After-Hours News: Godaddy Inc (GDDY) Stock Price Dips On First Earnings Results Since IPO

Shares of Godaddy Inc. (NYSE:GDDY), the world's largest website registrar, dipped 3 percent in extended-hours trading Tuesday, after the company released its first quarterly earnings report since making its stock market debut in April. Known for its racy advertising campaigns, the company has become a household name by sponsoring Nascar driver Danica Patrick and featuring her in television ads.

After the closing bell, Godaddy shares dropped 80 cents to $26.02.

Beyond its market debut, Godaddy faces a number of challenges. It hasn't turned a profit since 2009. For the January to March quarter, Godaddy reported a first-quarter loss of $43.4 million, or 34 cents per share, as revenue jumped 17 percent to $376.3 million. That compares with a loss of $51.3 million, or 40 cents, on sales of $320.2 million in the same period a year ago.

The jump in revenue was helped by growth in the number of customers and an increase in annual revenue per average user, which climbed 9.6 percent to $115, from $105 a year earlier. Godaddy added 13.1 million customers by the end of the quarter, up from 11.9 million during the same period a year ago.

The Scottsdale, Arizona, company manages about a fifth of the world's Internet domains and has about 13 million customers and nearly 60 million domains under its management. Godaddy helps individuals and businesses set up Internet domains and offers website building, hosting and security and other services.

The company is one of the most notable technology initial public offerings this year, along with online crafts marketplace Etsy Inc., which went public in April, and online data storage provider Box Inc., which had its IPO in January. Godaddy's stock leaped more than 30 percent after shares opened for trading on April 1 at $26.15. They had priced at $20 a share, valuing the company at nearly $4 billion. Shares have gained just over 2 percent since the IPO, as of the close of trading Tuesday.

Rapid Ratings, which measures the financial health of companies by digesting corporate financials and determining those companies' financial efficiency, rated Godaddy a 26 on their 0-100 scale ahead of its IPO, a low rating that places the company in a high risk zone. In comparison with other recent IPOs, Shake Shack received a score of 85 (very low risk) at its debut from Rapid Ratings, while Box was rated a 23.