Here's How Consistency Reigns At GoDaddy

Barclays’ Paul Vogel maintained an Overweight rating for Godaddy Inc GDDY, with a price target of $36. The company reported a highly consistent quarter yet again, with revenue marginally beating the Barclays estimates and in-line EBITDA.

GoDaddy recorded bookings growth of 13 percent, or 17 percent on a currency-neutral basis. The company continues to deliver “very solid and consistent performance with limited variability from guidance or expectations,” analyst Paul Vogel mentioned.

GoDaddy accounted its guidance for both Q1 and 2016 in-line with expectations. The company projected revenue growth of about 14 percent and EBITDA growth of 19-22 percent.

While the results were broadly in-line with expectations, the business application segment generated marginally better results. With business apps being GoDaddy's highest margin business, upside in this segment resulted in the robust EBITDA figure as well as the marginally higher-than-expected guidance for 2016, Vogel noted.

GoDaddy spread its international footprint to several markets within Asia. “While little is expected from a revenue perspective in 2016, strong global expansion is to be key for GoDaddy's growth going forward,” the analyst commented.

The EPS estimate for the current fiscal year has been reduced from $0.83 to $0.80.