Godaddy 2025 Q1 Earnings Misses Targets with Net Income Dropping 45%

Godaddy (GDDY) reported its fiscal 2025 Q1 earnings on May 01st, 2025. Godaddy's performance in Q1 2025 showed mixed results, with an increase in revenue but a significant decline in net income. The company's revenue matched analyst expectations, but net income fell short, declining by 45.3% compared to the previous year. Godaddy reaffirmed its revenue guidance for the full year 2025, projecting continued growth. Despite the decline in net income, the company remains optimistic about its strategic initiatives and growth prospects.

Revenue
GoDaddy saw its total revenue rise by 7.7% to $1.19 billion in Q1 2025, compared to $1.11 billion in Q1 2024. The Applications and Commerce segment contributed $446.40 million, showcasing robust growth, while the Core Platform segment generated $747.90 million. Overall, the company's segments demonstrated solid revenue growth during the quarter, aligning with its strategic focus on expanding business offerings.

Earnings/Net Income
Godaddy's EPS dropped significantly by 45.0% to $1.55 in Q1 2025 from $2.82 in Q1 2024. Concurrently, net income decreased to $219.50 million, marking a 45.3% fall from the $401.50 million reported in Q1 2024. The EPS decline reflects challenges in maintaining profitability despite revenue growth.

Price Action
The stock price of Godaddy edged up 0.79% during the latest trading day, climbed 6.62% during the most recent full trading week, and has increased 6.78% month-to-date.

Post-Earnings Price Action Review
Following the earnings report, GoDaddy's stock price displayed modest positive movement. The backtest data indicates that revenue announcements tend to result in short-term gains, with a 3-day win rate of 47.62% and a 10-day win rate of 52.38%. However, the maximum return observed was -1.73%, suggesting potential short-term declines. Net income figures showed a slightly better performance with a 3-day win rate of 50% and a 10-day win rate of 61.11%, with a maximum return of 7.62% noted on day 79 post-report. EPS impacts were mixed, with a 3-day win rate of 57.14% and a 10-day win rate of 52.38%, and the highest return of 1.75% occurring on day 30. Overall, earnings metrics influence the stock price modestly and should be considered alongside broader market conditions.

CEO Commentary
GoDaddy CEO Aman Bhutani emphasized the company's robust first-quarter results, highlighting the resilience of its business model and effective strategies amid varying economic conditions. He expressed confidence in GoDaddy's strong fundamentals and its ability to deliver value to shareholders, reinforcing a positive outlook for the long-term performance.

Guidance
GoDaddy expects total revenue for the second quarter of 2025 to be between $1.195 billion and $1.215 billion, reflecting a year-over-year growth rate of 7% at the midpoint. For the full year 2025, the company reaffirms its revenue guidance, projecting figures between $4.860 billion and $4.940 billion, indicating continued year-over-year growth.

Additional News
In recent developments, GoDaddy announced a significant $3 billion share repurchase program authorized through 2027, signaling confidence in its financial strength and commitment to returning capital to shareholders. Additionally, GoDaddy is enhancing its service offerings with the introduction of AI-powered features, aiming to boost demand for its internet hosting services and establish itself as a comprehensive solution for small businesses. The company also launched GoDaddy Agency, a new partner program designed to connect digital agencies with small and mid-sized business leads, providing comprehensive tools and support for client growth.