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GoDaddy Files For $100 Million IPO
mpicpp (3454017) writes with news that GoDaddy has filed to make an initial public offering "This is the second time GoDaddy has tried to go public. It went this route back in 2006, but then backed out when it didn't get the pricing it wanted."
The SEC Filing indicates that they are not in the greatest financial condition. Quoting CNN: "GoDaddy hasn't made a profit since 2009. The company lost $279 million in 2012. It bled another $200 million last year. This year doesn't look much better, with another $51 million lost in the first quarter." Founder Bob Parsons, currently executive chairman, will be stepping down but remaining on the board of directors.
An IPO that, even if successful, would cover only 6 months of their burn rate?
10 PRINT CHR$(205.5+RND(1)); : GOTO 10
I don't know if I'd feel comfortable buying them at this point.
I've decided to stop wasting my time responding to AC trolls/sockpuppets... so if you want a response from me... login.
This is going to make top Go Daddy execs millionaires, and every other stockholder gets screwed after the execs flip and the stock tumbles down in the months following said IPO.
Protip: NEVER enter an IPO, no matter how awesome you think the company is. Wait and see how the stock performs over an extended period.
The SEC Filing indicates that they are not in the greatest financial condition.
Shocking. They sell an aggressively priced commodity product and spend a ton on stupid sexist advertising to people who aren't their customers. Their customer service sucks and their website (last I checked) is a hot mess. While I haven't read their prospectus I don't really see them ever being more than modestly profitable at best. They seem to be taking an Amazon business model - growing now and worrying about profits down the road. But unlike Amazon the economic barriers to competition are quite a bit lower.
How the fuck do you blow $200+ million a year being a registrar? Where does the money go? It can't possibly cost that much unless they are doing something very, very wrong. Where is the cash going?
SOPA support?
GoDaddy should stick to their core competency of strippers, pole dancing and parties(*) rather than this internet thing.
* Well thats the impression I get from their ads.
I am Slashdot. Are you Slashdot as well?
Founder Bob Parsons, currently executive chairman, will be stepping down but remaining on the board of directors.
Well, there's your problem. Until Parsons is well and truly out of the business, I can't imagine there's going to be any serious turnaround.
Write failed: Broken pipe
THe guy that pushes those little dick pills?
They should fire all their marketing executives and build a simple website, and try online marketing instead. They can employ tools like, you knoe, Search Engine Optimisation, Website building tools etc. etc.
Whenever I look at the ugly girls dancing in the GoDaddy ads I can see where they keep losing more and more millions.
If you keep throwing chairs, one day you'll break windows....
How the fuck do you blow $200+ million a year being a registrar?
By buying pointless Super Bowl ads and selling your product for less than it actually costs to provide. It's not hard to lose a lot of money really fast if you sell a commodity product people want for less than it actually costs to provide it. I had a teacher once point out how easy it is to generate sales. Just sell a $2 bill for $1. You'll have all the revenue you can handle but you'll be out of business faster than you can say "Chapter 7 bankruptcy".
Where does the money go?
Go dig up the prospectus and it will tell you. I can't be bothered but my guess would be some combination of advertising, infrastructure and management compensation. Possibly debt service too if they went that route.
This company has been a lowbrow bottom feeder since the beginning.
At first glance the pricing looks OK. But soon you realize you are fenced in. You find out your domain is held hostage by lack of features. Features that are ransomed off.
Buying Go-Daddy is purely a speculative exercise that is not backed by history or sane projections.
but... but... Dannica Patrick's TITS!
ok, granted, those are a pretty heavily leveraged commodity, too...
the preceding comment is my own and in no way reflects the opinion of the Joint Chiefs of Staff
I'd like to think this is continuing backlash from their SOPA support.
But more likely it's just that they suck at business (too low pricing and too much advertising to the wrong audience).
$100M actually seams like a tame/sane ask in this market (mind you, I haven't even bothered to look at the prospectus).
It costs a lot to have half naked girls dancing in your ads. And also shooting endangered species costs a lot too.
Wooosh.
Surely once they are publicly traded, their days of being ethical and not evil will be at an end.
Gee, I wonder what could have effected their profitablity since that year.....
http://en.wikipedia.org/wiki/D...
Well.. maybe. Or Maybe not. But Definitely not sort of.
If the only place i could get 'x' was from godaddy, i would not use 'x'.
Any investor who think television advertising = a business without competition clearly is stupid,
Their rates for renewals are pretty high compared to the competition, so unless all registrars are unprofitable, I would think otherwise. 200 million sounds like executive pay run amok.
Unlikely but you can check the prospectus to find out. That sort of thing is required to be detailed in the prospectus for any IPO. I'm sure executive pay is a piece of it but it's unlikely to be the majority.
the stock has potential to be profitable. Wait for the IPO excitement to wane and the stock to crash. Then, and the timing is critical here, buy a big chunk when the price is really low. When the inevitable occurs, and the new management team comes on board, the stock will begin to rise and ... Profit!
I'll buy THAT for a dollar!
Personally I avoid using Godaddy unless there is one of those sales where they are selling domain registration or transfers at below cost.
I have registered a fair number of domains with them at the $1 to $5 price points you can sometimes get and when a decent coupon for transfer comes up from someone better like Namecheap I transfer them away. Godaddy looses money on the deal. I might transfer those domains back into godaddy on another below cost transfer deal but I just transfer it back out again if I find another deal or if the renewal is approaching. I have never paid them the normal cost of renewal. Every time I have done any business with them it's below the approximately $7.85 cost they are paying to the central registry.
So if you advocate a boycott of Godaddy that's fine. But if you want to hurt them even more then take advantage of their below cost coupons when you can and actually cost the company money but remember to transfer those domains away again when you can.
i thought godaddy was looking for a buyer, not planning an ipo?
When it came out that they were supporting SOPA I pulled my domains and moved them to Namecheap. One of the best things I ever did.
As part of the process they put a lock on a couple of my domains for some reason. They claimed it was because I changed some account information, which I didn't.
When that happened I complained to the AG in the state they are incorporated in. When that hit the fan some VP called me personally to expedite the transfer. So basically you can put some leverage on them through the AG.
Although Amazon has a ridiculous P/E of 513 [google.com] at least they make some money and are not bleeding red ink line Go Daddy.
Amazon's P/E doesn't mean much because they are heavily reinvesting in the company with stuff like Kindle etc. They could be highly profitable tomorrow if they wanted but they appear to be thinking long term. If you want a better idea of the value of Amazon's stock look at their Revenue vs Market Cap multiple which is approximately 2X. Most fairly valued companies have a revenue multiple between 1X and 2X so Amazon is not really outrageously priced most likely. I doubt GoDaddy could flip a switch and be profitable tomorrow.
I think the big blow of $279 came from the great support that GoDaddy made to SOPA, which ended up meaning its death. I took my last blocked domain from them after a long struggle to retrieve it from the MyPrivacy lock.
http://beta.slashdot.org/story/162304
GoDaddy were also pro-SOPA. I wouldn't go near them if I could help it.
We shall name you "Jake the Raper"!
Go daddy is the enemy. They have violated rights and did a lot of censorship of the net and freedom. Many hacker collectives including Anonymous have struck them.
She's a ug-mo, and not that great of a race car driver.
There, I probably just saved you $100M.
Maaaaaaaaybe they should change their corporate image from "trashy and unprofessional sexist pigs and perverts" to something that, oh I don't know, maybe business might find attractive. You know, businesses...the people that buy things from them. They're not selling Mountain Dew and tacos, they're selling professional IT services!
Your post with the correct salary information was hammered down four points below the bold-face lie. This Thanshin clown is really trying to disrupt this site with his garbage. The truth is no longer respected here.
RE: I've seen porn sites that were more modest.
I'm intrigued by your ideas and would like to subscribe to your newsletter.
Do you provide links?