GoDaddy (GDDY) Reports Q2: Everything You Need To Know Ahead Of Earnings

Kayode Omotosho /
2022/08/02 4:17 am EDT
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Domain registrar and web services company, GoDaddy (NYSE:GDDY) will be announcing earnings results tomorrow after market hours. Here's what to look for.

Last quarter GoDaddy reported revenues of $1 billion, up 11.2% year on year, beating analyst revenue expectations by 1.36%. It was a weaker quarter for the company, with a slow revenue growth and guidance for the next quarter roughly in-line with analysts' 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 9.15% year on year to $1.01 billion, slowing down from the 15.4% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.71 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 1.77%.

Looking at GoDaddy's peers in the sales and marketing software segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. Squarespace delivered top-line growth of 8.51% year on year, beating analyst estimates by 0.32% and Qualtrics reported revenues up 42.9% year on year, exceeding estimates by 3.34%. Squarespace traded flat on the results, Qualtrics was down 5.24%. Read our full analysis of Squarespace's results here and Qualtrics's results here.

Tech stocks have had a rocky start in 2022 and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 3.08% over the last month. GoDaddy is up 3.32% during the same time, and is heading into the earnings with analyst price target of $99, compared to share price of $73.7.

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.