What Happened?

Shares of domain registrar and web services company GoDaddy (NYSE:GDDY) fell 8.9% in the afternoon session after the company reported underwhelming first quarter 2025 results which included a miss on annual recurring revenue.

On the other hand, GoDaddy blew past analysts' bookings expectations and delivered revenue, EPS, and EBITDA above Wall Street's estimates. Zooming out, we think this was a decent quarter featuring some areas of strength but also some blemishes. The market seemed to be hoping for more.

The shares closed the day at $176.13, down 8.5% from previous close.

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What The Market Is Telling Us

GoDaddy’s shares are not very volatile and have only had 4 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 3 months ago when the stock dropped 14% as the company stumbled through a weak fourth quarter (2024): Its EPS fell short, revenue barely cleared expectations, and growth remained sluggish.

On the other hand, GoDaddy blew past analysts' bookings expectations this quarter and its EBITDA outperformed Wall Street's estimates.

Looking ahead, GoDaddy projects 7% revenue growth in 2025, indicating no improved momentum, and offering little optimism. Overall, we think this was an ok quarter with some key areas of upside, but the market seemed to focus on the negatives.

GoDaddy is down 11.4% since the beginning of the year, and at $176.20 per share, it is trading 17.8% below its 52-week high of $214.35 from January 2025. Investors who bought $1,000 worth of GoDaddy’s shares 5 years ago would now be looking at an investment worth $2,637.

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