GoDaddy GDDY is scheduled to report fourth-quarter 2024 results on Feb. 13.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

GDDY expects revenues between $1.17 billion and $1.19 billion for the fourth quarter, indicating growth of 7% at the mid-point from the figure reported in the year-ago quarter.

The Zacks Consensus Estimate for fourth-quarter 2024 revenues is pegged at $1.18 billion, suggesting a 6.91% year-over-year rise.

GoDaddy Inc. Price and EPS Surprise

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

The consensus mark for earnings is pegged at $1.46 per share, unchanged over the past 30 days, indicating growth of 35.19% from the year-ago quarter's reported figure.

GoDaddy’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, delivering an average earnings surprise of 5.31%.

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

Factors to Note

GDDY’s ongoing pricing and bundling strategy, which started with productivity solutions and expanded across its product suite, is expected to have supported its fourth-quarter 2024 growth. By enhancing value for customers and adjusting pricing accordingly, it likely to have driven top-line growth in the to-be-reported quarter.

In the third quarter of 2024, GoDaddy's Applications and Commerce (A&C) revenues grew 16% year over year. This growth was supported by the company's strategic initiatives, including the rollout of the GoDaddy Airo AI-powered experience, which enhanced customer engagement and streamlined online business opportunities. These enhancements are anticipated to have supported GDDY's A&C platform’s growth in the to-be-reported quarter.

The launch of AI-powered features like Point of Sale Plus and Invoicing Plus is expected to have positively impacted GoDaddy's fourth-quarter performance by enhancing efficiency for merchants and driving higher adoption. These tools simplify payment processing and invoicing, making it easier for businesses to manage transactions and streamline operations.

In the fourth quarter, GDDY is likely to have benefited from the launch of its Digital Marketing Suite and AI-powered commerce features, which enhance customer acquisition, engagement and operational efficiency, driving adoption and revenue growth.

However, increasing competition in domains and web hosting continues to put pressure on pricing and market share in certain segments. With peers offering competitive pricing and enhanced features, GoDaddy may have faced difficulties in maintaining its growth momentum. These challenges are expected to have negatively impacted the company’s performance in the quarter under review.

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 0.00% and a Zacks Rank #3. 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:

Twilio TWLO currently has an Earnings ESP of +3.28% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

TWLO shares have risen 34.8% year to date. Twilio is set to report fourth-quarter 2024 results on Feb. 13.

Lyft LYFT has an Earnings ESP of +4.12% and a Zacks Rank #3 at present. 

LYFT shares have gained 9.8% year to date. Lyft is slated to report fourth-quarter 2024 results on Feb. 11.

Shopify SHOP has an Earnings ESP of +23.08% and a Zacks Rank #3 at present. 

SHOP shares have gained 10.4% year to date. Shopify is slated to report fourth-quarter 2024 results on Feb. 11.

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