GoDaddy Set to Report Strong Earnings Growth Ahead of Q4 Results
Analysts Predict Impressive Rise in Profits and Continued Market Momentum
Tempe, Arizona-based GoDaddy Inc. (GDDY), a leading internet domain registrar and web hosting provider, also offers a range of e-business software and services. With a market capitalization of $28.2 billion, the company operates through its Applications and Commerce, and Core Platform segments. GoDaddy is set to release its fourth-quarter results after the market closes on Thursday, Feb. 13.
Strong Earnings Expected
Before the earnings announcement, analysts project GoDaddy to report a non-GAAP profit of $1.46 per share. This marks a significant increase of 35.2% from the $1.08 per share reported in the same quarter last year. Notably, GoDaddy has outpaced Wall Street’s earnings expectations for four consecutive quarters. Last quarter, the company’s adjusted earnings per share (EPS) climbed 48.3% year-over-year to $1.32, surpassing analysts’ forecasts by 5.6%.
Looking Ahead: Fiscal Predictions
For fiscal year 2024, analysts expect an adjusted EPS of $4.96, indicating a remarkable 76.5% growth from $2.81 in fiscal 2023. Earnings are also projected to rise in fiscal 2025, with an anticipated increase of 34.9% year-over-year to $6.69 per share.
Stock Performance Outshines Major Indexes
GDDY stock has experienced an impressive 87.8% increase over the past year, notably outperforming the S&P 500 Index’s 26.5% rise and the Technology Select Sector SPDR Fund’s (XLK) 22.1% gains during the same period.
Robust Revenue Growth and Profitability
GoDaddy has demonstrated consistent topline growth, enhanced profitability, and solid cash generation. Following the release of its strong Q3 results on Oct. 30, GDDY shares surged by 3.2%. In that quarter, the company reported total revenues of $1.1 billion, reflecting a 7.3% year-over-year increase, driven primarily by a 16.5% revenue growth in its Application & Commerce segment, which reached $423.1 million. Additionally, its annualized recurring revenue grew by 15% year-over-year to $1.6 billion.
In terms of profitability, GoDaddy’s net income for shareholders soared by 45.8% compared to the previous year, totaling $190.5 million and exceeding Wall Street’s expectations.
Stock Sentiment and Analysts’ Recommendations
Analysts have a moderately bullish outlook on GDDY stock, giving it an overall “Moderate Buy” rating. Out of 17 analysts covering the stock, nine suggest a “Strong Buy,” one recommends a “Moderate Buy,” and seven advise a “Hold” rating. The average price target stands at $209, indicating a modest 4% upside potential from current levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
