Here's A Preview Of Q4 Mid-Cap Internet Stock Earnings

In a note released on Monday, Cantor Fitzgerald's analysts previewed the earnings release of mid-cap internet stocks Godaddy Inc GDDY, Trade Desk Inc TTD and Wix.com Ltd. WIX and reviewed the results of Web.com Group.

Godaddy To Report In-Line Q4 Results

Cantor Fitzgerald expects Godaddy to report fourth quarter results, in line with the pre-announced results, which called for revenues of $486 million, also in line with the firm's estimate. The firm also expects EBITDA to come in line with the consensus estimate of $89 million.

The firm believes that the management's commentary on new subscriber growth ( up 6.9 percent year-over-year), cost of subscriber acquisition and ARPU trends ( up 6.9 percent year-over-year) would show the company's fundamentals remained healthy in the fourth quarter. The firm also expects the company's 2017 outlook, excluding the pending < a href="https://techcrunch.com/2016/12/06/godaddy-is-buying-rival-host-europe-group-for-1-8b-to-accelerate-its-international-expansion/"> acquisition of Host Europe Group, to come in line with Street estimates.

The Trade Desk To Report Solid Results

The analysts expect Trade Desk to report solid fourth quarter results, with Cantor's estimates calling for revenues of $62.3 million on non-GAAP earnings per share of $0.22, in line with the consensus estimates. The company IPOed on September 21, 2016, at $18 per share.

According to the analysts, the company's focus on the buy side, its scalable self-serve model and strong reputation among ad agencies should be reflected in the fourth quarter results and position it well in the rapidly growing programmatic ad segment going forward.

Wix.com's Subscriber Growth To Be Key Revenue Driver

Cantor believes Wix's subscriber growth would be its key revenue growth driver. Specifically, the firm expects the company to end the quarter with 2.45 million customers, up 39 percent year-over-year, and ARPU to rise 4 percent. The firm also believes the company's registered user base also rose at a healthy pace.

Accordingly, Cantor expects revenues of $82.1 million and earnings of $0.04 per share for the fourth quarter. This compares to the consensus estimate, which calls for earnings of $0.03 per share on revenues of $81.7 million. The firm also expects the company's first-quarter guidance to be in line with the Street estimates.

Remaining Sidelined On Web.com

Cantor Fitzgerald raised its price target for Web.com, while maintaining its rating at Neutral after the company reported fourth-quarter revenues and EBITDA modestly ahead of expectations.

The firm noted that the management is seeing good progress in fixing a higher churn in select Yodle offerings even as it has scaled back on sales/marketing initiatives. Cantor believes the first quarter will likely be the trough for revenue growth as the company continues to work on the Yodle integration. Consequently, the firm said it opts to remain on the sidelines as we await signs for a return to sustainable growth.

Rating/Price Target/Closing Price (As Of February 10)/Earnings Date

• Godaddy: Overweight/$42/$36.01/after market close Wednesday.
• Trade Desk: Overweight/$30/$29.05/Wednesday.
• Wix.com: Overweight/$56/$53.35/before the bell Wednesday.
• Web.com: Neutral/Raised to $20 from $18/$20.95.

At Time Of Writing

• Godaddy was up 0.22 percent at $32.10.
• Trade Desk was rallying 2.34 percent to $29.72.
• Wix.com was losing 0.94 percent to $52.85.
• Web.com was down 2.86 percent at $20.35.