GoDaddy Earnings: What To Look For From GDDY

Petr Huřťák /
2022/11/02 3:49 am EDT

Domain registrar and web services company, GoDaddy (NYSE:GDDY) will be reporting earnings tomorrow afternoon. Here's what to expect.

Last quarter GoDaddy reported revenues of $1.01 billion, up 9.04% year on year, missing analyst expectations by 0.1%. It was a weak quarter for the company, with revenue guidance for both the next quarter and the full year missing analysts' expectations.

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This quarter analysts are expecting GoDaddy's revenue to grow 7.48% year on year to $1.03 billion, slowing down from the 14.1% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.79 per share.

GoDaddy Total Revenue

The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing two downward revisions over the last thirty days.. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 1.62%.

Looking at GoDaddy's peers in the sales and marketing software segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Shopify delivered top-line growth of 21.5% year on year, beating analyst estimates by 2.27% and Zendesk reported revenues up 20.1% year on year, missing analyst estimates by 2%. Shopify traded up 7.17% on the results, and Zendesk was flat on the results. Read our full analysis of Shopify's results here and Zendesk's results here.

There has been positive sentiment among investors in the software segment, with the stocks up on average 2.98% over the last month. GoDaddy is up 11.5% during the same time, and is heading into the earnings with analyst price target of $97.90, compared to share price of $78.64.

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