GoDaddy Inc (NYSE:GDDY) has reported third-quarter revenue and earnings that beat expectations, supported by a strong performance from its Applications & Commerce (A&C) segment.
The domain registrar and web hosting company posted revenue of $1.07 billion for the three months to September 30, 2023, up 3.5% and beating analysts’ consensus estimate of $1.06 billion. A&C grew revenue by 11% to $363 million.
Earnings per share of $0.89 were ahead of the $0.72 expected by analysts.
During the quarter, GoDaddy noted it completed the integration of two platforms into its technology stack, simplifying its infrastructure and enabling further margin opportunities in the coming quarters.
Additionally, it introduced Instant Video, a new AI-powered feature within its GoDaddy Studio App, which it said will empower small businesses to quickly create social media and video content, increase customer engagement, and seize digital marketing and social commerce opportunities.
"We are pleased with our progress toward our goal of delivering profitable growth and margin expansion, as evidenced by the strong performance in our Applications & Commerce segment," chief financial officer Mark McCaffrey commented in a statement.
"We are excited about the momentum in our business as we venture into a new phase of product offerings and we are confident in our ability to generate further margin expansion, creating long-term value for our shareholders."
The company has guided for 4Q revenue of $1.095 billion to $1.115 billion.
Contact the author at stephen.gunnion@proactiveinvestors.com