GoDaddy (38D) AI Stock Analysis

0 Followers

GoDaddy

(BX Swiss:38D)

Rating:―N/A

Action:N/A

Date:―

No summary available

Positive Factors

Cash GenerationGoDaddy’s strong free-cash-flow generation and better-than-1:1 EBITDA conversion indicate high earnings quality and substantial internal funding capacity. This supports continued investment in products and AI while giving management flexibility to pursue capital returns and reduce financial strain over the next several quarters.

Negative Factors

Balance Sheet FragilityRepeatedly small or negative equity weakens the capital structure and reduces financial flexibility even while operating results remain strong. Highly unstable debt-to-equity ratios also make shareholder value more sensitive to changes in earnings, debt levels, and business conditions.

GoDaddy Business Overview & Revenue Model

Company Description

GoDaddy Inc., founded in 2014 and based in Tempe, Arizona, operates internationally as a developer and provider of cloud-based technological solutions. The company serves a wide array of clients, including small businesses, individuals, organizations...

GoDaddy Earnings Call Summary

Earnings Call Date:Oct 29, 2026(Q3-2026)|Next Earnings Date:Feb 16, 2027

Earnings Call SentimentPositive

The call was strongly positive. GoDaddy reported solid growth in bookings, revenue, EBITDA, margins and free cash flow, while Airo adoption accelerated rapidly and became incremental to bookings sooner than expected. The company also highlighted improving retention, share repurchases, a strong balance sheet and continued progress in AI products, APIs and agentic infrastructure. The principal challenges were Airo's lower gross margin, early-stage API and ANS monetization, industry discounting, lower email seat volumes and the timing of Airo revenue recognition. Highlights significantly outweighed the lowlights.

Positive Updates

Bookings and Revenue Growth

Third-quarter bookings grew 6% to $1.4 billion, in line with revenue growth. Total revenue grew 6% to $1.3 billion, while ARR increased 5% to $4.5 billion.

Negative Updates

Airo Gross Margin Pressure

Management stated that Airo has a lower gross margin than internally developed software products such as Websites + Marketing. Gross margin is expected to see some deterioration as Airo scales, and Airo is not expected to reach the margin levels of Websites + Marketing even as it improves over time.

Company Guidance

For the full year, GoDaddy expects to finish toward the higher end of its $5.215 billion to $5.255 billion revenue range, with A&C revenue growth of approximately 10% and core platform revenue growth of approximately 4%; for the fourth quarter, absent any impact of FX, bookings growth is expected to accelerate and be slightly ahead of revenue growth, driven by increasing units from adoption of Airo within A&C. GoDaddy reaffirmed its normalized EBITDA margin target of over 33% for the year, reflecting more than 100 basis points of expansion, and its full year free cash flow target of approximately $1.8 billion with a normalized EBITDA conversion ratio of greater than 1:1; its free cash flow North Star remains a 3-year CAGR of over 25%, ahead of the 20% target set at the last Investor Day.

GoDaddy Risk Analysis

GoDaddy disclosed 49 risk factors in its most recent earnings report. GoDaddy reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

1 New Risk

1.regulations and orders may limit our operations and increase costs, and our failure or perceived failure to comply could expose us to litigation, enforcement actions, and reputational harm.Q2, 2026

GoDaddy Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

CH:38D against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VRSN	73Outperform	$27.69B	33.15	-38.17%	1.04%	6.46%	8.32%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
DOCN	58Neutral	$8.55B	172.57	4.27%	―	27.63%	-84.88%
NET	48Neutral	$95.65B	-395.57	-15.75%	―	35.73%	-126.80%
RXT	44Neutral	$644.83M	-3.91	12.97%	―	0.34%	60.08%
TCX	44Neutral	$142.39M	-1.99	49.50%	―	2.89%	27.00%

* Technology Sector Average

Performance Comparison

CH:38D and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TCX	Tucows	12.69	-8.32	-39.60%
VRSN	Verisign	308.67	64.07	26.19%
NET	Cloudflare Inc	268.75	28.22	11.73%
RXT	Rackspace Technology, Inc.	2.53	1.32	109.96%
DOCN	Digitalocean Holdings, Inc.	72.48	20.81	40.27%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

GoDaddy AI Stock Analysis