(Reuters) - GoDaddy Inc (GDDY.N) on Tuesday missed Wall Street estimates for third-quarter profit, as the web hosting company spent more on customer acquisitions and international expansion, sending its shares down 5 percent.
The world’s largest domain registrar has increasingly focused on expanding its international customer base, and in recent quarters has raised its spending on product development.
“The bulk of our marketing still is focused around customer acquisition,” Chief Executive Officer Scott Wagner told analysts on a post-earnings call.
The company, which manages roughly a fifth of all global domains, reported total costs and operating expenses of $642 million for the third quarter, up nearly 17 percent from a year earlier.
The earnings miss overshadowed better-than-expected quarterly revenue that sent the company’s shares up 2 percent initially after the bell.
The Scottsdale, Arizona-based company said it had about 18.3 million customers at the end of the quarter, up 6.7 percent from a year earlier. Average revenue per user rose 8.6 percent to $145.00.
Net income attributable to the company fell to $13.2 million, or 8 cents per share, in the quarter ended Sept. 30, from $22.4 million, or 17 cents per share, a year earlier.
Analysts had estimated earnings of 17 cents per share, according to IBES data from Refinitiv.
Total revenue rose to $679.5 million, beating analysts’ estimate of $673.9 million.
Reporting by Munsif Vengattil in Bengaluru; Editing by Maju Samuel