Shares of GoDaddy (GDDY 0.11%) gained 11.3% in May, according to data from S&P Global Market Intelligence. The stock popped following the release of the company's first quarter results and continued to benefit from broader-market momentum as the month progressed.
GoDaddy published first quarter results on May 6, with revenue climbing roughly 12% year over year to hit $792 million and earnings per share jumping 242% year over year to hit $0.24. The average analyst target had called for earnings per share of $0.19 on sales of $789.8 million.
GoDaddy's bookings in the first quarter rose 9% year over year to $951 million, and revenue from the company's domains segment climbed 11% year over year to reach $355.9 million. Unlevered free cash flow for the period came in at $235 million, increasing 18% compared to the prior-year period, and net operating cash flow rose 16.8% year over year to come in at $233.3 million.
GoDaddy is benefiting from digital business growth and work from home trends stemming from conditions created by the novel coronavirus. While the pandemic has created challenging operations on a wide scale, the company is seeing the circumstances spur increased interest in creating digital ventures -- and management indicated that it would lean into marketing initiatives to take advantage of this trend.
GoDaddy stock has continued to move higher in June. Shares are up roughly 1.7% in the month's trading so far.
GoDaddy is targeting sales of $790 million for the second quarter, representing growth of roughly 7% year over year. Revenue for the domains segment is projected to rise by high single digits, mid-single-digit growth is expected for hosting and presence, and business applications sales are projected to increase in the mid-teens range.
GoDaddy stock trades at roughly 20.6 times the average analyst target for this year's earnings and roughly four times projected sales.