Domain registrar and web services company GoDaddy (NYSE:GDDY) will be announcing earnings results tomorrow after the bell. Here’s what investors should know.
GoDaddy met analysts’ revenue expectations last quarter, reporting revenues of $1.15 billion, up 7.3% year on year. It was a strong quarter for the company, with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ bookings estimates.
Is GoDaddy a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting GoDaddy’s revenue to grow 6.9% year on year to $1.18 billion, improving from the 5.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.73 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. GoDaddy has missed Wall Street’s revenue estimates four times over the last two years.
Looking at GoDaddy’s peers in the sales and marketing software segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Shopify delivered year-on-year revenue growth of 31.2%, beating analysts’ expectations by 3%, and VeriSign reported revenues up 3.9%, in line with consensus estimates. VeriSign’s stock price was unchanged following the results.
Read our full analysis of Shopify’s results here and VeriSign’s results here.
There has been positive sentiment among investors in the sales and marketing software segment, with share prices up 9.1% on average over the last month. GoDaddy is up 4.5% during the same time and is heading into earnings with an average analyst price target of $206.87 (compared to the current share price of $206.26).
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