After announcing yet another acquisition on Thursday, continuing the expansion spree, GoDaddy Inc. (NYSE: GDDY) reported stronger-than-expected earnings for the fourth quarter. Revenues advanced in double digits and topped the Street view, spurring a stock rally during the extended trading session.
All three business segments performed better than in the year-ago quarter, pushing up total revenues by 12.2% to $780.4 million. Net income was $60.5 million or $0.34 per share, compared to $42.5 million or $0.24 per share in the fourth quarter of 2018. The results came in above the consensus estimates.
Total bookings moved up 14% from last year to $833.6 million, while average revenue per user advanced 7% to $158.
The company expects its full-year 2020 revenues to be $3.315 billion, representing an 11% growth. It is looking for unlevered cash flow of $835 million for the year, up 14% from last year.
“GoDaddy continues to execute against its strategy – empowering everyday entrepreneurs through sage guidance, seamlessly intuitive experiences, and activating our community. We are well-positioned to deliver strong results for our customers, communities, and shareholders in 2020,” said CEO Aman Bhutani.
Earlier in the day, GoDaddy said it agreed to acquire the domain registrar and marketplace businesses of Uniregistry. The transaction is tentatively scheduled to close in the second quarter.
Is GoDaddy a Buy?
The average target price on the stock indicates that GoDaddy’s near-term market value could go up by a quarter, from the current levels. Justifying the projection, analysts overwhelmingly recommend buying the stock.
The shares have dropped about 3% so far in 2020 after a tough year marked by steady declines. The stock closed Thursday’s regular session slightly lower, before gaining in the after-hours immediately after the earnings announcement.