What Happened:
Shares of domain registrar and web services company, GoDaddy (NYSE:GDDY) fell 6.57% in the after-market session after the company posted first quarter sales that were inline with analysts' estimates, although the more commoditized 'Domains' segment beat while the more differentiated 'Business Applications' segment missed. Bookings, adjusted EBITDA, and free cash flow missed outright. Revenue and EPS guidance for the next quarter were inline with Consensus, and the full year revenue guidance slightly exceeded expectations. However, implied full-year revenue growth is 5%, which is fairly weak as many have thought of GDDY as a ~10% topline grower over the long term. Overall the Q1 results were mixed, and lacked a clear catalyst to lift investors' sentiments.
What is the market telling us:
GoDaddy's shares are not very volatile than the market average and over the last year have had only 4 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.
GoDaddy is down 3.76% since the beginning of the year, and at $71.44 per share it is trading 15% below its 52-week high of $84.08 from February 2023. Investors who bought $1,000 worth of GoDaddy's shares 5 years ago would now be looking at an investment worth $1,080.
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