The Web Value Investor � Comparing Godaddy’s and NetSol’s price tags: "In Godaddy’s case, we have a Registrar that in 2005 was doing about 137M a year in revenues. They filed this S1 back then to raise 200M in an IPO which was then called off. 84 Million of those revenues came from domain registrations. Godaddy retails domains around $8 or $9, so $6 goes to Verisign, putting their COGS on the domains around 75%. That’s the thing with domain registrars that play the margin game (even wholesalers like my favorite Tucows): the gross margins on the domains aren’t that great (especially compared to the registry side of things), so those registrars need to make it up in add-ons. In Godaddy’s case that means web hosting, email, SSL certs, et al.
While the original S1 showed Godaddy was actually losing money. I don’t have the figures handy to see how many domains they had under management in 2005, I imagine they’re a lot larger now than they were then. I also suspect that they are also benefiting greatly from monetizing their domain expiries, a la Tucows."
No comments:
Post a Comment