GoDaddy (GDDY)
NYSE:GDDY
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GoDaddy
(NYSE:GDDY)
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Rating:70Outperform
Price Target:
$95.00
▲(10.83% Upside)
Action:UpgradedDate:05/01/26
The score is supported primarily by strong and improving cash generation/profitability and a solid earnings-call outlook with reaffirmed guidance, margin expansion and robust free cash flow. The main offsets are balance-sheet volatility/leverage history and only mixed technicals (still below longer-term moving averages), while valuation appears reasonable but not clearly cheap and provides no dividend support.
Positive Factors
Strong free cash flow conversion
Consistent, growing free cash flow and >1:1 conversion to normalized EBITDA underpin durable internal funding for capex, buybacks and product investment. This bolsters financial flexibility, reduces reliance on external funding and supports capital allocation over the medium term.
Negative Factors
Historical balance-sheet volatility
Sharp swings in leverage and past negative equity indicate episodic balance-sheet stress that can limit strategic optionality. Even with recent improvement, inconsistent balance-sheet quality raises refinancing and covenant risks and reduces long-term financial flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow conversion
Consistent, growing free cash flow and >1:1 conversion to normalized EBITDA underpin durable internal funding for capex, buybacks and product investment. This bolsters financial flexibility, reduces reliance on external funding and supports capital allocation over the medium term.
Read all positive factors
GoDaddy (GDDY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.05B
Dividend YieldN/A
Average Volume (3M)2.02M
Price to Earnings (P/E)12.9
Beta (1Y)0.84
Revenue Growth7.96%
EPS Growth19.77%
CountryUS
Employees5,518
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)6.39
Shares Outstanding132,409,850
10 Day Avg. Volume1,962,615
30 Day Avg. Volume2,019,108
Financial Highlights & Ratios
PEG Ratio-4.24
Price to Book (P/B)78.11
Price to Sales (P/S)3.39
P/FCF Ratio10.66
Enterprise Value/Market Cap1.22
Enterprise Value/Revenue2.92
Enterprise Value/Gross Profit4.88
Enterprise Value/Ebitda10.94
Forecast
1Y Price Target
$117.75Price Target Upside37.37% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
EPS Forecast (FY)7.04
Revenue Forecast (FY)$5.24B
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 establis...
How the Company Makes Money
GoDaddy makes money primarily by selling subscriptions and recurring services that enable customers to create, host, secure, and market websites, as well as by monetizing domain names. A major revenue stream is domain-related services: customers p...
GoDaddy Key Performance Indicators (KPIs)
Any
Customer Count
Measures the total number of customers, providing insight into GoDaddy’s market reach and growth in user base.
Measures the total number of customers, providing insight into GoDaddy’s market reach and growth in user base.
Data provided by:
The Fly
The FlyGoDaddy Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call highlighted solid top-line growth, meaningful margin expansion and strong free cash flow generation alongside clear early traction for AI-native products and operational AI efficiencies. Offsetting items include weaker bookings momentum versus revenue driven by mix and timing issues, some Core Platform softness and the early-stage nature of AI monetization which will require additional investment. Management reaffirmed full-year guidance and emphasized disciplined capital allocation while accelerating targeted marketing for AI products.Positive Updates
Revenue and ARR Growth
Total revenue grew 6% year-over-year to $1.3 billion in Q1 2026, and ARR increased 6% to $4.3 billion, with revenue growth reported on both a reported and constant currency basis.
Negative Updates
Bookings Growth Lag and Mix Headwinds
Total bookings grew only 3% to $1.5 billion versus 6% revenue growth; bookings impacted by promotional offers, expiration of the .CO registry contract and lapping prior-year aftermarket strength, with Core Platform bookings declining 1%.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue and ARR Growth
Total revenue grew 6% year-over-year to $1.3 billion in Q1 2026, and ARR increased 6% to $4.3 billion, with revenue growth reported on both a reported and constant currency basis.
Read all positive updates
Company Guidance
GoDaddy reaffirmed its FY26 guidance, targeting total revenue of $5.195–$5.275 billion (≈6% growth at the midpoint) and Q2 revenue of $1.285–$1.305 billion (~6% at the midpoint), with A&C growth expected in the low double‑digits and Core Platform in the low single‑digits; management is projecting a Q2 normalized EBITDA margin of ~33% and a full‑year target of >33% with normalized EBITDA converting to free cash flow at >1:1 and a full‑year FCF target of ~$1.8 billion (on track to exceed its >20% FCF North Star CAGR). Q1 results that underpin the guide included revenue of $1.3B (+6%), ARR of $4.3B (+6%), normalized EBITDA of $414M (+13%) and margin expansion of ~210 bps to 33%, free cash flow of $474M (+15%, TTM FCF $1.68B), bookings of $1.5B (+3% with A&C +9% and Core Platform -1%), A&C revenue $0.5B (+12%) and ARR +10%, Core Platform revenue $769M (+3%), international revenue $416M (+7%), net debt $2.6B (1.4x leverage), cash $1.3B and total liquidity $2.3B, and capital returns of $280M in buybacks (3M shares) leaving ~133M diluted shares outstanding.GoDaddy Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
52
Neutral
Cash Flow
86
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.02B | 4.95B | 4.57B | 4.25B | 4.09B | 3.82B |
| Gross Profit | 3.00B | 3.05B | 2.92B | 2.68B | 2.61B | 2.44B |
| EBITDA | 1.34B | 1.29B | 1.06B | 754.10M | 697.40M | 579.20M |
| Net Income | 870.10M | 875.00M | 936.90M | 1.37B | 352.20M | 242.30M |
Balance Sheet | ||||||
| Total Assets | 8.15B | 8.03B | 8.24B | 7.56B | 6.97B | 7.42B |
| Cash, Cash Equivalents and Short-Term Investments | 1.26B | 1.08B | 1.09B | 498.80M | 774.00M | 1.26B |
| Total Debt | 3.85B | 3.86B | 3.89B | 3.94B | 3.98B | 4.06B |
| Total Liabilities | 7.92B | 7.82B | 7.54B | 7.50B | 7.30B | 7.33B |
| Stockholders Equity | 237.30M | 215.10M | 692.10M | 62.20M | -331.80M | 81.70M |
Cash Flow | ||||||
| Free Cash Flow | 1.64B | 1.58B | 1.26B | 970.20M | 919.60M | 576.10M |
| Operating Cash Flow | 1.67B | 1.60B | 1.29B | 1.05B | 979.70M | 829.30M |
| Investing Cash Flow | -26.10M | -25.10M | 21.50M | -102.40M | -132.00M | -635.60M |
| Financing Cash Flow | -1.10B | -1.59B | -677.40M | -1.26B | -1.33B | 298.10M |
GoDaddy Technical Analysis
Neutral
85.72
Price Trends
86.16
Negative
101.96
Negative
123.64
Negative
Market Momentum
-1.09
Negative
54.12
Neutral
79.66
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 85.72 is above the 20-day moving average (MA) of 82.01, below the 50-day MA of 86.16, and below the 200-day MA of 123.64, indicating a neutral trend. The MACD of -1.09 indicates Negative momentum. The RSI at 54.12 is Neutral, neither overbought nor oversold. The STOCH value of 79.66 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 60 risk factors in its most recent earnings report. GoDaddy reported the most risks in the "Tech & Innovation" 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $19.97B | 27.76 | 19.88% | ― | 9.69% | 15.58% | |
72 Outperform | $6.90B | 11.67 | -35.62% | ― | -0.62% | 20.48% | |
70 Outperform | $12.05B | 12.87 | 366.90% | ― | 7.96% | 19.77% | |
67 Neutral | $24.46B | -232.70 | -3.48% | ― | 23.91% | -326.25% | |
62 Neutral | $4.91B | 16.99 | 26.96% | ― | 3.29% | 14.76% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | $4.41B | -35.47 | -21.76% | ― | 13.20% | -64.02% |
* Technology Sector Average
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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.