of which was unaffected by Wall Street expectations of $733.5 million.
The company reaffirmed full-year revenue forecast in the range of $2.97 billion to $3 billion.