Latest news with #GDDY
Yahoo
16-05-2025
- Business
- Yahoo
GDDY Q1 Earnings Call: AI Initiatives and Bundling Drive Margin Expansion Amid Customer Base Stability
Domain registrar and web services company GoDaddy (NYSE:GDDY) beat Wall Street's revenue expectations in Q1 CY2025, with sales up 7.7% year on year to $1.19 billion. The company expects next quarter's revenue to be around $1.21 billion, close to analysts' estimates. Its non-GAAP profit of $2.10 per share was 12.8% above analysts' consensus estimates. Is now the time to buy GDDY? Find out in our full research report (it's free). Revenue: $1.19 billion vs analyst estimates of $1.19 billion (7.7% year-on-year growth, 0.6% beat) Adjusted EPS: $2.10 vs analyst estimates of $1.86 (12.8% beat) Adjusted Operating Income: $247.3 million vs analyst estimates of $241.7 million (20.7% margin, 2.3% beat) The company reconfirmed its revenue guidance for the full year of $4.9 billion at the midpoint Operating Margin: 20.7%, up from 15.9% in the same quarter last year Free Cash Flow Margin: 34.4%, up from 28.7% in the previous quarter Customers: 20.48 million, down from 20.51 million in the previous quarter Net Revenue Retention Rate: 85.4%, in line with the previous quarter Annual Recurring Revenue: $4.05 billion at quarter end, up 7.5% year on year Billings: $1.35 billion at quarter end Market Capitalization: $27.07 billion GoDaddy's first quarter results were shaped by operational progress on pricing, bundling, and product innovation, particularly within its Artificial Intelligence (AI)-powered tools. CEO Aman Bhutani highlighted the ongoing shift from product-centric to customer cohort-driven strategies—especially in pricing and bundling—as a core factor driving higher average order sizes and improved customer retention. Notably, GoDaddy's seamless experience initiative and expanded commerce offerings, including GoDaddy Capital and same-day payouts, contributed to higher engagement and renewal rates. Looking ahead, management reaffirmed its full-year revenue outlook, citing continued confidence in the company's ability to attract higher lifetime value customers and expand free cash flow. CFO Mark McCaffrey emphasized that the company's operational discipline, investments in marketing for the Airo platform, and continued innovation in AI and automation remain central to their margin expansion targets. While GoDaddy acknowledged modest headwinds in small business sentiment, management stated that customer resilience and a favorable product mix underpin their guidance for the remainder of the year. GoDaddy's management attributed the quarter's revenue and margin gains to progress on its AI-driven product suite, disciplined execution on pricing and bundling, and ongoing efforts to attract higher value customers. The company also extended its share repurchase program, reflecting confidence in its capital return framework. AI-powered product engagement: The rollout of Airo, GoDaddy's generative AI platform, continued to drive increased product attachment and customer engagement. Management noted that Airo customers are purchasing more products and demonstrating higher renewal rates. Early results from Airo Plus, the premium tier, are encouraging but still in the initial testing phase. Bundling and pricing strategy: Management's shift from product-based to customer cohort-based pricing and bundling delivered ahead of internal expectations. The company is testing new bundles across segments, leveraging its platform to quickly integrate both proprietary and third-party products, which is expanding average order size and customer retention. Commerce and payments growth: GoDaddy's commerce segment saw healthy annualized gross payments volume growth, primarily from deeper conversion within its existing customer base. New offerings such as GoDaddy Capital (merchant cash advance) and same-day payouts are gaining traction, broadening the company's one-stop-shop value proposition. Operational efficiency and margin expansion: The company expanded its normalized EBITDA margin, crediting favorable product mix, infrastructure simplification, and disciplined marketing spend, especially around AI-driven products. Management reiterated that product mix—not one-off cost savings—was the primary driver of margin gains. Capital allocation and buybacks: With the prior $4 billion repurchase program completed, GoDaddy's board approved a new $3 billion share repurchase authorization through 2027. Management reiterated its focus on returning value to shareholders within a disciplined capital allocation framework. GoDaddy's management outlined a future focused on expanding its high-intent customer base, further AI integration, and disciplined capital deployment, with ongoing macroeconomic monitoring. AI and automation rollout: The company expects continued improvements in customer engagement and retention as Airo and Agentic AI features automate more tasks for small businesses, supporting lifetime value growth. Bundling and pricing optimization: Further testing of customer cohort-driven bundles and rapid integration of third-party solutions are expected to sustain higher average order size and lower churn rates, supporting both revenue and margin expansion. Customer base and macro resilience: Management is watching for stabilization and return to customer growth as the company laps prior divestitures, while monitoring small business sentiment for potential economic headwinds. Elizabeth Porter (Morgan Stanley): Asked about small business sentiment and potential macro pressures; management noted resilience but acknowledged some pressure, relying on strong retention and value delivered to customers. Ygal Arounian (Citigroup): Inquired about trends in average order size and Airo/Airo Plus adoption; management said average order size gains persist, with Airo driving faster product attachment and improved retention, while Airo Plus remains early-stage. Vikram Kesavabhotla (Baird): Sought details on Agentic AI and bundling; CEO Bhutani explained Agentic AI's future role in automating tasks for microbusinesses and described ongoing bundling tests as key to value creation. Trevor Young (Barclays): Asked about the path to renewed customer growth and gross margin drivers; management emphasized a strategy of focusing on higher-intent customers and attributed margin expansion to favorable product mix rather than cost reductions. Brad Erickson (RBC): Probed the relative impact of pricing vs. bundling; management said the highest customer lifetime value comes from well-integrated bundles, making it difficult to separate the two. In coming quarters, the StockStory team will be watching (1) the adoption and monetization of Airo Plus and its impact on customer engagement, (2) results from ongoing bundling and pricing experiments across customer cohorts, and (3) whether GoDaddy can achieve a return to customer growth as it laps prior divestitures. The pace of uptake for new commerce and payments offerings will also be a critical indicator of progress. GoDaddy currently trades at a forward price-to-sales ratio of 5.5×. Should you load up, cash out, or stay put? See for yourself in our free research report. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. 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Yahoo
06-05-2025
- Business
- Yahoo
GoDaddy price target lowered to $202 from $230 at Seaport Research
Seaport Research lowered the firm's price target on GoDaddy (GDDY) to $202 from $230 and keeps a Buy rating on the shares. The firm reiterates its rating on the stock given the continued momentum in asset & capital investments as well as its strong expense discipline, the analyst tells investors. Protect Your Portfolio Against Market Uncertainty Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See the top stocks recommended by analysts >> Read More on GDDY: Disclaimer & DisclosureReport an Issue
Yahoo
13-02-2025
- Business
- Yahoo
GoDaddy Gears Up to Report Q4 Earnings: What's in the Cards?
GoDaddy GDDY is scheduled to report fourth-quarter 2024 results on Feb. expects revenues between $1.17 billion and $1.19 billion for the fourth quarter, indicating growth of 7% at the mid-point from the figure reported in the year-ago Zacks Consensus Estimate for fourth-quarter 2024 revenues is pegged at $1.18 billion, suggesting a 6.91% year-over-year rise. GoDaddy Inc. price-eps-surprise | GoDaddy Inc. Quote The consensus mark for earnings is pegged at $1.46 per share, unchanged over the past 30 days, indicating growth of 35.19% from the year-ago quarter's reported earnings beat the Zacks Consensus Estimate in the trailing four quarters, delivering an average earnings surprise of 5.31%.Let us see how things have shaped up for the upcoming announcement. GDDY's ongoing pricing and bundling strategy, which started with productivity solutions and expanded across its product suite, is expected to have supported its fourth-quarter 2024 growth. By enhancing value for customers and adjusting pricing accordingly, it likely to have driven top-line growth in the to-be-reported the third quarter of 2024, GoDaddy's Applications and Commerce (A&C) revenues grew 16% year over year. This growth was supported by the company's strategic initiatives, including the rollout of the GoDaddy Airo AI-powered experience, which enhanced customer engagement and streamlined online business opportunities. These enhancements are anticipated to have supported GDDY's A&C platform's growth in the to-be-reported launch of AI-powered features like Point of Sale Plus and Invoicing Plus is expected to have positively impacted GoDaddy's fourth-quarter performance by enhancing efficiency for merchants and driving higher adoption. These tools simplify payment processing and invoicing, making it easier for businesses to manage transactions and streamline the fourth quarter, GDDY is likely to have benefited from the launch of its Digital Marketing Suite and AI-powered commerce features, which enhance customer acquisition, engagement and operational efficiency, driving adoption and revenue increasing competition in domains and web hosting continues to put pressure on pricing and market share in certain segments. With peers offering competitive pricing and enhanced features, GoDaddy may have faced difficulties in maintaining its growth momentum. These challenges are expected to have negatively impacted the company's performance in the quarter under review. Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the exact case currently has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter. Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:Twilio TWLO currently has an Earnings ESP of +3.28% and sports a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks shares have risen 34.8% year to date. Twilio is set to report fourth-quarter 2024 results on Feb. LYFT has an Earnings ESP of +4.12% and a Zacks Rank #3 at present. LYFT shares have gained 9.8% year to date. Lyft is slated to report fourth-quarter 2024 results on Feb. SHOP has an Earnings ESP of +23.08% and a Zacks Rank #3 at present. SHOP shares have gained 10.4% year to date. Shopify is slated to report fourth-quarter 2024 results on Feb. 11. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report GoDaddy Inc. (GDDY) : Free Stock Analysis Report Shopify Inc. (SHOP) : Free Stock Analysis Report Twilio Inc. (TWLO) : Free Stock Analysis Report Lyft, Inc. (LYFT) : Free Stock Analysis Report To read this article on click here. Zacks Investment Research Sign in to access your portfolio
