Despite recent challenges in inflation, there are positive indicators for the future of the U.S. economy. The unexpected resilience of consumer adaptation to higher prices, suggests a growing ability to adjust to the new normal. Additionally, while the path to reaching the Federal Reserve’s inflation target may be slow, solid economic growth is anticipated. As the economy continues its upward swing, these are the best tech stocks to buy to see high returns.Netflix (NFLX)Source: izzuanroslan / Shutterstock.c ...

GoDaddy Inc.’s (GDDY) fourth-quarter 2023 adjusted earnings of $1.08 per share beat the Zacks Consensus Estimate by 4.85%. The bottom line jumped 74.2% year over year.GDDY generated revenues of $1.10 billion, lagging the Zacks Consensus Estimate by 0.11%. Revenues rose 5.8% year over year on a reported basis, as well as a constant-currency (cc) basis.Quarter in DetailApplications & Commerce, comprising Websites + Marketing, Managed WordPress, productivity applications, and payments & commerce, generated $37 ...

Q4 2023 & Full Year Financial Results February 13, 2024 Billie Dumaliang ...

Financial Data and Key Metrics - Full year normalized EBITDA margin increased approximately 200 basis points, resulting in a 12% increase in free cash flow and a 21% increase in free cash flow per share [5] - Q4 normalized EBITDA grew 22% to $324 million, representing a 29.5% margin, and an expansion of nearly 400 basis points compared to Q4 2022 [18] - Full year unlevered free cash flow grew 14% to $1.3 billion and free cash flow grew 12% to $1.1 billion [23] - Q4 Applications and Commerce revenue grew 13% to $377 million with an expanded segment EBITDA margin of 44% [14] - Annualized GPV for 2023 grew 125% year-over-year, reaching $1.7 billion [12] Business Line Data and Key Metrics - Applications and Commerce segment bookings grew 16% in Q4, driven by strong attach of productivity solutions and Create + Grow products [17] - Core Platform revenue grew 2% to $723 million in Q4, with domain bookings growth of 7% [15] - Hosting revenue decreased by 11% in Q4 due to ongoing integration efforts [16] - Aftermarket revenue grew 14% to $118 million in Q4 [16] Market Data and Key Metrics - International revenue grew 4% on a reported and constant currency basis to $354 million in Q4 [17] - Total revenue in Q4 grew 6% to $1.1 billion, with international revenue contributing $354 million [17] Company Strategy and Industry Competition - The company's strategy focuses on margin expansion and growth in the Applications and Commerce segment, with a goal to exit 2024 with a normalized EBITDA margin of approximately 31% [6] - GoDaddy Airo, a unified technology stack, has been launched to enhance customer experience and drive higher monetization rates [6][9] - The company is focusing on bundling products to drive higher attach rates, particularly in the high-margin Applications and Commerce segment [8] Management Commentary on Operating Environment and Future Outlook - Management is optimistic about the company's ability to drive margin improvement and growth in Applications and Commerce, which is expected to result in significant improvements in free cash flow per share [13] - The company expects total revenue for 2024 to be within a range of $4.48 billion to $4.56 billion, representing growth of over 6% at the midpoint [23] - Management anticipates continued margin expansion, targeting a normalized EBITDA margin of approximately 29% for the full year 2024 [24] Other Important Information - The company refinanced $1.8 billion of outstanding principal in January 2024, securing a 50 basis point interest rate reduction, which is expected to reduce annualized cash interest expense by approximately $22 million [21] - Cumulative shares repurchased under current authorizations totaled $2.6 billion, reducing fully diluted shares outstanding by over 20% [21] Q&A Session Summary Question: Macro Environment and Demand Outlook - Management noted strong demand from micro-business customers and optimism about the macro environment, with potential upside from aftermarket performance and bundling efforts [31][32] Question: Valuation Allowance and Tax Shield - The company released a valuation allowance due to increased profitability, which does not impact cash flow or normalized EBITDA but reflects expected future tax benefits [34] Question: GoDaddy Airo Rollout and Growth Drivers - Airo is being rolled out rapidly, with initial results showing higher monetization rates among test cohorts. The company expects broad adoption in the U.S. and international markets [38][39] Question: Legacy Hosting and Core Platform Growth - Legacy hosting faces headwinds from divestitures, but domain growth remains strong, with 7% bookings growth in Q4 [41] Question: Applications and Commerce Growth Drivers - Growth in Applications and Commerce is driven by faster adoption of second and third products, leading to higher retention rates and profitability [45][46] Question: Share Repurchases and Capital Allocation - The company plans to continue share repurchases under its $1.4 billion authorization, with a focus on disciplined capital allocation [47] Question: Payments Penetration and Growth - GoDaddy Payments is in early stages of customer penetration, with existing customers expected to drive growth in 2024 [51] Question: Airo Monetization and Pricing Flexibility - Airo is being tested in international markets, with potential for new monetization methods such as premium logo-building services [56][57] Question: Customer Growth and Intent - The company is focusing on high-intent customers, with gross customer ads higher in 2023 than 2022, despite divestitures impacting low-intent customers [67][68] Question: Margin Expansion Drivers - Margin expansion is driven by reduced technology and development spend, automation in care, and growth in the high-margin Applications and Commerce segment [63] Question: Revenue Upside and Margin Flow - Management balances growth and profitability, with a focus on driving free cash flow and free cash flow per share [82][83] Question: Airo Rollout Quantification - Hundreds of thousands of customers have already experienced Airo, with aggressive rollout plans for new and existing customers [87] Question: Divestiture Margin Benefits - Divestitures benefit normalized EBITDA and reduce CapEx spend, contributing to free cash flow growth [92] Question: A&C Margin Profile - Applications and Commerce products, particularly Websites + Marketing and Managed WordPress, are high-margin and growing double-digits [96][98] Question: GoDaddy Payments Strategy - GoDaddy Payments targets micro-sellers, with plans to expand capabilities and focus on omni-commerce solutions [100]

GoDaddy (GDDY) reported $1.1 billion in revenue for the quarter ended December 2023, representing a year-over-year increase of 5.8%. EPS of $1.08 for the same period compares to $0.62 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $1.1 billion, representing a surprise of -0.11%. The company delivered an EPS surprise of +4.85%, with the consensus EPS estimate being $1.03.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street e ...

Wall Street analysts expect GoDaddy (GDDY) to post quarterly earnings of $1.03 per share in its upcoming report, which indicates a year-over-year increase of 66.1%. Revenues are expected to be $1.1 billion, up 5.9% from the year-ago quarter.Over the last 30 days, there has been an upward revision of 0.1% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.Bef ...

The market expects GoDaddy (GDDY) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released o ...

Core Insights - GoDaddy has partnered with Ethereum Name Service (ENS) to allow users to connect their GoDaddy domains with ENS names for free, marking a significant advancement in integrating DNS with blockchain technology [1][2][3] Company Overview - GoDaddy is a global leader in domain registration and web hosting, assisting millions of entrepreneurs in starting, growing, and scaling their businesses [4] - The company provides tools for naming ideas, building websites, attracting customers, and managing online sales [4] Industry Context - The Domain Name System (DNS) translates domain names into IP addresses, while ENS converts complex wallet addresses into human-readable names, enhancing user experience and security [2] - The integration of GoDaddy domains with ENS aims to create a more secure, decentralized, and user-friendly internet, facilitating the management of digital assets [3][5] Technological Advancements - ENS has introduced new smart contracts to streamline the resolution process of domain names at the DNS top-level domain level, enabling cost-free verification of DNS records [2] - This integration simplifies the user experience and fosters trust in digital identities, allowing domain owners and crypto wallet holders to link their assets effortlessly [3]

The GoDaddy banner hangs outside of the New York Stock Exchange as the website hosting service makes its initial public offering (IPO) on April 1, 2015 in New York City.Activist investor Starboard Value on Wednesday sent a letter to web-services company GoDaddy, urging management to continue moving "in the right direction" by setting specific and realistic growth targets and providing investors with more detail on how management will improve margins.Starboard has a more than 6% stake in the company, and has ...

Believes that Opportunities Continue to Exist to Significantly Improve GoDaddy's Combination of Growth and Profitability Views the Company's Recent Disclosure of Improved Profitability Targets as a Step in the Right Direction Believes GoDaddy Remains Undervalued with an Opportunity for Significant Shareholder Value Creation Intends to Closely Monitor the Company's Upcoming Q4 FY23 Earnings Call and March 2024 Investor Day to Ensure that Appropriate Operating and Financial Targets Are Set for the Near, Mediu ...