GoDaddy Inc. (GDDY) shares tumbled 5.79% in intraday trading on Thursday, after the cloud technology company reported mixed fourth-quarter results and issued weaker-than-expected guidance for the current quarter.

For the quarter ended December 31, 2024, GoDaddy reported earnings of $1.36 per share, missing analyst estimates of $1.43 per share by 4.9%. While the company's revenue of $1.19 billion beat expectations of $1.18 billion, representing an 8.4% year-over-year increase, the earnings miss and lower-than-expected guidance overshadowed the top-line growth.

The company's net income for the quarter was $198.6 million, a significant 82.2% decrease from the same period last year, primarily due to a non-routine, non-cash income tax benefit in 2023. This substantial decline in profitability raised concerns among investors regarding GoDaddy's ability to maintain its margins and profitability.

For the first quarter of 2025, GoDaddy expects total revenue in the range of $1.175B-$1.195B, slightly below analyst consensus estimates of $1.19B. This weaker-than-expected guidance, coupled with the earnings miss, contributed to the stock's sell-off.

While GoDaddy's revenue growth and strategic initiatives, such as the expansion of its AI-powered GoDaddy Airo® platform, are perceived as positive factors, the company's challenges in managing profitability and meeting earnings expectations have raised concerns among investors. As the market digests the company's performance and outlook, GoDaddy's ability to deliver consistent earnings growth will be closely watched.