An analyst asked GoDaddy about its domain name aftermarket business on this week’s GoDaddy earnings conference call. GoDaddy credits increased aftermarket revenue for growing its topline domain name revenue and it’s important for analysts and shareholders to get an understanding of how the business works.
Here’s the takeaway: the aftermarket business contributes mid-single digits to GoDaddy’s total revenue. Last quarter the company had revenue of $652 million, so if you assume about 4%-6%, that gives a number of about $25 million to $40 million in aftermarket revenue for the quarter.
GoDaddy’s aftermarket revenue is generated from GoDaddy purchased domains for resale, expired domain names from Godaddy and partnering platforms, and Afternic and AfternicDLs sales.