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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 building websites with e-commerce functions like e-mail, podcasting, and interation with transaction processing. GoDaddy's pricing on domain names, website creation, and hosting services have made it the largest global domain registrar accredited by internet regulatory body ICANN, boasting more than 78 million domain names – more than 20% of the internet's total. About 44% of GoDaddy's customers are outside the US.

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.

GoDaddy 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 has offices in Arizona, Iowa, California, Colorado, Massachusetts, and Washington, DC. It operates internationally through offices in Canada, India, Singapore, and the Netherlands. The company has had data centers in Arizona, California, Virginia, New York, the Netherlands, and Singapore. 

About 35% of GoDaddy's revenue is generated by international markets, notably Canada, India, Australia, and the UK. The company localizes its products for international markets and it operates customer care centers in more than 50 countries.

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 paid off with a widely recognized brand that's garnered 80% awareness and helped it gain 18.5 million customers. The company has turned to targeted online marketing programs for generating leads generation, including search engine marketing, search engine optimization, and targeted email and social media marketing campaigns. The company also finds new customers through referrals from current customers.

Financial Performance

GoDaddy's revenue has grown at an 18% average annual rate over the past five years with the help of acquisitions.

In 2018, GoDaddy's revenue jumped about 20% to $2.6 billion, up about $400 million from 2017, fueled by growth in the number of customers and average revenue per user (up 6% to $148) as well as revenue from the acquisitions of Host Europe Group and Main Street Hub. The increases were felt throughout the company's segments: Revenue from domains, hosting, and business applications rose in 2018 compared to 2017. 

The company's profit fell to $77.1 million in 2018 from $136.4 million due to higher expenses in 2018, including the cost of a tax receivable agreement liability adjustment and taxes.

GoDaddy's coffers held $932.4 million in cash and equivalents in 2018 compared to $582.7 million the year before. In 2018, operations generated $559.8 million, while investing activities used $254.8 million and financing activities provided $47 million.

GoDaddy acknowledges that it has substantial indebtedness, about $2.5 billion, that could draw money away from capital allocations for pursuing opportunities or responding to threats. The company's interest expense was $98.4 million in 2018, about $15 million higher than 2017.

Strategy

Most of GoDaddy's products and services are aimed at customers with little or no technical knowledge and the company maintains a large and extensive customer service staff (some 6,300 customer care staff) to serve them.

To offer "do it all" services for customers, GoDaddy has beefed up GoCentral's features, adding online appointment scheduling, Square payments, and blogging capabilities. The company also integrated GoCentral across a dozen third-party platforms including Amazon.com, Apple Pay, Etsy, eBay, and Google My Business. Besides GoCentral, GoDaddy made improvements to its offerings for WordPress, which many of its customers use.

GoDaddy is transferring most 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.

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 GoDaddy added some of HEG's business applications services like email and ecommerce to its offerings.

Mergers and Acquisitions

GoDaddy Inc. in 2018 acquired Main Street Hub for about $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-it-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.

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 included Super Bowl commercials.

Media Temple, Inc.

12130 MILLENNIUM STE 300
Playa Vista, CA 90094-3156
Phone: 1 (877) 578-4000

Stats

Employer Type: Privately Owned
Vice President Enterprise Sales: Colin Dowling
Customer Service Supervisor: Joseph Hines
Vice President of Product: Brian Kuhn
Employees (This Location): 203
Employees (All Locations): 203

Major Office Locations

Playa Vista, CA