GoDaddy Inc. shares experienced a significant after-hours plunge of 5.19% on Tuesday, following the release of the company's fourth-quarter and fiscal year 2025 financial results.
The decline came despite the company reporting quarterly earnings that surpassed analyst expectations. GoDaddy posted Q4 earnings per share of $1.80, beating the FactSet consensus estimate of $1.58. Revenue for the quarter was $1.27 billion, matching analyst forecasts.
Investors reacted negatively to the company's forward-looking guidance. GoDaddy forecast first-quarter revenue in the range of $1.25 billion to $1.27 billion, below the consensus estimate of $1.28 billion. More significantly, the company projected full-year revenue between $5.195 billion and $5.275 billion, which falls short of the $5.29 billion analysts had anticipated. The company attributed the cautious outlook to slower-than-expected adoption of its artificial intelligence tools and weaker customer acquisition in its core web hosting business.