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GoDaddy Inc. (GDDY)
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GoDaddy (GDDY) AI Stock Analysis

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GDDY

GoDaddy

(NYSE:GDDY)

Rating:51Neutral
Price Target:
$144.00
▼(-1.39% Downside)
GoDaddy's overall stock score reflects a mixed outlook. The most significant factor is the company's strong profitability and cash conversion efficiency, which are offset by challenges in revenue growth and high leverage. Technical analysis indicates bearish momentum, with the stock trading below key moving averages and oversold conditions. Valuation concerns arise from a high P/E ratio and lack of dividend yield. Despite positive earnings call sentiment, the overall score is tempered by financial and technical challenges.
Positive Factors
Customer Base Growth
$500+ ARPU customers continued to grow ~20% Y/Y through 1H25, and this cohort now makes up ~9% of GoDaddy’s customer base and has helped push ARPU +10% to $230.
Financial Performance
GoDaddy's second-quarter revenue grew 8% and was $10 million ahead of consensus estimates.
Product Innovation
GoDaddy launched a new Agentic AI product that it expects will help customers build more.
Negative Factors
Customer Decline
Total customers declined 75K sequentially, a larger decline than last quarter, and total bookings grew +6.6% Y/Y, a touch below expectations for 7.1%.
Market Sentiment
Sentiment remains cautious on GDDY shares, particularly given fundamental improvements the company has delivered over the last 18 months.

GoDaddy (GDDY) vs. SPDR S&P 500 ETF (SPY)

GoDaddy Business Overview & Revenue Model

Company DescriptionGoDaddy 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 MoneyGoDaddy 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 Key Performance Indicators (KPIs)

Any
Any
Annual Recurring Revenue
Annual Recurring Revenue
Shows the predictable revenue generated from subscriptions or ongoing services, highlighting the stability and growth potential of GoDaddy’s business model.
Chart InsightsGoDaddy's annual recurring revenue has shown consistent growth, reaching $4.05 billion by Q1 2025, reflecting a 7% year-over-year increase. This growth is bolstered by successful pricing and bundling initiatives and strong performance in the A&C segment, which saw a 17% revenue surge. Despite stable customer numbers, GoDaddy's strategic focus on enhancing customer engagement and expanding its product offerings, such as Airo, is driving financial strength. The completion of a significant share repurchase program underscores management's confidence, though macroeconomic uncertainties remain a watch point.
Data provided by:Main Street Data

GoDaddy Earnings Call Summary

Earnings Call Date:Aug 07, 2025
(Q2-2025)
|
% Change Since: -2.81%|
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong performance with significant advancements in AI technology and growth in key financial metrics, particularly in A&C bookings and free cash flow. The company faces some challenges with the Dotco registry transition and customer count, but these are outweighed by the overall positive momentum and strategic initiatives.
Q2-2025 Updates
Positive Updates
Strong A&C Bookings Growth
A&C bookings grew 12% against the toughest comparison for the year, with normalized EBITDA margin expanding nearly 200 basis points. A&C revenue growth reached 14%, contributing to a record annualized run rate of approximately $2 billion.
Free Cash Flow and Revenue Achievements
Free cash flow grew 21% to $392 million. GoDaddy raised its full-year free cash flow guidance to approximately $1.6 billion. Total revenue grew 8% to $1.2 billion, surpassing the high end of the guided range.
Advancements in AI Technology with Airo
GoDaddy's AI-driven initiatives, including the introduction of Ask Airo, aim to enhance customer experience by providing seamless and proactive digital interactions. Airo cohorts consistently outperform non-Airo cohorts in key metrics such as average order size and renewals.
Growth in Commerce and Payments
GoDaddy surpassed $3 billion in annualized gross payments volume, with promising early momentum for the Rate Saver feature, which can reduce effective rates for merchants by more than 50%.
Increase in High-Value Customer Cohorts
Cohorts spending over $500 annually grew, now representing nearly 9% of the total customer base, contributing significantly to GoDaddy’s total ARPU growth, which increased 10% to $230.
Negative Updates
Dotco Registry Transition
GoDaddy will no longer operate as the registry service provider for the .co top-level domain, expecting an approximate 50 basis point headwind to bookings and revenue primarily in the fourth quarter.
Customer Count Challenges
Despite positive signals, the total customer count continued to face pressure from migrations and low-cost domain renewals, with expectations to return to growth later in the year.
Company Guidance
During GoDaddy's second-quarter 2025 earnings call, the company reported strong financial performance and raised its full-year free cash flow guidance to approximately $1.6 billion. Key metrics highlighted include a 12% growth in Applications and Commerce (A&C) bookings, a nearly 200 basis point expansion in normalized EBITDA margin, and a 21% increase in free cash flow. Total revenue grew by 8% to $1.2 billion, with A&C revenue climbing 14% to $464 million, and annual recurring revenue reaching $4.2 billion. The Core Platform segment also saw revenue growth of 5% to $754 million. Notably, GoDaddy's high-margin A&C segment now accounts for 38% of total revenue, and the company experienced a 10% increase in average revenue per user (ARPU) to $230. GoDaddy's strategic initiatives, such as the integration of AI technologies like Airo and advancements in pricing and bundling, have contributed to these robust results, with the company reaffirming its commitment to maximizing free cash flow and achieving its 2026 financial targets.

GoDaddy Financial Statement Overview

Summary
GoDaddy's financial performance is mixed. Strong profitability and cash conversion efficiency are evident, with a net profit margin of 17.22% and an EBIT margin of 30.99%. However, challenges include a significant decline in revenue growth by 24.09% and a 50.56% drop in free cash flow growth, raising concerns about future growth prospects. The balance sheet shows high leverage, with historical debt-to-equity ratios exceeding 5.59, although recent improvements are noted.
Income Statement
65
Positive
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
45
Neutral
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
55
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.54B4.57B4.25B4.09B3.82B3.32B
Gross Profit2.23B2.92B2.68B2.61B2.44B2.16B
EBITDA1.22B1.15B842.60M718.60M571.50M-198.10M
Net Income608.80M936.90M1.37B352.20M242.30M-494.10M
Balance Sheet
Total Assets8.27B8.24B7.56B6.97B7.42B6.43B
Cash, Cash Equivalents and Short-Term Investments1.09B1.09B498.80M774.00M1.26B765.20M
Total Debt3.88B3.89B3.94B3.98B4.06B3.32B
Total Liabilities7.87B7.54B7.50B7.30B7.33B6.44B
Stockholders Equity404.40M692.10M62.20M-331.80M81.70M-12.90M
Cash Flow
Free Cash Flow677.08M1.26B970.20M919.60M576.10M683.10M
Operating Cash Flow696.48M1.29B1.05B979.70M829.30M764.60M
Investing Cash Flow-29.40M21.50M-102.40M-132.00M-635.60M-482.30M
Financing Cash Flow-812.90M-677.40M-1.26B-1.33B298.10M-581.70M

GoDaddy Technical Analysis

Technical Analysis Sentiment
Negative
Last Price146.03
Price Trends
50DMA
164.86
Negative
100DMA
172.40
Negative
200DMA
182.59
Negative
Market Momentum
MACD
-6.44
Negative
RSI
37.85
Neutral
STOCH
77.21
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 146.03 is below the 20-day moving average (MA) of 150.96, below the 50-day MA of 164.86, and below the 200-day MA of 182.59, indicating a bearish trend. The MACD of -6.44 indicates Negative momentum. The RSI at 37.85 is Neutral, neither overbought nor oversold. The STOCH value of 77.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
$24.49B123.6814.51%26.11%
68
Neutral
$7.95B17.39-60.11%-0.04%-5.07%
68
Neutral
$15.96B141.332.08%13.51%
66
Neutral
$25.15B32.13-72.04%0.57%4.59%0.26%
61
Neutral
$35.38B6.84-10.82%1.97%8.74%-8.28%
60
Neutral
$7.05B45.68-46.79%13.04%126.85%
51
Neutral
$20.02B26.08288.03%8.09%-54.94%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GDDY
GoDaddy
146.03
-16.42
-10.11%
VRSN
Verisign
272.24
93.92
52.67%
WIX
Wix
131.82
-36.15
-21.52%
OKTA
Okta
92.05
-6.96
-7.03%
DBX
Dropbox
28.32
3.99
16.40%
TOST
Toast Inc
42.60
18.92
79.90%

GoDaddy Corporate Events

Executive/Board ChangesShareholder Meetings
GoDaddy Stockholders Approve Key Amendments in June 2025
Neutral
Jun 10, 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.

The most recent analyst rating on (GDDY) stock is a Buy with a $224.00 price target. To see the full list of analyst forecasts on GoDaddy stock, see the GDDY Stock Forecast page.

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.Date of analysis: Aug 14, 2025