GoDaddy GDDY is scheduled to report second-quarter 2024 results on Aug 1.
GDDY expects revenues between $1.10 billion and $1.12 billion, indicating year-over-year growth of 6% at the mid-point for the second quarter.
The Zacks Consensus Estimate for second-quarter 2024 revenues is pegged at $1.11 billion, suggesting 6.26% growth from the figure reported in the year-ago quarter.
The consensus mark for earnings is pegged at $1.07 per share, unchanged over the past 30 days and suggests 69.84% growth from the figure reported in the year-ago quarter.
GoDaddy’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, delivering an earnings surprise of 13.19%, on average.
GoDaddy Inc. Price and EPS Surprise
GoDaddy Inc. price-eps-surprise | GoDaddy Inc. Quote
Let’s see how things have shaped up for the company prior to this announcement:
Factors to Note
GoDaddy is benefiting from strong momentum across the Applications & Commerce (A&C) business and expansion in its global footprint. Strength in Create & Grow solutions is aiding the Application & Commerce segment's top-line growth. Website plus marketing, driven by greater engagement with customers based on new product launches, is contributing well.
GoDaddy expects second-quarter A&C revenue growth in the low to mid-teens and Core revenue growth in the low single digits. Its pricing and bundling efforts are expected to have driven top-line growth in the to-be-reported quarter.
GoDaddy is improving its footprint in Commerce, with gross payment volume surpassing $2 billion in the first quarter of 2024. The trend is expected to have continued in the to-be-reported quarter. The launch of GoDaddy Smart Terminal Flex, a handheld device that allows its customers to accept payments anywhere on the fly, has been a noteworthy development.
GoDaddy Airo’s expanding availability boosts prospects.
Integration of Gmail and Microsoft 365 into GoDaddy Conversations benefits small businesses, a growing customer cluster for GoDaddy. The app helps small businesses manage all of their communication channels and provides them with the ability to seamlessly view and reply to messages that come in from Facebook, Instagram, Contact Forms, Chat and now Gmail, as well as Microsoft 365.
However, mounting operating expenses owing to rising technology & development investments are expected to have hurt profits in the to-be-reported quarter.
What Our Model Says
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. That’s the exact case here.
GoDaddy currently has an Earnings ESP of +13.08% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are some other companies worth considering, as our model shows that these, too, have the right combination of elements to beat on earnings in their upcoming releases:
DigitalOcean DOCN has an Earnings ESP of +2.19% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
DigitalOcean’s shares have declined 12.3% year to date. DOCN is set to report its second-quarter 2024 results on Aug 8.
Apple AAPL has an Earnings ESP of +3.05% and a Zacks Rank #2.
Apple’s shares have returned 13.2% year to date. AAPL is scheduled to release third-quarter fiscal 2024 results on Aug 1.
CACI International CACI has an Earnings ESP of +1.00% and a Zacks Rank #2.
CACI International’s shares have gained 38.6% year to date. CACI is scheduled to release fourth-quarter fiscal 2024 results on Aug 7.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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