GoDaddy Now Carrying $1.5billion in Debt...

[lennco]

In its IPO filing, GoDaddy makes clear it prefers different metrics. It likes bookings, which are all the cash receipts taken in during a given period, better than revenue. It only records revenue as the domain name and other customer agreements progress, so a two-year domain name rental paid up results in revenue spread out over 24 months. Bookings for 2013 were $1.40 billion, versus revenue of $1.13 billion. Some sales don’t stick, however, and GoDaddy is forced to make refunds: $96.1 million of refunds in 2013.

GoDaddy also likes adjusted EBITDA, which omits those pesky depreciation and amortization expenses. And it’s also enamored by a metric known as unlevered free cash flow, which is akin to a consumer making a monthly budget that omits the mortgage payment. It’s fun to dream.

http://www.thedomains.com/2014/06/21/go-daddy-now-carrying-1-5billion-in-debt/

 

[vteams]

http://www.thedomains.com/2014/06/21/go-daddy-now-carrying-1-5billion-in-debt/

nice one

 

[Name Trader]

Yep. Paying $350M special dividend to the owners by borrowing the money makes a lot of sense... NOT!!!

 

[SearchEngineZ]

Looks like their only possible play is to increase prices.

I'd love to know what percentage of their customers are paying full price, and how they are managing to lose money while other registrars (presumably) are making a profit. TV adverts might have something to do with it. And probably over paying the CEO.

 

[Name Trader]

Actually, they have increased prices. Haven't you noticed how hard it has become to get a renewal code?