Godaddy Inc (NYSE:GDDY) just announced financial results for the third quarter ended September 30, 2018. The most important part was likely the outlook: “for the full year 2018, GoDaddy raised its revenue expectations to a range of $2.655 to $2.660 billion, representing approximately 19% growth at the midpoint. For the full year 2018, GoDaddy expects unlevered free cash of approximately $620 million, implying 25% growth versus the $496 million in unlevered free cash generated in 2017. GoDaddy expects full year cash interest payments of approximately $85 million and cash tax-related payments of approximately $25 million.”
“GoDaddy is in an environment where it’s never been more important to take an idea, get it online and, through an integrated toolset and experience, enable that idea to grow and thrive,” said GoDaddy CEO Scott Wagner. “Our third quarter results reflect consistent financial and operational execution against this strategy as we continue to launch new products and services for a robust online presence.”
Godaddy Inc (NYSE:GDDY) trumpets itself as a company that designs and develops cloud-based technology products for small businesses, Web design professionals, and individuals in the United States and internationally.
It provides domain name registration product that enables to engage customers at the initial stage of establishing a digital identity; hosting products, such as shared Website hosting, Website hosting on virtual private servers and virtual dedicated servers, managed hosting, and security.
The company also offers presence products, including GoCentral, an online tool that enables customers to build Websites and online stores; and a range of marketing tools designed to help businesses acquire and engage customers, as well as search engine optimization that helps customers get their Websites found on search sites.
In addition, the company offers business application products, including Microsoft Office 365, email accounts, email marketing, and telephony services. GoDaddy Inc. was incorporated in 2014 and is headquartered in Scottsdale, Arizona.
The Fiery Crucible
As we discussed earlier, GDDY just announced financial results for the third quarter ended September 30, 2018.
GDDY has had a rough past five days of trading action, with shares sinking something like -12% in that time. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -15%.
The company also announced that its Board of Directors has approved the repurchase of up to $500 million of the company’s Class A common stock. GoDaddy may purchase shares from time to time in open market purchases, block transactions and privately negotiated transactions, in accordance with applicable federal securities laws.
The program has no time limit and may be modified, suspended or terminated by the company at any time without prior notice. The amount and timing of repurchases are subject to a variety of factors including liquidity, share price, market conditions and legal requirements. Share repurchases will be funded by cash and cash equivalents available on GoDaddy’s consolidated balance sheet.
Godaddy Inc (NYSE:GDDY) generated sales of $652.6M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of 2.9% on the top line. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($874.6M against $1.9B, respectively).