Domain registrar and web services company, GoDaddy (NYSE:GDDY) will be reporting results tomorrow after market hours. Here's what to look for.
Last quarter GoDaddy reported revenues of $1.03 billion, up 7.18% year on year, missing analyst expectations by 0.34%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and slow revenue growth.
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 2.34% year on year to $1.04 billion, slowing down from the 16.6% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.80 per share.
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 missed Wall St's revenue estimates twice over the last two years.
Looking at GoDaddy's peers in the sales and marketing software segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Freshworks delivered top-line growth of 26.3% year on year, beating analyst estimates by 2.18% and Qualtrics reported revenues up 23.1% year on year, exceeding estimates by 2.09%. Freshworks traded down 3.6% on the results, and Qualtrics was up 1.25%. Read our full analysis of Freshworks's results here and Qualtrics's results here.
There has been positive sentiment among investors in the software segment, with the stocks up on average 10% over the last month. GoDaddy is up 6.42% during the same time, and is heading into the earnings with analyst price target of $94.1, compared to share price of $80.7.
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The author has no position in any of the stocks mentioned.