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GoDaddy (GDDY) Adds Tap to Pay, Bolsters Payment Offerings
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GoDaddy (GDDY - Free Report) has integrated Apple's (AAPL - Free Report) Tap to Pay into its free mobile app, allowing small businesses to accept contactless payments seamlessly just with an iPhone.
The latest move removes the requirement of a dongle or a card reader for small entrepreneurs to accept contactless payments.
Moreover, Apple’s Tap to Pay feature enables businesses to accept payments via contactless debit and credit cards, Apple Pay and other digital wallets.
In order to get started with the latest feature, entrepreneurs just need to download the GoDaddy mobile app on a compatible iPhone and choose Tap to Pay.
With the integration, GoDaddy is likely to witness strong momentum across small businesses as well as the growing adoption of its mobile app. This in turn will likely contribute to its revenues in the days ahead.
The latest move is in sync with GoDaddy’s deepening focus on providing user-friendly and connected commerce tools to businesses.
It had added to the strength of the Applications & Commerce segment, which has become the cash cow of the company.
In the fourth quarter of 2022, the segment generated $333.4 million (accounting for 32.1% of total revenues), up 10.9% on a year-over-year basis. The segment’s annualized recurring revenues were $1.3 billion, increasing 9% year over year.
For 2023, the company expects the segment’s revenue growth to be in the band of 8% to 10%.
We believe the company’s strong focus on bolstering the Application & Commerce segment is expected to contribute well to its overall performance, which in turn is likely to aid it in winning investors’ confidence going ahead.
For 2023, management expects total revenues in the range of $4.250-$4.325 billion, suggesting growth of 5% at the midpoint from the year-ago reading. The Zacks Consensus Estimate for the same is pegged at $4.27 billion, indicating growth of 4.4% from 2022.
The consensus mark of earnings for 2023 stands at $2.70 per share, implying growth of 22.2% from the previous year.
Coming to the price performance, GDDY has gained 3.7% in the year-to-date period compared with the industry’s rise of 3.8%.
Portfolio Strength: A Key Catalyst
The latest move is in line with GoDaddy's focus on strengthening its overall portfolio offerings.
GoDaddy also introduced a Small Business Generative AI Prompt Library, which is designed to provide small firms access to the same level of expertise and capability typically available to huge enterprises.
Further, GoDaddy partnered with Fidelity National Information Services to launch Commerce 360, an all-in-one omnichannel solution, for supplying e-commerce items to small and medium-sized businesses. The solution will combine GoDaddy's simple business tools with Fidelity National's Worldpay payments capabilities.
We believe that the growing portfolio offerings will continue to drive GoDaddy’s customer momentum in the days ahead.
However, intensifying competition in the domain, hosting, and presence markets poses a threat.
Further, mounting expenses owing to growing investments in technology and development remain concerns.
Zacks Rank and Stocks to Consider
Currently, GoDaddy carries a Zacks Rank #4 (Sell).
Image: Bigstock
GoDaddy (GDDY) Adds Tap to Pay, Bolsters Payment Offerings
GoDaddy (GDDY - Free Report) has integrated Apple's (AAPL - Free Report) Tap to Pay into its free mobile app, allowing small businesses to accept contactless payments seamlessly just with an iPhone.
The latest move removes the requirement of a dongle or a card reader for small entrepreneurs to accept contactless payments.
Moreover, Apple’s Tap to Pay feature enables businesses to accept payments via contactless debit and credit cards, Apple Pay and other digital wallets.
In order to get started with the latest feature, entrepreneurs just need to download the GoDaddy mobile app on a compatible iPhone and choose Tap to Pay.
With the integration, GoDaddy is likely to witness strong momentum across small businesses as well as the growing adoption of its mobile app. This in turn will likely contribute to its revenues in the days ahead.
GoDaddy Inc. Price and Consensus
GoDaddy Inc. price-consensus-chart | GoDaddy Inc. Quote
Applications & Commerce Segment in Focus
The latest move is in sync with GoDaddy’s deepening focus on providing user-friendly and connected commerce tools to businesses.
It had added to the strength of the Applications & Commerce segment, which has become the cash cow of the company.
In the fourth quarter of 2022, the segment generated $333.4 million (accounting for 32.1% of total revenues), up 10.9% on a year-over-year basis. The segment’s annualized recurring revenues were $1.3 billion, increasing 9% year over year.
For 2023, the company expects the segment’s revenue growth to be in the band of 8% to 10%.
We believe the company’s strong focus on bolstering the Application & Commerce segment is expected to contribute well to its overall performance, which in turn is likely to aid it in winning investors’ confidence going ahead.
For 2023, management expects total revenues in the range of $4.250-$4.325 billion, suggesting growth of 5% at the midpoint from the year-ago reading. The Zacks Consensus Estimate for the same is pegged at $4.27 billion, indicating growth of 4.4% from 2022.
The consensus mark of earnings for 2023 stands at $2.70 per share, implying growth of 22.2% from the previous year.
Coming to the price performance, GDDY has gained 3.7% in the year-to-date period compared with the industry’s rise of 3.8%.
Portfolio Strength: A Key Catalyst
The latest move is in line with GoDaddy's focus on strengthening its overall portfolio offerings.
GoDaddy also introduced a Small Business Generative AI Prompt Library, which is designed to provide small firms access to the same level of expertise and capability typically available to huge enterprises.
Further, GoDaddy partnered with Fidelity National Information Services to launch Commerce 360, an all-in-one omnichannel solution, for supplying e-commerce items to small and medium-sized businesses. The solution will combine GoDaddy's simple business tools with Fidelity National's Worldpay payments capabilities.
We believe that the growing portfolio offerings will continue to drive GoDaddy’s customer momentum in the days ahead.
However, intensifying competition in the domain, hosting, and presence markets poses a threat.
Further, mounting expenses owing to growing investments in technology and development remain concerns.
Zacks Rank and Stocks to Consider
Currently, GoDaddy carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader technology sector are Salesforce (CRM - Free Report) and Arista Networks (ANET - Free Report) . While Salesforce sports a Zacks Rank #1 (Strong Buy), Arista Network carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Salesforce has gained 44.4% in the year-to-date period. CRM’s long-term earnings growth rate is currently projected at 16.75%.
Arista Networks has gained 34.4% in the year-to-date period. The long-term earnings growth rate for ANET is currently projected at 14.17%.