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GoDaddy (GDDY)
NYSE:GDDY

GoDaddy (GDDY) AI Stock Analysis

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GoDaddy

(NYSE:GDDY)

Rating:71Outperform
Price Target:
GoDaddy's strong financial performance, particularly in revenue growth and cash flow, is a key strength. However, high leverage on the balance sheet and a high P/E ratio suggest caution. The recent earnings call provided positive insights into operational improvements and strategic initiatives, slightly offsetting the valuation concerns.
Positive Factors
AI Efficiencies
AI efficiencies are reducing the barriers to service $1M+ clients, presenting an underappreciated catalyst for the shares.
Product Integration
3P product integration is expected to complement accretive product bundling efforts, unlocking incremental TAM opportunities.
Negative Factors
Earnings Estimate
The decision to reduce the DCF-based price target to $250 reflects an increased WACC and reduced estimates.
Revenue Guidance
FY25 revenue growth guidance at +7% likely fell short of expectations following strong share performance.

GoDaddy (GDDY) vs. SPDR S&P 500 ETF (SPY)

GoDaddy Business Overview & Revenue Model

Company DescriptionGoDaddy Inc. engages in the design and development of cloud-based technology products in the United States and internationally. The company provides domain name registration product that enables to engage customers at the initial stage of establishing a digital identity. It also offers shared Website hosting products that provide various applications and products, such as web analytics, Secure Sockets Layer certificates, and WordPress; Website hosting on virtual private servers and virtual dedicated servers products, which allows customers to select the server configuration suited for their applications, requirements, and growth; managed hosting products to set up, monitor, maintain, secure, and patch software and servers for customers; and security products, a suite of tools designed to help secure customers' online presence. In addition, the company provides presence products, such as Websites + Marketing, a do-it-yourself mobile-optimized online tool that enables customers to build websites and e-commerce enabled online stores; a range of marketing tools and services designed to help businesses acquire and engage customers, and create content, as well as search engine optimization that helps customers get their websites found on search sites; and social media management services. Further, it offers business application products, such as Microsoft Office 365, email accounts, email marketing, and Internet-based telephony services; online store capabilities that allows customers to transact business directly on their websites; GoDaddy Payments, a payment facilitator; and point-of-sale (POS) devices, as well as software for POS. The company serves small businesses, individuals, organizations, developers, designers, and domain investors. GoDaddy Inc. was incorporated in 2014 and is headquartered in Tempe, Arizona.
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
Any
Annual Recurring Revenue
Annual Recurring Revenue
Measures the predictable revenue generated from subscriptions or contracts, indicating business stability and growth potential.
Chart InsightsGoDaddy's annual recurring revenue has shown consistent growth, reaching $4.05 billion by Q1 2025, reflecting a 7% year-over-year increase. This growth is bolstered by successful pricing and bundling initiatives and strong performance in the A&C segment, which saw a 17% revenue surge. Despite stable customer numbers, GoDaddy's strategic focus on enhancing customer engagement and expanding its product offerings, such as Airo, is driving financial strength. The completion of a significant share repurchase program underscores management's confidence, though macroeconomic uncertainties remain a watch point.
Data provided by:Main Street Data

GoDaddy Financial Statement Overview

Summary
GoDaddy has shown consistent revenue growth, strong cash flow generation, and solid operational profitability. However, the balance sheet reflects high leverage, which is a concern. The company needs to strengthen its equity base to improve financial stability.
Income Statement
75
Positive
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.
Balance Sheet
60
Neutral
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.
Cash Flow
80
Positive
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.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
4.66B4.57B4.25B4.09B3.82B3.32B
Gross Profit
2.91B2.92B2.68B2.61B2.44B2.16B
EBIT
971.10M893.50M547.40M498.80M382.10M-358.90M
EBITDA
838.31M1.07B821.60M744.20M659.60M-198.10M
Net Income Common Stockholders
754.90M936.90M1.37B352.20M242.30M-494.10M
Balance SheetCash, Cash Equivalents and Short-Term Investments
664.00M1.09B498.80M774.00M1.26B765.20M
Total Assets
7.98B8.24B7.56B6.97B7.42B6.43B
Total Debt
3.92B3.87B3.94B3.95B4.03B3.28B
Net Debt
3.26B2.78B3.48B3.17B2.77B2.52B
Total Liabilities
7.56B7.54B7.50B7.30B7.33B6.44B
Stockholders Equity
414.80M692.10M62.20M-331.80M81.70M-12.90M
Cash FlowFree Cash Flow
1.37B1.26B970.20M919.60M576.10M683.10M
Operating Cash Flow
1.40B1.29B1.05B979.70M829.30M764.60M
Investing Cash Flow
-25.80M21.50M-102.40M-132.00M-635.60M-482.30M
Financing Cash Flow
-1.31B-677.40M-1.26B-1.33B298.10M-581.70M

GoDaddy Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price183.49
Price Trends
50DMA
179.51
Positive
100DMA
187.30
Negative
200DMA
179.67
Positive
Market Momentum
MACD
2.55
Positive
RSI
49.88
Neutral
STOCH
61.61
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GDDY, the sentiment is Neutral. The current price of 183.49 is below the 20-day moving average (MA) of 185.60, above the 50-day MA of 179.51, and above the 200-day MA of 179.67, indicating a neutral trend. The MACD of 2.55 indicates Positive momentum. The RSI at 49.88 is Neutral, neither overbought nor oversold. The STOCH value of 61.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 3 New Risks
1.
An actual or perceived cybersecurity incident could impair our ability to conduct business, provide our products and services, protect data, and comply with contractual or legal obligations, and may cause us to incur substantial costs, or subject us to significant liability. Q4, 2024
2.
We rely on information technology systems, including third-party cloud computing systems, and data centers to deliver many of our products and services. These information technology systems and data centers may experience outages, disruptions or degradations, and we may otherwise lose access to the services third-party service providers provide to us, any of which could impact our services, products and technological infrastructure. Q4, 2024
3.
We are subject to international laws, rules and regulations relating to content moderation. Q4, 2024

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
76
Outperform
$25.84B189.0011.06%26.72%
DBDBX
75
Outperform
$8.07B18.78-60.11%0.79%0.59%
72
Outperform
$26.37B34.36-72.04%4.12%0.54%
71
Outperform
$26.81B35.22245.70%7.93%-56.44%
WIWIX
63
Neutral
$10.03B78.16-46.79%12.89%123.39%
61
Neutral
$21.96B2,082.940.46%15.33%
60
Neutral
$11.56B10.24-7.04%2.94%7.46%-10.54%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GDDY
GoDaddy
183.49
44.21
31.74%
VRSN
Verisign
281.08
106.49
60.99%
WIX
Wix
152.34
-14.85
-8.88%
OKTA
Okta
122.06
21.19
21.01%
DBX
Dropbox
28.59
5.71
24.96%
TOST
Toast Inc
42.84
16.16
60.57%

GoDaddy Earnings Call Summary

Earnings Call Date:May 01, 2025
(Q1-2025)
|
% Change Since: -4.61%|
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.