Key Takeaways from GoDaddy’s Q1 Earnings Report

GoDaddy (GDDY) offers solutions that support small businesses selling online. GDDY reported mixed Q1 2022 results and the stock declined about 2.6% during extended trading on May 4, following the earnings report.

Don't Miss Our Christmas Offers:

Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks
Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter

Q1 Earnings at a Glance

Revenue of $1 billion jumped 11.5% year-over-year and exceeded the consensus estimate of $989.49 million. While earnings per share (EPS) of $0.41 rose from $0.06 for the same quarter the previous year, it missed the consensus estimate of $0.42.

Buyback Program Gets a Boost

GoDaddy expects to return $1 billion to shareholders through stock repurchases in 2022. It initially unveiled a $750 million repurchase plan and has now added $250 million to the program.

Q2 Outlook

The company anticipates Q2 revenue in the range of $1.01 billion to $1.02 billion, which suggests 9% year-over-year growth at the midpoint. The consensus estimate calls for revenue of $1.02 billion.

For the full year 2022, GoDaddy expects revenue in the range of $4.14 billion to $4.16 billion, representing 9% growth at the midpoint. Wall Street is expecting revenue of $4.16 billion for the year.

GoDaddy CFO, Mark McCaffrey, said, “We remain committed to delivering a balanced combination of durable top-line growth, profitability at scale and robust cash flow as outlined at our recent Investor Day.”

Wall Street’s Take

Consensus among analysts is a Strong Buy based on nine Buys and two Holds. The average GoDaddy price forecast stands at $106 and implies upside potential of 29% to current levels. Shares have gained about 13% over the past six months.

Website Traffic

During Q1, GoDaddy’s Website Traffic Tool recorded a 4.6% year-over-year increase in total visits. An upward website traffic trend can indicate increased interest in a company’s products, which can in turn offer a clue into the company’s performance. In GoDaddy’s case, the traffic surge correctly predicted the company’s revenue growth.

Learn more about the Website Traffic tool in this video by Youtube sensation Tom Nash.

Key Takeaway for Investors

In a mostly volatile market where investors continue to worry about inflation, supply chain constraints, and the war in Ukraine, GoDaddy’s repurchase program could help stabilize the stock.

Discover new investment ideas with data you can trust.

Read full Disclaimer & Disclosure