Why is GoDaddy (GDDY) down 2.4% from the previous earnings report? – Illinoisnewstoday.com
One month has passed since the last GoDaddy (GDDY) revenue report. Shares fell about 2.4% in that time frame, below the S & P 500.
Will the recent negative trends continue until the next earnings announcement, or is GoDaddy going to break out? To better understand the key factors before jumping into the recent investor and analyst reaction. Let’s take a quick look at the latest earnings report.
GoDaddy Q1 Revenue Delay Estimate, Revenue Increases Y / Y
GoDaddy reported that adjusted earnings for the first quarter of 2021 were 6 cents per share, 80.7% below the Zack Consensus estimate and a 75% year-over-year decrease.
The company’s revenue was $ 911.1 million, up 13.8% from the previous year. In fixed currency (cc), revenue increased by 13.4%. This figure is 1.8% above the consensus mark.
Overseas revenue was $ 303.1 million, up 15.5% year-on-year and up 14.4% on a CC basis.
GoDaddy makes money from three segments: domain, hosting and presence, and business applications.
Domain: The company generated $ 422.7 million in revenue from this segment (accounting for 46.9% of total revenue). This number improved 18.8% year-on-year due to higher average selling prices.
Hosting and Presence: Revenue in this segment was $ 310.3 million (34.4% of revenue), an increase of 4.4% over the previous year.
Business Applications: Revenue in this segment was $ 168.1 million (18.7% of revenue), an increase of 21% over the previous year.
GoDaddy typically uses total bookings as a performance indicator because payments are collected at the time of sale and revenue is proportionally recognized over the customer’s contract period. Total bookings for the first quarter were $ 1.09 billion, an increase of 14.5% year-on-year and 13.5% in real terms.
Gross margin was 64.4%, down 70 basis points (bps) year-over-year.
Operating expenses (technology and development, marketing and advertising, general and administrative expenses) were $ 541.9 million, an increase of 20.3% over the previous year.
Operating income was $ 38 million, down 41.1% from the year-ago quarter.
Balance sheet and cash flow
Cash and cash equivalents as of March 31, 2021 were $ 1.29 billion, compared to $ 765.2 million as of December 31, 2021.
Total liabilities were $ 3.9 billion and net liabilities were $ 2.61 billion in the first quarter.
Unleveraged free cash flow for the reported quarter was $ 268.3 million.
GoDaddy expects second-quarter revenue to be $ 920 million, an increase of approximately 14% year-over-year.
GoDaddy expects revenue in 2021 to be $ 3.745 billion, an increase of approximately 13% year-on-year.
How has the quote worked since then?
We found that the revision of the estimate has been on a downward trend in the past month. These changes have shifted the consensus estimate by -19.08%.
GoDaddy currently has a great growth score of A, but is far behind C in terms of momentum score. It’s one-fifth of this investment strategy.
Overall, the total VGM score for this stock is B. If you are not focusing on one strategy, you should pay attention to this score.
Stock quotes are generally on a downtrend, indicating a downward shift in the magnitude of these revisions. It’s not surprising that GoDaddy has Zacks rank # 4 (for sale). Stock returns are expected to be below average over the next few months.
Need the latest recommendations from Zacks Investment Research? Today, you can download the 7 best stocks for the next 30 days. Click to get this free reportSource
Tags: earnings, godaddy, illinoisnewstoday, previous, report