GoDaddy (GDDY) AI Stock Analysis

• Market Cap: $18.32B
• Dividend Yield: N/A
• Average Volume (3M): 1.46M
• Price to Earnings (P/E): 23.6
• Beta (1Y): 1.03
• Revenue Growth: 8.09%
• EPS Growth: -54.94%
• Country: US
• Employees: 5,518
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 1.41
• Shares Outstanding: 138,449,020
• 10 Day Avg. Volume: 1,208,517
• 30 Day Avg. Volume: 1,464,855
• PEG Ratio: -1.04
• Price to Book (P/B): 40.28
• Price to Sales (P/S): 6.10
• P/FCF Ratio: 22.11
• Enterprise Value/Market Cap: 1.54
• Enterprise Value/Revenue: 5.95
• Enterprise Value/Gross Profit: 9.29
• Enterprise Value/Ebitda: 23.83
• 1Y Price Target: $190.47
• Price Target Upside: 45.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 19

• Rating: 55 Neutral
• Price Target: $136.00 ▲(3.86% Upside)

GoDaddy's overall stock score reflects a balance of strong profitability and strategic growth initiatives against challenges in revenue growth and leverage. Technical indicators suggest caution, while valuation remains moderate. The positive sentiment from the earnings call is not factored into the score due to its exclusion from the weighted calculation.

Positive Factors

AI Technology Integration

GoDaddy's integration of AI technologies like Airo enhances customer experience and operational efficiency, positioning the company for sustained growth in the digital services market.

Revenue Growth in A&C Segment

The strong growth in the Applications and Commerce segment, now accounting for 38% of total revenue, indicates a robust and expanding business line that supports long-term revenue stability.

Trusted Identity System for AI Agents

By developing a trusted identity system for AI agents, GoDaddy leverages its expertise in internet security, potentially opening new revenue streams and strengthening its market position in the AI domain.

Negative Factors

Revenue Growth Challenges

The decline in revenue growth suggests potential challenges in maintaining sales momentum, which could impact long-term financial performance if not addressed.

High Leverage

High leverage levels can limit financial flexibility and increase risk, potentially impacting GoDaddy's ability to invest in growth opportunities or weather economic downturns.

Dotco Registry Transition

The loss of the .co registry service could lead to a decrease in bookings and revenue, affecting GoDaddy's market position and financial performance in the near term.

GoDaddy Business Overview & Revenue Model

Company Description

GoDaddy Inc. (GDDY) is a leading technology provider that empowers everyday entrepreneurs by offering a range of internet domain services and web hosting solutions. Founded in 1997, the company operates primarily in the domain registration and web hosting sectors, providing customers with essential tools to build, manage, and grow their online presence. Core products include domain name registration, web hosting services, website building tools, and online marketing solutions, along with solutions for email and productivity.

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	1.45B	1.26B	970.20M	919.60M	576.10M	683.10M
Operating Cash Flow	1.48B	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: Negative
• Last Price: 130.94
• 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 130.94 is below the 20-day moving average (MA) of 133.22, below the 50-day MA of 140.60, and below the 200-day MA of 170.16, indicating a bearish trend. The MACD of -3.03 indicates Negative momentum. The RSI at 38.74 is Neutral, neither overbought nor oversold. The STOCH value of 59.32 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
WEX	72 Outperform	$5.34B	20.23	22.19%	―	-1.62%	36.57%
ZS	71 Outperform	$48.74B	―	-2.70%	―	23.31%	31.04%
FFIV	63 Neutral	$17.34B	26.31	20.58%	―	8.94%	22.30%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
DBX	61 Neutral	$7.65B	17.96	―	―	-0.04%	-5.07%
WIX	60 Neutral	$7.81B	50.71	―	―	13.04%	126.85%
GDDY	55 Neutral	$18.32B	23.60	288.03%	―	8.09%	-54.94%

GoDaddy Corporate Events

GoDaddy Reports Strong Q2 Earnings and Growth

GoDaddy’s recent earnings call showcased a robust quarter, characterized by notable growth in Applications and Commerce (A&C) bookings and free cash flow, alongside successful AI-driven innovations. While the company faced challenges such as the .co registry transition and customer count pressures, the overall business outlook remains optimistic with raised guidance and strategic advancements.

GoDaddy Reports Strong Q2 2025 Financial Results

GoDaddy Inc., a leading technology company in the domain registration and web hosting industry, empowers entrepreneurs worldwide to establish and grow their online presence with its comprehensive suite of digital tools and services.