GoDaddy (GDDY) AI Stock Analysis

• Market Cap: $22.97B
• Dividend Yield: N/A
• Average Volume (3M): 1.75M
• Price to Earnings (P/E): 25.1
• Beta (1Y): 1.22
• Revenue Growth: 7.82%
• EPS Growth: -32.24%
• Country: US
• Employees: 5,518
• Sector: Technology
• Sector Strength: 40
• Industry: Software - Infrastructure
• EPS (TTM): 6.45
• Shares Outstanding: 141,355,910
• 10 Day Avg. Volume: 1,752,358
• 30 Day Avg. Volume: 1,746,446
• PEG Ratio: 0.04
• Price to Book (P/B): N/A
• Price to Sales (P/S): 5.57
• Price to Cash Flow (P/CF): 18.70
• P/FCF Ratio: 19.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $221.29
• Price Target Upside: 36.51% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

GoDaddy's overall stock score reflects its solid financial performance, highlighted by strong revenue and profit growth and robust cash flow generation. However, the high debt levels and weak technical indicators suggest caution. The earnings call provided optimism with key growth initiatives like Aero, but challenges such as a declining customer base and slow core platform growth temper enthusiasm. The valuation is reasonable, though the lack of a dividend yield may limit appeal for income investors.

Positive Factors

Financial Performance

GoDaddy outperformed on the profitability front with adjusted EBITDA margin over 120 basis points ahead of prior guidance and unlevered free cash flow margin 220 basis points ahead of the Street.

Growth Opportunities

Airo Plus directly monetizing AI capabilities is viewed as an upside to GoDaddy's financial model.

Product Innovations

GoDaddy's product innovations, such as converting a URL into a website, are expected to increase ease of use, engagement, and conversion.

Negative Factors

Mixed Guidance

Despite the solid growth drivers heading into 2025, GoDaddy provided mixed initial guidance for the year with profitability guidance likely disappointing investor expectations.

Profitability Guidance

The profitability guidance likely disappointed investor expectations as the margin expansion cadence is slowing this year to about 100 basis points, down from nearly 400 basis points the previous year.

Revenue Growth 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 demonstrates strong revenue and profit growth, with effective cost management and operational efficiency. The company has improved its balance sheet with a return to positive equity, though high leverage poses potential risks. Strong cash flow metrics bolster its financial position, but caution is advised due to the high debt levels.

Income Statement

GoDaddy has shown consistent revenue growth with a 7.51% increase from 2023 to 2024. The gross profit margin stood at 63.88%, highlighting efficient cost management. The net profit margin improved to 20.48%, reflecting strong profitability. EBIT and EBITDA margins were 19.54% and 23.36% respectively, indicating robust operational performance. However, the net income decreased compared to 2023, which slightly impacts the overall score.

Balance Sheet

The debt-to-equity ratio remains high due to substantial leverage, which can be risky. The company has improved its equity position with a return to positive stockholders' equity. The return on equity (ROE) is remarkably high at 135.37%, driven by improved net income. The equity ratio is 8.40%, suggesting low equity relative to assets, which could be a risk if liabilities increase.

Cash Flow

Free cash flow grew by 30.01% from 2023 to 2024, demonstrating strong cash generation capabilities. The operating cash flow to net income ratio is 1.37, indicating efficient cash flow management. The free cash flow to net income ratio is 1.35, showing that the company is generating significant cash relative to its net income. Despite the positive cash flow metrics, high leverage remains a concern.

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

• Technical Analysis Sentiment: Negative
• Last Price: 162.11
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GDDY, the sentiment is Negative. The current price of 162.11 is below the 20-day moving average (MA) of 177.21, below the 50-day MA of 185.74, and below the 200-day MA of 174.04, indicating a bearish trend. The MACD of -1.09 indicates Negative momentum. The RSI at 48.09 is Neutral, neither overbought nor oversold. The STOCH value of 41.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GDDY.

GoDaddy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TOST	73 Outperform	$17.65B	―	1.46%	―	28.33%	―
OKTA	69 Neutral	$15.84B	1,559.56	0.46%	―	15.33%	―
VRSN	68 Neutral	$22.18B	29.43	-72.04%	―	4.31%	1.07%
DBX	68 Neutral	$7.68B	18.13	-60.11%	―	1.86%	6.21%
GDDY	66 Neutral	$22.97B	25.12	248.42%	―	7.82%	-32.24%
WIX	61 Neutral	$8.20B	64.34	-46.79%	―	12.74%	327.43%
Sector *	57 Neutral	$18.45B	9.41	-13.97%	2.74%	5.04%	-23.56%

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.