GoDaddy Set to Report Q1 Earnings: What's in the Cards for the Stock?

GoDaddy GDDY is scheduled to report first-quarter 2025 results on May 1.

GDDY expects revenues between $1.175 billion and $1.195 billion for the first quarter, indicating 7% growth at the mid-point from the figure reported in the year-ago quarter.

The Zacks Consensus Estimate for first-quarter 2025 revenues is pegged at $1.19 billion, suggesting a 7.1% year-over-year rise.

The consensus mark for earnings is pegged at $1.41 per share, down 3.4% over the past 30 days, indicating growth of 30.56% from the year-ago quarter’s reported figure.

GoDaddy Inc. Price and EPS Surprise

 

GoDaddy Inc. price-eps-surprise | GoDaddy Inc. Quote

GoDaddy’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an earnings surprise of 3.42%, on average. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Let us see how things have shaped up for the upcoming announcement.

Key Factors to Note for GDDY’s Q1

GoDaddy is expected to have been affected by currency fluctuations, which are likely to have hurt international revenues in the first quarter of 2025. U.S. revenue growth is expected to outpace international growth by 200 basis points in the to-be-reported quarter.

GDDY’s aggressive move to increase marketing spend to support the broader launch of Airo is expected to have kept margins under pressure in the first quarter of 2025.

GoDaddy is expected to have struggled with customer retention in the first quarter of 2025 due to divestitures, no deep discounting and continued customer migrations.

However, GDDY is expected to have benefited from the strong early adoption of its Airo platform, with 50% of paid subscriptions originating from the Airo experience in the fourth quarter, driven by heightened customer engagement and revenue momentum. The company’s efforts to monetize Airo through premium offerings like Airo Plus are expected to have strengthened its financial performance in the quarter under review.

For first-quarter 2025, GDDY expects Applications & Commerce (A&C) revenue growth in the mid-teens and core platform growth in the low-single digits. The Zacks Consensus Estimate for A&C revenues is pegged at $441 million, implying a year-over-year growth of 15.1%, while the consensus mark for core platform revenues is pegged at $233 million, suggesting a 7.4% increase from the prior-year 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. But that is not the exact case here.

GoDaddy currently has an Earnings ESP of -17.31% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Stocks to Consider

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:

Affirm AFRM has an Earnings ESP of +63.27% and presently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

AFRM is set to report its fiscal third-quarter fiscal 2025 results on May 8. The Zacks Consensus Estimate for the third-quarter bottom line is pegged at a loss of 8 cents per share, narrower by a penny over the past 30 days and much narrower than the loss of 43 cents incurred in the year-ago quarter.

StoneCo STNE has an Earnings ESP of +13.79% and currently flaunts a Zacks Rank #1.

STNE is scheduled to release first-quarter 2025 results on May 8. The Zacks Consensus Estimate for first-quarter 2025 earnings is pegged at 29 cents per share, suggesting no year-over-year change. The estimate has moved up a couple of cents over the past 30 days.

CLEAR Secure YOU has an Earnings ESP of +7.86% and a Zacks Rank #3 at present.

YOU is set to report first-quarter 2025 results on May 8. The Zacks Consensus Estimate for first-quarter 2025 earnings is pegged at 30 cents per share, unchanged over the past 30 days and indicating year-over-year growth of 7.14%.

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This article originally published on Zacks Investment Research (zacks.com).

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