Tempe, Arizona-based GoDaddy Inc. (GDDY) is an internet domain registrar and web hosting company that also sells e-business-related software and services. With a market cap of $28.2 billion, GoDaddy operates through Applications and Commerce, and Core Platform segments. GoDaddy is set to unveil its fourth-quarter results after the market closes on Thursday, Feb. 13.
Ahead of the event, analysts expect GoDaddy to report a non-GAAP profit of $1.46 per share, up a staggering 35.2% from $1.08 per share reported in the year-ago quarter. Furthermore, the company has surpassed Wall Street’s bottom-line projections in each of the past four quarters. Its adjusted EPS for the last reported quarter surged 48.3% year-over-year to $1.32, exceeding analysts' estimates by 5.6%.
For the full fiscal 2024, analysts expect GoDaddy to deliver an adjusted EPS of $4.96, up a massive 76.5% from $2.81 in fiscal 2023. While in fiscal 2025, its earnings are expected to increase 34.9% year-over-year to $6.69 per share.
GDDY stock has soared 87.8% over the past 52 weeks, significantly outperforming the S&P 500 Index’s ($SPX) 26.5% surge and the Technology Select Sector SPDR Fund’s (XLK) 22.1% returns during the same time frame.
GoDaddy has continued to showcase continued topline growth, improved profitability, and strong cash generation. GDDY stock prices surged 3.2% in the trading session after the release of its impressive Q3 results on Oct. 30. The company reported a solid 7.3% year-over-year growth in total revenues to $1.1 billion, primarily driven by the strong momentum in its Application & Commerce segment which reported a 16.5% growth in revenue to $423.1 million. Moreover, its annualized recurring revenue grew 15% year-over-year to $1.6 billion.
Meanwhile, GoDaddy’s profitability looks even more impressive as its net income to shareholders surged by a staggering 45.8% compared to the year-ago quarter, totaling $190.5 million which surpassed Wall Street’s expectations.
The consensus opinion on GDDY stock is moderately bullish, with an overall “Moderate Buy” rating. Out of the 17 analysts covering the stock, nine recommend “Strong Buy,” one advises “Moderate Buy,” and seven suggest a “Hold” rating. Its mean price target of $209 represents a modest 4% upside potential from current price levels.
