GoDaddy (GDDY) AI Stock Analysis

• Market Cap: $26.81B
• Dividend Yield: N/A
• Average Volume (3M): 1.51M
• Price to Earnings (P/E): 35.2
• Beta (1Y): 1.10
• Revenue Growth: 7.93%
• EPS Growth: -56.44%
• Country: US
• Employees: 5,518
• Sector: Technology
• Sector Strength: 76
• Industry: Software - Infrastructure
• EPS (TTM): 1.51
• Shares Outstanding: 142,488,190
• 10 Day Avg. Volume: 1,073,614
• 30 Day Avg. Volume: 1,508,675
• PEG Ratio: -1.79
• Price to Book (P/B): 129.55
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 19.00
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 1.40
• Enterprise Value/Gross Profit: 8.72
• Enterprise Value/Ebitda: 6.61
• 1Y Price Target: $213.82
• Price Target Upside: 16.53% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 71 Outperform
• 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 Business Overview & Revenue Model

Company Description

GoDaddy 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 Money

GoDaddy 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 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

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

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

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.66B	4.57B	4.25B	4.09B	3.82B	3.32B
	Gross Profit
2.91B	2.92B	2.68B	2.61B	2.44B	2.16B
	EBIT
971.10M	893.50M	547.40M	498.80M	382.10M	-358.90M
	EBITDA
838.31M	1.07B	821.60M	744.20M	659.60M	-198.10M
	Net Income Common Stockholders
754.90M	936.90M	1.37B	352.20M	242.30M	-494.10M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
664.00M	1.09B	498.80M	774.00M	1.26B	765.20M
	Total Assets
7.98B	8.24B	7.56B	6.97B	7.42B	6.43B
	Total Debt
3.92B	3.87B	3.94B	3.95B	4.03B	3.28B
	Net Debt
3.26B	2.78B	3.48B	3.17B	2.77B	2.52B
	Total Liabilities
7.56B	7.54B	7.50B	7.30B	7.33B	6.44B
	Stockholders Equity
414.80M	692.10M	62.20M	-331.80M	81.70M	-12.90M
Cash Flow		Free Cash Flow
1.37B	1.26B	970.20M	919.60M	576.10M	683.10M
	Operating Cash Flow
1.40B	1.29B	1.05B	979.70M	829.30M	764.60M
	Investing Cash Flow
-25.80M	21.50M	-102.40M	-132.00M	-635.60M	-482.30M
	Financing Cash Flow
-1.31B	-677.40M	-1.26B	-1.33B	298.10M	-581.70M

GoDaddy Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 183.49
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TOST	76 Outperform	$25.84B	189.00	11.06%	―	26.72%	―
DBX	75 Outperform	$8.07B	18.78	-60.11%	―	0.79%	0.59%
VRSN	72 Outperform	$26.37B	34.36	-72.04%	―	4.12%	0.54%
GDDY	71 Outperform	$26.81B	35.22	245.70%	―	7.93%	-56.44%
WIX	63 Neutral	$10.03B	78.16	-46.79%	―	12.89%	123.39%
OKTA	61 Neutral	$21.96B	2,082.94	0.46%	―	15.33%	―
Sector *	60 Neutral	$11.56B	10.24	-7.04%	2.94%	7.46%	-10.54%

GoDaddy Corporate Events

GoDaddy Appoints New Chief Accounting Officer

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.