GoDaddy Slightly Lifts 2016 Guidance

By Jon C. Ogg Updated Jan 13, 9:51AM EST · Published May 4, 4:25PM EDT

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GoDaddy Slightly Lifts 2016 Guidance — © Thinkstock

GoDaddy Inc. (NYSE: GDDY) has reported its earnings for the first quarter of 2016. We have also seen a slight bump higher for 2016 revenues and EBITDA guidance versus what the company said back in February.

Total revenue rose more than 15% to $433.7 million, but this would have been a gain of almost 18% on a constant currency basis. Total bookings were up 11.9% to $557.8 million, but that would have been up by 13.5% on a constant currency basis.

Thomson First Call had revenues pegged at $430.6 million for the first quarter. As far as how the earnings report compares to the prior guidance, the GoDaddy business outlook from its February 17, 2016 was stated at that time as follows:

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For the first quarter ending March 31, 2016, the Company expects revenues in the range of $428 to $432 million and adjusted EBITDA in the range of $111 to $114 million.

Adjusted EBITDA of $115.6 million, up 23.1% year over year. GoDaddy’s unlevered free cash flow rose by 18.2% to $100.6 million, and its total number of customers rose by 7.6% to 14.1 million at the end of the first quarter.

Blake Irving, GoDaddy’s Chief Executive Officer, said:

GoDaddy’s first quarter financial performance was strong, with revenue growing over 15%, adjusted EBITDA growing over 23% and unlevered free cash flow growing 18%. With a sizable addressable market of small businesses, a proven strategy and consistent execution, we are well positioned for continued growth at scale in 2016 and beyond.

GoDaddy gave the following guidance for the second quarter of 2016:

For the second quarter ending June 30, 2016, GoDaddy expects total revenue in the range of $448 – $452 million and Adjusted EBITDA in the range of $99 – $102 million.

GoDaddy also gave guidance for its Fiscal Year 2016. 24/7 Wall St. has broken out the guidance for the year offered today (May 4) first, followed by the guidance for 2016 that was given back on February 17:

MAY 4 GUIDANCE — For the full year ending December 31, 2016, GoDaddy raised the midpoint of both its revenue and Adjusted EBITDA outlook, providing a revised revenue range of $1,830 – $1,845 million and a revised Adjusted EBITDA range of $404 – $414 million.
FEB. 17 GUIDANCE — For the full year ending December 31, 2016, the company expects revenues in the range of $1,820 – $1,845 million and adjusted EBITDA in the range of $400 – $410 million.

GoDaddy closed up 2% at $30.64 ahead of earnings. Its consensus analyst price target is $35.70 and the 52-week range is $21.04 to $35.35. As a reminder, GoDaddy’s IPO from April 2015 was at $20.00 per share.

About the Author Jon C. Ogg →

Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. a673b.bigscoots-temp.com.