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GoDaddy (GDDY)
NYSE:GDDY
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GoDaddy
(NYSE:GDDY)
71Outperform
Positive Factors
AI Efficiencies
AI efficiencies are reducing the barriers to service $1M+ clients, presenting an underappreciated catalyst for the shares.
Revenue Growth
GoDaddy’s first-quarter revenue grew 7.7% and was $9.3 million ahead of the midpoint of guidance, fueled by application and commerce traction.
Share Repurchase Program
GoDaddy's share repurchase program demonstrates its commitment to returning value to shareholders through buybacks.
Negative Factors
Bookings Deceleration
The segment’s bookings decelerated to 14% due to a challenging comparison versus the year-ago quarter.
Revenue Growth Guidance
FY25 revenue growth guidance at +7% likely fell short of expectations following strong share performance.
GoDaddy (GDDY) vs. S&P 500 (SPY)
Market Cap
$26.01B
Dividend YieldN/A
Average Volume (3M)1.72M
Price to Earnings (P/E)35.0
Beta (1Y)1.15
Revenue Growth7.93%
EPS Growth-56.44%
CountryUS
Employees5,518
SectorTechnology
Sector Strength67
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)1.51
Shares Outstanding142,488,190
10 Day Avg. Volume1,695,620
30 Day Avg. Volume1,720,505
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.13
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit10.04
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$215.40Price Target Upside17.96% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering16
GoDaddy Business Overview & Revenue Model
Company DescriptionGoDaddy Inc. (GDDY) is a leading technology company that specializes in internet domain registration and web hosting services. Founded in 1997, the company empowers individuals and businesses to establish their online presence. GoDaddy offers a comprehensive suite of products, including domain names, website building tools, hosting services, email hosting, online marketing tools, and security solutions, serving millions of customers worldwide.
How the Company Makes MoneyGoDaddy generates revenue through various streams primarily originating from its domain registration and web hosting services. The company charges fees for registering and renewing domain names, which is a significant part of its income. Additionally, GoDaddy earns money by providing website hosting and management services, which include shared hosting, virtual private servers, and dedicated server options. The company also monetizes its website building tools and online marketing services, such as email marketing and search engine optimization. Furthermore, GoDaddy offers business applications and professional services, like website design and security solutions, which contribute to its earnings. Key partnerships with technology and service providers enhance its product offerings, driving additional sales and customer retention.
GoDaddy Key Performance Indicators (KPIs)
Any
Annual Recurring Revenue
Measures the predictable revenue generated from subscriptions or contracts, indicating business stability and growth potential.
Measures the predictable revenue generated from subscriptions or contracts, indicating business stability and growth potential.
Data provided by:
Main Street Data
Main Street DataGoDaddy Financial Statement Overview
Summary
GoDaddy demonstrates strong revenue growth and operational efficiency. However, balance sheet leverage is a concern with a high debt-to-equity ratio. Cash flow generation is robust, providing financial flexibility. The company should focus on strengthening its equity base to reduce reliance on debt.Income Statement
GoDaddy has shown consistent revenue growth over the years, increasing from $3.32 billion in 2020 to $4.66 billion in TTM 2025. The gross profit margin remains strong, reflecting efficient cost management, while the net profit margin has seen a positive trend despite a dip in TTM 2025. EBIT and EBITDA margins indicate solid operational profitability, although the recent decline in EBIT margin suggests potential cost pressures.75
Positive
Balance Sheet
The balance sheet reflects a high level of liabilities compared to equity, with a debt-to-equity ratio that indicates significant leverage. The improvement in stockholders' equity by TTM 2025 is encouraging, but overall equity levels remain low. The equity ratio is low, suggesting a reliance on debt financing. Return on Equity (ROE) has improved, showcasing better profitability with existing equity.60
Neutral
Cash Flow
GoDaddy's cash flow is robust, with strong free cash flow growth and a high operating cash flow to net income ratio. The company has effectively managed its capital expenditures, maintaining positive free cash flow. The free cash flow to net income ratio is healthy, indicating efficient conversion of profits to cash.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 4.57B | 4.25B | 4.09B | 3.82B | 3.32B | Gross Profit |
| 2.92B | 2.68B | 2.61B | 2.44B | 2.16B | EBIT |
| 893.50M | 547.40M | 498.80M | 382.10M | -358.90M | EBITDA |
| 1.07B | 821.60M | 744.20M | 659.60M | -198.10M | Net Income Common Stockholders |
| 936.90M | 1.37B | 352.20M | 242.30M | -494.10M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.09B | 498.80M | 774.00M | 1.26B | 765.20M | Total Assets |
| 8.24B | 7.56B | 6.97B | 7.42B | 6.43B | Total Debt |
| 3.87B | 3.94B | 3.95B | 4.03B | 3.28B | Net Debt |
| 2.78B | 3.48B | 3.17B | 2.77B | 2.52B | Total Liabilities |
| 7.54B | 7.50B | 7.30B | 7.33B | 6.44B | Stockholders Equity |
| 692.10M | 62.20M | -331.80M | 81.70M | -12.90M |
| Cash Flow | Free Cash Flow | |||
| 1.26B | 970.20M | 919.60M | 576.10M | 683.10M | Operating Cash Flow |
| 1.29B | 1.05B | 979.70M | 829.30M | 764.60M | Investing Cash Flow |
| 21.50M | -102.40M | -132.00M | -635.60M | -482.30M | Financing Cash Flow |
| -677.40M | -1.26B | -1.33B | 298.10M | -581.70M |
GoDaddy Technical Analysis
Positive
182.60
Price Trends
177.47
Positive
188.69
Negative
177.93
Positive
Market Momentum
1.89
Negative
53.02
Neutral
52.73
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GDDY, the sentiment is Positive. The current price of 182.6 is above the 20-day moving average (MA) of 179.19, above the 50-day MA of 177.47, and above the 200-day MA of 177.93, indicating a bullish trend. The MACD of 1.89 indicates Negative momentum. The RSI at 53.02 is Neutral, neither overbought nor oversold. The STOCH value of 52.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GDDY.
GoDaddy Risk Analysis
GoDaddy disclosed 61 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 0 New Risks
GoDaddy Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $20.34B | ― | 11.06% | ― | 26.72% | ― | |
74 Outperform | $8.29B | 20.55 | -60.11% | ― | 0.79% | 0.59% | |
72 Outperform | $26.59B | 34.62 | -72.04% | ― | 4.12% | 0.54% | |
71 Outperform | $26.01B | 35.04 | 245.70% | ― | 7.93% | -56.44% | |
65 Neutral | $9.14B | 70.58 | -46.79% | ― | 12.74% | 327.43% | |
61 Neutral | $20.32B | 1,997.78 | 0.46% | ― | 15.33% | ― | |
60 Neutral | $10.94B | 10.37 | -6.73% | 2.98% | 7.75% | -12.61% |
* Technology Sector Average
Performance Comparison
GDDY
GoDaddy
182.60
49.03
36.71%
VRSN
Verisign
281.41
110.32
64.48%
WIX
Wix
171.53
44.52
35.05%
OKTA
Okta
119.45
21.05
21.39%
DBX
Dropbox
29.46
5.67
23.83%
TOST
Toast Inc
40.84
13.82
51.15%
GoDaddy Earnings Call Summary
Earnings Call Date:May 01, 2025
(Q1-2025)
| % Change Since: -5.07%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Positive
The earnings call for GoDaddy's Q1 2025 reflects a strong financial performance with notable growth in bookings, revenue, and free cash flow. The company successfully expanded its pricing and bundling initiatives and saw positive customer engagement with Airo, despite a stable customer count and macroeconomic uncertainties. The completion of a significant share repurchase program highlights GoDaddy's confidence in its business model.Q1-2025 Updates
Positive Updates
Strong Bookings and EBITDA Margin Growth
GoDaddy achieved 8% bookings growth, expanded normalized EBITDA margin to 31%, and grew free cash flow by 26% year-over-year, underscoring the company's financial strength.
A&C Segment Revenue Surge
The A&C segment delivered 17% revenue growth and 14% bookings growth, driven by strong adoption of subscription solutions, with EBITDA margin expanding by nearly 200 basis points to 44%.
Successful Pricing and Bundling Initiatives
GoDaddy's pricing and bundling initiative delivered results ahead of expectations in Q1, contributing to increased average order size and improved customer retention.
Airo's Growing Impact
Airo is driving increased customer engagement, conversion, and product attach rates, contributing to GoDaddy's financial results. Airo Plus is also gaining traction.
International and Aftermarket Growth
International revenue grew 10%, supported by strong aftermarket sales, surpassing prior expectations.
Share Repurchase Program Completion
GoDaddy completed a $4 billion share repurchase program, reducing outstanding shares by over 25% since inception, and announced a new $3 billion repurchase authorization.
Negative Updates
Stable Customer Count
Customer count remained stable at 20.5 million due to lapping the impact of past divestitures. While returning to customer growth is anticipated, it has not yet materialized.
Macro-Economic Uncertainty
Despite strong performance, the company acknowledged pressure from broader macroeconomic conditions, including tariffs, which are being monitored closely.
Company Guidance
During GoDaddy's Q1 2025 earnings call, the company reported an 8% growth in bookings and a 31% expansion in normalized EBITDA margin, leading to a 26% increase in free cash flow. Total revenue reached $1.2 billion, growing 8% year-over-year, with annual recurring revenue up 7% to $4.1 billion. The A&C segment achieved a 17% revenue growth and a 14% boost in bookings, while the core platform segment saw a 3% increase in revenue. Free cash flow rose to $411 million, and the company completed a $4 billion share repurchase program, reducing shares outstanding by over 25%. GoDaddy reaffirmed its full-year 2025 guidance with projected revenue between $4.86 billion and $4.94 billion and a free cash flow target of at least $1.5 billion.GoDaddy Corporate Events
Executive/Board Changes
GoDaddy Appoints New Chief Accounting Officer
Neutral
Nov 8, 2024
GoDaddy Inc. has announced a leadership change in its accounting department, appointing Phontip Palitwanon as the new Chief Accounting Officer following the restructuring that impacted Nicholas Daddario’s role. Ms. Palitwanon, with nine years at the company, steps into her new role with a compensation package that includes a base salary of $350,000, a potential annual bonus, and significant equity awards. Her appointment reflects GoDaddy’s strategic moves to strengthen its financial leadership.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.