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GoDaddy ( GDDY ) stock was up in premarket trading Thursday, after the Internet registrar late Wednesday posted Q1 revenue that topped estimates and reported a lower-than-expected loss. The Web-hosting services provider and Internet domain-name registrar firm also slightly raised its 2016 guidance for revenue and EBITDA (earnings before interest, taxes, depreciation and amortization). GoDaddy stock was up 2% in premarket trading, near 31, as it attempts to regain its 50-day moving average line. GoDaddy stock broke out of a cup-with-handle base at 33.13 on April 1, but shares have slipped since, hurt by the announcement of a secondary stock offering. Even with a 2% rise, GoDaddy stock is more than 6% below the buy point. Scottsdale, Ariz.-based GoDaddy said it lost 15 cents in Q1, with revenue rising 15% to $433.7 million. Analysts had modeled a 16-cent per share loss and revenue of $430 million. GoDaddy’s core business is selling and managing Internet domain names. It has expanded into website-hosting services for small businesses. Rivals include Neustar ( NSR ) , Web.com ( WWWW ), Endurance International ( EIGI ) and Wix.com ( WIX ). “We view these results as intrinsically impressive for the largest competitor in the space. And we continue to believe that product additions and international expansion will fuel future growth,” said Mark Mahaney, an analyst at RBC Capital, said in a research report. International revenue rose nearly 17% to $112.7 million. GoDaddy forecast current-quarter revenue of $450 million at the midpoint of its guidance, up 14% from the year-earlier period and in line with consensus estimates. For the year, it increased revenue guidance to $1.84 billion at its midpoint from its earlier $1.83, vs. consensus estimates of $1.836. GoDaddy said it expects 2016 EBITDA of $409 million at its midpoint, up from earlier guidance of $405 million. GoDaddy has a weak IBD Composite Rating of 54 out of a possible 99. GoDaddy stock fell in early April after GoDaddy announced a proposed class A common stock offering of 16.5 million shares. Selling stockholders include entities affiliated with big investment firms Kohlberg Kravis Roberts & Co . , Silver Lake Partners and Technology Crossover Ventures, as well as YAM Special Holdings, which is owned by GoDaddy founder Bob Parsons. The company itself will receive no proceeds from the offering. Scalper1 News
Scalper1 News