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GoDaddy (GDDY)
NYSE:GDDY
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GoDaddy
(NYSE:GDDY)68Neutral
Positive Factors
Earnings
GoDaddy's fourth-quarter revenue grew 8.4% and came in $17.6 million ahead of the midpoint of guidance, fueled by application and commerce growth.
Product Innovation
GoDaddy's introduction of Airo Plus with paid AI features is seen as a step forward in their product evolution.
Negative Factors
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.
GoDaddy (GDDY) vs. S&P 500 (SPY)
Market Cap
$25.37B
Dividend YieldN/A
Average Volume (3M)1.52M
Price to Earnings (P/E)27.5
Beta (1Y)1.31
Revenue Growth7.82%
EPS Growth-32.24%
CountryUS
Employees6,159
SectorTechnology
Sector Strength48
IndustrySoftware
Share Statistics
EPS (TTM)6.45
Shares Outstanding141,355,910
10 Day Avg. Volume1,851,634
30 Day Avg. Volume1,515,300
Financial Highlights & Ratios
PEG Ratio0.04
Price to Book (P/B)N/A
Price to Sales (P/S)5.55
Price to Cash Flow (P/CF)18.60
P/FCF Ratio19.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$224.08Price Target Upside27.02% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
GoDaddy Business Overview & Revenue Model
Company DescriptionGoDaddy Inc. (GDDY) is a leading technology company that specializes in internet domain registration and web hosting services. Founded in 1997, the company empowers individuals and businesses to establish their online presence. GoDaddy offers a comprehensive suite of products, including domain names, website building tools, hosting services, email hosting, online marketing tools, and security solutions, serving millions of customers worldwide.
How the Company Makes MoneyGoDaddy 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.85
Very Positive
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.65
Positive
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.78
Positive
| 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
Negative
176.42
Price Trends
198.12
Negative
190.01
Negative
169.30
Positive
Market Momentum
-7.70
Positive
32.95
Neutral
71.21
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 176.42 is below the 20-day moving average (MA) of 190.35, below the 50-day MA of 198.12, and above the 200-day MA of 169.30, indicating a neutral trend. The MACD of -7.70 indicates Positive momentum. The RSI at 32.95 is Neutral, neither overbought nor oversold. The STOCH value of 71.21 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 68 risk factors in its most recent earnings report. GoDaddy reported the most risks in the “Finance & Corporate” 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 (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $14.17B | 9.96 | 16.66% | 5.76% | -2.99% | -7.36% | |
68 Neutral | $25.37B | 27.53 | 135.37% | ― | 7.82% | -32.24% | |
68 Neutral | $22.50B | 30.01 | -72.04% | ― | 4.31% | 1.07% | |
68 Neutral | $3.95B | 46.41 | -41.63% | ― | 12.66% | 2097.85% | |
67 Neutral | $11.17B | 81.15 | -46.79% | ― | 12.63% | ― | |
60 Neutral | $457.12M | ― | -2.09% | ― | 24.52% | 61.08% | |
59 Neutral | $22.39B | 11.53 | -18.05% | 2.31% | 5.00% | -25.89% |
* Technology Sector Average
Performance Comparison
GDDY
GoDaddy
176.42
67.46
61.91%
TLK
PT Telekomunikasi Indonesia Tbk
14.71
-8.70
-37.16%
VRSN
Verisign
237.04
45.67
23.86%
WIX
Wix
188.29
51.76
37.91%
BAND
Bandwidth
15.17
-3.14
-17.15%
DOCN
DigitalOcean Holdings
40.42
2.94
7.84%
GoDaddy Earnings Call Summary
Earnings Call Date: Feb 13, 2025 | % Change Since: -16.99% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Positive
The earnings call highlighted GoDaddy's significant achievements in financial performance, particularly in the applications and commerce segment, and the successful launch and growth of Aero. However, challenges such as a decline in the customer base and slow growth in the core platform segment were noted. The company is optimistic about future growth, particularly with its Aero initiative and strategic focus on high-value customers.Highlights
Record Annual Bookings
GoDaddy crossed a significant milestone by delivering its first $5 billion of annual bookings in 2024, driving top-line bookings growth of over 9%.
Strong Financial Performance
Annual revenue grew 8% to $4.6 billion, with applications and commerce revenue increasing by 16% to $1.7 billion. Normalized EBITDA margin expanded to 31%, up nearly 400 basis points.
Commerce Growth and Innovation
Annualized gross payment volume increased 55% to $2.6 billion, with new innovations like GoDaddy Capital being introduced to support customer cash flow management.
Successful Aero Initiative
Aero has shown promising results with 50% of paid subscriptions originating with the Aero experience. AeroPlus was also launched with advanced features, and Aero-related marketing efforts during the Super Bowl increased visibility.
Applications and Commerce Segment Surge
Applications and commerce bookings grew 21%, contributing to a 25% increase in free cash flow for the year.
Lowlights
Customer Base Decline
Customer base declined to 20.5 million due to divestitures, ending deep discounting, and migrations. Although newer cohorts are delivering as intended, the overall company retention rate slightly dipped to 84%.
Core Platform Segment Slow Growth
Core platform revenue grew only by 3% to $2.9 billion, with bookings growth of 4%, slightly tempered by strategic initiatives and divestitures.
Currency Headwinds
Currency headwinds are expected to impact revenue growth, particularly affecting international growth compared to the US.
Company Guidance
During the call, GoDaddy provided guidance for 2025 with several key metrics. The company is targeting total revenue growth of 7% at the midpoint, aiming for $4.86 to $4.94 billion. The Applications and Commerce (A&C) segment is expected to see mid-teens revenue growth, while the Core Platform segment will grow at low single digits. They also anticipate a normalized EBITDA margin expansion of about 100 basis points, targeting a 33% margin by 2026. Free cash flow is expected to exceed $1.5 billion, representing over 11% growth. Additionally, GoDaddy plans capital expenditures of $30 million, cash interest payments of $150 million, and $30 million in cash taxes. The company maintains a disciplined capital allocation approach, focusing on shareholder returns.GoDaddy Corporate Events
Executive/Board Changes
GoDaddy Appoints New Chief Accounting Officer
Neutral
Nov 8, 2024
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.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.