GoDaddy quarterly profit jumps nearly five fold

Markets Reuters

The GoDaddy inc. logo is shown on a computer screen in this illustration photo in Encinitas, California May 3, 2016. REUTERS/Mike Blake (Copyright Reuters 2016)

GoDaddy Inc (GDDY) better-than-expected quarterly revenue on Monday as the website hosting company expanded its customer base and earned more from each user, boosted by its recent acquisition of Host Europe Group.

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The company said its average revenue per user rose 5.5 percent to $134 as of Sept. 30, the end of the its third quarter.

Net income attributable to the company rose to $22.4 million, or 17 cents per share, in the quarter, from $4.8 million, or 5 cents per share, a year earlier.

The latest quarter included $22.9 million related to the sale of its German managed hosting provider PlusServer.

According to Thomson Reuters I/B/E/S, GoDaddy earned 4 cents per share from continuing operations, in line with analysts’ average estimate.

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The Scottsdale, Arizona based company said total revenue rose to $582.2 million, which beat analysts’ estimate of $579.5 million.

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GoDaddy completed its acquisition of Host Europe Group in April, expanding its footprint in Europe.

The company also forecast current-quarter revenue of $591 million to $596 million, the mid-point of which was below analysts estimate of $594.2 million.

Shares of the company, which touched record high of $47.37 during regular trading hours on Monday, were choppy in extended trading. After an initial dip, they were last up 1.9 percent.

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