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GoDaddy (GDDY) Surges 12% on Strong Q2 Revenue, 'Buy' Rating Reaffirmed
On Thursday, shares of internet company GoDaddy Inc. (GDDY - Free Report) are surging, up around 12% in afternoon trading after the company reported its fiscal 2016 second quarter results on August 3.
GoDaddy, who is known for products like domain, hosting, and other online small business applications, reported impressive Q2 results. Despite an earnings miss—the company reported a loss of 11 cents, missing the Zacks Consensus Estimate of a loss of 10 cents per share—total revenues rose over 15% year-over-year to $456.2 million, beating our consensus estimate of $450 million.
Average revenues per user grew 6.2% to $125 on a year-over-year basis, while total customers climbed 7.9% year-over-year to 14.3 at the end of the quarter.
“GoDaddy's second quarter financial performance was strong, with revenue growing 16% or nearly 18% on a constant currency basis. With a clear strategy and consistent execution, we've delivered another great quarter and doubled the size of our business over the last four years," said Blake Irving, GoDaddy's Chief Executive Officer. "Additionally, we are pleased to welcome Ray Winborne [former CFO of First Data ] as our new CFO and expand Scott Wagner's leadership role."
As a result, GoDaddy now expects third quarter revenues to fall between $468 million to $471 million, and between $1.840 billion and $1.847 billion for the full year. Analysts were expecting $469.34 and $1.84 billion, respectively.
Thanks to its better-than-expected earnings report, GDDY stock has climbed to a one-month high, as well as re-crossed its 50- and 200-day moving averages. In addition, Piper Jaffray analysts have reaffirmed the stock’s “Buy” rating with a $38 price target, indicating a 34.23% upside from the company’s current price.
GODADDY INC-A Price, Consensus and EPS Surprise
GODADDY INC-A Price, Consensus and EPS Surprise | GODADDY INC-A Quote
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