Earnings Preview: GoDaddy expected to see strong earnings growth in Q3

GoDaddy Inc. (GDDY) is scheduled to report third quarter 2018 earnings on Tuesday, November 6. Analysts expect earnings to grow 157% from the prior-year period to $0.18 per share. Revenues are projected to increase 15.7% to $673.7 million versus the year-ago quarter. Looking at the past four quarters, GoDaddy has beat earnings estimates twice.

In the second quarter, GoDaddy topped analysts’ expectations on both revenue and earnings. Revenue grew 16.8% to $652 million while diluted EPS totaled $0.11. The company reported a 13% increase in total bookings, 6.5% increase in total customers and a 10% increase in ARPU. GoDaddy also posted double-digit revenue increases across all its segments.

For the third quarter, GoDaddy expects total revenue of $670 million to $675 million. For the full year of 2018, revenues are expected in the range of $2.64 billion to $2.65 billion, representing around 19% growth at the midpoint.

Companies reporting earnings this week: Nov 5-9

During the second quarter, GoDaddy completed the Main Street Hub acquisition and updates on the progress in this area is a point to watch. Similarly, the momentum from the company’s GoCentral website builder is expected to continue in the third quarter as the platform brings on new and better features to improve customer experience.

Early in October, GoDaddy’s founder Bob Parsons resigned from the company’s board of directors in order to focus entirely on his group of businesses under the Yam Worldwide Umbrella.

GoDaddy’s stock is up over 43% so far this year but looking at the past one month, the stock has dropped over 8%. If the company tops expectations for the third quarter, the stock is likely to see a gain.

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