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Why GoDaddy Stock Jumped Friday

What happened

Shares of GoDaddy (NYSE: GDDY), a domain name registrar and provider of online tools, jumped on Friday. The stock rose as much as 10.8% and was up 9.4% as of 11:50 a.m. EST today.

The tech stock's gain follows GoDaddy's strong fourth-quarter results, which included revenue and earnings per share that topped consensus analyst forecasts.

Image source: Getty Images.

So what

Fourth-quarter revenue rose 12.2% year over year to $780 million. This beat analysts' average estimate for $777 million. Earnings per share of $0.34 also beat a consensus forecast for $0.31.

The quarter benefited from a 4.1% year-over-year increase in customers, bringing GoDaddy's total customer count to 19.3 million. Average revenue per user (ARPU) for the 12-month period ending Dec. 31, 2019, rose 6.6% to $158.

Here's how GoDaddy's revenue breaks down for the quarter:

  • Domains revenue rose 12.1% to $352.3 million.
  • Hosting and presence revenue increased 8.4% to $292.8 million.
  • Business applications revenue jumped 21.3% to $135.3 million.

Now what

"As we look to 2020, we have provided guidance that reflects the ongoing strength of our business," said CFO Ray Winborne in the company's fourth-quarter earnings release.

Management guided for 2020 revenue to rise 11% year over year to $3.315 billion. Unlevered free cash flow is expected to rise 14% to $835 million.

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Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool recommends GoDaddy. The Motley Fool has a disclosure policy.


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