GoDaddy 2025 Q1 Earnings Misses Targets as Net Income Declines 45%

GoDaddy (GDDY) reported its fiscal 2025 Q1 earnings on May 02nd, 2025. The company's results fell short of expectations, with net income significantly declining by 45.3% year-over-year. Despite a 7.7% increase in total revenue, the earnings per share (EPS) dropped from $2.82 in 2024 Q1 to $1.55 in 2025 Q1. GoDaddy's guidance for the second quarter remains consistent, predicting continued growth in revenue. Investors should note the company's reaffirmation of its full-year outlook, which suggests a stable performance despite the earnings miss.

Revenue
GoDaddy's fiscal 2025 Q1 revenue demonstrated a robust performance, rising 7.7% year-over-year to reach $1.19 billion, compared to $1.11 billion in the prior year. The Applications and Commerce segment saw impressive growth, contributing $446.40 million to the total revenue. Meanwhile, the Core platform added $747.90 million, showcasing its steady performance. Together, these segments underscore GoDaddy's strategic focus on expanding its business model and maintaining its revenue growth trajectory.

Earnings/Net Income
In the first quarter of 2025, GoDaddy experienced a notable decline in its earnings per share (EPS), which fell by 45.0% from $2.82 in 2024 Q1 to $1.55 in 2025 Q1. The company's net income also dropped considerably, reaching $219.50 million, down 45.3% from $401.50 million reported in the same period last year. This decline in EPS and net income indicates challenges in maintaining profitability despite revenue growth.

Price Action
The stock price of GoDaddy edged up by 2.07% during the latest trading day but experienced a drop of 3.89% over the past week and a decline of 2.46% month-to-date. This fluctuation reflects the market's mixed response to the earnings report, highlighting investor uncertainty.

Post-Earnings Price Action Review
The earnings report metrics have had a varied impact on GoDaddy's stock price, according to backtest data. While there is some positive short-term movement, overall performance remains muted. Revenue reports tend to cause a favorable initial reaction, with a 47.62% 3-day win rate and 52.38% over 10 days, but the effect diminishes quickly, with a maximum return of -1.73%. Net income metrics exhibit slightly better performance, with a 50% 3-day win rate and 61.11% over 10 days, and a maximum return of 7.62% observed on day 79 post-reporting. EPS impacts are mixed, achieving a higher immediate positive momentum with a 57.14% 3-day win rate and 52.38% over 10 days, peaking at a 1.75% return on day 30. Overall, while earnings metrics influence GoDaddy's stock price, the effects are modest and vary over time.

CEO Commentary
"GoDaddy remains well-positioned for long-term success by driving tangible, measurable outcomes that help our customers grow and thrive in any macroeconomic landscape," said GoDaddy CEO Aman Bhutani. He emphasized the company's strong execution and durable business model, underscoring the commitment to shareholder value through disciplined capital allocation. The CEO highlighted the robust growth in Applications and Commerce revenue and noted the company's ability to generate strong cash flow, reflecting confidence in GoDaddy's fundamentals and resilient strategy.

Guidance
For the second quarter ending June 30, 2025, GoDaddy expects total revenue in the range of $1.195 billion to $1.215 billion, indicating year-over-year growth of approximately 7% at the midpoint compared to the same period in 2024. For the full year ending December 31, 2025, the company reaffirms its revenue guidance, projecting a range of $4.860 billion to $4.940 billion, signaling continued growth.

Additional News
In recent developments, GoDaddy announced a significant share repurchase program, completing its 2022 authorization and repurchasing over 25% of its fully diluted shares. In April 2025, the company initiated a new multi-year $3 billion repurchase authorization through 2027, reinforcing its commitment to disciplined capital allocation and long-term shareholder value. Additionally, GoDaddy expanded its offerings with the launch of GoDaddy Agency, a new partner program connecting digital agencies with business leads. This initiative aims to provide agencies with comprehensive tools and services, enhancing their client offerings. These strategic moves reflect GoDaddy's focus on growth and innovation, positioning the company for continued success in the competitive market.