What happened

Shares of GoDaddy (NYSE:GDDY) 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.

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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.

So what

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. 

Now what

GoDaddy stock has continued to move higher in June. Shares are up roughly 1.7% in the month's trading so far. 

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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.