Please ensure Javascript is enabled for purposes of website accessibility

Why GoDaddy Stock Jumped Friday

By Daniel Sparks - Feb 14, 2020 at 11:34AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Broad-based strength in the company's segments fueled a strong quarter.

What happened

Shares of GoDaddy (GDDY 4.74%), a domain name registrar and provider of online tools, jumped on Friday. The stock rose as much as 10.8% and was up 9.4% as of 11:50 a.m. EST today.

The tech stock's gain follows GoDaddy's strong fourth-quarter results, which included revenue and earnings per share that topped consensus analyst forecasts.

A chart showing a stock price moving higher

Image source: Getty Images.

So what

Fourth-quarter revenue rose 12.2% year over year to $780 million. This beat analysts' average estimate for $777 million. Earnings per share of $0.34 also beat a consensus forecast for $0.31.

The quarter benefited from a 4.1% year-over-year increase in customers, bringing GoDaddy's total customer count to 19.3 million. Average revenue per user (ARPU) for the 12-month period ending Dec. 31, 2019, rose 6.6% to $158.

Here's how GoDaddy's revenue breaks down for the quarter:

  • Domains revenue rose 12.1% to $352.3 million.
  • Hosting and presence revenue increased 8.4% to $292.8 million.
  • Business applications revenue jumped 21.3% to $135.3 million.

Now what

"As we look to 2020, we have provided guidance that reflects the ongoing strength of our business," said CFO Ray Winborne in the company's fourth-quarter earnings release.

Management guided for 2020 revenue to rise 11% year over year to $3.315 billion. Unlevered free cash flow is expected to rise 14% to $835 million.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

GoDaddy Inc. Stock Quote
GoDaddy Inc.
$70.97 (4.74%) $3.21

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/26/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.