6 ms·

Surprising to read between 800-900M 2009 revenue and a price tag of 1B.

hristov 16y ago
Well, revenue is not profits. It would be interesting to see what their actual profits are. For one, they spend a lot of money on advertising.
- qeorge 16y ago
  I would think their profit margins are huge, though you're right, they do spend a ton of money on ads. IIRC, registrars pay on the order of 25 cents a domain, which they then resell for $8 or more, and GoDaddy is the registrar for something like 1/4 of all .coms. Web hosting and email are very high-margin too.
  - jackowayed 16y ago
    Do they seriously only pay 25 cents (or so) per domain? Why has there not been some disruptive registrar selling .com's for, say, $4? Whatever the operating costs of being a registrar are, it seems like they should be no more than $1/domain-year. So if a registrar dropped their prices to $3 or $4 and grabbed half the market out of it, they'd post huge profits. Obviously those numbers are just guesses, but I highly doubt that it really costs $9/year to host a domain at scale.
    - bl4k 16y ago
      ye that should have tipped you off that the dude above has no idea what he is talking about (he got domain names mixed up with skittles)
  - dugmartin 16y ago
    The registrars pay $7.34 per .com domain to VeriSign. So they are only making 66 cents on that $8 domain. That is why GoDaddy bombards you with add-ons when you register a domain.
    - portman 16y ago
      Source: http://www.domainnamenews.com/registries/verisign-registry-increase-com-fees-july-2010/6832 http://www.domainnamenews.com/registries/verisign-registry-i...
    - qeorge 16y ago
      Touche. I knew about the ICANN fees, but didn't know about the $7.34 for dotcoms that VeriSign gets. Thanks for the correction.
    - MC27 16y ago
      There will also be a transaction fee from their payment processor and there's discount codes.
    - bond 16y ago
      I'm sure godaddy gets a discount based on volume...
      - hellweaver666 16y ago
        As someone that works for a domain registrar, I can tell you this is definitely true.
deleted 16y ago
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asanwal 16y ago
Agreed. That's a price/sales ratio slightly over 1. Salesforce.com has a price/sales of over 10. Different biz I know but both are ultimately subscriptions.
- hyperbovine 16y ago
  GoDaddy is a go-between. Salesforce is not.
  - asanwal 16y ago
    Go-between or not doesn't change the nature of their revenues. Buying a domain is a subscription (you pay annually) and they cross-sell you on a bunch of other "enhancements". It's also pretty sticky for the vast majority of domain holders. That type of recurring revenue is valuable. Salesforce is a subscription as well. GoDaddy prob doesn't deserve a p/s of 10 like 10 but 1 seemed low. That is what i was pointing out. Not sure why I got down-voted but sorry to someone at Salesforce who I offended :)

Well, revenue is not profits. It would be interesting to see what their actual profits are. For one, they spend a lot of money on advertising.

qeorge 16y ago
I would think their profit margins are huge, though you're right, they do spend a ton of money on ads. IIRC, registrars pay on the order of 25 cents a domain, which they then resell for $8 or more, and GoDaddy is the registrar for something like 1/4 of all .coms. Web hosting and email are very high-margin too.
- jackowayed 16y ago
  Do they seriously only pay 25 cents (or so) per domain? Why has there not been some disruptive registrar selling .com's for, say, $4? Whatever the operating costs of being a registrar are, it seems like they should be no more than $1/domain-year. So if a registrar dropped their prices to $3 or $4 and grabbed half the market out of it, they'd post huge profits. Obviously those numbers are just guesses, but I highly doubt that it really costs $9/year to host a domain at scale.
  - bl4k 16y ago
    ye that should have tipped you off that the dude above has no idea what he is talking about (he got domain names mixed up with skittles)
- dugmartin 16y ago
  The registrars pay $7.34 per .com domain to VeriSign. So they are only making 66 cents on that $8 domain. That is why GoDaddy bombards you with add-ons when you register a domain.
  - portman 16y ago
    Source: http://www.domainnamenews.com/registries/verisign-registry-increase-com-fees-july-2010/6832 http://www.domainnamenews.com/registries/verisign-registry-i...
  - qeorge 16y ago
    Touche. I knew about the ICANN fees, but didn't know about the $7.34 for dotcoms that VeriSign gets. Thanks for the correction.
  - MC27 16y ago
    There will also be a transaction fee from their payment processor and there's discount codes.
  - bond 16y ago
    I'm sure godaddy gets a discount based on volume...
    - hellweaver666 16y ago
      As someone that works for a domain registrar, I can tell you this is definitely true.

deleted 16y ago

[deleted]

asanwal 16y ago

Agreed. That's a price/sales ratio slightly over 1. Salesforce.com has a price/sales of over 10. Different biz I know but both are ultimately subscriptions.

hyperbovine 16y ago
GoDaddy is a go-between. Salesforce is not.
- asanwal 16y ago
  Go-between or not doesn't change the nature of their revenues. Buying a domain is a subscription (you pay annually) and they cross-sell you on a bunch of other "enhancements". It's also pretty sticky for the vast majority of domain holders. That type of recurring revenue is valuable. Salesforce is a subscription as well. GoDaddy prob doesn't deserve a p/s of 10 like 10 but 1 seemed low. That is what i was pointing out. Not sure why I got down-voted but sorry to someone at Salesforce who I offended :)