Godaddy Inc (NYSE:GDDY), the company which hosts a range of websites on the Internet, gave its debut presence on the New York Stock Exchange yesterday, after it raised $440 million in the IPO. On its first day, the company performed just fine with the stock increasing approximately 31%. The business model of the company however, despite being 18 years in the industry, has remained unprofitable. It is for this reason that GoDaddy remains under the microscopic lens of the market. The CEO of company, Blake Irving while giving an interview to Fox Business yesterday, tried all possible ways to stand in favour of the business model.
The CEO defends GoDaddy’s business technique
This company has already lost $143 million in 2014 as well as $200 million in 2013. Despite the horrifying downfall of a whooping amount, GoDaddy managed to see an upward trend in its revenue. The revenue growth was $1.4 billion in 2014, an increase from $1.1 billion the year before and $911 million in the year 2012.
The CEO says that the positive cash flow, along with the top-line growth is the reason for this. Irving explained that the accounting technique of GoDaddy demand from the management to recognize the costs directly and also bill the revenue made throughout the year.
Saying that the company was doing wonderfully in terms of cash flow, Irving added that the investors have understood about the story of GoDaddy.
IPO Leader echoes the same story
Talking in line with Irving, the Ernst & Young LLP IPO Leader, Jackie Kelley said that this is a mature company which allows its investors to enjoy the robust cash flow and throws at them, the enduring growth prospects. According to Kelley, Godaddy Inc (NYSE:GDDY) will add a positive sprinkle to the IPO markets of the U.S.
GoDaddy has approximately 13 million customers across the world and it manages a total of 50 million domains.