GoDaddy (GDDY) AI Stock Analysis

• Market Cap: $20.07B
• Dividend Yield: N/A
• Average Volume (3M): 2.13M
• Price to Earnings (P/E): 25.8
• Beta (1Y): 1.02
• Revenue Growth: 8.09%
• EPS Growth: -54.94%
• Country: US
• Employees: 5,518
• Sector: Technology
• Sector Strength: 86
• Industry: Software - Infrastructure
• EPS (TTM): 1.41
• Shares Outstanding: 138,449,020
• 10 Day Avg. Volume: 1,546,430
• 30 Day Avg. Volume: 2,126,285
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.41
• Enterprise Value/Revenue: 5.95
• Enterprise Value/Gross Profit: 9.29
• Enterprise Value/Ebitda: 23.83
• 1Y Price Target: $196.00
• Price Target Upside: 31.91% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17

• Rating: 59 Neutral
• Price Target: $153.00 ▲(2.97% Upside)

GoDaddy's overall stock score reflects a mixed financial performance with strong profitability but declining revenue growth. Technical analysis indicates bearish momentum, while valuation is moderate. The positive earnings call, with raised guidance and strategic advancements, provides a strong counterbalance, contributing significantly to the score.

Positive Factors

Strong Profitability

GoDaddy's strong profitability metrics indicate efficient cost management and effective pricing strategies, supporting long-term financial stability.

AI Technology Advancements

Integration of AI technologies like Airo enhances customer experience and operational efficiency, providing a competitive edge in the digital services market.

Free Cash Flow Growth

Significant growth in free cash flow demonstrates strong cash generation ability, allowing for reinvestment in growth initiatives and debt reduction.

Negative Factors

Declining Revenue Growth

A significant decline in revenue growth suggests challenges in maintaining sales momentum, potentially impacting future earnings and market position.

High Leverage

High leverage can limit financial flexibility and increase risk, necessitating a focus on strengthening the equity base to ensure long-term stability.

Dotco Registry Transition

The loss of the .co registry service could lead to revenue and bookings headwinds, impacting short-term financial performance and market presence.

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 primarily through several key streams. The largest source is domain name registration and renewal fees, where customers pay annually to secure their desired domain names. Additionally, the company earns substantial revenue from web hosting services, which include shared hosting, VPS hosting, and dedicated servers. GoDaddy also offers premium services such as website building tools, eCommerce solutions, and digital marketing services, which contribute to its revenue. Furthermore, the company provides professional email and productivity solutions that enhance its offerings. Strategic partnerships with companies such as Google and various payment processors also bolster its service offerings and contribute to revenue growth. Overall, GoDaddy's diverse portfolio of services and a strong focus on customer support enable it to maintain a robust revenue model.

GoDaddy Financial Statement Overview

Summary

GoDaddy's financial performance is mixed. While profitability metrics like net profit margin (17.22%) and EBIT margin (30.99%) are strong, revenue growth has declined significantly by 24.09%. The balance sheet shows high leverage, though improving, with a debt-to-equity ratio of 0.21. Cash flow metrics indicate strong cash conversion efficiency, but free cash flow growth has declined by 50.56%.

Income Statement

GoDaddy's income statement shows a mixed performance. The TTM data reveals a significant decline in revenue growth rate by 24.09%, indicating potential challenges in maintaining sales momentum. However, the company maintains strong profitability with a net profit margin of 17.22% and an EBIT margin of 30.99%, suggesting efficient cost management. The gross profit margin remains robust at 63.14%, reflecting effective pricing strategies. Despite the revenue decline, the company demonstrates solid profitability metrics.

Balance Sheet

The balance sheet indicates a high level of leverage, with a TTM debt-to-equity ratio of 0.21, which is a significant improvement from previous years. However, the historical data shows a concerning trend of high debt levels relative to equity, with past ratios exceeding 5.59. The return on equity has improved to 1.95% in the TTM, but the equity ratio remains low, highlighting potential risks in financial stability. The company needs to focus on strengthening its equity base to mitigate leverage risks.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth by 50.56% in the TTM, indicating potential cash generation challenges. However, the operating cash flow to net income ratio is exceptionally high at 230.82, suggesting strong cash conversion efficiency. The free cash flow to net income ratio remains healthy at 0.97, indicating that the company is effectively converting its earnings into cash. Despite the recent decline in growth, the cash flow metrics reflect a solid operational cash generation capability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.75B	4.57B	4.25B	4.09B	3.82B	3.32B
Gross Profit	3.04B	2.92B	2.68B	2.61B	2.44B	2.16B
EBITDA	1.19B	1.06B	754.10M	697.40M	579.20M	-201.40M
Net Income	808.50M	936.90M	1.37B	352.20M	242.30M	-495.10M
Balance Sheet
Total Assets	8.27B	8.24B	7.56B	6.97B	7.42B	6.43B
Cash, Cash Equivalents and Short-Term Investments	1.09B	1.09B	498.80M	774.00M	1.26B	765.20M
Total Debt	3.88B	3.89B	3.94B	3.98B	4.06B	3.32B
Total Liabilities	7.87B	7.54B	7.50B	7.30B	7.33B	6.44B
Stockholders Equity	404.40M	692.10M	62.20M	-331.80M	81.70M	-12.90M
Cash Flow
Free Cash Flow	677.08M	1.26B	970.20M	919.60M	576.10M	683.10M
Operating Cash Flow	696.48M	1.29B	1.05B	979.70M	829.30M	764.60M
Investing Cash Flow	-29.40M	21.50M	-102.40M	-132.00M	-635.60M	-482.30M
Financing Cash Flow	-812.90M	-677.40M	-1.26B	-1.33B	298.10M	-581.70M

GoDaddy Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 148.59
• 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 Neutral. The current price of 148.59 is above the 20-day moving average (MA) of 146.12, below the 50-day MA of 156.15, and below the 200-day MA of 180.26, indicating a neutral trend. The MACD of -2.14 indicates Negative momentum. The RSI at 49.00 is Neutral, neither overbought nor oversold. The STOCH value of 76.53 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
WEX	77 Outperform	$5.81B	21.43	22.19%	―	-1.62%	36.57%
DBX	69 Neutral	$8.03B	18.79	-60.11%	―	-0.04%	-5.07%
FFIV	68 Neutral	$19.22B	29.50	20.58%	―	8.94%	22.30%
ZS	67 Neutral	$43.41B	―	-2.70%	―	23.31%	31.04%
WIX	65 Neutral	$9.13B	59.03	-46.79%	―	13.04%	126.85%
Sector *	61 Neutral	$36.70B	12.21	-10.39%	1.84%	8.50%	-7.32%
GDDY	59 Neutral	$20.07B	25.83	288.03%	―	8.09%	-54.94%

GoDaddy Corporate Events

GoDaddy Stockholders Approve Key Amendments in June 2025

At the 2025 annual meeting held on June 4, GoDaddy Inc. stockholders approved amendments to the company’s Certificate of Incorporation and Bylaws. These changes include limiting officer liability, eliminating references to a classified board structure, and removing Class B common stock references. Additionally, the meeting saw the election of nine directors, approval of executive compensation, and ratification of Ernst & Young LLP as the independent auditor for 2025.