According to an article on Fortune that was published this afternoon, GoDaddy has reportedly filed its paperwork for an IPO. This is the second time the company filed to go public, although the company later opted against it.
I don’t have much to add about this at this point, but I think this is going to be a positive event for the domain space, as it will surely get people in the finance space more interested in learning about the domain name space. In my opinion, outside investment is one thing that has lacked in this business, and having more attention paid to domain names may prove to be a big positive for domain investors.
I look forward to reading articles about the IPO filing as well as subsequent reports about the company. Oftentimes, we learn quite a bit about a company’s business once it files for an IPO, and I assume we will learn much more about GoDaddy in the coming days. For example, recorded ย $1.1 billion in revenue in 2013 and it has 12 million customers (according to Business Insider).
I am sure there will be much more news, analysis, and information coming out soon. ย If you would like to read more news about the GoDaddy IPO filing, you should check out these reports that were just published.
If you read something interesting about the company or the domain space as a result of this filing, please let me know!
Guess who’s riding on the GoDaddy coat-tails ๐
Who?
Maybe there’s a chance i can earn some of my money back, Hmmm…
With over 1 billion in revenue, how can it lose almost 200 million last year.
No idea, but I am sure that is something that will be discussed and dissected by the finance experts.
There is no question that this is good for the domain community. When a company becomes a public company, many more people learn about the company.
If I understand this correctly, it sounds like if a customer registers a domain through Godaddy for $10 on June 30 and the ICANN fee is $8 that Godaddy recognizes $5 in revenue and $4 in cost of revenue for the fiscal year because that represents half the fiscal year. I wish they provided more insight into Premium Listings and Auctions revenue.
We generate substantially all of our revenue from sales of product subscriptions, including domain name registration, hosting and presence offerings and business applications. Our subscription terms are typically one year but can range from monthly terms to multi-annual terms of up to 10 years depending on the product. We generally collect the full amount of subscription fees at the time of sale but recognize revenue from our subscriptions ratably over the applicable contractual terms.
Costs of revenue are the direct costs we incur in connection with selling an incremental product to our customers. Substantially all cost of revenue relates to domain name registration costs, payment processing fees and third-party commissions. Similar to our billing practices, we pay domain costs at the time of purchase, but recognize the costs of service ratably over the term of our customer contracts… Domain costs include fees paid to the various domain registries and ICANN. We prepay these costs in advance for the life of the subscription.
correction – ICANN fee wouldn’t be $8 but the registry domain cost might approximate $8 for a .COM
Key stat worth noting for domain investors – average revenue per user is just over $100 which means that big-dollar aftermarket purchases are not the norm – perhaps a hosting or web builder account but not much more spent on domains than reg fee for the typical customer.