GoDaddy Q1 2023 Earnings Miss, Stock Down in After Hours Trading

Posted on the 05 May 2023 by Worldwide @thedomains

GoDaddy Inc. (NYSE: GDDY) reported their Q1 2023 earnings. Stock was down 7% in after hours trading to $67. It closed at $72.29 during normal trading hours.

They came out with quarterly earnings of $0.30 per share, missing the Zacks Consensus Estimate of $0.52 per share. This compares to earnings of $0.41 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of -42.31%. A quarter ago, it was expected that this cloud-based technology products developer would post earnings of $0.62 per share when it actually produced earnings of $0.62, delivering no surprise. (Source)

Business Highlights

  • Gross payments volume (GPV) from GoDaddy’s commerce offerings continued its growth surpassing $1 billion of annualized GPV in the first quarter.
  • Launched Apple’s Tap-to-Pay capability in the GoDaddy app, lowering the barrier for millions of small businesses to start accepting in-person, contactless payments with only an iPhone in a seamless, low-friction sign-up experience.
  • Applications and commerce revenue grew to $338 million, up 12% with annualized recurring revenue (ARR) from Create + Grow products up 10%.
  • ARR for applications and commerce grew to $1.3 billion, up 9% year-over-year.
  • ARR for core platform grew to $2.2 billion, up 1% year-over-year, in the first quarter.
  • Gross merchandise volume (GMV) of $28 billion, up 18% year-over-year, in the first quarter.
  • Implemented new features to Websites + Marketing offering including a bookings feature for multi-day events, Google and Apple Pay for full payment and deposit, and additional configurations for Pay Buttons using Pay Links from different businesses and store locations.
  • Opened “List For Sale” functionality to registrar partners allowing their customers to list domain names within GoDaddy’s aftermarket.
  • Released the Small Business Generative Artificial Intelligence (AI) Prompt Library, a growing catalog of ready-made prompts, available via the GoDaddy Blog, for small businesses to have the tools to start benefiting from generative AI.
  • In April, CEO Aman Bhutani signed the CEO Action for Diversity & Inclusion pledge, joining a coalition of more than 2,400 CEOs across the U.S. who have committed to advancing diversity, equity and inclusion in the workplace.
  • Announced in April GoDaddy’s significant drives towards ESG goals by reducing emissions by 35% from a 2019 baseline, providing nearly 10,000 learning engagements for entrepreneurs, and achieving 86% participation in annual employee engagement survey.

Read the full release here