What happened

Shares of GoDaddy (GDDY -2.61%), a domain name registrar and provider of online tools, took a hit on Friday. The stock fell as much as 11% but is down 7% as of 12:25 p.m. ET.

The tech stock's decline came after GoDaddy's third-quarter earnings report. While the company reported better-than-expected earnings per share, its revenue was slightly below the consensus analyst forecast. Further, management's top-line outlook for Q4 and the full year were both below expectations.

So what

GoDaddy's third-quarter revenue came in at $1.03 billion, up 7.2% year over year. This was below analysts' average estimate for $1.04 billion. Earnings per share increased from $0.58 in the year-ago period to $0.63, beating a consensus view for $0.58.

The company's applications and commerce segment, which represents about a third of revenue, saw sales rise 12.6% year over year. GoDaddy's core platform segment, which accounts for the rest of the company's top line, saw revenue increase by 4.9%.

In GoDaddy's third-quarter earnings release, management said the results were "solid," particularly in light of "macroeconomic headwinds and foreign exchange rate pressure."

Now what

Looking ahead, management said it expects foreign exchange headwinds and an uncertain macroeconomic environment to remain challenges for the company in the near term.

GoDaddy expects revenue between $1.03 billion and $1.05 billion for its fourth quarter. For the full year, the company expects revenue between $4.08 billion and $4.10 billion, translating to 7% year-over-year growth. Analysts, on average, expected fourth-quarter and full-year revenue of $1.06 billion and $4.11 billion, respectively.

GoDaddy is optimistic looking further out. Chief Financial Officer Mark McCaffrey said he remains confident in the company's ability to compound "top and bottom line growth over the long-term based on our recurring revenue model and robust free cash flow."