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GoDaddy Inc (GDDY), a leading domain registrar and web services company, is set to announce its Q4 earnings results this Tuesday after market hours. Here’s what investors should keep in mind.
Recent Performance
In the previous quarter, GoDaddy exceeded analysts’ revenue expectations by reporting $1.27 billion in revenues, marking a 10.3% increase year-over-year. The earnings results were satisfactory, showcasing a significant beat on EBITDA estimates, although the revenue guidance for the upcoming quarter slightly missed analysts’ projections. The company added 4,000 customers, bringing its total to 20.41 million.
Analyst Expectations
This quarter, analysts expect GoDaddy’s revenue to grow by 6.4% year-over-year, a deceleration compared to the 8.4% increase observed in the same quarter of the previous year. Over the last 30 days, analysts have generally reaffirmed their estimates, indicating confidence in the company’s performance heading into earnings. Historically, GoDaddy has a low tendency to miss Wall Street’s revenue estimates.
Comparative Insights
Looking at competitors in the sales and marketing software segment, some have already reported their Q4 results. Shopify demonstrated a robust year-on-year revenue growth of 30.6%, surpassing analysts’ expectations by 2%. Conversely, Commerce reported a revenue increase of only 2.9%, falling short of estimates by 0.8%. Following these results, Shopify shares declined by 13%, while Commerce saw a slight uptick of 1.1%.
Debates surrounding potential tariffs and corporate tax adjustments have raised concerns about economic stability for 2025. As a result, stocks in the sales and marketing software sector have struggled, with an average decline of 17.1% over the past month. GoDaddy's stock has also experienced a downturn of 14.3% during this same period, approaching earnings with an average analyst price target of $175 compared to its current share price of $90.50.
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