GoDaddy Cuts Q4 Revenue Growth, Trims EBITDA Margin to 32%
GoDaddy cut its fiscal fourth-quarter revenue growth guidance to low- to mid-single digits and trimmed EBITDA margin outlook to 31–32%, citing slower domain renewals and web hosting demand. Shares plunged about 9% after the revision, erasing about $700 million of market value as investors saw decelerating core subscription revenue.
1. Guidance Revision
GoDaddy lowered its fiscal fourth-quarter revenue growth guidance to low- to mid-single digits and cut its EBITDA margin outlook to 31–32%, citing weaker domain renewals and reduced demand for web hosting services.
2. Share Reaction
Shares fell roughly 9% in response to the weaker outlook, wiping out approximately $700 million in market value as investors adjusted expectations for the company's core subscription business.
3. Operational Challenges
Management pointed to competitive pricing pressure and a slowdown in domain aftermarket sales as key factors undermining top-line momentum and margin expansion for the quarter.
4. Full-Year Outlook Implications
The revised forecast raises concerns about meeting full-year targets, prompting analysts to reevaluate annual earnings estimates and potentially adjust price targets on slower growth projections.