GoDaddy Prepares to Announce Q3 Earnings: What to Expect

GoDaddy GDDY is set to report its third-quarter 2024 earnings on Oct. 30.

The company anticipates revenues between $1.13 billion and $1.15 billion for this quarter, signaling a year-over-year growth of approximately 7% at the midpoint.

The Zacks Consensus Estimate for Q3 revenues is $1.14 billion, reflecting a growth rate of 6.86% compared to the same quarter last year.

Earnings estimates are set at $1.25 per share, remaining the same as the past month, which would mark a significant increase of 40.45% from last year’s results.

For the past four quarters, GoDaddy has consistently surpassed the Zacks Consensus Estimate, recording an average surprise of 10.25% in earnings.

GoDaddy Inc. Price and EPS Surprise

 

GoDaddy Inc. price-eps-surprise | GoDaddy Inc. Quote

Check out the latest EPS estimates and surprises on Zacks Earnings Calendar.

Let’s examine some factors affecting GoDaddy ahead of this announcement:

Key Elements Supporting GDDY’s Q3 Performance

GoDaddy has experienced strong momentum in its Applications & Commerce (A&C) segment and has successfully expanded its global market presence. The popularity of the Create & Grow tools is driving revenue growth in this area. Increased engagement with customers through product launches is further enhancing revenues from website and marketing services.

GoDaddy expects revenue growth in the A&C segment to fall in the mid-teens, while Core revenue growth is anticipated to be in the low-single digits. Strategic pricing and bundling initiatives are predicted to contribute positively to revenues for the upcoming quarter.

The company’s enhancements in Commerce, particularly the expanding availability of GoDaddy Airo, are also likely to boost overall revenue for the third quarter.

GoDaddy’s Commitment to Small Businesses

Focusing on small businesses and expanding its customer base has been vital to GoDaddy’s recent success. In Q2, the launch of the Digital Marketing Suite gave users personalized marketing tools to help grow their businesses without needing a website.

In April, GoDaddy unveiled the Smart Terminal Flex, a versatile Point-of-Sale terminal that incorporates modern features intended to increase efficiency for small businesses.

In May, the expansion of its Small Business GenAI Prompt Library, which offers over 185 updated prompts, further aids small business owners worldwide.

In August, GoDaddy introduced Digital Marketing, a comprehensive solution aimed at streamlining marketing with AI tools, social media integration, and a unified inbox designed for small business owners.

These initiatives are expected to drive GoDaddy’s revenue growth in the upcoming quarter.

Model Insights for Earnings Prediction

According to the Zacks model, a positive Earnings ESP combined with a Zacks Rank of #1 (Strong Buy), #2 (Buy), or #3 (Hold) increases the likelihood of an earnings beat. Currently, GoDaddy holds an Earnings ESP of 0.00% and a Zacks Rank #2, which may suggest a muted surprise for the upcoming report.

Alternative Stocks to Consider

Here are some other companies that may present viable opportunities, as they show strong indicators for beating earnings in their upcoming reports:

Meta Platforms META has an Earnings ESP of +2.83% and a Zacks Rank #2. Shares of META have surged 60.9% year-to-date and will report Q3 2024 results on Oct. 30.

Check Point Software CHKP holds an Earnings ESP of +1.26% and a Zacks Rank #2, with shares gaining 34.4% year-to-date. CHKP will report its third-quarter results on Oct. 29.

Garmin GRMN boasts an Earnings ESP of +1.03% and a Zacks Rank #2. GRMN shares have risen 27.8% year to date, with a report expected on Oct. 30.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.