About Media Temple, Inc.

GoDaddy is the gateway to the internet for millions of people and small businesses with something to say, something to show, and something to sell. The company provides domain name registration and website hosting, along with services and software for functions that include e-mail, e-commerce, podcasting, and website creation. GoDaddy's discounted pricing on domain names and hosting services have made it the largest global domain registrar accredited by internet regulatory body ICANN, boasting some 75 million domain names - more than 20% of the internet's total. About 40% of GoDaddy's customers are outside the US. Founder Bob Parsons remains GoDaddy's majority shareholder.

Operations

GoDaddy makes money from domain registration, more than 45% of revenue, web hosting, some 40%, and business applications (domain-specific email addresses, email marketing, and payment services), about 15% of revenue.

Among GoDaddy's products is GoCentral, an all-in-one kit for building websites ready for mobile devices and equipped with marketing and e-commerce tools. The company also offers a growing number of business applications for ecommerce, marketing, and engaging customers through social media.

Go Daddy is a leading host for the digital SSL (secure sockets layer) certificates that enable encrypted transmission of sensitive data such as credit card numbers and other personal information over the web.

Geographic Reach

Based in Arizona, GoDaddy operates internationally through offices in Canada, India, Singapore, and the Netherlands. In the US, it has offices in Arizona, Iowa, California, Colorado, Massachusetts, and Washington, DC. It has had data centers in Arizona, California, Virginia, New York, the Netherlands, and Singapore. But in 2018 it began moving operations to Amazon Web Services.

More than 40% of GoDaddy's customers are in international markets, notably Canada, India, and the UK. The company localizes its products and Customer Care services for more than 50 markets outside the US.

Sales and Marketing

GoDaddy had been a Super Bowl advertiser for a dozen straight years, raising notoriety as well as awareness of its products and services. Its advertising and image has paid with a widely recognized brand that's garnered 80% awareness. In the past couple of years, the company has dropped supermodels from its advertising to focus on its products. The company has spent an average of about $200 million a year on marketing and advertising over the past five years.

Financial Performance

GoDaddy continued its streak of rising annual revenue in 2017 with a 21% increase to $2.2 billion compared to 2016. About 40% of the increase came from the Host Europe Group acquisition, which also increase international revenue by almost half and added about 1.6 million customers. GoDaddy reported higher sales in Domains (up14%), Hosting and presence (up 25%), and Business applications (35% higher). Average annual revenue per user rose to about $140, a 7% increase.

The higher revenue allowed GoDaddy to post a $136 million profit, the company's first since at least 201. The company lost $16.5 million in 2016.

The net income helped GoDaddy increase its cash provided by operating activities 23% to $475 million in 2017 from 2016.

Strategy

GoDaddy has cleaned up its image and gone global. The company became known early on for its racy Super Bowl commercials, but with new leadership the company ditched those ads. The company didn't run a commercial during the Super Bowl broadcast in 2018 after introducing its GoCentral product in 2017.

On the business side, the company has continued to firm up its reserve of domain names, buying a million here and there from other companies, while adding more hosting and website-creation services to its portfolio.

The acquisition of Host Europe Group (HEG) expanded GoDaddy's operations in Europe. The deal brought added revenue and about 1.6 million customers as GoDadday added some of HEG's business applications services like email and ecommerce to its offerings.

Most of GoDaddy's products and services are aimed at customers with little or no technical knowledge. The company must maintain a large and extensive customer service staff (it numbers about 5,500) to serve that customer base. At the same time, GoDaddy is investing in applications and services for professional web designers and developers to help them do their jobs better and more efficiently. Services for professionals include administrative access and shopping features which make it easier to buy and manage multiple products for their clients, as well as enhanced technical support and discounts for reselling GoDaddy products.

To offer "do it all" services for customers, GoDaddy has beefed up GoCentral's features, adding online appointment scheduling, Square payments, blogging capabilities, and integration with Google My Business. The 2018 acquisition of Main Street Hub, which helps small business with social media, is part of the overall strategy of providing end-to-end services.

In 2018 GoDaddy said it would transfer the "vast majority" of its web infrastructure to Amazon Web Services over several years. GoDaddy hopes to use AWS services such as machine learning, analytics, and containers make innovations and meet customer growth. It also is to outsource some transactional accounting functions to a professional services firm. While such moves could save money and time, they also could in result in higher than expected costs and take longer to complete than expected.

Mergers and Acquisitions

GoDaddy Inc. agreed in 2018 to acquire Main Street Hub for approximately $125 million in cash plus up to $50 million in potential future earnouts. Main Street Hub helps small businesses manage their social media accounts. The deal extends GoDaddy's "do-ot-for-me" strategy for small businesses. The transaction was to close in the second quarter of 2018.

GoDaddy bought Host Europe Group (HEG) for $1.8 billion in 2017, expanding its operations in Europe. The deal, the company's biggest, adds HEG's web hosting infrastructure on the continent, 1.7 million customers, and some 7 million domains under management. GoDaddy planned to add its business application services to HEG's offerings in Europe.

In 2016 GoDaddy acquired FreedomVoice, a developer of cloud-based communications products, for $42 million. Subsequently, GoDaddy introduced Smartline, an internet phone service based on FreedomVoice technology, small business customers in 2017.

Company Background

Chairman Bob Parsons founded the company in 1997. Go Daddy has experienced rapid growth in its short history in part due to high-profile advertising campaigns that have included controversial Super Bowl commercials and Go Daddy Girls. (It's working to soften its image.) Two of its most famous Go Daddy Girls are Indy race car driver and sometime swimsuit model Danica Patrick and fitness guru Jillian Michaels.

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Media Temple, Inc.

6060 Center Dr Fl 5
Los Angeles, CA 90045-1596
Phone: 1 (877) 578-4000

Stats

  • Employer Type: Public
  • Chief Marketing Officer: Kim Brubeck
  • Partner Programs Manager: Nicole Forbes
  • Vice President of Product: Brian Kuhn
  • Employees: 203

Major Office Locations

  • Los Angeles, CA