Earnings To Watch: GoDaddy (GDDY) Reports Q1 Results Tomorrow

Jabin Bastian /
2022/05/03 7:03 am EDT
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Domain registrar and web services company, GoDaddy (NYSE:GDDY) will be reporting earnings tomorrow after market close. Here's what you need to know.

Last quarter GoDaddy reported revenues of $1.01 billion, up 16.6% year on year, beating analyst revenue expectations by 4.74%. Despite top-line results beating expectations, it was a weaker quarter for the company, with guidance for both the next quarter and the full year missing analyst estimates.

Is GoDaddy buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting GoDaddy's revenue to grow 9.77% year on year to $989.1 million, slowing down from the 13.7% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.85 per share.

GoDaddy Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 1.63%.

Looking at GoDaddy's peers in the sales and marketing software segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. BigCommerce delivered top-line growth of 41.5% year on year, beating analyst estimates by 3.46% and Qualtrics reported revenues up 40.6% year on year, exceeding estimates by 3.06%. BigCommerce was up 1.1% on the results. Qualtrics was up 4.3%. Read our full analysis of BigCommerce's results here and Qualtrics's results here.

Tech stocks have had a rocky start in 2022 and software stocks have not been spared, with share price down on average 16.9% over the last month. GoDaddy is down 6.43% during the same time, and is heading into the earnings with analyst price target of $104.1, compared to share price of $81.7.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.