GoDaddy reports Q3 2022 Earnings

GoDaddy (NYSE:GDDY) reported earnings today after the close. The stock which was down during the trading day −1.02 to $72.65 a loss of (1.38%) was down in After hours as well, closing at $68.90 −3.75 (5.16%).

Zacks reported,

quarterly earnings of $0.63 per share, beat the Zacks Consensus Estimate of $0.58 per share. This compares to earnings of $0.58 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 8.62%. A quarter ago, it was expected that this cloud-based technology products developer would post earnings of $0.47 per share when it actually produced earnings of $0.56, delivering a surprise of 19.15%.

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

Business Highlights

• Annualized recurring revenue (ARR) for applications and commerce grew 10% year-over-year to $1.3 billion in the third quarter.
• ARR for core platform grew 2% year-over-year to $2.3 billion in the third quarter.
• GoDaddy drove continued positive momentum in attachment of GoDaddy Payments within Websites + Marketing and Managed WordPress.
• GoDaddy achieved solid growth in its commerce offerings with gross merchandise volume (GMV) of $29 billion, up 10% year-over-year in the third quarter.
• GoDaddy expanded its relationship with Amazon Web Services to continue to migrate workloads and development to the cloud. This contract reduces overall costs in the form of long-term capital spend and energy expenses while providing agility to launch new products at a faster pace.
• GoDaddy added simplified website creation for domains customers through improved guidance on template selection, making it easier for them to start building an online presence, driving higher publish rates.
• Buy Buttons enabled for all Websites + Marketing plans, including free plans, making it easier for nascent businesses, side-hustles, and the like to get started with GoDaddy’s Commerce offerings.
• GoDaddy launched free SSL in all new Web Hosting plans including in key developed countries for GoDaddy Web Hosting customers and their customers resulting in increased term lengths and modest improvements in new units and bookings in the company’s hosting business.
• GoDaddy appointed Brian Sharples to Chair of its Board of Directors, effective September 30, 2022. Brian has served on GoDaddy’s Board of Directors since 2016.

Full earnings release